This concept was first used by American economists M. Hammer and D. Champy in 1990. By reengineering the activity system as a set of procedures, they meant “fundamental rethinking and radical redesign of business processes to achieve significant improvements in such key performance indicators for modern entrepreneurship as costs, quality, service level and efficiency.” Their work attracted the attention of managers and specialists in the field of information technology.
BPR studies describe business process reengineering as “cardinal,” “radical,” “significant,” “revolutionary,” “fundamental” redesign. The general meaning of all these words is that the changes made during the implementation of the method are very serious and should bring the organizational development of the enterprise to a qualitatively new level. The goal of business process reengineering is to identify the reasons for the insufficient effectiveness of previously adopted decisions. This implies a complete and radical rejection of everything that does not benefit the company.
Reengineering
The word “fundamental” implies skype database a deep understanding of something. If a manager decides to reengineer something, he or she must first consider the fundamental questions surrounding the organization’s operations. For example: “Why are we doing this? And what is the reason for doing it this way?” In search of answers to these questions, entrepreneurs often review the rules by which they run their businesses. Often, it turns out that the decisions they made earlier were unwise or outdated.
Thus, based on the meaning of the keywords characterizing the method, we can formulate the concept of BPR as “Fundamental understanding and radical redesign of business processes aimed at a qualitatively new level of development of the organization.”
This method is the most radical of all those listed above. Reengineering of the activity system allows making decisions related to process management. BPR helps to see the current state of affairs and does not take into account the features of the set of procedures and the structure of the organization that have already developed in the company.
It is necessary to take into account that when using this method, the work is divided into several sub-items, each of which should serve to improve the work of the company. Reengineering can be carried out repeatedly if it is necessary to optimize many of the company's procedures.
The application of this method for improving business processes includes several main stages:
Developing an image. Formulating the basic concepts of how to construct a set of procedures so that their implementation leads to achieving the goal.
Analysis of the existing business. At this stage, the company's work schemes are drawn up based on research into its organization.
Proposals for ways to improve business processes. At this stage, new schemes are developed, formed and tested. This may be the deployment of previously unused procedures, or a change in the previous work algorithm.
Implementation of new business.
Please note that some of the above steps are performed in parallel. Depending on the situation, they may be repeated several times.
Experts believe that if reengineering is carried out correctly, the cycle time is reduced by 60–90%, and the error rate by 40