Abstract
Business process reengineering (hereafter referred to as BPR) was revolutionary during the
early and mid 1990’s. Numerous authors wrote articles and books to appraise the concept and
discuss the possible benefits of it. However, the question could be asked whether BPR is still
of any relevance in 2001 in South Africa?
This question was answered by James Champy in an article published in the Sales & Marketing
Management magazine (1998:26) where he stated that:
“It has hardly begun. Why? Principally, because we have yet to experience the full
effect that the ubiquity of information technology (hereafter referred to as IT) will have
on the way we operate. By (that) I mean the omnipresence of highly portable
computing and telecommunications devices in the workplace and in the home,
combined with the increase in computer literacy and comfort on the part of most
adults…and then there is the exploding Internet phenomenon that has provided a
platform for universal communications, along with a whole new infrastructure for doing
business.”
The opportunities for BPR that go hand in hand with the implementation of e-business are
numerous and makes BPR as relevant as e-business itself. This is supported by an article in
Computerwold published in December 2000:
“Today, e-business initiatives have made the need to streamline, integrate and
automate processes even more pressing” (Ulrich, 2000)
With electronic business still a mere infant in South Africa, and specifically in the short-term
insurance industry, its full development can have significant implications on the way businesses
operate.
A second motivational factor for undertaking this research was personal awareness of the
following misconceptions by certain businessmen:
- That BPR refers to restructuring, retrenchments and the implementation of IT systems; and
- That BPR should be implemented in industries where inventory plays a significant role, e.g.
the manufacturing or distribution industries.
The following chapters of this dissertation will strive to prove that these are misconceptions and
that BPR is based on sound business principles, which include much more than downsizing or
the implementation of new IT systems. Very often, a negative connection is drawn with BPR
where companies claimed that they have implemented BPR, but in fact, only retrenched staff or
implemented new information systems.
The dissertation will further strive to prove that the implementation of BPR can also be
introduced in industries with no inventory, such as the financial services industry, and with
spec ific reference to the short-term insurance industry.
Prof. T.L. Voogt