|
|
|
|
Principles of Business Engineering
Business Engineering (BE)
aims to change the way an enterprise function by creating models (blue Prints)
based on best practices that have been proven to be reliable and adaptable. In
comparison, Business Process Reengineering (BPR) is the
methodology by which a company examines and redesigns all aspects of its
business process in accordance with the company’s goals and organizational
structure. While BRP has used Information
Technology (IT) as a tool to automate the process, BE has extended the use of IT
by creating process models based on IT structure. This methodology lead to
having business practices captured in models that were used to guide IT system
development and implementation and the creation of process-oriented business
solution. BE was the direct result of the changing economy. Companies that were capitalized on the stability of its consumer base and benefited in the past through increasing output to reduce production costs (attaining “economies of scale”) are now faced, as the result of the information era, with more selective consumers with unlimited shopping capabilities available to them. Thus, decreasing the importance of the economies of scale and the captive market, while increasing the importance of customization and customer services. BE help companies to be more customer-oriented, responsive, and focused. BE implement changes by redefining tasks in process-oriented manners.
Source: Curran & Ladd, SAP R/3 Business Blue Print Implementation of IT in BE project should
carefully:
1- Examine the existing process and see whether they should be modified or completely thrown away 2- Consider the project costs including start-up, training, and maintenance costs 3- Consider the long-term financial benefits including a. Increased revenue per sales call b. Decreased inventory, hardware, operating, and administrative costs c. Recapture / increase market share d. Reduce / eliminate overtime 4- Consider other benefits resulting from applying IT to BE such as, customer service, research and development, sales, marketing, HR, etc. | |||||||||||||||||||||||||
|
Send mail to
Webmaster@txcpa.net with
questions or comments about this web site.
|
