Consider the case of approving a loan application. In the manual process, it takes 6 persons and considerable amount of time to accept the details, calculating risks and repayment capabilities and letting the application trail through hands of various functional levels.
But, when we reengineer the above process, the whole process may be converted to a PC based applications handled by a single person who performs the formal dealings with the customer & inputs the details on the computer generated form. All further, calculations and checking & further approval of the loan is made by the computer by checking various records of the customer.
Here, the reengineered business system is process based since all the trailing levels are capsulated into a single person to perform the process. The benefits of reengineered process lies in the customer satisfaction, reduced business process cycle time, reduced manual labor, reduced paper work and reduced number of persons to perform / complete the process.
Thus, BPR has various potential benefits that leads to long term business stability and process refinements. This prompts every business enterprise to go for BPR when it requires to change its business strategies due to changing customer demands, financial crisis, technological changes and business competition.