Business process reengineering
The concept of business process reengineering (BPR) became popular since early 1990s. The authors of this concept, Michael Hammer and James Champy, in the book «Reengineering of the Corporation: Manifesto for Business Revolution» state as follows:
«For the request to give a short definition of reengineering we do answer: its point is to start everything afresh. Reengineering does not include adjusting or patching up of already existing systems, or gradual changes that do not involve basic structure. Reengineering is refusal from steady procedures, new angle on work for product or service creation»
Reengineering as a revolutionary method of single-point or complex transformation of the company allows not only to remain afloat, but also to ensure long-term prospects of development and growth for Ukrainian companies.
Business process reengineering is a complex of measures for business systems simulation. Its aim is to get rid of unnecessary competences and functions, and to distribute correctly powers and responsibility among specialists possessing competences necessary for creation of the value.
Advantages of reengineering are:
- clear description of activities of the company and all its subdivisions;
- regulation and unambiguous definition of results of every employee’s work;
- easiness of automation and informatization of the process management system;
- compliance with requirements of quality standards ISO 9000;
- reduction in personnel, clear description of qualification requirements;
- transparency of business system, easiness of implementation of planning – budget mechanisms;
- flexibility and freedom of choice at organizational structures construction.