| Definition |
Business Process Reengineering is the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times and quality. In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes to deliver more value to the customer. They typically adopt a new value system that places increased emphasis on customer needs. Companies reduce organisational layers and eliminate unproductive activities in two key areas. First, they break functional organisations into cross-functional teams. Second, they use technology to drive improved data circulation and decision making. |
| Implementation |
Business Process Reengineering is a dramatic change initiative that contains four major components:
- Refocusing of company values on customer needs
- Fundamental redesign of core processes, often using information technology to enable improvements
- Reorganisation into cross-functional teams with end-to-end responsibility for a process
- Rethinking of basic people/organisational issues
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| Purpose |
Companies use Business Process Reengineering to substantially improve performance on key processes that impact customers. Business Process Reengineering can produce the following results:
- Reduced cost and cycle time:
Business Process Reengineering reduces cost and cycle times by eliminating unproductive activities and the people who perform them. Organisation by teams decreases the need for management layers, accelerates information flows, and eliminates the errors and rework caused by multiple hand-offs
- Improved quality:
Business Process Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership of processes. Workers gain responsibility for their output and can measure their performance based on prompt feedback and results
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