Definition: Reengineering is the fundamental and radical redesign of business process to bring about dramatic improvements in performance. The purpose of reengineering is to make all processes the best possible.
Fundamental is; In doing reengineering, business people must ask the most basic questions about their companies and how they operate: Why we do, what we do? And why we do it the way we do? Asking these fundamental questions forces people to look at the tacit rules and assumptions that underlie the way they conduct their business.
Radical; radical design is making not superficial changes, but throwing away the old.
Process is; A group of related tasks that together create a value for a customer.
Dramatic improvements; performance achieving, reducing cost, reducing cycle time, reducing non value added activity in the organization and increasing customer satisfaction.
What is reengineering not?
Reengineering is not down sizing.
Reengineering eliminates work, not jobs.
Reengineering is not "restructuring".
Reengineering is not automation.
Reengineering is not reengineering an organization or a department in an organization.
The principles of reengineering;
Team Workers; In a reengineered Company each team has all the skills necessary in order to complete a single item from beginning to end without any stock delays. So any firm that provides a dedicated customer service like insurance or banking and any product development projects will greatly benefit from this team based approach.
Empowerment: Workers are free to make decisions and discuss them with other people in their team or anyone in the company. The idea behind empowerment is to greatly improve the speed of development. The company should become much more innovative and efficient as a result of empowerment, improving customer relations and increasing prosperity.
Cross Functional Collaboration;
Internal Collaboration; Most corporations waste a lot of time and money on unnecessary work.