Business Process Re-Engineering

The chapter defines business Process Re-Engineering (BPR) from a few perspectives to make clear what it is, what it is not, and what it should be. Essentially, the classic definitions provided by Hammer and Champy, as well as Davenport, are used. The common themes encountered in re-engineered business processes are also mentioned, including the kinds of changes that occur when a company re-engineers its business processes. In order to better explain the concepts of BPR, a business process is defined in fundamental terms and distinguished from a function or department (i.e. work unit). The basic types of business processes are described, and those that are mainly focused on by companies in implementing BPR are highlighted. In addition, a general description of the entire spectrum of business processes typical to organizations, comprising both core and support activities, is provided as an overview. Specifically, the core and support processes that apply to the construction industry are defined. In the next part, the enabling role of IT in BPR is explained in relation to how it is crucial to process innovation for e-business, as well as process integration for supply chain management in the new information (or knowledge) economy. In essence, it stresses that new information and communications technologies enable instant communication and networking, and facilitate timely data-sharing and exchange, leading to the transformation of traditional organizations into those that are highly information-based. Examples of e-business and supply chain management are provided, as well as two case studies of Internet-based construction process innovation. In particular, the design and construction process is examined to identify areas for developing process models. Focusing on achieving design and construction process integration over the life cycle of a project, the requirements for change in the construction industry are highlighted. The applications of 3D/4D models are cited as examples, showing the different areas where they can be applied to derive benefits. Building Information Models (BIM) are introduced in the later part of the chapter as an approach that enables dramatic process improvement and innovation. The key concepts of BIM are covered, including research insights into the scope of BIM use, barriers to BIM use, and effects from BIM use. Process improvements as a result of adopting BIM for the purpose of data integration, systems integration, or collaborative working are discussed in both contexts of intra- and inter-organizational use. Illustrations are provided for the three different purposes. Recent developments in BIM are reviewed to present the current state of BIM implementation in the construction industry. The chapter concludes with a summary of the main points covered on BPR.