Selecting BPR projects based on strategic objectives

An extensive search has shown that no business process reengineering (BPR) method specifically addresses the issue of selecting business processes for reengineering based on the processes’ impact on the firm’s strategic objectives. Focusing on strategic business units (SBUs) within the electronics and electrical components industry, the research reported in this paper develops a generic set of SBU business processes which is used, in conjunction with an existing set of generic strategic objectives, to create a decision model that assesses the performance and improvement potential of each business process with respect to the SBU’s collective strategic objectives. The decision model, which contains both deterministic and stochastic elements, is based upon the concepts of decision tree analysis and influence diagramming. Validation of both the set of business processes and the decision support system has been conducted through field studies at electronics and electrical components companies. The results from these studies have been very promising.