Copyright

What Is Reengineering in Business? - Definition, Examples & Methodology

What Is Reengineering in Business? - Definition, Examples & Methodology
Coming up next: Open System in Management: Definition & Example

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:02 Business Process Reengineering
  • 0:30 Why Engage in It?
  • 1:58 Methodology
  • 4:29 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Shawn Grimsley
Change is often necessary to succeed in business. In this lesson, you'll learn about re-engineering in business, including its methodology. You'll also have a chance to take a short quiz after the lesson.

What Is Business Process Reengineering?

Business process reengineering (BPR) involves the examination and redesign of business processes and workflows in your organization. A business process is a set of related work activities that are performed by employees to achieve business goals. Basically, a business process is the way we perform our work and business process reengineering is the process of changing the way we do our work so we do it better to accomplish the goals of our business.

Why Engage in Business Process Reengineering

The idea behind business process reengineering is to make your company more flexible, responsive, efficient and effective for all stakeholders, including customers, employees and owners. In order for BPR to work, your business must be willing to make the following changes:

  • Change from a management focus to a customer focus - the boss is not the boss, the customer is the boss.
  • Empower your workers that are involved in each process to have decision-making and ownership in the process.
  • Change your emphasis from managing activities to focusing on results.
  • Get away from 'score keeping' and focus on leading and teaching so employees can measure their own results.
  • Change the company's orientation from a functional orientation to a process or cross-functional orientation. This allows for an increase in organizational knowledge among its members and a greater degree of flexibility in accomplishing tasks.
  • Move from serial operations to concurrent operations. In other words, multitask instead of just doing one thing at a time.
  • Get rid of overly complex and convoluted processes in favor of simple, streamlined processes. Use the KISS Principle - keep it simple, stupid.
  • Stop trying to build an empire and protect the status quo. Instead, invent new systems and processes that look towards the future.

Methodology for Business Process Reengineering

Business process reengineering consists of four stages.

Stage One: Identification of Goals and Purposes.
You must initially identify the company's strategic goals and purpose of which the processes help to achieve. In other words, what are you trying to achieve with this process? Examples may include increases in customer satisfaction, more effective distribution systems, more efficient production or development of innovative products.

Stage Two: Analysis of Current Processes.
You really cannot improve upon a process unless you know how the current process works. For example, you can't improve upon a production process unless you know how your production line works, including the steps in the production process, the method of production at each stage and the time and resources required at each stage. Utilizing a flowchart to map the process may be helpful.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support