Reengineering - a process of fundamental rethinking and reconstruction business. It converts all existing structures and implements new ways of performance. Just so you can make a real impact on the situation.
By definition, the founders of reengineering M. Hammer and Champy J. Reengineering of business processes (BPR - Business Process Reengineering) - this is a "fundamental rethinking and radical redesign of business processes to achieve specific improvements in key indicators of the company." The purpose of BPR is the systematic reorganization of material, financial and information flows aimed at simplifying the organizational structure, redistribution, and minimizing the use of various resources, reduction of the timing of customer needs, improving the quality of their service. Thus we are talking about the formation of entirely new business goals using the latest achievements of information technology.
Causes of re-engineering:
In the middle, and even more - in the late 80's the rate of change of the environment industry has accelerated, including through the introduction of information technology. Throughout the world, changes in the organization of production and management activities began to occur more quickly. On the consumer side causes of these changes can only be understood from the perspective of marketing analysis:
- Increased availability of goods and services producers from all over the world;
- Have risen sharply consumer demands for quality products and services of all kinds, to the time of their delivery;
- Because of the growth opportunities for choice that consumers have, has sharply reduced the lifetime of the product or service on the market;
- Greatly increased competition in the supply of new products and improve their quality.
The specific objective causes of the need for major changes in production and its organization are the following three internal (largely related) reasons:
1. The growth of new products, to such an extent when neither individual, nor even a group of people may not know all the technical details of the product. This is true for the automotive industry, and for insurance and investment firms, for restaurants and "fast food". Accordingly, more complex management tasks.
2. Inefficiency of further increasing the number of employees at all levels of enterprise solutions for more sophisticated management tasks. Increase in the number of employees at middle management levels organizations in the U.S. for many years was a response to several factors, including increased complexity of products and methods of business, fecundity-governmental organizations in the field of legal regulation and globalization of business. But a situation where growth in the number of staff ceased to affect customer satisfaction. One reason - the cost of labor: some countries have used the business model in the U.S. at a much lower labor costs. Another aspect of the problem - non-linear increase in the number of managers and their internal problems in relation to the number of employees by making your own product or service itself. Firstly, there is a nonlinear growth delay and error, and secondly, the effect of "one with a plow. Seven with a spoon."
3. Insufficient return on investment in computer systems and information technology (IT). Calculations that use of IT by itself will solve the problem of effective management of production did not materialize. Example of U.S. businesses, from the 60s, when computers became available to many companies, the total cost of these amounted to more than two trillion dollars, but the increase in productivity, corresponding to growth of investment has not been received. The main reason: the use of computers did not change anything in the way things were, did not change the amount of securities flows, decision points and number, etc. Only the appearance of qualitatively new IT has changed the situation, when they were both pushed to improve business processes and give it to real money.
On the motives for the re-engineering of business processes can be divided into three categories of enterprises that are considering and planning for a reconstruction:
1. Enterprises are in great anxiety (those, for example, are losing customers, sales volume, have poor financial performance);
2. Enterprises in which the current affairs in order, but their leaders foresee serious problems in the future. available if the organization does not change;
3. Companies which are leaders in their field and will lead in the foreseeable future, but want to reorganize in order to become inaccessible to competitors.
For Russia and the CIS countries can be distinguished, and other specific concrete reasons. for example:
1. Decision to enter foreign markets with their goods and services (banki. export of raw materials, air, etc.).
2. The forecast appears in the market competition of foreign firms.
3. The desire to create conditions in which would be likely to Western investment in the enterprise.
4. The desire to move to the production of high quality new products to the beginning of competition (both domestic and foreign markets).
Definitions:
Reengineering of business-processes - fundamental rethinking and radical redesign of business processes to achieve the effect of maximum production, financial and economic activity. registration of corresponding organizational and administrative and regulatory documents. re-engineering uses specific means of providing information and handling the problem, clear as managers and developers of information systems.
Reengineering - 1) the healing process of enterprises, firms, companies, through the rise of technical solutions to a new level, and 2) the creation of new efficient business processes in the management, which previously did not exist in the organization of the enterprise.
By definition, the founders of reengineering M. Hammer and Champy J. Reengineering of business processes (BPR - Business Process Reengineering) - this is a "fundamental rethinking and radical redesign of business processes to achieve specific improvements in key indicators of the company." The purpose of BPR is the systematic reorganization of material, financial and information flows aimed at simplifying the organizational structure, redistribution, and minimizing the use of various resources, reduction of the timing of customer needs, improving the quality of their service. Thus we are talking about the formation of entirely new business goals using the latest achievements of information technology.
Causes of re-engineering:
In the middle, and even more - in the late 80's the rate of change of the environment industry has accelerated, including through the introduction of information technology. Throughout the world, changes in the organization of production and management activities began to occur more quickly. On the consumer side causes of these changes can only be understood from the perspective of marketing analysis:
- Increased availability of goods and services producers from all over the world;
- Have risen sharply consumer demands for quality products and services of all kinds, to the time of their delivery;
- Because of the growth opportunities for choice that consumers have, has sharply reduced the lifetime of the product or service on the market;
- Greatly increased competition in the supply of new products and improve their quality.
The specific objective causes of the need for major changes in production and its organization are the following three internal (largely related) reasons:
1. The growth of new products, to such an extent when neither individual, nor even a group of people may not know all the technical details of the product. This is true for the automotive industry, and for insurance and investment firms, for restaurants and "fast food". Accordingly, more complex management tasks.
2. Inefficiency of further increasing the number of employees at all levels of enterprise solutions for more sophisticated management tasks. Increase in the number of employees at middle management levels organizations in the U.S. for many years was a response to several factors, including increased complexity of products and methods of business, fecundity-governmental organizations in the field of legal regulation and globalization of business. But a situation where growth in the number of staff ceased to affect customer satisfaction. One reason - the cost of labor: some countries have used the business model in the U.S. at a much lower labor costs. Another aspect of the problem - non-linear increase in the number of managers and their internal problems in relation to the number of employees by making your own product or service itself. Firstly, there is a nonlinear growth delay and error, and secondly, the effect of "one with a plow. Seven with a spoon."
3. Insufficient return on investment in computer systems and information technology (IT). Calculations that use of IT by itself will solve the problem of effective management of production did not materialize. Example of U.S. businesses, from the 60s, when computers became available to many companies, the total cost of these amounted to more than two trillion dollars, but the increase in productivity, corresponding to growth of investment has not been received. The main reason: the use of computers did not change anything in the way things were, did not change the amount of securities flows, decision points and number, etc. Only the appearance of qualitatively new IT has changed the situation, when they were both pushed to improve business processes and give it to real money.
On the motives for the re-engineering of business processes can be divided into three categories of enterprises that are considering and planning for a reconstruction:
1. Enterprises are in great anxiety (those, for example, are losing customers, sales volume, have poor financial performance);
2. Enterprises in which the current affairs in order, but their leaders foresee serious problems in the future. available if the organization does not change;
3. Companies which are leaders in their field and will lead in the foreseeable future, but want to reorganize in order to become inaccessible to competitors.
For Russia and the CIS countries can be distinguished, and other specific concrete reasons. for example:
1. Decision to enter foreign markets with their goods and services (banki. export of raw materials, air, etc.).
2. The forecast appears in the market competition of foreign firms.
3. The desire to create conditions in which would be likely to Western investment in the enterprise.
4. The desire to move to the production of high quality new products to the beginning of competition (both domestic and foreign markets).
Definitions:
Reengineering of business-processes - fundamental rethinking and radical redesign of business processes to achieve the effect of maximum production, financial and economic activity. registration of corresponding organizational and administrative and regulatory documents. re-engineering uses specific means of providing information and handling the problem, clear as managers and developers of information systems.
Reengineering - 1) the healing process of enterprises, firms, companies, through the rise of technical solutions to a new level, and 2) the creation of new efficient business processes in the management, which previously did not exist in the organization of the enterprise.