BUSINESS PROCESS
REENGINEERING
TABLE OF CONTENTS
ABSTRACT 3
I. Introduction. 4
II. The Background of
Reengineering. 7
2.1. Why do Organizations Need
Reengineering? 7
2.2. The History of
Conventional Business Process. 11
2.3. The New Business Environment.
11
2.4. What is the Formal
Definition of Reengineering? 12
2.5. What Reengineering isn't?
12
III. Principles of
Reengineering. 11
3.1. Organize Around Outcomes, not task. 11
3.2. Have Those Who Use the
Output of the Process Perform . 12
3.3. Subsume
Information-Processing Work into the Real Work
that Produces the Information. 12
3.4. Treat geographically
dispersed resources as though they were centralized. 12
3.5. Link Parallel Activities
instead of Integrating Their Result. 13
3.6. Put the Decision Point
Where the Work is Performed, and Build Control
into the Process. 13
3.7. Capture Information Once
and at the Source. 14
IV. Promises of Reengineering.
15
4.1. Traditional Values. 15
4.2. Reengineering Values. 15
4.3. Reengineering Methodology.
16
V. The Role of IT in Reengineering . 17
VI. Reengineering Life Cycle.
17
6.1. Envisioning New Processes.
17
6.2. Initiating Changes. 19
6.3. Diagnosing the Processes.
19
6.4. Redesigning. 21
6.5. Reconstructing. 23
6.6. Monitoring. 24
VII. How Can We Get Succeed in
Reengineering? 26
VIII. Conclusion. 28
BIBLIOGRAPHY 30
ABSTRACT
To stay competitive in modern
business, especially in preparing to enter the twenty-first centuries, today's
managers perhaps need to reinvent their companies, and it is the time for them
to change the structure of management, and the performance of business. In
running their business, some companies have been adopting Adam Smith's
brilliant discovery about how business should be broken down into its simplest
and most basic task.
One of the several ideas that
might be adopted now is "Reengineering". Reengineering is not a
program, a new trick or about fixing anything. Merely,
reengineering means, "Starting all over,
starting from scratch". It means forgetting how work was
done in the past, and deciding how can it be done now.
Reengineering is defined as the
fundamental rethinking and radical redesign of business processes to achieve
dramatic improvements in critical contemporary measures of performance, such as
cost, quality, service, and speed.
Most companies need
reengineering since they have to be flexible enough to adjust quickly in
today's market conditions. If company's management wants
their companies lean, nimble, flexible, responsive, competitive, innovative,
efficient, customer-focused, and profitable. Those companies may not be
bloated clumsy, rigid, sluggish, non-competitive, uncreative, inefficient, and
disdainful of customer need.
In writing this article, we are
trying to crack-down what business reengineering is, why a company need
reengineering, which company needs reengineering, how we can succeed in
reengineering the company, and the methodology that useful enough in applying
reengineering.