Reengineering business processes: concept, objectives, principles

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2018-04-02 18:31:30

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Managing reengineering of the business process includes a set of methods and techniques. They are used by the organization for the successful design of its activities. This happens according to the goals.

The re-engineering of business processes involves a complete rethinking and further alterations to all of the organizational processes. It is necessary to achieve the goals and objectives. Improvements can occur very rapidly, irregular. Despite this, the organization is able to achieve success and to make the desired adjustment in the cost of goods and services, quality of services, improving service maintenance.

Components of the definition

The Definition of reengineering of business processes involves four key words: fundamental, radical, sharpness, process.

A Fundamental part of the first stage, in which it is required to answer a series of questions related to basic:

  1. Why the organization is engaged in precisely this activity, and not something else?
  2. Why is his work the organization performs these methods and not introducing other options?
  3. What the organization intends to become in the end what it sees himself in a few years?

Experts who answer some of these questions have to rethink the existing regulations on management activities. They can often be outdated, not effective and not applicable to the specific production.

Refers to the Radical redevelopment of business. The changes are not just superficial. Changed the whole current system. The owner of the business offer options, the embodiment of which is capable of changing the entire production.

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Sharpness. Reengineering of business processes is not used in cases when you want to improve and increase the performance of earned income by a certain percentage, up to a maximum of 100 %. The expediency of use is due only in case, if the entrepreneur wants to increase the performance of 500% and more. In such cases there is a complete replacement of the methods used to conduct business and produce goods. In their place comes an all-new.

Managing reengineering of business process implies the use of new methods step by step, through which you can create a brand new product that is currently relevant to the consumer. Well-designed processes enable the organization to achieve its goals and to solve a number of problems.

the essence of business process reengineering

The organizations For which you can use reengineering?

Currently only three types of organizations that need to adjust or completely change your job:

  • Organizations that are under bankruptcy. Often this is due to the fact that prices for goods and services are established significantly higher than those of competitors, or the quality does not match the declared value. If time does not take action, the organization may be liquidated over time.
the concept of business process reengineering
  • Organizations who have at the moment, there are no problems and difficulties with the conduct of activities, but they may appear after some time and have a negative impact on the business. Such problems may be associated with an increase in the market of goods and services of competitors or changing needs of buyers.
  • Organizations who have no problems, but the business owner looks to the future. He wants to prevent problems that can arise on the way of the company. Such organizations are mainly leaders. Their aggressive marketing policy, they are not satisfied with a good position in the market, they constantly want to improve in workflows.

Thus, the main task of reengineering of business processes include the introduction of innovations that will allow the organization to firmly secure position in the market and not lose the ability to compete. All this allows the company to survive and continue proper functioning no matter how many competitors.

You can Consider the development of the project of reengineering of business-process on the example steps, which included:

  1. In the first stage of developing a way which will fit the organization. To do this, we construct a certain picture that will include the necessary areas for development activities. All this will contribute to the achievement of goals.
  2. To Perform the work of an existing organization. At this stage, the experts study the enterprise on the basis of which the procedure is designed, the corresponding work at this time.
  3. The development of new activities. In this case, the construction of new processes or modified existing ones. Thanks to information systems, these processes are beginning to be tested.
  4. After going through all the stages of implementation of the developed process in an organization.

It is at these stages is built entirely the essence of reengineering of business processes.

Main stages

Every process and its implementation consists of phases. The main stages of reengineeringbusiness processes include:

  1. Global thinking on the basis of which to develop prospects in approaches. Top managers have to navigate and understand all the features that are associated with the development of the enterprise. In the process, you need to consider the needs of customers, primary competitors and recent developments in technology that can be embedded in the business.
  2. Carry out work on the preparation of the organization. Communication is the main key to success. Pre-need to make a list of goals and objectives, the solution of which is planned. In those cases, if the initiative comes from the employees, they should be encouraged.
  3. Continuously analyze the implementation processes. If something needs work, then it should be return, this approach will allow you to avoid a number of mistakes in the work. If necessary, you can contact staff experts who in the process may encounter problems and details to describe them. Any incoming ideas should be recorded, they can be useful.
  4. Determine the level of efficiency. To monitor the effectiveness only if I was provided a point of reference.
  5. To Approach the process creatively. The first thing you should pay attention to the needs of potential customers. For the collection of information must be carefully monitored, to track the sources that provided it, if necessary, to expedite the distribution process. If it necessary to delegate authority and monitor service to customers.
  6. Change activities in the organization should be planned in advance. Undoubtedly, improvements can happen in a short time, but implementation will take time. Pre-need to make a plan where you can specify all the desired performance, they must be converted.
  7. All processes must be analysed and evaluated. There must be feedback from employees. It is necessary to control all stages of implementation and evaluate the effectiveness and progress indicators.

Thus, when you use effective methods in your organization easily and quickly achieve your goals.

business process reengineering enterprise

What are the methods used in the work?

To improve the activities of organizations and enterprises need to use certain tools. The main methods of reengineering of business processes include:

  1. In the process of business transformation can happen in a way that appears unnecessary processes from which you need to get rid of, so as not to waste time on it. Such processes include verification and approval.
  2. In the process of activities between processes can happen gaps that also need time to identify and correct.
  3. All the work of reorganization should be in the minimum amount of spent resources. For example, if it is necessary to solve several problems, it is best to group them and to delegate one employee. This method allows to reduce not only costs, but also the number of employees who are involved in the business process.
  4. Some processes you can outsource to employees of outside organizations and companies.
  5. In the process of activities can be faced with challenging tasks. Each such process should include multiple options for solutions. This will allow you to have the choice and choose the best option.
  6. Cycle Time can be reduced if a few steps in one place and at the same time. This may allow to reduce shipping costs.
  7. Combine multiple tasks. If the solution of the task falls on the shoulders of employees, they can gather in one unit and provide the possibility to perform not separate task, but a process.
  8. Simplify the work. In most cases, employees in organizations have restrictions on working time, no adequate skills and time for training no. In such moments it is necessary to simplify the work to be extremely precise and clear for anyone.

Over time, when employees personally will accomplish their goals and solve problems, they begin to gain experience, so that in the future they will be charging the process is complex.

What are principles?

The basic principles of re-engineering business processes include:

  1. Several types of work are combined in one. During the operation of the business main time employees are spending on the tasks and for coordination and interaction. In this case, not only spent a lot of time, but also increase costs. To reduce these indicators it is advisable to carry out the merger.
  2. The Decision rests with the contractor. A person who is trusted to perform the work, may make decisions regarding the task that it performs. This will avoid wasting time and braking of all processes when referring to the leader.
  3. All work must be performed in strict compliance with the order.
  4. The execution of the work is carried out where necessary. The tasks are distributed depending on the workflow, and not of his duties. For example, if an employee is easier and better to buy required to work independently, it is better to trust him and notthe face, whose duty it shall go.
  5. Any process includes several options for execution. The implementation process is carried out depending on the situations.
  6. Reduce the work for the inspection, because all this entails not only additional time but also unforeseen expenses.
  7. Reduce the proportion of approvals – it does not bear the cost, but slows down all processes.
  8. As a responsible person can appoint the Manager, which has responsibility for execution of the task.

If we turn to the experts, we can understand that almost 50% of projects fail. To prevent this, you must take a responsible approach to the job and do it efficiently.

business process reengineering

What goals are present in the work?

The main goals of reengineering of business processes include:

  1. Not only to improve the ability to compete with other companies offering the same range of goods and services, but also to increase the profitability of the business. To do such a step is essential if the organization is on the verge of bankruptcy and subsequent liquidation.
  2. To Prevent possible problems that can appear with time. For example, if the organization is quite successful, with the advent of new players in the market may increase competition. This can lead to an increase of quality of manufactured product, reduce cost. For this to be developed in a timely manner the necessary processes.
  3. Assistance in preventing the loss of positions in the market of goods and services. This may apply to the leading organizations who are trying to reach a new level and are not satisfied with a good job. In the process of ongoing works to improve the performance, and the business owner need not worry that they will lose the leading position.

What is the concept of reengineering?

The result of the work is determined by the effectiveness of the motivational systems and technologies for reengineering the business process. The main feature of the decision and implementation processes is that the employees who perform the delegated authority, have the ability to make decisions independently in accordance with their responsibilities. It helps to improve and increase the efficiency of both the enterprise and employees.

Re-engineering is based on the use of radical measures, the work is done once, but the coverage is broad. The concept of reengineering of business processes rests between management and information technology that contributes to the creation of additional tools for support. For securing embedded process requires the use of new information systems and instructions will be distributed to staff. In some cases, will require professional development of employees and their further education.

business process reengineering example

What changes can occur in the work?

The Modern world, in which entrepreneurs carry out their work has changed significantly over the past few years. Undoubtedly, the Reengineering business processes also affected:

  1. At the moment consumers began to self-monitor on the market, took the case into their own hands. Now anyone have enough knowledge and ideas about what to look for in a product and what functions to perform, and accordingly, determines the cost of the product, the amount he can spend and stay disappointed. And most importantly – the buyer has a choice.
  2. Consumers form expectations, which refer to a specific product. Regardless, he came out on the market or is it an old product that has undergone some changes. The goods will be in demand only if they are able to satisfy the expectations and needs.
  3. At this point significant changes have been made to productive technologies, particularly information that have the ability to use method to transfer the necessary information to consumers.

Despite the changes, remain in the organization and enterprises that until now still use the old methods for the development and implementation of ideas for management.

business process reengineering management

Projects

The Implementation of projects can be seen clearly on the example of reengineering of business process of the company, which is the largest mobile operator in Russia, namely “Rostelecom”.

The management team entered into a contract for services with a company in 2003, and optimization of management processes continues to this day. As an example, can be considered a specific phase that ended in 2005 and still operates. Among the main developments can be attributed to built a model that allows the calculation of services for the use of the connection.

According to Vadim Izotov, who is Deputy Director-General, we can understand that developedthe model allowed us to approach the implementation of a new billing system.

Can influence

On the reengineering of business processes of the organization may be influenced by a number of factors:

1. Motivating employees. For the effective implementation of the project, you must enter the motivation that is understood by all and documented. The head of the organization should clearly understand that the measures will lead to success and that is all the activities will be radically changed. To ensure the success of the business owner should be aware that the re-engineering of business process of organization is a necessary measure, and provide all the necessary conditions for its further implementation.

2. Management team. The implementation of any project must be under the supervision of senior staff. In turn he is respected among his subordinates and is responsible for the ongoing work. To achieve desired results managed the reengineering of the business process needs correctly, clearly, firmly, expertly. A businessman must clearly understand that in the process you may encounter some problems because the organization will be fully exposed to the reorganization. He should resist and not to resort to old methods. The Director is obliged to take all measures to ensure that the planned project has reached the end and was subsequently implemented.

3. Staff. The team in the reengineering of business management processes need to sign staff, which will be vested with appropriate powers. They should have a clear idea what changes are required, and which impedes the effective execution of work within the company. The employee must conform to him the powers and competently perform their duties.

As practice shows, the employees of the lowest link it is much easier to explain why you need to use innovation and to rebuild the entire enterprise. Employees who are part of the managers to convey this idea much more difficult, because they do not understand that they will be given a new production. Researchers in America have identified three groups, which may include managers:

  • Tiger – a young employee who has just started to build my career. He has a desire to participate in the project, has the enthusiasm, clearly fulfills its tasks, do no harm.
  • Donkey – specialist working in the company for a long time and reached a peak on the career ladder. He wants stability, tranquility. Does not understand, which requires reengineering of business processes of an enterprise. Such staff must be treated carefully, as they can harm the implementation of the project.
  • A Shark – professionals who are developing management procedures and instructions that allows you to control a number of operations within the organization. Such employees often have influence in the organization. They should be treated with caution as they can cause a lot of problems if you start to sabotage change in a company's life.

4. Communication skills. In that case, if the employees need to put the new task, it must be worded very clearly. To bring it must be explained for each language. The success of the effectiveness of reengineering of business processes of enterprises will fully depend on how clearly employees understand their leader. It will allow to achieve the desired goals and results.

5. The size of the budget. The reengineering of a business process implies that the implementation and deployment will need to invest a certain amount of funds. Particular attention to this paragraph should be given in the case if you plan to bring information technology to work. Often the leaders of organizations tend to assume that re-engineering is implemented at the expense of self-financing that is absolutely not true. To take care of the size of the budget that can be spent on all of the work, to advance.

6. Technological support. For efficient execution of works on realization and implementation of the project of reengineering of business processes requires support that is fully consistent with the chosen methods and tools. In most cases, included the construction of an information system that is able to support new business.

the methods of business process reengineering

To Start the preparatory work in advance. As in most cases impossible for a short time to form a style in relation with staff members and the team as a whole.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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