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Effect of Business Process Reengineering Factors on Organizational Performance

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The increasing competitory force per unit area as a consequence of technological development, globalisation, altering client demand led to survival challenges of many Bankss in the development states and demanded for betterment in quality client service and velocity to heighten profitableness public presentation and cost decrease. This survey is aim at researching possible relationships among the factors of concern procedure reengineering, and prove a theoretical account that show the consequence of BPR factors on house public presentation with the chairing consequence of IT capableness on the causal relationship between the BPR factors and organisational public presentation of Bankss in Nigeria.

Field survey study would be conducted under natural research scene. The sample of the survey consists of commercial Bankss, microfinance Bankss and primary mortgage fiscal establishments. Closed-ended multiple pick questionnaires would be administered to the Bankss and both descriptive and illative statistics analysis would be used in informations analysis.

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Cardinal words: Business procedure reengineering, Factors of concern procedure reengineering, Information engineering capableness, Organizational public presentation, Banks, Nigeria,


Business procedure reengineering ( BPR ) is a popular direction tool for covering with rapid technological and concern alterations ( Ranganathan & A ; Dhaliwal, 2001 ) .

It was foremost introduced by Hammer ( 1990 ) , as a extremist redesign of procedures in order to derive important betterments in cost, quality, and services ( Ozcelik, 2010 ) . BPR creates alterations in people ( behavior and civilization ) , procedures and engineering ( Al-Mashari & A ; Zairi, 2000 ) . It does non seek to change or repair existing procedures ; but, it forces companies to inquire, whether or non a procedure is necessary, and so seeks to happen a better manner to make it ( Siha & A ; Saad, 2008 ) . BPR integrates all sections into a complete procedure which have been designed to carry through a specific concern end ( Cheng et al, 2006 ) . Successful execution of BPR enables organisations to accomplish dramatic additions in concern public presentation ( Shin & A ; Jemella, 2002 ) .

BPR helps Bankss to cover with new economic challenges and alter the traditional procedures to better their clients ‘ satisfaction. Business Process Reengineering ( BPR ) is a direction subject of analysing and so redesigning current concern procedures and their constituents in footings of efficiency, effectivity and added value to the aims of the concern. The behavior of concern procedure reengineering stairss is planned to garner and procedure concern demands in support of a modernisation attempt for defined country. The BPR starts with planning activities that include the creative activity of BPR squad, the development of a BPR range papers and an scrutiny of bing proposal that relate to a given country, examines the bing and future concern procedure and better consequently. Similar to any other direction attacks, the successful execution of BPR depend on how good it can be fitted to the bank/companies cultural norms, and information engineering ( IT ) suggested by ( Davenport & A ; Short, ( 1990 ) ; Hammer and Champy ( 1993 ) ; Murray and Lynn ( 1997 ) ; Al-Mashari and Zairi, ( 1999 ) ; Bhatt ( 2000 ) ; Khong and Richardson, ( 2003 ) ; Attaran ( 2004 ) ; Ahmad, Francis and Zairi, ( 2007 ) .

Reengineering in a bank should be undertaken as a undertaking, the undertaking direction expertness of IT section become a cardinal ingredient in the success of reengineering. The IT capableness includes both the proficient and managerial expertness required to supply dependable physical services and extended electronic connectivity within and outside house. Information engineering ( IT ) increase the market portion of the bank through offering of a merchandise or service that is non offered by another bank ( e.g. those clients that prefer private/personalized banking or usage debit cards have become the focal point of retail and investings in banking ( Beyers and Lederer 2001 ; Peffers and Dos Santos 1996 ; Post et al. , 1995 ) . For illustration, new advanced banking pattern through amalgamation and consolidation enabled Nigerian Bankss to bridge the service spread in the system ( Sidikat and Ayanda 2008 ) . Therefore, the application of IT capableness would heighten service bringing procedure, produce new merchandise, new procedures, new scheme, make the productiveness of work faster, extinguish all communicating barriers in the organisation and empower workers to associate up with clients and providers to accomplish competitory advantage ( Davenport, 1990 ; Hammer, 1990 ; Teng, James, Grover & A ; Fiedler, 1994 ) .

The banking sector plays the function of a driver in Nigerian economic system that contributed over 6.4 % against a mark of 10 % of entire GDP ( CBN, 2008 ) . The direction of information is a cardinal activity in banking, and the influence of procedure reengineering and inventions through IT is likely to be bigger in banking than in other industries ( David-west, 2005 ) . Banks significantly require IT to organize tremendous volumes of information ( David-west, 2005 ) . Information engineering ( IT ) is perceived as a necessity to prosecute the rationalisation and cost direction due to intensified competition and crisis in the fiscal sector ( De Bandt & A ; Davis, 2000 ) . Information engineering has helped Nigerian Bankss to streamline the back office operations by bettering both efficiency and cost decrease. Progresss in engineering besides act upon the manner Bankss services are delivered with aimed of doing it more convenient for clients. For illustration, many Bankss in Africa now have their subdivisions connected online existent clip ( 24/7 ) .

This clearly reduces the danger of transporting hard currency. Some Bankss have ATM to do hard currency available to their clients 24/7. Some Nigerian Bankss pattern e-banking, telephone, and nomadic banking. Money transportations services through MoneyGramme and Western Union Money transportation have enable Nigerian in Diaspora to direct money to their household ( CBN, 2008 ) . Information engineering capableness ( IT operations and IT knowledge ) moreover, makes Nigerian Bankss to take part more efficaciously in international banking sphere. For case, some technologically up to day of the month Bankss enable them to entree international banking webs in order to expeditiously impact fund transportation, unfastened, amend, and negotiate missive of recognition, retrieve up to day of the month position of client minutess among the Bankss that joined the Society for Worldwide Inter-bank Financial Telecommunication ( SWIFT ) .


The diminution in operational public presentation efficiency of Nigerian Bankss in footings of return on assets, equity and operating cost requires pressing attending of the Bankss to re-strategies for procedure public presentation betterment ( CBN/BSD, 2008 ) . Sanusi ( 2010 ) argued that hapless operational public presentation indices of Nigerian fiscal establishments were due to inadequate and inflexible operational procedures. This was portion of the disclosures of the particular audit for all the Nigerian Bankss conducted jointly by Central bank of Nigeria ( CBN ) and Nigeria sedimentation insurance corporation ( NDIC ) in July 2009 for Commercial Bankss and in February 2010 for Microfinance Bankss. Vetiva Capital Management ( 2010 ) , reported a quarterly public presentation of stocks on the Nigerian Stock Exchange Market for the quarters ended September 2010 that indicated the negative public presentation of ( -2.49 % ) of banking industry stocks as compared to other industrial sectors of the economic system. The weak operational procedures of banking services are responsible for denary public presentation of the sector in Nigeria ( Ibenta, 2010 )

The effects of amalgamation and consolidation of operational procedure and an intensified foreign competition in fiscal service industry through liberalisation and globalisation faced by the organisations led to extremist alterations in operations, and services that result in conflicting public presentation ( Wei & A ; Nair, 2006 ) . The client keeping became a cardinal factor in finding the success of bank. The bank that has the largest client base and highest client keeping rate will be a market leader in the industry. Hence, the quality of client service becomes a driving force in determining concern endurance in the banking industry ( Tang & A ; Zairi, 1998 ) . Assorted writers such as Tas & A ; Sunder, ( 2004 ) ; Bhatt & A ; Trout, ( 2005 ) ; Tennat & A ; Wu, ( 2005 ) Terziovski, Fitzpatrick & A ; O’Neill, ( 2003 ) ; Salimifard, Abbaszadeh & A ; Ghorbanpur ( 2010 ) argued that concern procedure reengineering ( BPR ) in banking services have continued to increased organisational public presentation and identified the BPR factors that played a major function to successful results for reengineering undertakings to includes: alteration direction, direction committedness, undertaking direction, client focal point, equal fiscal resources, classless civilization, usage of I.T, less bureaucratic construction, and quality direction system. CSF is one of the most of import countries that practician would hold a greater chance to be after and pull off successfully if identified in the research on BPR execution ( Cheng & A ; Chiu, 2008 ) . Therefore, given the popularity of BPR and high grade of failure rate linked with BPR undertaking, the desire to place the cardinal success factors of BPR has gain importance as modern-day direction attack for concern success. In Nigerian banking industry, directors realized the effectivity of BPR for deriving competitory advantage even though it is new, they do non to the full understand what BPR is approximately and the CSFs that drive the successful execution of the BPR undertaking. Therefore, to make full this spread, an probe into BPR factors would be worthwhile. When analyzing the relationship between the reengineering factors such as intangible resources and organisational public presentation, it has been posited that there may be some cardinal moderating variables that are of import issues to research ( Wade & A ; Hulland, 2004 ) . A moderator variable is a qualitative/quantitative variable that affect the way and/or strengthen of the relationship between an independent or forecaster variable and dependent or standard variable ( Baron & A ; Kenny 1986 ) . The chairing variable of great involvement is organisation IT capableness and its influence on the intangible resources ( BPR factors ) public presentation relationships ( Liu, Liu, & A ; Hu, 2008 ) .

The growth of concern dependance on information engineering both operationally and strategically necessitate the demand to concentrate on value-creating intangible issues of IT capableness, such as procedure effectivity, IT experience and invention. IT direction experience and competency is expected to demo stronger leading accomplishments and committedness in organisations ( Ross & A ; Feeny 1999 ; Gottschalk 2002 ; Chun & A ; Mooney 2009 ) . Constructing upon the knowledge-based theory, it is argued that the ability to intermix concern and IT knowledge, operational experience for invention and competency through a assortment of strong intra-organizational relationships lies at the bosom of houses ‘ superior ability to understand the potency of information engineering to heighten public presentation ( Mata et al. 1995 ; Armstrong & A ; Sambamurthy 1999 ; Wu et Al. 2008 ) . To add up the eventuality theoretical account in explicating the apparently at odds findings sing the impact of sum IT capableness. Tuominen et Al. ( 2003 ) proposed the appraisal of innovativeness through organisational adaptability as a pre-performance resource and an intermediate factor for fiscal public presentation.

With the job at interest, it has hence become necessary to progress the apprehension of the relationship between the factors in concern procedure reengineering public presentation and IT capableness in footings of IT cognition and IT operations. Previous empirical surveies that examined the BPR factors reengineering public presentation relationships ( Cheng & A ; Chiu, 2008 ) have ignored the specific nature of IT capableness and besides, has non to the full considered of import environmental status that influence the relationships. Pulling on the resource-based position, eventuality position proposed that IT capableness impact on steadfast resources was contingent on the tantrum between the IT capability/resource a house possesses and the demands of the industry in which it competes. IT capableness is expected to act upon the BPR factors and reengineering public presentation relationships. To the researchers cognition, this chairing consequence has ne’er been investigated by anterior surveies.

Although some houses in Asia, UK and US have examined the application of BPR in fiscal service industry, grounds revealed that much attempt did non make the original outlook ( Hammer & A ; Champy, 1993 ) . Therefore, the proposed survey is different from the old researches based on the extra three ( 3 ) BPR factors in footings of equal fiscal resources ; effectual procedure redesign, and less bureaucratic flattered construction ( Ahmad et al, 2007 ; Madubueze, 2007 ; Salimifard, et Al, 2010 ) were introduced into the old theoretical account used. Besides, IT capableness in footings of IT cognition and IT operations was being viewed as moderator ( Tippins & A ; Sohi, 2003 ; Mistry, 2006 ; Yongmei, Hongjian & A ; Junhua, 2008 ) . Huang et Al, ( 2009 ) argued that the empirical grounds of Italian Bankss suggests that the development of IT capableness, such as making an Intranet to function as a depository and communicating tool, can back up the redefinition of the overall scheme of the bank.

Furthermore, cultural integrating of the subdivision web and a life-long preparation procedure can be conducted to prolong the Bankss ‘ big graduated table web ( Canato and Corrocher 2004 ) . Despite the fact that the fiscal service industry is one of the early adoptive parents of new information engineerings, the consequence of IT capableness on house public presentation is inconclusive in the service sector in general, which is contrary to its fabrication opposite number ( Brynjolfsson 1993 ) . The comparing to be made between Bankss with BPR undertaking Vs. Bankss without BPR undertaking ( Xin James He, 2005 ) every bit good as scenes to place the disagreements as a consequence different civilizations, environment, economic activities and degree of infrastructural development ( Peppard and Fitzgerald, 1997 ).

In position of the above mentioned spreads and the suggestion for farther surveies by bookmans, this survey is attempt to look into and understand the consequence of the I.T capableness ( in footings of I.T skill/knowledge and IT operations ) on the public presentation of Nigerian Bankss and fiscal establishments, the possible relationships among the concepts of BPR factors and public presentation, and prove a theoretical account that show the consequence of BPR factors on organisational public presentation every bit good as the influence of IT capableness that moderate the causal relationship between the BPR factors and public presentation of Nigerian Bankss ( Commercial, Microfinance and Mortgage finance. Hence, this survey is aimed to research possible relationships among the concepts, and prove a theoretical account that show the consequence of BPR factors on house public presentation and the chairing consequence of IT capableness on the causal relationship between the BPR factors and organisational public presentation of Bankss in Nigeria.


Organizational Performance

The challenges for globalisation of fiscal markets require major alterations on the portion of market participants to travel beyond national-level competition and achieve international and planetary fight. The full banking industry is concentrating on major procedure public presentation sweetenings and additions in domestic market portion as a accelerator for successful variegation. Banks are concentrating their attempts on market sections offering the potency for growing and heightening public presentation, ensuing in a re-direction within the overall fiscal services sector. Advanced banking services and procedures were evolved as the market consolidates due to amalgamations and acquisitions.

This double tendency toward specialisation and consolidation is hammering Bankss that will be able to vie in international and planetary markets. Performance sweetening attempts are aimed at a complete realignment of internal procedures. In add-on to be containment schemes, focal point is now on bettering client service bringing. Organization processes must be effectual, efficient, and be more customer-friendly. Attempts are being made to reassign attacks like procedure reengineering enterprises that have proven effectual in other industries, peculiarly fabrication, to the fiscal sector.

Organizational public presentation comprises the existent end product or consequences of an organisation as measured against its inputs. Organizational public presentation steps allow companies to concentrate attending on countries that need betterment by measuring how good work is done in footings of cost, quality, and clip. Todays concern environment is characterized by the increasing importance and strength of assorted stakeholder groups. It has become rather obvious that all stakeholders need to be taken into history when measuring modern companys public presentation.

This is the chief thought of Freemans Stakeholder theory ( Freeman, 1984, 1994 ) . The stakeholder position maintains that houses have stakeholders instead than merely stockholders to account for. The position that the corporation has duties merely to its shareholders is replaced by the impression that there are other groups to whom the house is besides responsible. Groups with a interest in the house include stockholders, employees, clients, providers, loaners, the authorities, and society ( Berman et al. , 1999 ; Harrison & A ; Freeman, 1999 ; Hillman & A ; Keim, 2001 ; Riahi-Belkaoui, 2003 ) .

One of import impression revealed in many surveies is that constructing better dealingss with primary stakeholders like employees, clients and providers could take to increased shareholders wealth. A sustainable organisational advantage may be built with silent assets that derive from developing relationships with cardinal stakeholders ( Hillman & A ; Keim, 2001 ) . When analyzing the relationship between stakeholder direction and a firms fiscal public presentation, Berman et Al. ( 1999 ) found that furthering positive connexions with cardinal stakeholders ( clients and employees ) can assist a firms profitableness.

Therefore due to the significance of assorted stakeholders, organisational public presentation should non be entirely assessed by fiscal indexs. There are several attacks to organisational public presentation measuring that encompass different stakeholders positions ( Tangem, 2004 ) . The balanced scorecard ( BSC ) ( Kaplan & A ; Norton, 1992, 1993, 1996 ) is the most established and most normally used ( Neely, 2005 ) , but by far non the lone 1. The multi-model public presentation model ( MMPF ) theoretical account by Weerakoon ( 1996 ) is besides really interesting and has four-dimensions including employee motive, market public presentation, productiveness public presentation, and social impact, and covers the satisfaction of assorted stakeholders such as clients, investors, employees, providers, and society. A more late developed conceptual model is the public presentation prism, which suggests that a public presentation measuring system should be organized around five distinct but linked positions of public presentation ( Tangem, 2004 ) .

Organizational public presentations in this survey refer to the degree of bank public presentation ( increase/decrease ) in footings of both fiscal and non fiscal public presentation indexs. Organizational effectivity represents the result of organisational activities ( Henri, 2004 ) . Organizational effectivity through empirical observation is the ultimate dependant variable in research on organisation ( Cameron, 1986 ) . The perceptual experience of organisational public presentation is linked to the continued success and accomplishment of an organisation.

There are broad runing literatures on public presentation, but there is still no consensus definition of the term public presentation ( Johannessen, Olaisen, & A ; Olsen, 1999 ) . Murphy, Trailer & A ; Hill ( 1996 ) , survey found the usage of term public presentation to include 71 different steps of public presentation categorized into eight ( 8 ) dimensions of both fiscal and non fiscal steps. Majority of the old surveies used fiscal and non fiscal indexs to mensurate public presentation ( Johannessen et al. , 1999 ; Murphy et al. , 1996 ) . The argument on what public presentation measuring to utilize would go on as standards could non use to all scenes ( Cameron, 1986 ) . A reappraisal of the literature on the rating of public presentation in organisation context by Gomes, Yasin & A ; Lisboa ( 2004 ) , reveals different accent on the public presentation measuring depending on the aim of the organisation in that peculiar state of affairs. There are many possible benefits from reengineering that translate into improved organisational public presentation.

However, because of broad possibility of benefit from company innovativeness on public presentation a multiple dimensional graduated table of public presentation measuring offers more comprehensive operationalization of organisational public presentation than on uni- dimensional attack. Examples on some fiscal public presentation indexs employed in old surveies are: profitableness, success rate of new service ( merchandise ) debut, after revenue enhancement return on investing, gross revenues growing, and after revenue enhancement return on assets. Example of non fiscal public presentation indexs includes: client satisfaction, client focal point, market research, and client relationship direction, quality and procedure betterment.

Therefore based on the old surveies, this survey would see multiple measuring of public presentation ( Fiscal public presentation and Customer service direction public presentation ) . The fiscal and non fiscal public presentation indexs would dwell of: net income, net income growing public presentation mark, gross revenues growing, overall response to competition, future mentality, and success rate in new merchandise launch, overall concern public presentation, client service direction, market research, client relationship direction, client satisfaction, operational public presentation, velocity, quality service and procedure betterment. In this survey, the sensed steps of fiscal and non fiscal public presentation of organisation would be used because subjective step was found to be correlated with nonsubjective step of public presentation ( Dess & A ; Robinson, 1984 ; Dawe, 1999 ) . Besides the old surveies Lyles & A ; Salk ( 1996 ) ; Hansen & A ; Wernerfelt ( 1989 ) ; Bart et al. , ( 2001 ) confirmed the dependabilities and correlativities between nonsubjective steps and perceived steps are strong.

Similarly, old surveies conducted by Bontis ( 1998 ) ; and Bontis et al. , ( 2000 ) revealed that subjective step of public presentation ( fiscal and non fiscal ) are executable. Therefore many organisations are convinced that the execution of BPR could convey important and mensurable benefits ( Vergidis et al 2008 ) . In fact, the hazardous nature of BPR has motivated a elaborate probe of its critical success and failure factors ( Abdolvand et al 2008 ) and many research workers ( Ariyachandra & A ; Frolick 2008 ; Bandara, Gable, & A ; Rosemann 2005 ) have tried to place BPR factors.

Business Procedure Reengineering ( BPR ) Factors

Business Procedure Reengineering is being used as a vehicle for re-aligning scheme, operations, and systems to present significantly increased fiscal consequences and client satisfaction. It helps to happen ways to make more with less, and supply a better merchandise or service in a minimal sum of clip, velocity, quality, and cost. In one of import manner, though, reengineering differs from past incremental and analytic methods. BPR factors are the success factors that lead to successful results for reengineering undertakings, if they are satisfactory, will guarantee successful competitory public presentation for the organisation. BPR factors are strongly related to the mission and strategic ends of concern or undertaking. Whereas the mission and ends focus on the purposes and what is to be achieved, BPR factors focus on the most of import factors and acquire to the really bosom of both what is to be achieved and how you will accomplish it.

The BPR factors are those of import factors for success. It was originally developed to aline be aftering with the strategic way of an organisation. It is merely when most of import factors have been identified that practicians would hold a opportunity of organisational success. Assorted BPR factors were developed and validated by writers from surveies in organisations runing in different industry such as fabrication, instruction, and services. The BPR factor is competently chosen to stand for the factors which are of import to accomplishment of coveted result of organisation public presentation. BPR factors are of importance that these cardinal countries of activity should have invariable and careful attending from direction.

BPR factor surely differ from industry, environment as the companys place within industry alterations. It is of import to understand what factors would be of import for BPR in both for understanding the execution of concern procedure reengineering and organisational public presentation betterment. Therefore, based on an extended literature reappraisal and old surveies of BPR factors in banking procedure reengineering have been selected based on the range of survey and tantrum to the banking industry and environment of the proposed survey Nigerian Bankss ( Al-Mashari & A ; Zairi, 1999 ; Ahmad et Al, 2007 ; Salimifard, et Al. 2010 ) . BPR factors are the independent variable which includes: 1 ) Change Management ; 2 ) Management Commitment ; 3 ) Less bureaucratic and flattered organisational construction ; 4 ) Project Management ; 5 ) Customer Focus ; 6 ) Effective procedure redesign ; 7 ) Adequate fiscal resources ; 8 ) Information engineering ( I.T ) substructure. These eight BPR factors are indispensable elements to the successful transmutation procedure.


The construct of I.T capableness was introduced by Ross, Beath & A ; Goodhue ( 1996 ) , defined I.T capableness as the firms ability to piece, integrate and deploy I.T based resources. Heijden ( 2000 ) pointed out that the measuring of I.T capableness covers relationships in I.T section with the remainder for the concern. Bharadwaj ( 2000 ) , broaden the account of recognized positions of organizational I.T capablenesss to an organisations information engineering map. Bharadwaj, ( 2000 ) defined I.T capableness as the ability of house to call up and deploy I.T based resources in combination with other resources and capablenesss. Those I.T-based resources are I.T enabled resources ( consist of proficient and managerial I.T accomplishments ) ; intangible I.T- enabled resources ( such as cognition, assets, client orientation and synergy- the sharing of resources and capablenesss across organizational division. Therefore capablenesss reflect the ability of the houses to unite resources to advance superior public presentation ( Amit & A ; Schoemaker, 1993 ).

Tippins & A ; Sohi ( 2003 ) specify IT capabilities as the extent to which an organisation is equipped with I.T substructure, IT skills cognition and experience every bit good as effectual I.T operations use. A high degree of IT experience enables the smooth execution of the organizations scheme, develops dependable and cost effectual systems for the organisation, and anticipates client demands ( Bhatt & A ; Grover, 2005 ) . Clark ( 1997 ) noted that IT experience in combination with other I.T elements straight determines an organizations ability to quickly develop and deploy more advanced techniques to heighten public presentation.

The function of IT capabilities in heightening organisational public presentation is good established in the literature. Assorted I.T surveies suggests I.T capablenesss provide a footing of deriving competitory advantage and heightening organisational public presentation ( e.g. Santhanam & A ; Hartono, 2003 ; Bhatt & A ; Grover, 2005 ) An extended organic structure of IT capabilities literature agrees that I.T capablenesss are resource to ease an effectual aggregation and use of information ( e.g. Bharadwaj, 2000 ) . Floyd et Al ( 1990 ) contend that I.T capablenesss enhance service dependability, cut down dealing mistakes and increase consistence in public presentation. Further contentions are that capablenesss can lend to heightening service quality through better customized or individualised services, and in making cognition links for placing and sharing organisational expertness ( Quinn et al. , 1994 ) .

Tippins & A ; Sohi ( 2003 ) argued that I.T capablenesss which is besides known as ‘I.T competence enhance public presentation through an riddance of inefficiency, decrease of long term cost, better service dependability and decreased dealing mistakes. While Bharadwaj ( 2000 ) ; Ross, Beath & A ; Goodhue ( 1996 ) ; Li, Chen & A ; Huang ( 2006 ) surveies focuses on the importance of IT capableness every bit good as relationship between I.T disbursement ( IT investing ) and productivity/performance with chairing consequence of IT capableness.

In this survey, the term IT capableness is adapted from the survey conducted by Tippins and Sohi ( 2003 ) . The survey used I.T cognition, I.T substructure and I.T operations among the dimensions of mensurating IT capableness. The BPR factors encompass both touchable and intangible elements of resources. Therefore, this survey would utilize I.T cognition and I.T operation as the chief constituents of mensurating I.T capableness. The 3rd constituent i.e. I.T substructure would be portion of BPR factors as intangible resource. These dimensions demonstrate co-specialized resources that houses can non use the information engineering architecture efficaciously without sufficient cognition and operations.

Therefore I.T capableness can supply the ability to understand the bing operations. It is besides one of the most considered in bring alterations into the concern procedure. Michael Hammer recommends companies to redefine their procedure foremost and so automatize. I.T can play critical functions in the development of BPR attempts as follows:

a. I.T makes it possible to utilize new thoughts and higher criterion engineering in order to develop a strategic vision and aid to do the concern procedure better before it is designed.

B. The communicating engineering through I.T capablenesss helps in interrupting down geographical and organisational barriers that makes the credence of procedure alteration and utile apprehension of companys strength, failing chances and menace. IT besides helps to track information.

c. For a house to pull off a procedure can be adapted from other companies pattern outside its industry. The company should unite its squad members experience to put a criterion that other companies can be compared with.

d. I.T staff needs to broaden their cognition in non proficient countries to accomplish effectual squad work in an administration.

e. In order to hold a flexible organizational design the houses bing hard constructions must be changed so as to guarantee the operation of BPR cross functional squads against departmental activities.

f. To derive market portion and accomplish competitory advantage, the understanding between companies and coaction between providers and distributers takes topographic point at the initial phase of BPR before procedure design.

The Contradictory function of Information Technology as an enabler in Business procedure reengineering ( BPR )

One of the most straightforward averments about BPR is that information engineering is a cardinal enabler of procedure redesign. It is information engineering that permits companies to re-engineer concern processes ; a company that can non alter the manner it thinks about information engineering can non re-engineer ( Hammer & A ; Champy, 1993 ) . Most other BPR advocates besides adopt an basically proficient theoretical account of organisational alteration in which information engineering fundamentally drives the re-engineering attempt ( Grey & A ; Mitev, 1995 ; Jones, 1994 ) . These statements acknowledge the technological determinism built-in to BPR ; engineering determines non merely work construction, but besides organisational construction, civilization, direction manners, and beliefs ( Grey & A ; Mitev, 1995 ) . Therefore, out of fashioned organisational designs can be changed through the usage of advanced, enabling engineerings that support new concern processes that respond to altering market demands.

However sensible and straightforward, this statement seems, it has besides become the beginning of contention. Rather than being a simple enabler of new organisational procedures, information engineering inconsistently can besides disenable an organizations ability to alter. When an organisation revises its basic concern processes utilizing information engineering, it introduces a new construction that may go even more hard to alter in the hereafter. Since the proficient anchor of machine-controlled procedures exists as package modus operandis, a ulterior alteration in procedure will necessitate a Reconstruction of the package application and its assorted links to other systems. While all alterations require reprogramming of some kind, either to human or machine constituents, package plans are frequently virtually unaccessible to the individuals nearest to the application. Given the inevitableness of concern alteration, hard-wired concern procedures that are built today may earnestly restrain subsequently attempts to redesign them.

BPR may hold already produced the organisational constructions and processes that will be considered old-fashion tomorrow, and those procedures may be more hard to alter because todays package conventions will likely besides be considered out-fashion tomorrow. Lucas & A ; Olson ( 1994 ) supply a clear analysis of this in-consistency in their scrutiny of information technologys effects on organisational flexibleness. They argue that engineering provides the capableness for more flexible organisational constructions by leting greater assortment in the clip and topographic point of work while increasing the velocity of response.

However, they note that information engineering besides constrains flexibleness by implanting modus operandis into package plans that are non easy to alter. Deciding the contradiction of information engineering as an enabler or non in BPR is non easy. Gill ( 1995 ) argued that directors should non over plan their organisations in hunt of dramatic productiveness additions but to guarantee greater flexibleness. Lucas ( 1996 ) recommends a committedness to uninterrupted investing in new engineerings, thereby maintaining any programmed modus operandis from going hardened in the organisation

The measuring of the I.T capableness in this survey is based on: IT knowledge ( accomplishments ) and IT operations ( Tippins & A ; Sohi, 2003 ) . I.T Knowledge dimension is related to a managers experiences for executing IT direction activities. Knowledge of an IT is indispensable. Since IT consists of complex engineerings, its execution is ever associated with high hazards and uncertainness ( Umble et Al. 2003 ) . A figure of IT execution failures can be attributed to inappropriate IT planning and direction ( Bergeron et al. 2003 ) . Hence, IT director has a larger function in commanding and pull offing the IT execution procedure ( Willcocks et al. 2000 ).

If an IT director is involved in a new undertaking and possesses the matching IT direction experiences, IT scheme can be in conformity with current concern procedures in order to recognize the coordination between IT and concern aim, thereby helping the organisation enhance concern efficiency and house public presentation with IT ( Willcocks et al. 2000 ) . The IT director can oversee and command IT undertaking costs, place fiscal and human resources divergences, and follow timely steps in order to avoid the possible hazards incurred during the execution procedure. This can further the alliance of the freshly developed IT and concern procedures ( Soffer et al. 2005 ) .

Additionally, employees can be encouraged to quickly accommodate to the new IT, absorb IT cognition and use it in their day-to-day modus operandis, which is good for the betterment of organisation public presentation ( Shao et al. 2008 ) . Harmonizing to Knowledge based position ( KBV ) systems of cognizing refers to constructions of interaction among team members for sharing their positions, pooling of cognition, and development of shared apprehension. It is suggested that systems of cognizing provides forums for top direction squad members that exchange their strategic IT and concern cognition, and intermix them together to further higher degrees of IT diffusion within the organisation.

For directors, a frequent interaction between other top direction squad members enables them to accomplish timely information with respects to organisational concern, therefore to program and deployment IT to aline with organisational concern procedure, better house public presentation through the investings in IT. It is found that IT-related information could be disseminated more efficaciously between the director and the top direction ( CEO ) through richer channels of communications, and this greater interactions in different IT forums is proved to hold favourable influence on houses ‘ IT success ( Jarvenpaa & A ; Ives 1991 )

I.T Operationss are the activities within the organisation that are required to run into ends. These activities are underpinned by accomplishments that encapsulate the cognition within the house. When IT operations are able to supervise and pull off IT resources and services from a real-time concern out-come position, it can aline IT operations with concern precedences. As a consequence, IT operations can streamline concern procedures and optimise resources to assist manage costs, increase efficiency to pull off productiveness and addition gross, and assist guarantee service handiness to heighten client satisfactionrather than merely concentrate on engineering.

IT operations can interpret raw IT supervising informations into a utile concern impact analysis. IT operations should be able to: 1 ) Understand the constellation, dependences and relationships of the constituents that make up the concern service ; 2 ) Establish ends and aims for service bringing documented in the service degree understanding ( SLAs ) ; 3 ) Measure the effectivity of its services ( such as Web waiter handiness and public presentation ) and concern ser-vices ( such as payment processing response clip ) ; 4 ) Analyze and study on the existent services delivered for the IT group and the clients that use them ; 5 ) Create use and accounting studies that can be used for chargeback and charge

Information Technology Service Capability Maturity Model

Harmonizing to Niessink, Clerc & A ; Vliet ( 2004 ) the IT Service capableness adulthood theoretical account consists of five ( 5 ) adulthood degrees, which contains cardinal procedure countries. For an organisation to shack on a certain adulthood degree, it needs to implement all of the cardinal procedures for that degree and lower degrees. The chief focal point is the adulthood of the service organisation, non the adulthood of single services, undertakings or organisational units. The theoretical account covers the service bringing procedure with primary aims:

1. To enable IT service suppliers to measure their capablenesss with regard to the bringing of IT services

2. To supply IT service suppliers with waies and stairss and farther betterment of their service bringing

The IT Service CMM fulfils these above aims by mensurating the capableness of the IT service processes of organisations on a five degree ordinal graduated table. Each degree prescribes certain cardinal procedures that have to be in topographic point before an organisation resides on that degree. Key processes implement a set of related activities that, when performed jointly, achieve a set of ends considered of import for heightening service procedure capableness. Hence, organisations can better their service capableness by implementing these cardinal procedures.

More officially, we define IT service procedure capableness as the scope of expected consequences that can be achieved by following a service procedure. IT service procedure public presentation represents the existent consequences achieved by following an IT service procedure. IT service procedure adulthood is the extent to which a particular procedure is explicitly defined, managed, measured, controlled and effectual. The IT Service CMM focuses on mensurating and bettering the IT service procedure adulthood of IT service organisations. An organisation that scores high IT Service CMM graduated table will be able to:

* Deliver quality IT services, tailored to the demand of its clients

* Do so in a predictable, cost-efficient manner

* Combine and incorporate different services, perchance by different service suppliers, into a consistent service bundle

* Continually and sustainably better service quality in a customer-focused manner

In order to understand the ITS-CMM, it is necessary to see the definitions of the assorted degrees and to understand the structured nature of these definitions. The five degrees of the IT Service CMM are: initial degree ; quotable degree ; defined degree ; managed degree and optimising degree. For an organisation to shack on a certain adulthood degree, it needs to implement all cardinal procedures for that adulthood degree and those for lower degrees.

The term cardinal procedure country simply means that these procedures are seen as the key to make a certain adulthood degree. There might be more non-key procedures, but these are non purely necessary to make the following adulthood degree. The cardinal procedure countries are grouped into three procedure classs: The first group is concerned with the direction of services ; the 2nd class trades with enabling the bringing procedure by agencies of support procedures and standardisation of procedures ; the 3rd class consists of the procedures that result in the consistent, efficient bringing of services harmonizing to the appropriate quality degrees.


This survey focal point on descriptive and causal research ( hypothesis proving ) , since the aim of the survey is to analyze the relationships between the BPR factors, I.T capableness and organisation public presentation. Descriptive research would be undertaken in this survey to place the feature of the population such as respondent ( commercial bank, microfinance bank and mortgage finance ) variableness and organisation features. Causal research or hypothesis testing and correlativity attack would be conducted in the survey to explicate the relationship between the variables and the discrepancy of the dependent variables. This survey would utilize non experimental design, where the research worker does non hold a control over the independent variables that determine their consequence on the dependant variable.

The research can merely command the measuring of the survey but do non interfere with the research scenes. The research is merely interested in garnering the information about the Bankss and fiscal establishments public presentation result of execution of the BPR factors and specifically to analyze the relationship of BPR factors, I.T capableness and organisational public presentation within the banking and fiscal service scenes. Therefore, non-experimental design or study utilizing quantitative method of administrating questionnaire would be employed for this research.

The survey would utilize organisation as the unit of analysis. The population of the survey is 1,023 fiscal organisations ( consists of 24 commercial Bankss, 901 microfinance bank and 98 primary mortgage finance ) . A sum of one 1000 and 20 three ( 1,023 ) Bankss and fiscal establishments are registered with Central bank of Nigeria ( CBN ) . The list can be entree through the CBN cyberspace web site: hypertext transfer protocol: //www.cenbank.org/supervision/finstitutions.asp.

The study would be conducted through ego administered questionnaires. Although this method would be expensive compared to get off study, however the research worker still favour this method due to its advantages. The biggest advantage is that the research worker can roll up all completed responses within a short period of clip. The 2nd advantage is that research worker can explicate on the topographic point the footings or portion of the inquiries which the respondents could non understand. Third, the research worker can actuate the respondents to take portion in the study and give their honest sentiments ( Sekaran, 2003 ).

The study method scheme would be to roll up the informations with respect to BPR factors, information engineering ( I.T ) capableness and managers perceptual experience of the organisations public presentation. Babbie, ( 1990 ) highlighted the three ( 3 ) aims linked with study research: 1 ) Description ; 2 ) Explanation ; 3 ) Exploratory aims. This studys aims are descriptive and explanatory. It involves placing the features and property of the respondent every bit good as doing account through the scrutiny of the relationships of the variables of the survey. Descriptive statistics harmonizing to Babbie ( 1973 ) supply a manner to streamline the big informations to a manageable size that allows easy reading and apprehension. Statistical bundle of societal scientific discipline ( SPSS ) package will be used for the arrested development theoretical account and mensurating the causal relationships among the variables.


This paper is based on an on-going doctorial research and the undermentioned hypotheses are propositioned based on the current reappraisal of literature.

Hydrogen: 1.The BPR factors related to organisational public presentation of Nigerian Bankss

Hydrogen: 2.The I.T capableness ( IT cognition and IT operations ) attributes related to organisational public presentation of Nigerian Bankss

Hydrogen: 3.The Information Technology ( I.T ) capableness ( IT cognition and IT operations ) indexs play the function of moderator in the relationship between BPR factors and organisational public presentation of Bankss in Nigeria.

Cite this Effect of Business Process Reengineering Factors on Organizational Performance

Effect of Business Process Reengineering Factors on Organizational Performance. (2018, Mar 31). Retrieved from https://graduateway.com/effect-of-business-process-reengineering-factors-on-organizational-performance/

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