Need of effective Business Models to drive Process Re-Engineered Projects in competitive business world!!
How a complex Business Models can impact the organisation
The original business model, that many companies still use today, rests on the basic principle that workers have fewer, non complex tasks, which are completed within a large process line. This model allows workers to focus on single tasks that are connected to a more complex process. To reap the benefit from this approach, companies have to accept inconveniences, inefficiencies and higher costs.
In reengineering, to meet demands for quality service, flexibility and low cost, processes must be made simple. Below depicts the themes, which spring from reengineering projects.
How an Business Consultant could help in redefining the right Business Model
As illustrated above, Process Reengineering radically changes the work environment. Individual processes are combined to gain efficiencies and productivity. Workers are allowed to make decisions on the spot to eliminate process roadblocks and increase speed to market.
Not only is this beneficial for overall business performance, it can also increase employee satisfaction and loyalty. Employees can expand their skill and knowledge into other areas, and have the ability to make decisions that affect their individual performance.
A few words on what Process Reengineering is not. It is not reorganizing, restructuring, downsizing, automation or cost cutting. All of these things may be a result of a well thought out, well planned and well-executed reengineering project. It may appear that process reengineering could be the solution to many of the performance issues facing businesses today, however, it’s time for a reality check.
In a recent report, described top three success factors in a process-reengineering project. First, it’s imperative to have executive management support. Second, it important to have willing participation of all associates involved in the redesign.
The associates involved in the change must see value in the need for change and buy into the project. Last but not least, is ability of the team to discern what processes are value-add and customer-focused and which are not. It is easy to get side tracked on processes that do not serve the customer at the end of the day.
Report also suggested to check out a word that is important to any process-reengineering project. That word is Gemba, which means ‘actual place’ in Japanese. The Gemba is where the value is created. Value is created when people, information, materials, equipment, and processes come together to serve the customer (Gemba Research, 2003). In a process reengineering effort, is important to figure out what processes support the outcome and what processes do not.
Business Process Reengineering is a way of looking at and then controlling the processes that are present in an organization. It is an effective methodology to use in times of crisis to make certain that the processes are efficient and effective, as this will result in a better and more cost efficient organization.
The term Business Process Reengineering covers how we study, identify, change, and monitor business processes to ensure they run smoothly and can be improved over time. Often framed in terms of the daily flow of work – and yes, “workflow” generally does fit under the process improvement umbrella – it is an important piece of the access and use puzzle since no or poor process really degrades your ability to get at and leverage information.
Business Process Reengineering is best thought of as a business practice, encompassing techniques and structured methods. It is not a technology, though there are technologies on the market that carry the descriptor because of what they enable: namely, identifying and modifying existing processes so they align with a desired, presumably improved, future state of affairs. It is about formalizing and institutionalizing better ways for work to get done.