Re-engineering is the fundamental rethinking and radical redesign of business processes” Illustrate with its four key words?

Re-engineering is the radical redesign of business processes to achieve dramatic improvements in measures of performance, which are:

(1) Cost

(2) Quality

(3) Service

(4) Speed

A radical re-design of business processes to achieve dramatic improvements in cost, quality, speed, and service.

Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.

This definition comprises four keywords: fundamental, radical, dramatic and processes.

Understanding the fundamental operations of business is the first step prior to reengineering. Business people must ask the most basic questions about their companies and how they operate: Why do we do what we do? and why do we do it the way we do? Asking these basic questions lead people to understand the fundamental operations and to think why the old rules and assumptions exist. Often, these rules and assumptions are inappropriate and obsolete.

Radical redesign means disregarding all existing structures and procedures, and inventing completely new ways of accomplishing work. Reengineering is about business reinvention, begins with no assumptions and takes nothing for granted.

Reengineering is not about making marginal improvements or modification but about achieving dramatic improvements in performance. There are three kinds of companies that undertake reengineering in general. First are companies that find themselves in deep trouble. They have no choice. Second are companies that foresee themselves in trouble because of changing economic environment. Third are companies that are in the peak conditions. They see reengineering as a chance to further their lead over their competitors.

Process is the most important concept in reengineering. In classic business structure, organisation are divided into departments, and process is separated into simplest tasks distributing across the departments. The preceding order-fulfilment example shows that the fragmented tasks - receiving the order form, picking the goods from the warehouses and so forth - are delayed by the artificial departmental boundaries. This type of task-based thinking needs to shift to process-based thinking in order to gain efficiency. The following example is taken from Hammer and Champy to illustrate the characteristics of reengineering - fundamental, radical, dramatic, and especially process.

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