Abstract

This chapter discuses business process reengineering (BPR) concepts and issues within the small- and medium-sized enterprises (SMEs). BPR is recognized as a means of either improving efficiency or of enabling full value-added changes to be achieved in firms. The main focus of BPR is on process change to improve customer value. BPR initiatives can be classified by two dimensions—scope and scale. Scope includes the number of functions integrated to form the process. Scale is the extent of change in terms of how radical the BPR project is. The higher levels of BPR are viewed as more strategic and radical with the potential for substantial gains. The motivations and purposes for SMEs to reengineer may be different from those for larger firms. In SMEs re-engineering is often a response to positive trends—they tend to re-engineer from a position of strength. Two reasons are analyzed—first, small firms are already short of the time and resources needed to reengineer and it is unlikely that a small firm that is faltering can muster the required energy. Second, the by-products of success—rapidly increasing volume, straining processes, and increased profits are the impetus for small companies to reengineer. They need to counter fast growth with processes improvement.

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