Business Systems Reengineering
PART II.
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3. Principles of Reengineering A. Definition Reengineering means completely or partially reinventing the approach and process for running a business, and may include such areas as: marketing, design, planning, procurement, process design, manufacturing techniques, control systems, quality management, reporting, distribution, finance, etc. While these may benefit from some degree of automation, there is a recommended implementation sequence •
Streamline • Automate • Integrate for best results and lowest overall cost. Why: automation is usually expensive and it may be much more expensive to change if mistakes are made. It's usually cheaper and more flexible to start with streamlining and simplifying existing processes, then automating. Finally, integrate for maximum results, after you've gotten control of the pieces. Each of those steps should be part of an overall plan, considering the downstream implications of previous steps. Reengineering a business system needs to address key points to be successful. We define a "system" as an organized way of accomplishing an objective. Effective systems need: • Missions—to provide the purpose and reason for being • Leadership—to provide direction, inspiration, motivation, and example • Goals and objectives—to provide guide posts of performance Performance measurements—to know how they're working Policies—to shape their direction and operation Education—of responsible personnel, to understand the above Procedures—where the policies need more detailed implementation instructions • Tools—to better enable performance (i.e.: computers, software, networks, pencils, paper, etc.) • Organization, personnel—to carry out the mission • Training—to teach them how
B. Focus Improvements
may be made by reducing or eliminating: Eliminating waste and reducing time to market ("time compression") are key concepts of process Reengineering. Reducing steps, time required, number of people and organizations involved, improving quality of processes, including information, education and decision making, will all help. Improving quality— of designs, processes, information, people—is the best way to support Reengineering. Focus on the improvements that will get you to your goals the soonest.
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