Business Processing Reengineering (BPR) can play a critical role in preparing Bermuda for the 21st Century, the Hamilton Rotary Club was told yesterday.

Eric P. Frere of Ernst & Young Bermuda said that in order for Bermuda companies to better compete for survival and growth locally and internationally, there has to be radical changes in the way business is conducted.

Speaking during Rotary's weekly luncheon at the Romanoff restaurant, Mr. Frere said, "It is not a tool to fix a particular problem. It is a drastic step in redefining how business is done.

"Most current business processes have evolved from the industrial paradigm of Adam Smith's The Wealth of Nations. The division of labour, economies of scale, hierarchical controls and all other apparatus of an early stage developing economy.

"These methods no longer apply to ongoing businesses and those that continue to follow these concepts will perish.'' Mr. Frere said that companies that have embraced BPR have seen performance improvements. They have improved by identifying and eradicating inefficiencies, implementing new technologies and/or shifting tasks to suppliers and customers.

Companies have already been able to shift tasks to consumers, reduce human intervention and provide better service, sometimes through sophisticated reengineering.

But Mr. Frere said that while technology often plays an important role in the changes, it does not always have to be involved.

He said that while there is often resistance to change, employees should be aware of their role in assisting with innovations.

BUSINESS BUC