Business Process Reengineering involves 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 organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Next, they use technology to improve data dissemination and decision making.
How Business Process Reengineering works:
Business Process Re engineering is a dramatic change initiative that contains five major steps that managers should take:
• Refocus company values on customer needs;
• Redesign core processes, often using information technology to enable improvements;
• Reorganize a business into cross-functional teams with end-to-end responsibility for a process;
• Rethink basic organizational and people issues;
• Improve business processes across the organization.