What Is Business Process Reengineering?

Business process reengineering (BPR) is a management approach that pursues the radical redesign of core business processes to achieve significant improvements in terms of cost, quality, service, and speed.

It is not a matter of simple incremental improvements, but rather a complete rethinking of workflows in order to achieve tangible progress. It is a global business concept used in a multitude of jurisdictions internationally.

In this article, we will focus on BPR, address all the steps necessary to complete it, and discuss the advantages and challenges of the process with examples and practical solutions.

Defining Business Process Reengineering

A practical business process reengineering definition is: a top-down redesign of end-to-end workflows that rethinks the objectives, ownership, and sequence of work to eliminate delays, errors, and costs. Unlike continuous improvement, which aims for incremental change, BPR resets the process from first principles by challenging traditional rules, approvals, and hand-offs to achieve transformative outcomes.

Simply put, this article answers the question “what is business process reengineering” by showing how leaders abandon marginal solutions and instead redesign the flow to achieve the desired result with fewer steps and less variability.

Why Business Process Reengineering Matters

Markets move faster than traditional processes. Systems and teams created for yesterday’s environment are no longer able to support today’s channels, expectations, performance, and regulatory constraints. BPR was created precisely to overcome these outdated practices, equipping companies with more modern, streamlined, and technologically advanced processes.

At the same time, reorganization also allows companies to adapt to markets that are constantly evolving due to technological advances, automation, and globalization.

For many companies, BPR is not an option, but a necessity. It is the only way to survive and generate profitability in the medium to long term.

Key Principles of Business Process Reengineering

During the business redesign phases, it is important to keep a few key principles in mind.

• Focus on effects: During redesign phase, focusing on the goal is the only thing that matters. BPR does not focus on “doing more,” but rather on achieving a specific result (cost reduction, quality improvement, etc.).
• Encourage cross-functional collaboration: The process requires end-to-end collaboration between all departments in order to avoid bottlenecks.
• Technology as an enabler: Effective use of technology (automation, AI, data analytics software) allows you to radically redesign processes, accelerating efficiency and innovation. 
• Simplification and elimination of unnecessary activities: The goal is to cut redundancy in order to simplify and streamline procedures. Ask yourself: Is this step really necessary?
• Customer-centric perspective: BPR aims to improve the ultimate customer experience. Therefore, it does not have an internal perspective, but is totally focused on customer satisfaction.

Steps in the Business Process Reengineering Approach

The business redesign process consists of five main phases, which are essential for achieving the most effective outcomes.

Step 1 – Identify the processes to be redesigned. The first step, therefore, is to understand which specific processes need to be redesigned and reengineered. As a rule, the choice falls on those that are most obsolete and need innovation.

Step 2 – Analyze current flows and weaknesses. The next step is to create a map of all workflows within the company. Here, we try to understand exactly where time and resources are being wasted and make changes.

Step 3 – Design more efficient and simplified processes. Once the most problematic areas and operational inefficiencies have been identified, proceed to design revised work processes. The goal is to make the company more efficient, productive, and flexible through a clear process redesign that eliminates unnecessary complexity.

Step 4 – Implement the changes. The next step is to implement all these changes, starting with technology and staff alignment. 

Step 5 – Monitor, review, and refine after execution. The final step is to monitor any progress made, take corrective action where necessary, and refine areas that still have room for improvement.

Benefits of Business Process Reengineering

Business process reengineering, therefore, brings significant benefits in both the short and long term.

• Greater operational efficiency and cost reduction. Fewer steps and fewer errors reduce unit costs and make expenses visible, while overall performance becomes easier to measure and improve.
• Faster service and shorter cycle times. Less waiting, smaller batches, and better sequencing speed up delivery.
• Greater customer satisfaction and loyalty. Reliability and clarity of updates reduce cancellations and chargebacks.
• Greater adaptability. A well-executed BPR provides the company with leaner processes and, as a result, processes that are more adaptable to any context and situation.

Challenges and Risks in Business Process Reengineering

Obviously, like all business restructuring, BPR also presents challenges and risks to consider. Among the main ones are:

• Resistance to change. People tend to rely on familiar routines. As a result, employees and managers are likely to reject change initially. 
• Initial investments in tools and skills. Redesigning a company requires resources (financial, technological, human) and time. Added to this are the costs of staff training and the acquisition of updated tools or useful instruments.
• Risk to business continuity. Transitions can create short-term instability. Use fallback solutions, dual management periods, and clear rollback criteria.
• Cultural misalignment. If the proposed model is not well-explained or does not integrate with corporate culture, it can generate mistrust and internal conflicts. A clear narrative supported by data and managerial insights is needed that links the changes to long-term objectives and benefits for everyone.

Examples of Business Process Reengineering in Action

There are many case studies over the years of companies that have used BPR to rethink processes and improve business profitability.

The first example, in the manufacturing sector, is Ford. In the 1990s, Ford Motor Company redesigned its purchasing approval process, reduced accounting staff by 75%, integrated IT systems, and simplified workflows.

Another finance example is Citibank. Introducing digital systems, the bank benefited from shorter execution times and improved service quality for its corporate customers.

In healthcare, hospitals in the US and Europe have applied BPR in the areas of medical record management and appointment. This has improved resources and reduced patient waiting times.

Finally, in the technology sector, IBM reengineered its supply chain, moving from fragmented systems to a single integrated platform, reducing cycle times, gaining greater flexibility, and responding quickly to markets.

What do all these case studies teach us? Technology and innovation alone are not enough. It is necessary to rethink processes and corporate culture and involve every member of the organization.

Business Process Reengineering vs. Other Strategies

What other strategies exist to improve business processes and make the company more competitive? BPR is not the only method, and in this section, we compare it with three other widely used strategies.

• Continuous improvement/Kaizen. These are incremental and continuous improvements that stabilize the current flow, unlike BPR, which involves structural changes. The difference is that the former method takes time, while BPR provides immediate improvements.
• Digital transformation. Broader changes in capabilities (data, platforms, channels). BPR can be a pillar within this, focusing on flow rather than just the technology stack.
• Organizational restructuring. Changes to entities, roles, and governance. BPR complements this process by eliminating waste and ambiguity in day-to-day work, often led by independent business restructuring consultants or corporate restructuring advisors.

When Should Businesses Consider Business Process Reengineering?

There are certain situations when redesigning business processes becomes truly valuable. Among the most common are:

• Decline in efficiency or increase in operating costs: This is highly recommended when processes become obsolete or inefficient, resulting in operating costs growing faster than revenues.
• Major market shifts or customer demands: Structural changes in the market (different competitors, digitization, regulations) often require faster, leaner, and more customer-oriented processes. 
• Scalability in Global Operations: Companies that want to expand internationally need standardized and scalable work processes to adapt to completely different contexts. 

Often, the need for BPR emerges alongside early signs your business needs to be restructured. Reduced margins, high operating costs, operational inefficiencies, and loss of market share are all signs that prompt management to take action, especially when considering strategies such as how to avoid bankruptcy.

FAQs

What is business process reengineering?

Business process reengineering (BPR) is the complete redesign of a company’s key processes to eliminate inefficiencies and achieve significant improvements in cost, speed, quality, and customer value.

How does business process reengineering differ from process improvement?

BPR is radical and transformational—it rethinks processes from the ground up. Process improvement, on the other hand, makes smaller, incremental adjustments to existing operations.

What are the main steps in business process reengineering?

The steps typically include: identifying processes to redesign, analysing current work processes, creating new streamlined models, implementing changes with people and technology, and monitoring outcomes for continuous refinement.

What industries use business process reengineering most often?

BPR is widely applied in finance (for digital services), healthcare (to improve patient pathways), manufacturing (to reduce cycle times), and IT (to optimise systems and data flows).

Can business process reengineering help avoid financial decline?

Yes. By eliminating waste, reducing costs, and aligning operations with market needs, BPR strengthens efficiency and resilience.

References

Holistique Training. (2025, May 21). Business Process Reengineering (BPR): A Path to Efficiency

https://holistiquetraining.com/en/news/business-process-reengineering-boosting-organizational-efficiency

IBM. (2024, April 25). What is business process reengineering (BPR)?

https://www.ibm.com/think/topics/business-process-reengineering

Moxo Team. (2025, May 15). Unlock growth with benefits and importance of business process reengineering (BPR)

https://www.moxo.com/blog/benefits-of-business-process-reengineering