The background of enterprise reengineering

The emergence of enterprise reengineering theory has a profound historical background.

Since the 1960s and 1970s, the information technology revolution has caused great changes in the business environment and operating methods of enterprises. The long-term low economic growth in Western countries has made market competition increasingly fierce, and enterprises are facing severe challenges.

Some management experts use the 3C theory to explain this new challenge: (1) Customer - the dominant power in the relationship between buyers and sellers has been transferred to the customer.

Competition gives customers a greater choice of goods; as living standards continue to improve, customers have higher requirements for various products and services.

(2) Competition - Technological progress has led to the continuous development of competition methods and means, and fundamental changes have taken place.

More and more multinational companies are going beyond the borders and competing in various forms in the increasingly integrated global market. American companies are facing competitive threats from Japanese and European companies.

(3) Change - Market demand is becoming increasingly changeable. The unit of product life cycle has changed from "years" to "months". Technological progress has caused frequent changes in the production and service systems of enterprises. This change has become a continuous process.

things.

Therefore, the business management model developed in an environment of mass production and mass consumption can no longer adapt to the rapidly changing market.

Facing these challenges, enterprises can only enhance their competitiveness in the era of low-speed growth by carrying out fundamental reform and innovation at a higher level.

In this context, combined with the actual exploration of American enterprises to challenge threats from Japan and Europe, Hamer and Ciampi published the book "Reengineering the Corporation" in 1993, which argued that: "20

Over the years, no management trend has been able to reverse the competitiveness of the United States, such as management by objectives, diversification, Theory Z, zero-based budgeting, value analysis, decentralization, quality circles, pursuit of excellence, restructuring, document management, and walk-through

management, matrix management, internal innovation and one-minute decision-making, etc.”

In 1995, Ciampi published "Reengineering Management".

Hammer and Ciampi proposed that the original work process should be transformed under the new operating space conditions of the enterprise so that the enterprise can better adapt to the future survival and development space.

This brand-new idea shocked the management academic community. For a time, "enterprise reengineering" and "process reengineering" became hot topics of discussion. The works of Hammer and Ciampi were translated and disseminated in large numbers at an extremely fast speed.

Various publications and lectures related to this were also popular. In a short period of time, the theory became a hot research topic in enterprises and academic circles around the world.

The story that IBM Credit Company implemented a process transformation and implemented a generalist loan officer to replace many specialists in the past and reduced the working time by 90% is widely circulated.