10 Impactful Examples of Business Process Reengineering

Business process reengineering (BPR) has become a crucial strategy for companies seeking to substantially improve performance and productivity. By completely rethinking and radically redesigning core business processes, organizations can achieve dramatic gains

In my 15 years as a business consultant, I’ve helped dozens of clients successfully implement business process reengineering. In this article, I’ll share 10 real-world examples that demonstrate the transformative power of BPR.

Why Companies Undergo Business Process Reengineering

Before diving into the examples, let’s quickly recap why organizations find themselves needing to reengineer:

• Existing processes are outdated and inefficient as business needs have changed.
• Companies are facing increased competition and need to improve to stay competitive.
• New technologies have emerged that enable entirely new process approaches.
• Mergers and acquisitions have combined different systems that don’t align.
• Cost reduction pressures require finding ways to streamline operations.
• Overall performance has declined to unacceptable levels.

The companies in our examples faced one or more of these triggers and recognized BPR as the solution. The fundamental goals of their reengineering efforts included:

• Reducing process costs and cycle times
• Improving quality and customer satisfaction
• Increasing flexibility to adapt to changing needs
• Eliminating redundancy and bureaucracy
• Leveraging technology advancements
• Driving innovation

Now let’s explore 10 real-world business process reengineering examples that achieved these goals and delivered tremendous value.

1. IBM Credit Transformation

• Faced 30%+ annual growth in credit requests and needed a scalable solution.

• Redesigned credit process from a fragmented country-by-country approach to an integrated global model.

• Reduced credit processing costs by 60%.

• Increased credit approval speed from days to minutes.

2. Telenor Billing Process Redesign

• Multiple outdated legacy billing systems created complexity.

• Implemented a real-time unified billing system across business units.

• Reduced invoicing costs by 80%.

• Cut invoice processing time from weeks to hours.

3. Dell Direct Model

• Traditional retail distribution model faced low margins and lack of customer data.

• Shifted to direct web-based sales model connecting directly with customers.

• Reduced manufacturing costs by 25%+ through build-to-order.

• Created invaluable customer data to drive innovation.

4. Walmart Cross-Docking

• Old supply chain had distribution centers and lag times that added costs.

• Adopted cross-docking to eliminate warehousing and quickly transfer goods.

• Reduced inventory carrying costs significantly.

• Enabled delivering goods faster to stores at lower prices.

5. Follet Higher Education Group

• Disjointed business systems led to high error rates and duplicative data entry.

• Consolidated 40 enterprise systems into 1 integrated platform.

• Cut order lead time from days to hours.

• Reduced IT maintenance costs by 67%.

6. Siemens Most Effective Process (MEP)

• Many overlapping regional sales processes wasted resources.

• Created unified global sales methodology focusing on highest value activities.

• Increased sales productivity by 30%.

• Reduced sales cycle time from months to weeks.

7. McDonald’s Drive-Thru Process

• Drive-thru was causing bottlenecks in stores during peak times.

• Implemented automated order points to collect payment and food prep data early.

• Cut average service times from over 4 minutes to under 3 minutes.

• Increased drive-thru capacity and revenues.

8. PepsiCo Vendor Managed Inventory

• Traditional store stocking disrupted store operations and lacked visibility.

• Adopted direct-to-shelf vendor managed inventory model.

• Boosted on-shelf beverage availability by 15%.

• Saved over 200,000 labor hours annually.

9. Hertz #1 Club Gold

• Traditional car rental model involved long waits and rigid pricing.

• Launched expedited #1 Club Gold service tier for top customers.

• Offered self-service kiosks, priority lines, and flexible pricing.

• Drove 20% sales increase from loyalty program members.

10. Anthem Claims Processing

• Manual claims processing plagued with paperwork, delays, and errors.

• Implemented automated document management and rules engine.

• Cut claims decision time from weeks to 1-2 days.

• Saved over $100 million in first year.

Key Takeaways

While the details vary across industries, these examples illustrate several consistent lessons and best practices for executing impactful business process reengineering:

• Obtain senior leadership buy-in and commitment.
• Take a clean slate approach to imagine ideal processes.
• Leverage new technologies to enable process innovations.
• Focus on the customer experience and value add.
• Prioritize actions delivering the biggest benefits.
• Set measurable goals tied directly to strategic objectives.
• Plan for organizational change management.
• Maintain continuous improvement after initial implementation.

Realizing the Benefits of BPR

Companies that recognize the need for radical business process reengineering and dedicate themselves to comprehensive overhaul can achieve dramatic gains. While not without risks and challenges, BPR enables organizations to leapfrog competitors.

However, BPR is not a one-and-done initiative – it must become an integral part of your culture. Continuously examine processes for enhancement opportunities. Monitor results and be ready to course correct quickly. With the right commitment, investment, and follow-through, business process reengineering can unlock game-changing performance improvements.

To discuss how business process reengineering could potentially transform your organization, feel free to reach out. I enjoy helping companies understand how to realize the full strategic value from BPR. Here are some related articles on process optimization best practices that may also interest you.