Business process reengineering

Reengineering of business processes can be a combination of tools and methods that have a significant impact on decision-making in order to improve the performance of the enterprise. To do this, an analysis must be conducted, according to the results of which relevant changes are made to the activities of the business entity.

Reengineering of business processes of an enterprise with a view to obtaining a sharp improvement of existing performance indicators implies introducing fundamental changes in existing methods. It is these changes that can be successfully used by management when developing an innovation development strategy.

Innovative nature of the innovations being developed consists in introducing completely new business processes into the economic activity of the subject, which are oriented towards the creation and mastery of technological innovations. Therefore, the reengineering of business processes can be considered from two positions:

- method of managing the activities of the business entity;

- a tool for developing an innovative strategy.

The object of reengineering is one of the main organizational elements of the enterprise's competitiveness - the technology of developing and implementing business processes.

As a method of business management , business process reengineering includes such areas of work: analysis of the current strategy; Synthesis of the new and competitive strategy of the subject. Management for these processes identifies two methods:

- Reverse engineering is a kind of preparatory stage for the introduction of some innovations. First, a complex analysis of the business entity is carried out from the position of a single management system. Here, diagnostics of existing business processes is also carried out.

- Direct engineering, in which a new enterprise strategy is designed, based on innovative processes. The structure of improved business processes is developed and the mechanisms of financing are defined. As a result, the main objective is to be achieved - the growth of the company's innovation potential due to the increase in the share of intellectual assets and concentration of the company's resources in priority technological areas.

The main difference between these two processes is that reverse engineering is preparing a database for creating a new strategy, and a new approach is being developed in a direct way to create and implement the chosen strategy.

The project should have a sufficiently pronounced innovative orientation, which is implemented in a certain sequence. That is why the stages of business process reengineering can be presented in the following form.

The first stage . Development of a business model for the future business and a schematic simulation of its competitiveness. At this stage, the strategic objectives of the enterprise must be correctly set and their structural decomposition performed, which results in the selection of priority objectives and a system of evaluation criteria, and sets performance targets.

Second phase. Analysis of the created business process on the competitiveness of the strategic activity of the enterprise. Here, analytical activities are conducted on the principle of reverse engineering of the existing enterprise strategy. A quantitative and qualitative assessment of the existing methods of operation of the enterprise is also carried out. To conduct it, you need to assess the weak and strong points, as well as possible threats to the activities of the subject. An organizational management structure should also be assessed, including an assessment of the company's production, innovation and intellectual potential.

The third stage. The development of an improved strategy model involves the use of direct engineering tools. At this stage, the reengineering of business processes focuses its attention on the creation of certain projects that should reflect the structure of costs and capital of the enterprise. Here, the impact of the new business project on the future activities of the enterprise is assessed.