Reengineering Process

Aldo R. Rappaccioli Montealegre

Prof. Jacoby
Monday, March 28, 2016
Introduction:
To improve businesses there a numerous methods we could use. Each method may be
called to improve consequently methodology instead, as it is the case of reengineering.
Starting over is the definition of reengineering. By no means to repair with what already
exists or make changes and leave intact the basic structures.
What it means is abandoning long established procedures and examine the work required
to create the product or service from a company and give some customer value. It means
asking this question: "If I were to create
Today this company, knowing what I know today, and given the current state of the
technology, how it would be? ". Redesigning a company means taking aside old and start
systems. It involves re-start and invent a better way to do the job. Reengineering does not
necessarily mean cutting staff, although it can happen. It should always be applied with a
long-term vision as any short-term attempt will fail. New trends believe the future is that
companies quickly realize the areas of opportunity in their constantly re-engineering and
re-do them.
Development:
In 1993 Hammer and James Champy Michale present their ideas of "Reengineering".
According to Hammer and Champy; Reengineering is the fundamental rethinking and
radical redesign of processes to achieve dramatic improvements in critical performance
measures.
1.Fundamental: Reengineering first determines to be done and how it should be done.
You forget completely what is and concentrates on what should be.

2.Radical: The basis of this word comes from the Latin radix root meaning radically
redesign get to the root of things; not make superficial changes, but leave the old; discard
all existing structures and create new ways of doing work.
3.Process: it is a set of activities that receive one or more inputs and creates a valuable
product for the customer. This is the word that more work gives corporate managers.
Individual tasks are important in a process, but none of them have no importance for the
client if the overall process does not work.
4. Spectacular: Reengineering is not about making marginal improvements, but to make
giant leaps in performance.
The pace of change in business life has accelerated to the point that they can no longer go
to step initiatives capable of achieving incremental improvements in performance. The
only way to match or exceed the speed of change in the world around us is making
progress decisive, discontinuous.
It happens often blamed employees, managers or machinery when things go wrong; when
in fact the fault is not theirs but the way it works. It is also important to note that it is not
because the process is bad, it is bad today because the process was designed for other
market conditions that occurred in the past.
To facilitate analysis of the processes to be performed, they have divided them
5 phases, not mutually exclusive, but rather complementary:
Administrative, Operational, Financial, Marketing and Customer Service.
According Hammer and Champy the Three C's: Consumers, Competition and Change,
are the trends that are causing these changes. These three forces are nothing new,
although they are very different from how they were in the past.
Consumers
Sellers no longer rule, consumers themselves. Now consumers can ask the seller what
they want, when they want, how they want it and in some cases how much they are
willing to pay and how.

Before competition was simple and almost any company that could enter the market and
offer an acceptable product at a good price, would make it sell. Now there are not only
more competitive but compete in different ways.
You can compete based on price, based on variations of the product, based on quality or
service based on the prior, during and after the sale.
Finally, we must not forget that modern technology has introduced new forms
to compete and new competition, Internet for example. So you must pay attention to this
and be prepared to face this new kind of competition.
Change
It has already been noted that consumers and competition has changed, but we must also
emphasize the fact that the way it is changed has changed. Mostly it has to change now it
has become more scattered and persistent; In addition, the pace of change has
accelerated. With globalization, companies face more competitors; also the speed of
technological change promotes innovation.
Globalization
Another factor to consider in explaining why perform reengineering is globalization.
Globalization presents new challenges to the way of doing business. Trade and industry
must change, must adapt and evolve to the new market structure.

Factors for effective reengineering:

* Orientation towards progress.
* Ambition.
* Breaking rules.
* Creativity in the use of technology.
Common characteristics after performing a reengineering:
* Several papers are compressed into one
* Processes are vertically compressed

* The process steps follow a natural order

* There are processes in multiple versions
* Work is performed where it makes sense
* Checks and balances are reduced
* Administration is given by cases
* Opera centrally and decentralized
Companies must perform these five general steps to give a new design to its operation
processes:
* 1. Develop the vision and goals of the business processes. Set priorities and goals.
* 2. Identify the processes that need to redesign. Identification of critical processes, etc.
* 3. Understand and measure the existing processes
* 4. Gather the people involved and conduct work sessions.
* 5. Design and develop a prototype of the process. technical implementation.
The role of management to initiate a reengineering is basic. To make reengineering
management should:
* 1. Persuade staff to accept change
* 2. Educate from the beginning of the process
* 3. Give clear messages
* 4. Clarify where the company is and that must change.
Methodology rapid re-engineering
Rapid Re-methodology consists of several currently family management techniques, such
as brainstorming, process analysis, performance measures, identifying opportunities, etc.
The methodology is based on 5 stages that allow rapid and substantive results by making
radical changes in the strategic value-added processes. The methodology was designed
for use by reengineering teams in business organizations without having to rely on
outside experts.
Stage 1 - Preparation

Define goals and strategic objectives justifying the re-engineering and the links between
the results of reengineering
and the results of the organization.
Stage 2 - Identification
The purpose of this stage is the development of a customer-oriented model identifies
specific processes and add value.
The definition of customers, processes, performance, success, resources, etc. is included
It also requires a thorough understanding of the entire company and its processes.
Step 3 Vision
The purpose of this stage is to develop a vision of the process capable of producing a
breakthrough in performance. The vision of the new process must be understandable to
all staff, describe the primary characteristics of the process, should be motivating and
inspiring
Step 4 - Solution
At this stage occurs a technical design and a cultural-organizational design of the
company.
Technical design stage seeks to realize the vision (Step 3), specifying the technical
dimensions of the new process
The social design must necessarily be done while the technician, as a process to be
effective, these designs should be congruent.
Step 5 - Transformation
The purpose of this step is to process vision design implementing step 4.
Conclusion:
The administrative reengineering is the fundamental tool and the last change. She runs
the business process of an organization. In its current state, it helps adjust business from

old paradigms to a new service and information. In the future it will continue moving the
business.
Reengineering uses continuous change to achieve competitive advantage. The
opportunities organizations continue to grow if one considers that one way or another,
most of these organizations will benefit businesses without much effort. However,
businesses that earn the most are those who can assimilate the latest technology and take
advantage of opportunities, so that they prepare themselves to change.

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