An empirical study of information technology enabled business process redesign and corporate competitive strategy

Abstract

Business process redesign (BPR) has been widely touted as a means for leveraging the power of information technology to change business processes radically, resulting in substantial improvements in organizational effectiveness and efficiency. This study represents an early attempt at examining the strategic nature of the phenomenon. Because BPR is radical change and has the ability to alter both the competitive and operational nature of the corporation, it is critical that BPR be coordinated with corporate strategy. Through a survey of information system executives, the relationships between corporate competitive strategy and three types of BPR – intrafunctional, interfunctional and interorganizational – were examined. It was found that organizations following a cost strategy tended to do more BPR projects on interfunctional processes. Furthermore, the positive effect of a cost strategy on interfunctional BPR was found to be strengthened by the degree of integration of IS and business planning. It was also found that while interorganizational BPR was not related to a specific strategy, it was strongly related directly with IS–business planning integration.