How to get the most out of enterprise level BPM intiatives

1. Reengineering the Business – Customer Process
Saurabh Sardesai
Consultant, Business IT Program Governance
Executive Summary
The importance of the tools of Business Process Reengineering (BPR) and Customer Relationship Management
(CRM) are very well documented. In this paper, I propose an amalgamation of these two tools into one of
reengineering the business – customer process. I commence by revisiting the BPR methodology, and propose a
holistic systems approach to the same. Subsequently, we define the CRM paradigms in terms of process
parameters. To supplement the synthesis of BPR and CRM, a case study should be presented. Using basic tools
of strategic management, competitive strategies for this initiative are formulated. The paper concludes by looking
a policy issues in implementing the strategies, and augmenting the conclusions with some basic lessons learnt.
Introduction
Since its first appearance in 1990, Business Process Reengineering (BPR) has attracted
considerable attention in management literature, and in management practice. It challenges
long-accepted models of the way in which enterprises should be structured, managed, and
operated. BPR is “the analysis and design of workflows and processes within and between
organizations” or “the critical analysis and radical redesign of existing business processes to
achieve breakthrough improvements in performance measures”.
A business process is a set of logically related tasks performed to achieve a defined business
outcome. In general, a process is a “structured, measured set of activities designed to produce
a specified output for a particular customer or market. It implies a strong emphasis on how
work is done within an organization. Generally speaking, processes have two important
characteristics – one, that they have customers, and two, that they cross organizational
boundaries. One technique for identifying business processes in an organization is the “value
chain method”.
1. Entities: Processes take place between organizational entities. These could be inter -
organizational, inter –functional, or inter – personal.
2. Objects: Processes result in manipulation of objects. These objects could be physical or
informational.
3. Activities: Processes could involve two types of activities: managerial or operational.
BPR is a process that contributes to organizational transformation (OT); however, it is not
synonymous with transformation. OT can be viewed as “profound, fundamental changes in
thought and actions, which create an irreversible discontinuity in the experience of a system” A
related development of the mid and late 90’s is the advancement of Customer Relationship
Management ( CRM).
Simply stated, relationship marketing is a game plan based on the realization that the cost of
retaining an old buyer is lower than that of getting a new one. CRM is based on the proven
fact that loyalty programs create great customer satisfaction, and eventually start funding
themselves.

2. In this research paper, a novel attempt has been made to synergize the concepts of BPR and
CRM. This has been attempted both in a conceptual framework, as well as through a
real-life case study of a training institute.
The BPR Methodology
The following are some of the basic tenets of the BPR methodology:
1. Develop a clear statement of corporate goals and strategies. This seems obvious, but there
have been far too many BPR “failures” due to the simple fact that the corporate goals and
strategies have not been explicitly stated.
2. Address business processes, and align processes and corporate goals. Very often, the
corporate strategies may be well defined, but the process goals may not be in synchronization
with the business objectives.
3. Make appropriate use of proven, available management techniques. This is also quite self-
explanatory, and for the uninitiated we give a few selected references in BPR at the end of this
paper.
4. Provide for the development of visions that represent radical change. Though we just
mentioned that BPR is not the same as OT, nevertheless, we feel that one should be culturally
prepared to accept and accommodate fairly “large changes” in the way in which business
processes are to be redesigned
5. Consider customer satisfaction as the driving force behind the goals. This is an obvious focus
and strategic goal, but sometimes the technology seems to be the driving force or focus, which
it should not be.
6. Identify value-added processes, along with the support processes. As a matter of fact, the entire
BPR paradigm is built on the premise that each and every process must be justified in terms of
its value-addition.
7. Analyze operations, and identify processes that are not value-added. To make theBPR exercise
relevant, one must eliminate such processes that do not add value.
8. Consider solutions in which employee empowerment and technology drive change. This is
to build in ownership and responsibility in the process design amongst employees. Also,
though technology may not ( and should not be) the driving force behind the change(s), it
should certainly be a facilitator for change.
The Rigors of Relationship Management
Many enterprises think that Customer Relationship Management (CRM) is all about
technology, frequently because it is pushed by software vendors. Talking technology is easier
than discussing cultural changes and Business Process Reengineering (BPR) that will
undoubtedly be needed as a result of the technology becoming “customer-centric”. Although
it is doubtful that it would be possible without technology, CRM is not about putting in

3. systems to support current culture and business practices. CRM, for most enterprises, is a new
direction – a new strategy that will lead to greater profitability by creating customer loyalty and
a customer base that is a company asset. In the Internet age, with economic power moving
towards the consumer, and with increasing competition, such a strategy is a necessity. If an
enterprise does not look after its customers, chances are that someone else will.
The rigors of relationship management are based on four simple premises:
1. The cost of retaining an old buyer is lower than that getting a new one;
2. Loyalty programs create considerable customer satisfaction;
3. Such programs ultimately start funding themselves; and
4. Relationship building enhances the brand equity of a company.
The need for relationship building can be gauged from the following paradigm “Any business
with the potential of repeat purchases – be it of a single product/ service, or of a range of
products/ services – has an opportunity for relationship building”. Examples of such
businesses include the hospitality industry (frequent flyer programs), entertainment -clubs,
audio/ video/ computer libraries and clubs, education and training institutes/ academies, and
web marts/ exchange forums/ e-commerce centers. In order to recommend suitable strategies
to the study organization in this project, we defined the following basic paradigms:
1. All BPR processes must be institutionalized and internalized. This is to build corporate
ownership, as well as corporate responsibility, for the business processes;
2. There is almost always a need to upgrade product/ service quality;
3. Success, especially in the white goods and services sectors, is ultimately market –driven
4. The business must develop at least one core competence that will enable it to hold its own
against the competition.
The Basic Beliefs and Values of restructuring
• Innovations in value additions for the customers
• Integrity, transparency, honesty, and commitment in all our endeavors;
• Creating prosperity for, and sharing the same with, our employees;
• Inculcating team spirit and involvement of all our staff, through best practices at
the work place; and
• Long-term relationships with our customers, business associates, and employees
through continuous value addition in our services.
Recommended Reengineering Strategies
The following reengineering strategies are recommended, based on the strategic research and
solution developed by me as a Management Consultant for a top Fortune firm.
• Reorganize the Company along customer-oriented Strategic Business Units
• Create a lean organization by not employing too many consultants on therolls
• Introduce Relationship Marketing, via Customer Relationship Management
• Perform a thorough number-crunching exercise to develop promotiona lprograms, especially in
arriving at affordable spends for acquiring and retaining customers

4. • Develop customer rewards programs, as the backbone of all relationships marketing exercises.
Customers demand immediate gratification, constant attention, and perennial excitement;
• Create strategic alliances with non-competing product- and service-providers as business
partners
• Get more and more partners to join the program, as they would it to be an effective and
cost-saving way of accessing a large focused-segment of the targetgroup;
Conclusions
• Develop clear goals and objectives;
• Keep a close pulse of the market, especially of the differentiated customer segments;
• Develop new vision to keep pace with the technological advances
• A strategic combination of BPR and CRM needs to be deployed, as outlined in this paper, in
order to revive and revitalize processes integrating with various stakeholders.