Reengineering marketing to retain and win customers
According to the Oxford Dictionary, to engineer is to plan or accomplish something artfully by applying skill or contrivance. Reengineering implies starting again. Thus, it is no great surprise that business reengineering is the process of going back to the beginning and devising a better way of accomplishing the desired result. Michael Hammer, the originator of the concept of business reengineering, gives this definition: {open_quotes}Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed{close_quotes}. Not every process requires reengineering. If the process is narrow and has little impact on overall corporate performance, it is not a candidate for reengineering. More importantly the appropriate measure of reengineering success is found on the bottom line-not in improvements in individual processes. Thus, since the goal is to produce extensive, enduring profit improvement, the reengineering project must be broad and it must penetrate deep to the companys core. Identifying the activities that are critical for value creation in the whole business unit is not easy. For example, while it may be of interest to redesign the accounts-payable process, the result will probably be about a 1-2% cost reduction as a percent of the business unit. Likewise, redesign of a cross-functional process such as new product development, will result in a meager 3-5% cost reduction. Compare this to projects that reengineered processes that involve the critical activities of the business unit - those processes that propel competitive advantage - these projects result in a 15-20% reduction in business-unit costs.
- OSTI ID:
- 192199
- Report Number(s):
- CONF-9501113-; TRN: 96:001030-0015
- Resource Relation:
- Conference: 1995 DA/DSM conference, San Jose, CA (United States), 23-25 Jan 1995; Other Information: PBD: 1995; Related Information: Is Part Of DA/DSM 1995 conference proceedings. Volume 1 and 2; PB: 699 p.
- Country of Publication:
- United States
- Language:
- English
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