Research article Review

Rohit Pawar
1527121-Sec B

BUSINESS PROCESS RE-ENGINEERING: A panacea for

Reducing operational cost in service organizations
Journal: - Independent journal of management & production (ijm&p)
http://search.proquest.com/docview/1690433304/8BD49ECC152141C2PQ/8?
accountid=38885
Author: - Joseph Sungau

Introduction:
In todays business era organizations all over the world focus more on
reducing operational costs by applying various techniques to increase the
profits. They rely more and more on developing feasible techniques and
Business process re-engineering is the most effective techniques which
increase the efficiencies of the processes. Business process re-engineering is
fundamental rethinking and redesigning of the processes to obtain certain
measures like optimum cost, better quality, service or speed. It is a simple
process that converts inputs to outputs in more effective manner.
Depending on the situations organizations redesign their processes
and these are Crisis management, Anticipatory management and market
leadership. Crisis management is performed when the organizations are in
crisis and they have to improve their processes without fail to sustain in the
market. Anticipatory management involves the upcoming crisis forecasting
so as to avoid it in the coming future and the market leadership is for those
organizations who always want to be leading in the market, BPR provides
effective techniques for them. The main driving force for BPR is the
continuously improving information technology sector. Major attributes of the
BPR are business process renovation, business process automation and
business process networking. In reducing operational cost BPR forms a
bridge between customers and the organizations to provide optimum
services, for this it requires to adjust, renovate and combine various
processes to increase service quality and delivery time.
Research Methodology:
To test the cause effect of BPR on various service industries, a
hypothesis survey was conducted in the city Dar es Salaam city of Tanzania
where all service organizations were involved and the target population for

the study was made up of banking, public utility and pension fund sectors as
well as other sectors like insurance, health services, airline and
communication. Simple quota method is used for sampling and data were
collected by using questionnaires to get categorical data. According to
organizations responses the Z value approach showed all the values ranging
between -2.77494 and 2.20715.
Major Findings/ Results:
The final results showed that the BPR helps to improve the delivery
speed and quality which intern lower the operational cost and it is also
observed that the reduction in operational cost is more via service quality as
compared to that of delivery speed and also evidenced that BPR technique
has been adopted by the majority of the service organizations in Tanzania
which is about 68.4% for more than 7 years. So Business process reengineering improves service quality and service delivery speed and
effectively manages the operational cost in the service organizations.
Criticism:
For organizations to sustain themselves in todays market they need to
redesign and manipulate certain service processes and Business Process reengineering provides effective techniques which can really improve the
service quality and delivery time required for various processes which intern
generate profits in long run. According to various situations various
techniques like crisis management, Anticipatory management and Market
leadership are provided by Business process re-engineering.