Business process reengineering involves redesigning the business processes and the process is also called business process change management. It also involves the analysis and design of workflows and processes in a firm and it cannot be studied without defining the term business process. A business process is a set of tasks that are logically linked and the tasks are carried out to achieve a definite business result. The process is a technique that helps organizations to think about how they operate so that they can significantly make improvements in customer service, create a competitive advantage and also reduce the costs of operations. One of the stimuli for reengineering is the use of high-tech information systems and networks where every competitive firm is using technology to support its business processes instead of upgrading the current business processes which may be out of touch with the modern levels of competition in the business world.
Business Process Reengineering is also known as Business Process Redesign, Business Transformation, or Business Process Change Management and it helps firms to improve their operations so that they can be in line with the strategic direction, missions, and visions of the firms. The process starts with an intensive assessment of the strategic goals and missions of the companies and the changing customer preferences. This assessment involves deciding whether the firms need to redefine their missions because success can only be achieved if the strategic goals are aligned with the missions of a firm. This means that the process cannot be taken if the firms have not taken time to rethink what they are doing. Reengineering understands that business processes are usually subdivided into subprocesses and that an individual cannot be responsible for the general performance of the company or organization. Therefore, reengineering operates on the premise that the performance of subprocesses can improve the position of an organization in the competitive market only when the process itself is fundamentally efficient and properly modeled. The business reengineering process, therefore, attempts to redesign the entire process so that the business and the customers can reap maximum benefits.
Reengineering does not focus on incremental or functional improvement; it goes beyond process improvement and focuses on optimization of performance and rethinking of the strategic goals of the company or organization. Information technology is the most important instrument that makes business processes reengineering more efficient because it is now being used in enabling newer organizational formats, newer patterns of collaboration inside and outside a firm. Though it was traditionally used to support the existing business functions, it has now become part of the business functions and is no longer seen as a tool of just improving organizational efficiency (Davenport, 1993). Business process engineering initiatives are driven by business strategy. The process cannot be complete without factoring in the human resources who are the main asset of an organization. The human resource dimension in business process reengineering must therefore deal with aspects such as education of personnel, training of the workers, and improving the way they are motivated and rewarded. All in all, the basic idea of business process reengineering is creating value-added output that will help an organization to achieve a competitive advantage and also achieve higher strategic goals. This means that the process should have process ownership, customer focus, cross-functionality, and value addition as the underlying principles for it to effectively help an organization upgrade its performance and remain competitive in the market.
References
Davenport, T. (1993).Reengineering through information technology. Boston: Harvard University Press.