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A Model Management Approach to Business Process Reengineering

Levent V. Orman
Journal of Management Information Systems
Vol. 15, No. 1 (Summer, 1998), pp. 187-212
Published by: Taylor & Francis, Ltd.
Stable URL: http://www.jstor.org/stable/40398378
Page Count: 26
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A Model Management Approach to Business Process Reengineering
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Abstract

A prescriptive and analytical approach is taken to business process reengineering (BPR). The objectives are to provide precise guidelines for process redesign to take füll advantage of the efficiencies created by information technologies, and to develop techniques to evaluate alternative structures. A decision-making paradigm of organizations is adopted, and organizational processes are viewed as collections of décision modeis. Such a simplified analytical model provides an effective methodology to describe and quantify the impact of information technology on organizational structures and processes. The model explains and quantifies a variety of organizational issues such as: the significance of hierarchical structures in organizations, the need for business process reengineering after the introduction of information technology, and the exact conditions under which information technology may (and should) lead to more or less centralized structures. Reoptimization of business processes after the introduction of information technology is formulated as a dynamic programming problem.

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