Advantages and Disadvantages of Business Process Management and Business Process Reengineering

Running head: BUSINESS PROCESS MANAGEMENT
Business Process Management
Name of the Student
Name of the University
Author’s note:

1BUSINESS PROCESS MANAGEMENT
1.a BPM VS BPR:
Advantages of Business Process Management: The customer satisfaction is a very big
factor in any organization. It is most important in e-commerce or simple retail industry. The
organizations always forces their current environment to shift toward achieving more customer
satisfaction. The business process management is one of the best ways of doing that. The
business process management can be used to implement automated mechanisms that can
understand and response to customer query accurately and efficiently. The business process
management allows analyzing all the processes that can be related to customer query and include
the status of those processes in one single log. Better understanding of customer need and own
business processes is a very big advantage of using business process management. The business
process management allows the organizations to measure the process efficiency, cycle time and
impact on business. This way the organizations can easily calculate contribution of each process
to the organizational goal. The business process management also allows measuring the
resources used by a process. The resources can be human resource, financial resource and many
more. Through understanding the resources applied to each process, organization can calculate
the effort put into each process in a better way.
Disadvantages of Business Process Management: The business process management is
not capable of providing extremely efficient and out of the box solution to a client. The processes
developed in the business process management are always linked to the previous existing
processes. The business process management requires sharing business data with the outsiders
who are responsible for conducting business process management. In other words, the external
people who gets hand on the sensitive business data can reveal those data to competitors. They

2BUSINESS PROCESS MANAGEMENT
can also get involved in cybercrime to hack into the new system installed using business process
management.
Advantages of Business Process Reengineering: Technology integration is one of the
most influential advantage of business process reengineering. The business process
reengineering allows an organization to implement a new system or piece of technology from
scratch. The organization need not to have any kind of existing system upon whose processes the
new system functionality can be defined. The business process reengineering can be a lengthy
process that includes many organization changes, completed periodically for making the
organization more competitive. The business process reengineering is always done under
managerial supervision and periodical stakeholder meetings are must in the business process
reengineering checklist. Business process reengineering is a robust approach and always
welcome new changes in the scope. As the timeline of business process reengineering is long,
many new trends and technologies invented before business process reengineering is completed.
The business process reengineering allows a process to be developed from scratch. This allows
organizations to add new departments or whole new approach to business operations without
affecting the customer.
Disadvantages of Business Process Reengineering: The business process reengineering
drastically changes the existing organization environment and working patterns. Because of this
reason, a lot of resistance is experienced from employee side. Managing this resistance takes a
lot of time and effort of management. The number of risks associated with the business process
reengineering is too many. As the business process reengineering is lengthy approach, many
organizations lose their interest.