Business Process Reengineering

Business Process Reengineering

The use of computers and information technology to improve a company's efficiency. For example, an automobile factory may automate and use more machines, rather than workers, to make cars. Because such companies need fewer workers, they often need fewer managers, who usually command higher salaries. Business process reengineering can increase the speed with which products are made (because machines can work 24 hours a day) and can reduce overhead (because the company needs to pay fewer employees). This is considered beneficial for consumers because it results in less expensive products. However, it is controversial, since some perceive BPR as a cause of unemployment.