Analysis and Design of Information Systems

Reengineering 2
Version 1.0
The need of an approach like reengineering emerged from an observation- nothing is
stable today. Customer demand, type of competition, change in technology, and
growth of market- everything is changing.

This mercurial business environment requires a switch from task orientation to

process orientation.

The definition of reengineering can be stated as it is fundamental analyzing,

rethinking and redesigning business processes to achieve dramatic improvement not
marginal improvements.

Reengineering does not mean that it is reorganization of the business system.

Redesign and reorganization are two different things. Reengineering also does not
mean downsizing. Though due to elimination of unnecessary and redundant tasks that
create delays and loops in the system are cut, it is not called downsizing. Rather than
eliminating employees it focuses on optimization and efficiency.

Reengineering in public sector can be difficult (e.g. government processes). It is

challenging because reengineering requires slow but sure changes in the system. But
government is changed after every 4 years. It is quick in sense of adapting to the
changed environment that reengineering invoked. Moreover, reengineering requires
risk while government always try to take policies that avoid risk.

The benefits of reengineering are as follows.

1. It empowers employees. They can take decisions and they are almost
autonomous.
2. It eliminates waste or unnecessary processes.
3. It reduces cost and cycle time.
4. Reengineering brings in prompt improvements.
5. Top organizations stay on top and small organizations emerge if they deploy
reengineering.

Features of reengineering are as follows.

1. Shared information: information is vital as it is required in decision making.

2. Functional leadership: leadership is conveyed throughout the departments. It
has seen that reengineering attempts can fail from 50% to 70% of the time.
3. Reduced cost: activities that are costly with respect to its contribution is cut
down.
4. Reusable technology: it asks to shift from custom developed unique
information management systems to the off the shelf technologies to support
business process.
 5. Single infrastructure: There should be only one infrastructure through which
outside world can get access to the system.
6. All information required should be provided just in time.

The following 6 steps are required to approach a reengineering. This is called

incremental approach.

1. Define: define objectives. Determine and follow a strategy for standardizing

processes. Define a starting point.
2. Analyze: analyze processes to eliminate unnecessary processes. Identify
alternate approaches.
3. Evaluate: evaluate the alternative approaches.
4. Plan: plan implementation of the preferred action by developing details in
terms of cost, benefits and schedule.
5. Approve: external information from planning data which is needed to finalize
the analysis. It is used by senior management to approved proceedings.
6. Execute: execution of the whole thing.

Reengineering can fail inevitable for the following reasons.

1. If business processes are not focused.

2. If all other things are ignored while focusing on business processes.
3. If user beliefs are ignored.
4. If the reengineering process is quit earlier.
5. If marginal improvement is required in lieu of extensive benefits.
6. If a process is targeted to be fixed rather than changing it.

Reading Materials

Definition of BPR:

You will find out the definition of BPR in this 2 page document and the terms inside
of the definition are illustrated. Very efficient document if you miss what actually
reengineering focuses on from the two lectures.

Reengineering White Paper: A Radical Approach to Business Process Redesign:

A fantastic white paper that describes the functionality of reengineering. In the

previous lecture you got the overview. In this lecture, you have got the functionalities
in detail. And this paper will bridge any gap if you really understand the paper
thoroughly. You can only skip 6 critical success factors from government experience
section.