Business Process Re-engineering

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Definition: Business Process Re-engineering

It is the redesigning of business processes for improvement. It looks into the workflow within and between the enterprises. The process is necessary to lower costs and increase quality of service. It usually involves incorporating the innovative information technology processes.

The concept was given by Michael Hammer and James Champy in the early 1990s who recommended a few principles of reengineering to achieve business improvement:

1. Organize around outcomes, not tasks.
2. Identify all the processes in an organization and prioritize them in order of redesign urgency.
3. Integrate information processing work into the real work that produces the information.
4. Treat geographically dispersed resources as though they were centralized.
5. Link parallel activities in the workflow instead of just integrating their results.
6. Put the decision point where the work is performed, and build control into the process.
7. Capture information once and at the source.

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