Is Businss Process Reengineering a Kind of Business Model Innovation? A Case Study of a Small Cable TV Company

Business Process Reengineering (BPR) is used not only for the processes in organizational transformation, but also for providing an overall strategic thinking of business model innovation. As Sussland (2001) explained, intangible capabilities drive our business to meet the need of future and strategic goals, and companies need business processes in a way to manage the value of these intangible capabilities. Therefore, companies need to consider a series of business model innovations by a process that differentiates between capabilities (Reeves and Deimler, 2009). This is of particular important for companies in the service sector. As an effort to examine the impacts of the implementation of BPR on business model innovation, a case study was conducted on the experience of BPR on a small cable TV company with a focus on its customer service center. Data were collected from various sources including document analysis, observation and interviewees of the employees of the company. Based on the data analysis, it shows that the business model of the customer service center is a:substantial innovation through BPR, in terms of its more complete customer service center functionality and the more holistic definition of the responsibilities and the rewards for its customer service representatives. It is concluded that BPR can lead to innovations that help to move a company to a new level of performance. Moreover, such in-depth case studies of BPR can provide new insights for more effective management of the transformation process of organizations and are beneficial to the core members of the implementation team, CEOs, managers, as well as employees.