Study on Major Benefits of Business Process Reengineering and its Impact on Productivity of Small and Medium Sized Enterprises

Abstract

Small and medium sized enterprises (SMEs) are very important in Indian economy. 50% part of total output produced by SMEs. This is second sector which gives large employment to people after agriculture. SMEs provide employment to rural area people and ties to remove economic disparities in rural and urban area. SMEs provide employment for unskilled labor. SMEs required less capital which is suitable for Indian economy who having scarcity of resources. After globalization SMEs find difficulty to sustain in global market due to many reasons like use of traditional methods, low quality product, financing etc. hence failure rate of SMEs are more. Large scale organization use Business process reengineering (BPR) to achieve dramatic improvement in performance. Purpose of this study is to find out major benefits of business process reengineering for SMEs and impact of business process reengineering on productivity improvement of small and medium sized enterprises. This study finds that BPR having 6 major benefits improves quality of products, BPR will open up new opportunities, Improves customer satisfaction, Overall change enhance performance, Can find new business dimensions and Facilitate faster business operations and BPR having positive relationship with productivity improvement. SMEs should use Business process reengineering to achieve dramatic improvement in performance so they can produce product like their global competitor and sustain in global market.