What is the concept and essence of reengineering a company’s business processes? What are the main stages of its implementation?

Reengineering the organization's business processes is a method of activating and controlling change processes through imaginative analysis and systematic planning.

The purpose of business process reengineering. The activity of any organization, regardless of size, type and objectives, consists, by and large, of transforming some set of input data (for example, raw materials or raw information) into the desired results (products or services). To gain a competitive advantage, an organization must transform inputs into outputs more efficiently than competitors, focusing on the level of efficiency of core business processes. In this case, it is necessary to regularly study and improve the processes associated with production activities.

In the book Re-engineering the Corporation, authors Hammer and Champy define business process reengineering as “the fundamental rethinking and radical redesign of business processes to achieve significant improvements at current critical performance levels such as cost, quality, range of services and speed." Improvements in processing quality offered by BPOs are characterized by three factors: processing efficiency (eg, cost, cycle time); quality (measured by the measure of satisfaction of customer requirements, the range and quality of final products); and processing time.

Advantages:

By identifying bottlenecks, BPO often creates new markets.
BPO encourages creativity and innovation in teams.

Flaws:

Often, turning to BPO contributes to a sharp increase in investment in information technology (IT).
Enough high price BPO may hasten the collapse of borderline companies.
Forming a truncated form of an organization by reducing it may deprive it of the opportunity
carry out transformation programs.

Main stages of business process reengineering

#1 Develop a forward-looking approach - think globally. Top management must have a good understanding of the specifics of business process development. Its nature and direction are determined by customer expectations, competitive advantages and the ability to introduce new products in the IT field. Develop a clear but broad perspective. The ability to think in big, clear terms is the real benefit of using business process reengineering.

#2 Do some preparatory work within the organization. Supporting communication is the key to success when implementing change. Form a business package for implementing the transformations, highlight the goals and objectives of reengineering. Encourage responses to change and welcome the contributions of everyone in the company.

#3 Analyze ongoing processes. Model current processes in detail. Return to those that need improvement. In this case, the possibility of error is reduced. Listen to the employees involved in the process, this will allow you to identify existing problems. Write down any useful idea and be sure to return to it several times. Pay attention to bottlenecks, take measures to ensure that there are no disruptions in plans specifically on these points.

#4 Identify performance metrics or key growth areas. Improvements in efficiency can only be noticed if there is some point of reference. The performance assessment procedure includes monitoring the following indicators:

number of transactions;
number of cycles;
number of defective products or complaints;
degree of customer satisfaction.

Make sure that the three dimensions—processing efficiency, product quality, and product development time—are examined comprehensively. The approach taken in strategic benchmarking can be useful in identifying potential “breakthrough points” that will allow success to be built on.

#5 Be creative with the process. Start by understanding the customer's needs and re-examine the specifics of the process. To rethink, use the following tips.

Pay attention to collecting information that is needed throughout life cycle process, find out its source, speed up its spread.
Reduce the need to coordinate between individual process participants, but not departments or functional units.
Improve customer service by sharing responsibilities, building trust, delegating authority, and allowing partnerships to support customer-supplier relationships.
Identify key business implications: It is important to highlight these points when describing how processes interact. In addition, it is necessary to pay attention to the infrastructure to support transformations, to describe, along with management strategy, measurement systems, incentive programs, values that are important for the organization, and employee value systems that must be accepted by all stakeholders.

#6 Plan the implementation of business process reengineering. Changes take time to implement, and although BPR should make major improvements happen in a short time, the planned change schedule should not be short. Re-emphasize the need for change, and develop a common position with managers and employees to eliminate existing ambiguity. Gain support and approval for the implementation of proposed innovations. The implementation plan should include the following steps:

be sure to indicate the schedule, budgets, criteria for completing the transformation, economic justification all measures;
initiate staff training, which is essential for gradual transformation;
introduce new control systems;
Disseminate information about improvements immediately;
careful attention to randomness is necessary to resolve unexpected problems;
changes physical location stay or layout, work flows and organizational structures, composition of equipment and information systems, testing and pilot projects, as well as changes in roles and responsibilities will result from further development of the reengineering process;
The plan should ensure the implementation of important and quick results already in the early stages, this will win more supporters among employees.

#7 Analyze and evaluate the progress of the process. Constantly analyze progress process to make surein reality of achievements. Supportlive feedback from employeesnicknames, which will allow everyone to beaware of positive developmentsand shortcomings. Availability of reversecommunication will inspire staffand, in turn, will help identifyidentify areas for furtherimprovements.

Thus, business process reengineering is an effective method for making improvements in an organization, identifying bottlenecks and ultimately increasing the profitability of the company as a whole.

Are you satisfied with your business? Do you want to increase your profits by turning it from weak to strong? Model the company's business processes and see if anything can be changed. The analysis will show whether the company requires minor optimization or something more global called business process reengineering. What this is and how to do it using the example of a store, we will tell you in this article.

Business process reengineering: what is it?

Managers have been saying that Russian companies need to “debug business processes” since the late 90s. Then books by American authors appeared with the phrase “business process modeling” or “business process reengineering”, which was unfamiliar to business restructuring.

We quickly understood what it was. When we talked about business processes, we were talking about documentation of all tasks and activities that the company aims to achieve the main goals.

For example, a store documents the processes of selling goods, working with customers, and also with suppliers. A chain of beauty salons will describe all activities to provide services to a specific group of clients.

Business process reengineering and engineering

Sometimes managers talk about engineering and business process reengineering, generally meaning the same thing. Only in the first case, business processes are formed for the first time (engineering), and in the second case they are completely redesigned (reengineering).

Business process reengineering is a radical restructuring of all company activities to increase profits and increase the competitiveness of the enterprise. “Enterprise” means any company, large or small business. The main thing is that at least 10 people work there.

Every business needs reengineering to one degree or another, wrote American management gurus and the author of the term, Michael Hammer, who published the work “Reengineering the Corporation” in 1993.

He opined that many businesses are using new technologies to automate fundamentally inefficient processes, rather than to create more efficient or financially profitable ones.

This management method helps in business transformation. In particular:

Reduce costs and increase staff productivity (for large firms, identify “superfluous” workers who are not busy with important matters and redirect them to work in problem areas);

Reduce the total number of “jambs” in business, since reengineering is often aimed at automation. Databases and others technological systems help reduce manual labor, increasing the ability to predict the result of work.

To automate control over business processes, try the Business.Ru CRM system. It allows you to create a task schedule for each employee, monitor their completion online, and much more.

When using this method, you should focus specifically on process changes, and not on personnel or specific performers.

The main thing in reengineering is to identify and change best algorithm actions to produce or sell a product or service, from the conceptual stage to implementation.

Business process reengineering is also known by the terms “business process redesign”, “business transformation”, “business process change management” or by the acronym BPR (business process reengineering).

Optimization and reengineering: the difference between technologies

Optimization and reengineering of business processes is management methods, which have the same goal: improving work results.

Reengineering - starts at the top and extends to the smallest details in the company's actions. This distinguishes the method from others, where all improvements are carried out through regular “cosmetic” changes to processes.

Reengineering works when a company intends to re-evaluate its views on the business, reform processes completely, standardize activities and simplify.

Optimization is necessary if there is a desire to revise only one or two business processes. For example, when a company has a problem in only one area: a delay in delivery or a large amount of paperwork.

It is possible that when establishing one process, other problems will emerge. And the company management will decide that reengineering is still needed.

When this method was first developed, one of the main results was to reduce the company's headcount. At that time, this was primarily due to the introduction of information technologies into companies that had not previously used them. Automation of processes required fewer people to carry them out.

Currently, the business reengineering project assumes that modern technologies are already used in the company, but they need to be updated or improved.

Reengineering results:

Increased efficiency. To do this, determine the main objectives of the company and identify ineffective or outdated business processes;

General cost reduction, but not by reducing work or staff, but by simplifying work;

Increasing staff involvement in the company's business;

Reducing time spent on business processes;

Business growth - improving the position of the industry with radical improvements.

Such results can only be achieved using the method of complete transformation, and not “cosmetic” edits.

Main stages of business reengineering

There is no universal framework for reengineering that guides companies step by step. This is due to the unique nature of each company and its problems and approach to clients.

Business process management consultants use their own best practices based on personal experience. The methods are then tailored to the specific company.

Let's look at the essence of the stages of business process reengineering using the example of a store:

Step 1. Determine reasons and needs.

The company must clearly understand why it needs to reorganize its business processes. Business needs analysis is a way to convince stakeholders in which direction to move.

For example, in a store, employees need to explain the reason for the changes (“revenue has fallen 1.5 times over the last six months” or “competitors are working more efficiently than us, we need to optimize”).

Otherwise, employees will believe that management is carrying out a reorganization of the enterprise, which threatens them with loss of their job or at least - peaceful life. They can hinder change, and absolute support for business process reengineering is one of the success factors.

Step 2. Gathering the team.

A team, which may consist of internal employees and external consultants, is assembled to carry out the reengineering. Group members are selected depending on the scope of the problem and other factors.

When forming a team, you need to answer the following questions:

Should team members have management experience or should they be from different areas and perform business processes?

How many people should work on a team?

How much autonomy should team members work?

For example, in a store with a staff of 15 people, reengineering can be carried out by 5 people. In more large companies- up to 10. It is advisable that the team includes not only managers, but also representatives of the working staff.

Step 3. Define processes.

This part of business reengineering requires an in-depth look at the company's problems, mission, goals, customer needs, and how those needs are met.

For example, in a small store there will be two key processes: selling goods and purchasing them. In a larger retail chain, key business processes will appear in the warehouse (labeling, inventory) and for calculating discounts and markdowns of goods.

The team analyzes how processes are currently structured. Problems and minor deficiencies are identified.

Step 4. Redesign.

Business process reengineering does not imply any rules that could regulate this stage. This is the creative stage with ideas, developing the basic principles of change, searching for ideas and opportunities for applying technology.

Team members must remember that they are not only improving old processes, but also completely rethinking how they are executed.

A detailed example of the implementation of this stage is shown below in the article.

Step 5. Involving the entire company in the changes, monitoring the situation.

Members of the reengineering team should receive feedback from employees and analyze the results.

Reengineering (restructuring) processes using the example of a store

Let's look at how reengineering works to improve business processes in retail. We have a case study of a complete restructuring of business processes in a regional chain of outerwear stores.

When does a store need reengineering?

The store owner thought about reengineering business processes, since there was a constant decrease in sales, and, consequently, a decrease in profits.

The problems were initially attributed to increased competition (a new shopping center with federal chain stores opened in the city), but it turned out that it was not just a matter of competitors.

Consumer behavior has changed. Customers have become more demanding in terms of price and level of service. The traditional approach to quality improvement, based on assigning a senior manager to consultants for training, has not been successful.

Assessment of existing business and task setting

This is what the store's organizational structure looked like:

Figure - Organizational structure of the store before reengineering

How was the sales business process structured before reengineering?

The client comes to the store, selects suitable models, tries them on, makes a decision to purchase or refuses it.

Figure - Sales business process before reengineering

There are two business processes in the store: sales and purchasing.

Key elements for the SALES business process	How are things now?		Expert assessment of the current situation (on a five-point scale)
Assortment matrix	Wide range of outerwear for women, about 200 SCU. There are accessories - scarves, stoles, hats and gloves.	“Widest” range: 350 or more items of outerwear. In addition to accessories - inexpensive mid-layer clothing (turtlenecks, pullovers).
Convenient in-store shopping	Lighting LED lamps, three fitting rooms. There are queues before the start of the season, but there are no sofas to wait your turn in the fitting rooms.	Five or more fitting rooms. We need sofas and catalogs with clothes that can be brought to order. We need to hang more mirrors in the hall. Delivery organization.
Customer service	Clients don't like queuing for fitting rooms before the season starts. Consultants are not always available. They cannot always tell you whether a similar model is available in a second store in the chain.	The maximum waiting time in the fitting room is 2 minutes. The consultant must solve the buyer’s problem in a few minutes and have a good understanding of the assortment.
Price	Outerwear is aimed at the middle price segment, and there are inexpensive accessories.	It is also necessary to focus on the low price segment. Especially in times of crisis.

How does the business process of purchasing goods by a store work?

The purchasing manager finds out from the supplier information about new models and, based on what has not yet been sold, orders new ones. In doing so, he is guided by:

information from senior managers,

own intuition (both managers are people with experience working with outerwear)

the price of the product in the wholesale price list.

Key elements for the PURCHASE business process	How are things now?	How things should ideally be	Expert assessment of the current situation (out of 5 points)
Collection of applications	Consultants leave requests by phone and in letters to managers stating that some goods are missing.	It is necessary to leave it in a unified information system, from which the situation in the warehouse of each store would be visible.
Sales statistics analysis	Purchasing managers analyze sales statistics from cash register data.
Ordering goods	Managers look through catalogs, coordinate all purchases with the director at a meeting and place orders.	Online procurement coordination should result in minimal approvals and discussions.
Distribution of goods across stores	The goods are brought to stores and distributed equally.	Distribution based on past data on demand for items of a certain price category in a specific store.

It turned out that senior managers had a task - to collect data on product balances, and not to mentor consultants and sales strategy. Senior managers also carry out audits and inventory in the store.

Revealed:

Lack of a unified store information system;

Low qualified consultants;

The need to gradually increase the range of outerwear.

The analysis shows that the store needs changes in business processes, a complete restructuring of approaches to sales - it needs reengineering.

Redesign of existing business processes

Changes need to be made to two business processes: sales and purchases of goods. As a solution, the store was offered a business automation program, Business.Ru.

Its main advantages for the store:

low cost of software (from 350 rubles per month);

Supplier purchasing process
Make the process of purchasing goods from a supplier linear - remove intermediate links and ineffective approvals.

The algorithm for the procurement business process is as follows:
Implementation:

As a result of reengineering, the task of collecting applications was removed from senior managers, and the number of approvals was reduced. One specialist began to handle purchases for two stores, and the other was retrained as a manager responsible for processing online orders.

The position of one of the senior managers who was required to supervise and train consultants, but in fact did not do so, was cut. The remaining senior manager mastered it, spent less time on work and could control both stores.

The stores eliminated the problem with queues in fitting rooms by organizing a fourth changing area, as well as hanging five additional mirrors in the sales areas. Waiting sofas were installed next to the fitting rooms, as well as coffee table, candy bowl and water stand.

New business organizational structure

Valuation of a new business

As a result of reengineering, payroll costs were reduced by 35 thousand rubles (one of the senior managers was fired). This money was used for monthly payment for use - 1125 rubles per month (the tariff includes CRM and an online store), as well as for the purchase of goods - 30 thousand rubles per month. Thanks to the increase in turnover, monthly profit increased by 15 thousand rubles.

The efficiency of the new online store (one-time costs for upgrading the product catalog plugin and shopping cart for the engine - 20 thousand rubles) still needs to be assessed.

Thanks to the implementation of the “ ” system, the store was able to use one cash register for offline and online sales, saving at least 15,000 rubles on the purchase of an online cash register. The first online sales have already taken place.

Is it possible to implement automation without reengineering?

Yes. You just need to remember that the company’s current business processes are imperfect. The leader makes a decision gradually, “patch the holes.” As a result, business processes may turn out to be confusing or work with errors.

Mindless automation of ineffective processes will only be a step towards automating ineffective work. It will not bring benefits.

If a company is experiencing a crisis or significant problems (for example, revenue is declining month after month), it is strongly recommended to change business processes to respond to the current situation. -At the same time, make maximum use of all possible automation tools.

Reengineering a store with poor financial results is the only way to ensure that the decision to invest in automation is the right one. Proper setup of all processes before investing is a guarantee of a positive result.

Automation without thinking is a faster solution. It will create a sense of immediate results at an early stage. However, it will not be a way out of the problem situation.

Business process changes: other methodologies similar to reengineering

All process improvement methodologies are related to each other. A story about business reengineering would be incomplete without a list of other business transformation solutions.
Both quality management and reengineering are concerned with improving efficiency. However, while TQM focuses on continuous improvement, reengineering focuses on one-time product innovation.

The biggest difference is that business process reengineering is a technique that changes things quickly, while quality management focuses on continuous improvements over time.
However, Six Sigma uses a “align and maintain” method with steps to identify root causes and does not completely redesign the process.
The method is similar to business process reengineering; it is a way to quickly update a company. However, a Lean system simply eliminates what doesn't work without trying to fix it (like reengineering).
Its success is associated with the continuous implementation of changes, in contrast to reengineering, where the changes are radical and abrupt.

Business process reengineering method involves more than process improvement. This is an element of organization theory and makes a distinction between the construction of corporate structure and corporate (what is the right structure for a particular organization?) processes (how is value created?).

Process- a series of activities where inputs are taken, value is added, and the final product is presented to internal or external customers. Processes use the organization's resources to produce end results.
Manufacturing process- the process of physical interaction with equipment or software, which will then be delivered to an external consumer, until the goods are packaged.
Business processes- all services and processes that support production processes. A business process consists of a group of tasks that are logically related to each other.

In processes, inputs (raw materials) are processed to the extent that a higher value final product is obtained, regardless of whether the customer is an internal or external party. Processes generate results and value - they should not include any unnecessary activities that destroy value. Once these processes come into physical interaction with a product to directly improve it, they become production processes - regardless of whether they are related to the manufacture of goods or the provision of services. These processes are not part of business process reengineering. Business process reengineering considers only those processes that support the production process: their interaction is cross-functional in nature, and therefore they must follow the logic of the business in order to create value rather than destroy it.

Reengineering is a fundamental rethinking and radical redesign of business processes with the goal of dramatically improving important current performance indicators such as cost, quality, service and speed.

There are four basic requirements for a reorganization to be considered true business process reengineering:
1. Fundamentality: fundamental questions should be asked. For example: why do we do what we do? What do we really need to do this, and how do we actually need to do it?
2. Radicality: It's not a matter of superficial tidying up, but of rethinking the entire business and, if necessary, radically transforming it.
3. Scale: Business process reengineering is not carried out for some minor improvements. On the contrary, it is done for an essential process in the company's activities.
4. Processes: Reengineering applies only to processes, and a process perspective is one of the priorities in such projects. The organization of corporate structures is not his primary concern.

Forward and reverse reengineering of business processes

There are two types of business process reengineering - forward and reverse reengineering.
Reverse engineering- in this process it is carried out comprehensive analysis company as a unified management system, including diagnostics of existing business processes. Its goal is to prepare the initial data for creating a new competitive strategy for the enterprise, including the formation of a new structure of the main business processes of the enterprise.
Direct reengineering- during this process, a new competitive strategy of the enterprise is designed. The basis is innovation processes. During this process, the structure of the enterprise's main business processes is designed, and financing mechanisms are developed.

Stages of an investment business project for reengineering

Stage 1. Developing an image of the company's future business and schematically developing its future competitive strategy.
Stage 2. Analysis of business processes within the framework of the company's existing competitive strategy.
Stage 3. Development of a model of a new competitive strategy and modeling of new business processes of the company.

Results of business process reengineering

The result of reengineering is changes in the company’s work processes:

Structural units are changing- instead of functional departments, process teams appear.
The work of performers is changing- from simple to multifaceted.
People's roles are changing- they cease to be controlled and are empowered.
Requirements for employee training are changing: from training courses to education.
The assessment of work efficiency and remuneration is changing: from performance assessment to outcome assessment.
The promotion criteria are changing: from job performance efficiency to job performance ability.
The performer's goal changes: from satisfying the boss's needs to satisfying the clients' needs.
The functions of managers are changing- from supervisors to coaches.
Organizational structure is changing- from hierarchical to “flat”.
The functions of senior managers are changing- they cease to be “accountants” and become “leaders”.

Literature

1. Philip Kotler, Roland Berger, Nils Bickhoff. Strategic management according to Kotler. Best techniques and methods.
2. Elitarium (elitarium.ru). Business process reengineering: stages of development and implementation.

Here are a few examples of successful reengineering that will help you understand the essence and methods of BPR technology.

1. IBM Credit Experience. IBM Credit Corporation is a subsidiary of IBM and provides credit to customers to whom IBM sells computers, software and services. The problem with IBM Credit was that with the existing technological cycle, resolving the issue of lending to a client took an average of 7 days, and in difficult cases- up to two weeks. Excessive decision-making time led to the loss of the client, since during this time he could find another source of financing.

The length of time it took to make a decision on a client’s request was due to the fact that the request was processed in 5 steps, performed sequentially in five different divisions of the company. At the same time, the transfer of a request from one department to another was carried out on paper. The company assigned two senior managers to go through all 5 steps themselves with several customer requests. At the same time, they asked the performers to process requests without delay. The experiment showed that only 90 minutes are spent on processing the request, and the rest of the time is spent on transferring the request from one department to another. Thus, it turned out that the problem lies not in the efficiency with which specialists work, but in the structure of the processing process. So, to solve the problem, it was necessary to change the process, not the individual steps.

The processing method used was based on the assumption that each request is challenging task, requiring the participation of experts from various specialties to solve it. The analysis showed that this assumption is wrong, since most requests are simple and their processing comes down to working with the database, which can be done by an ordinary clerk. In the new process, all processing is performed by one specialist, equipped with an information expert system that provides decision making and access to all necessary data and tools. Now, in most cases (more than 90% of requests), one specialist provides a solution to the problem. In difficult cases, the specialist turns to experts.

As a result of reengineering, IBM Credit radically redesigned the processing process and achieved stepwise improvements in the company's key performance indicators: request processing time reduced from 7 days to 4 hours, number of processed requests increased 100 times with a reduction in the number of employees.

2. Ford Motor Experience. In the early 80s Ford, like many other American companies, was looking for ways to reduce administrative costs. It was decided to cut costs in the bill payment department, where more than 500 people worked. Ford management learned that Mazda only had 5 people paying bills. Although Mazda is smaller than Ford, it is clearly not 100 times smaller. At first it was assumed that the number of employees could be reduced through automation, but this could only give a 20% reduction. Then Ford management decided to rethink the entire process involving the billing department.

The accounts department itself could not be reengineered because it is a department, not a process. The whole process, called "supply", begins with the ordering department sending a purchase order to the seller of goods. In this case, a copy of the order is sent to the bill payment department. When the seller has shipped the goods and they have arrived at Ford, a clerk in the goods receiving department prepares a receipt document and sends it to the accounts payable department. In the meantime, the seller sends an invoice for the goods to the bill payment department. By this time, the bill payment department has 3 documents for these goods: a purchase order, a receipt document and an invoice. If all three documents match (in most cases this is the case), then the clerk pays the invoice. If documents do not match, you need to find the source of the error. The clerk spends most of his work time processing precisely such situations. In Fig. 1.4 shows a diagram of the described process.

As the economy undergoes radical changes, there is a pressing need for new tools and techniques that can help organizations become more efficient. Reengineering is one of the most modern tools of this type. Foreign and Russian companies are often faced with problems that are practically impossible to solve using traditional knowledge and management paradigms. In view of this, more and more managers are looking for new, unconventional ways to achieve competitive advantage. The resort to reengineering is driven by the need to develop a fundamentally new business model. The degree of efficiency of an organization's activities undoubtedly largely depends on the effective implementation of its business processes.

The relevance of the topic of the final qualifying work. The modern market economy has created a competitive environment. Companies are forced to regularly resort to innovation, and often to a complete rethinking of their activities and restructuring of business processes. In this case, undoubtedly, reengineering is the best tool, which has been proven in practice foreign companies. Moreover, there are already examples of successful Russian experience in implementing business process reengineering.

It is the reengineering of business processes that can give a serious effect in solving anti-crisis problems in the shortest possible time, since it involves fundamental, revolutionary transformations in enterprise management, based on the introduction of new management technologies based on the optimization of business processes. The remaining methods are based on evolutionary, step-by-step achievement by the enterprise of its goals and objectives. Reengineering is a comprehensive transformation of the enterprise management policy, a change in the structure of the enterprise, its production or commercial processes, the consciousness of the work team, etc. in order to improve financial condition enterprises.

One of the distinguishing features is the focus of reengineering on processes rather than functions. Among all the management concepts that come from processes, reengineering is the most effective. The current state of information technology determined its revolutionary nature. Reengineering is an innovative method of business reorganization. The main goal of business reengineering is to dramatically accelerate the enterprise's response to changes in consumer requirements (or to forecast such changes) while reducing costs of all types.

All of the above confirms the importance of studying foreign reengineering experience for its subsequent successful implementation in the activities of domestic companies, which are becoming increasingly competitive relative to their Western rivals.

The degree of development of the problem. Some aspects of the problem of implementing business process reengineering have been studied in one way or another by sociologists, philosophers, managers, economists, and other scientists.

The founder of the theory of reengineering is considered to be M. Hammera, who co-authored with J. Ciampi the book “Reengineering the Corporation: A Manifesto for a Revolution in Business.” Analysis and research of the problem of implementing business process reengineering formed the basis for the writing of scientific works by such Russian authors as A.O. Blinov, O. S. Rudakova, V.Ya. Zakharov, N. D. Eriashvili, G. N. Kalyanov and others.

The purpose of the research project is to compare various mechanisms and methods for reengineering enterprise business processes by analyzing the experience of both foreign and Russian companies, and studying reengineering as a tool for increasing the level of company activity.

Achieving this goal involves setting and solving the following theoretical and practical tasks:

explore the international practice of implementing business process reengineering at enterprises in various sectors of the economy;
conduct comparative analysis the performance of companies before and after reengineering;
study modern methods of business process reengineering;
develop appropriate directions for the development and application of reengineering in various areas of business.

The object of the study is business process reengineering (BPR).

The subject of the study is the methodology for implementing BPR, which is reflected in the experience of a number of companies.

The information and empirical base of the WRC consisted of reference information and documents, statistical, information and analytical data, monographs, articles, scientific reports posted on the Web pages of leading research centers, universities and publishing houses in Russia and other countries, materials of scientific conferences and seminars, legislative and other regulatory documents of state authorities of the Russian Federation and its constituent entities.

The current state of the problem of reengineering business processes requires a detailed study of the experience of foreign corporations, which have been introducing reengineering mechanisms into their activities for much longer, a qualitative analysis of numerous reengineering techniques and improving existing mechanisms as part of adaptation for further use by Russian enterprises.

The theoretical and practical significance of the study lies in the fact that a multi-level approach to revealing the essence of business process reengineering is defined, numerous methods for its implementation are presented, new advantages and disadvantages are identified that can potentially affect the activities of companies, and directions for the implementation of reengineering in Russian companies, which made it possible to prove the increasing importance of the role of new methods for increasing the efficiency of enterprises in view of existing market conditions in certain industries.

Work structure. The thesis consists of an introduction, two chapters (6 paragraphs), a conclusion and a list of sources used.

The introduction contains the justified relevance of the topic of research and development, its theoretical and practical significance, determines the degree of development of the problem under study in the scientific literature, contains formulations of the goals and objectives of the study, and highlights the object and subject of the study.

In the first chapter The concept and essence of business process reengineering, the main directions and principles of reengineering, as well as the role of information technology in this process are considered.

In the second chapter reengineering in various sectors of the economy is analyzed, foreign and Russian experience of companies that have successfully reengineered business processes in order to overcome the internal crisis is examined.

At the conclusion of the WRC The main theoretical conclusions and practical recommendations made within the framework of this study are presented.

Chapter 1. Theoretical aspects of business process reengineering

1.1. Reengineering as a method of managing enterprise activities

Business process reengineering (BPR) first emerged in the USA and soon established itself as one of the leading and rapidly developing methods of managing a modern enterprise. In particular, reengineering has become necessary for enterprises in the context of global economic reform and informatization of society.

The main feature of reengineering is the rejection of traditional rules and methods of enterprise management, which in reality are outdated or simply inappropriate for a specific situation. At the same time, the business is designed from scratch.

The origins of reengineering come from the so-called “computer community” - a community of specialists in automation of companies who had practically nothing to do with quality management specialists. Both groups exist separately from each other, although their activities are aimed at actually the same tasks - improving the quality and efficiency of processes using similar techniques.

In 1993, M. Hammer, a professor at the Massachusetts Institute of Technology, published a monograph on corporate reengineering, in which he stated that “it is wrong to follow the beaten path, it is necessary to rebuild the business by introducing modern achievements information technologies to achieve qualitative changes in work.”

According to his interpretation, business process reengineering is defined as “the fundamental rethinking and radical redesign of key business processes in order to qualitatively improve their performance in terms of cost, quality of service and speed.”

Davenport defined BPR as “a one-time innovative impact to achieve radical business improvement.” Klein and Manganelli, in their book The Reengineering Handbook, defined BPO as: “The rapid and fundamental redesign of business processes and systems that define a company's strategy, policies, and accompanying business processes. organizational structures to further optimize work flows and improve organizational productivity.” Johanson and McHugh, in their book Business Process Reengineering: Breakpoint Strategies for Market Dominance, define BPR as follows: “The ways a company achieves significant changes in operation (revision of costs, cycle time, service modernization), using different tools and technologies and considering the process of enterprise functioning not as a set of functions, but as a set of interconnected, customer-oriented, central business processes.”

Business process reengineering projects have been implemented in practice for a little over 10 years, but in Russia this technology is just beginning to develop. Since one of the goals of reengineering is to isolate and optimize business processes using information technology (IT), the technology for this is not always easy to implement.

For example, many Russian enterprises constantly need to update and replace outdated information technologies with more advanced ones. At the same time, at foreign enterprises the level of their use is at a higher level.

Buisness process — This is a system of purposeful and regulated activities in which, through consistent targeted influence, with the help of resources, process inputs are transformed into outputs, i.e. process results that provide value to consumers (Figure 1 and Figure 2).

Rice. 1. Typical business processes designed and improved during reengineering activities

Rice. 2. Classification of business processes

The efficiency of business processes depends on a number of indicators, such as the number of consumers of the product, the costs of its production, the duration of standard operations, the amount of investment in its production, etc. (Fig. 3).

Rice. 3. Business process efficiency indicators

The indicators presented in the figure directly affect the activities of the enterprise and require constant monitoring. Companies try to minimize their costs, but often go the wrong way and only increase their losses. Professional use reengineering involves considering issues in a comprehensive manner, which allows you to more accurately calculate the expected costs.

Reengineering of a company, as a rule, can be carried out in several directions. All of them are designed to simplify the process as much as possible and systematize large amounts of information. To do this, it is important to learn how to properly manage business processes, especially at the stage of their transition to more advanced stages. Figure 4 shows possible areas for improving business process management (see Figure 4). 4.

Fig.4 Directions for improving business process management

Reengineering involves either redesigning or improving business processes. Based on this, a distinction is made between crisis reengineering and development reengineering, which are used when various situations. Each type is used under appropriate circumstances and has its own distinctive features. Crisis reengineering is used to resolve a crisis in an enterprise. It is used in cases where the effectiveness of the financial and commercial activities of an economic entity is constantly declining, its competitiveness is falling sharply, a trend has emerged. bankruptcy and a set of measures is needed to eliminate this crisis. (see Table 1).

Table 1

Types of reengineering and situations in which they are applicable

Among the most common reengineering tasks are:

creation of a network of connections used in emergency circumstances (develops horizontal management connections);
creation of organizational prerequisites for the purpose of centralizing information flows (facilitates the receipt of information classified by specific processes);
division of functions of the company's top management and creation of a network of operational groups (allows the use of process team technology for these purposes);
creating motivation for creative thinking, situation analysis and teamwork (these principles change the nature of work and the actions of workers when implementing BPR);
successful coordination of strategy from the center and decentralized execution of decisions (BPO is based on mixed processes and matrix management structures);
creating organizational conditions for company restructuring.

For a deeper understanding of BPR, you should familiarize yourself with the basic categories presented in Table 2.

table 2

Basic categories of BPO

The set of business procedures implemented during the BPR process forms a business process, which, through the introduction of new functions and optimization of previous models, forms an updated business system designed to increase the competitiveness of the enterprise in the market.

1.2. Main stages, directions and principles of reengineering

Reengineering is intended, first of all, to create competitive advantages for the company by systematically assessing ongoing processes, identifying the constantly changing needs of potential and existing customers. During the RBP, an analysis of the implementation of the process at the current time is carried out and the development of an improved execution model that is as close as possible to the optimal one. An integral part is developing a plan for the transition from the current to a modernized model.

The business processes of enterprises often differ significantly from each other, but there are a number of general requirements, which each of them must comply with. In the process of reengineering, the following principles for organizing business processes can be identified:

Integrating business processes is a characteristic feature of redesign. Complex labor functions require a different organization than simpler ones. Naturally, in reality, one employee cannot always complete all stages of work on his own. In this case, a team is created responsible for this process.
Horizontal compression of business processes. Comparative assessments provided by companies that have already implemented BPO show that the transition from a traditional process organization to a one-person process can reduce the number of personnel and reduce the process cycle time by approximately 10 times. The number of costs and errors is significantly reduced, which makes it possible not to have specialists on staff who solve such problems. By reducing the number of staff and clearly assigning responsibilities, managing processes becomes much easier.
Decentralization of responsibility (vertical compression of business processes). The range of decisions that performers of certain work can make independently, without contacting the company’s management, has been expanded.
Logic of business process implementation. To save time, different tasks are often performed in parallel, thereby increasing the efficiency of the work done.
Diversification of business processes. Execution processes can be of different types. For example, the traditional process is aimed at producing mass products. It is supposed to be executed uniformly for all inputs and lead to consistent outputs. As a rule, traditional processes are quite complex, they are very detailed and are largely designed for exceptions and special cases.
Development of various business process options. In modern conditions, it is important to develop processes that will be effective under different, constantly changing market conditions. It is necessary to create a verification stage so that at the beginning of the process, it is possible to check which option is the most successful for its implementation. In this way, new processes will become more understandable, as they will be implemented according to the most appropriate option.
Rationalization of horizontal connections. Creation of linear functional units. The work is carried out by those units that are most suitable for it. In the BPR process, horizontal management links between departments are most often created. This avoids unnecessary integration.
Rationalization of managerial influence. For these purposes, management influence is recommended only in cases where it is absolutely necessary and can affect material results.
Problem-solving culture. In reengineering, coordination is minimized by reducing external connections.
Rationalization of company-customer relationships.
Authorized manager. This principle is used when executing complex processes that cannot be completed by a small team.
Maintaining the benefits of centralized management.

The outcome of reengineering is influenced by a number of factors. Some of them are presented below in the diagram (see Fig. 5). Of great importance is the involvement of employees in the BPR process, their motivation to improve their skills or change them radically.

Fig.5 Reengineering success factors

In addition to the above factors that influence the success of reengineering, it is worth further identifying the roles of the company’s management and employees, as well as motivation, communications, etc. for a successful RBP.

Motivation. The motive for undertaking a reengineering project must be clearly defined and recorded. It is very important that management understands that this particular path will significantly increase the company’s competitiveness and modernize outdated systems of work and interaction within the organization.
Management. The person leading the BPR process should enjoy undeniable authority among the majority of the company's employees, since it is he who will motivate each of them to change with the company, expand the range of their skills, etc. The manager must be prepared for the fact that the team has already become accustomed to the established system of work and must clearly understand how to withstand possible pressure from employees and circumstances.
Employees. It is necessary to create a team that, collectively, will have all the necessary competencies to carry out reengineering, and will also be able to create an atmosphere of interaction. Employees must understand why reengineering is so necessary for the company at this stage of its existence. Essentially, all employees must learn new skills and demonstrate a new set of behaviors.
Communications. Clearly defined objectives should help employees understand exactly how the new processes will occur and what is required of them to implement them.
Budget. Many managers often mistakenly believe that reengineering can be accomplished through self-funding. However, as practice shows, this is more of a venture project that requires considerable investment, especially if it involves the active implementation of the latest information technologies.
Technological support.

There is a five-phase approach to reengineering, which is presented in Diagram 1 (see Appendix 1). For a deeper understanding, you should also consider the information reflected in Appendix 2, which characterizes reengineering according to its main criteria.

As noted above, in reengineering special attention is paid to the formation of a team and its interaction with the organization’s team. During the BPR process, process teams perform the functions of a management link.

Depending on the work performed, there are two types of process commands:

1) a team brings together employees of various specialties who perform routine work for a long time;

2) a team brings together employees to work on a non-standard problem that requires a non-trivial solution. Such teams are usually created for a certain period of time until the project is implemented.

Clear definition participants reengineering activities and the functions they perform are the basis for the effectiveness of the process (see Appendix 3).

To form a coherent, efficient team, you need:

a precise description of the main objectives;
careful budget development;
identification of key roles and recording of objective requirements for candidates;
careful selection and detailed verification of candidates;
continuous monitoring, ability to identify and correct errors.

In order to build the reengineering process correctly and carry it out gradually, you need to understand what stages need to be completed. For different projects they may differ, sometimes quite significantly. Generally speaking, the stages of RBP usually look like this:

Project development and identification of business processes. The goals of the project and its tasks are identified, a reengineering team is formed, and the methodology that will be used is determined.
Documentation of business processes.
Comparative analysis (benchmarking). A business process analysis is carried out, the purpose of which is to compare the ongoing processes with the practice of the advanced divisions of the organization or a competitor organization.
Development of a model of the future organization. This stage is implemented to form a view on new organization taking into account its capabilities and goals. It is advisable for the reengineering team to include members from the external environment.
Problem analysis and redesign of business processes and technologies. The purpose of this stage is to identify the weaknesses of technological and business processes.
Introduction of new technologies and business processes. Evaluation of the results obtained. At this stage, the criteria determined at the beginning of the BPO are compared with the final results, taking into account costs by type of functional activity.

Other classifications of RBP can be found in the literature. For example, one of them is clearly presented in Appendix 4. It clearly shows the connections between various processes and systems in the organization.

There are two fundamentally different ways to apply BPR: systematic reengineering and clean slate reengineering. Let's consider them one by one and present the features of their implementation.

Systematic reengineering.

This type of reengineering is carried out based on the ESIA (erase, simplify, integrate, automate) model. It is planned to implement four stages that are carried out during the systematization of processes: destroy, simplify, combine, automate.

1st stage. Destroy. All operations that do not add value are eliminated. This task is very urgent. For example, the Toyota company, in calculations for most traditional production processes, believes that 85% of its personnel are engaged in unproductive work during the day:

5% observe but do not act;
25% of employees are waiting for something;
30% of employees increase inventory through their activities, but do not add value;
25% work, but are guided by outdated standards.

2nd stage. Simplify. After getting rid of everything unnecessary, you need to simplify as much as possible everything that remains. Usually this action affects the most difficult areas.

3rd stage. Merge. There is a further simplification of the flow from suppliers to enterprises and from enterprises to customers. Companies that have managed to establish strong relationships with consumers and suppliers usually have a competitive advantage and ample opportunities for improvement. Often there is an integration of the main components and their consumers into a single product development process.

4th stage. Automate. Information technology, modern equipment - this is what has a strong effect and gives good results. At the same time, it is not recommended to automate complex processes, as numerous errors may occur. In the field of quality management, for example, important has automation of data analysis collected by statistical methods.

Reengineering from scratch.

In this case, the existing process is completely recycled. A new process is created from scratch by rethinking an existing one.

It is almost impossible to give general recommendations on how to make fundamental changes in a company starting from scratch. The result strongly depends on creativity, the use of imagination, information, as well as the availability of modern technologies and specialists who can radically change existing processes. Each BPO project is individual. Below are the main issues that need to be addressed:

What basic needs do we want to satisfy?
Why should we satisfy these needs? Is it consistent with the overall strategy of the organization?
Where should these needs be met? When?
How will these needs be met? Who will do the work, what technologies should be used?

The determining factor of perestroika is the creative activity of the performers. Often, to engage imagination, managers are advised to ask employees the following questions:

Imagine that you are about to create a business that competes with your own organization. What would you do to achieve better results?
What is your ideal process?
If you could create an organization, what would it be like and what would be the characteristics of an ideal process?

The last thing that should be identified at the stage of discussing proposals, regardless of the chosen method of implementing BPR, is to develop a list of recommended changes as a result of modernizing the business process.

1.3. Use of information technology in reengineering

As already mentioned, reengineering arose at the intersection of two areas of activity: management and informatization.

In business reengineering, the latest information technologies play a decisive role. However, simply installing computers in an office is not reengineering; On the contrary, mishandling of technology can completely block BPO, reinforcing old behavioral patterns.

To understand the impact of modern information technology and imagine its application, companies need to think outside the box, which often causes difficulties for business people, as it usually contradicts what is taught in universities and business schools. Most managers are proficient in deductive thinking; they successfully identify a problem and find a solution to it. But when using information technologies, it is necessary to think inductively: at the very beginning, see an effective solution, and only then look for problems and tasks that it can solve.

Most companies make the same fundamental mistake when it comes to technology: they view it through the lens of existing processes. They ask, “How can new technology solutions optimize or improve current operations?” Instead, they should ask: “What fundamentally new things can these technologies give us?” Unlike automation, the essence of reengineering is innovation, using the latest technological capabilities to achieve completely new goals. This is one of the most difficult elements of reengineering - the ability to find new, unfamiliar capabilities of technology.

Technology creates its own uses that people were not previously aware of; this is a variation of Say's law. (Jean Baptiste Sey noted that in many situations supply creates its own demand. People do not know that they need a thing until they see it on sale; then they feel that it is vital to them.)

It is ineffective to explore the potential of technologies only once or at intervals of ten years. The company must constantly introduce new technologies and learn to maximize their potential. It is as necessary as ongoing research, development or marketing. Those who are better able to recognize and make the most of new technologies will have a continued and growing advantage over their competitors.

However, it is extremely difficult to learn about new technology today and implement it tomorrow. It takes time to study it, understand its meaning, develop possible ways applications, convince employees of the need for these applications and plan for them. An organization that can do this preparation in advance of the technology itself will inevitably gain a significant advantage over its competitors.

Practical experience shows that truly successful and innovative implementation of information technologies is a unique creative process: enterprise employees and managers themselves make conclusions regarding the possibilities of using them in their specific business. The following observations are worth noting:

Reengineering is a complex process. Before conducting it, it is necessary to calculate the expected results and consequences, carefully consider the possibility of its application in a particular organization, analyze how it will fit into the process of improving its work, and then plan and reform business processes at a professional level.
Information technology plays an important role in modern business. It is important to distinguish between the concepts of reengineering and automation, since both processes involve the use of IT.
The application of IT requires not only deductive but also inductive thinking. It is necessary to look for new solutions, not only from the perspective of how technology can improve what exists, but also from the perspective of what new these technologies can give to business.
Assessing the effectiveness of IT use is a controversial task. It is necessary to understand which performance indicator is most significant for the enterprise - financial result, speed of transactions, reducing the risk of errors, increasing the level of business reputation and/or others.

One of promising directions IT within the framework of the process approach is the development of information systems (IS). In practice, MRP, ERP and OLAP systems have become widespread. But the listed IPs have one significant drawback - they cover to a greater extent the internal environment of the enterprise and/or its divisions, at best - the activities of vertical conglomerates, or vertically integrated firms. The current level of IT development makes it possible to create information systems that can cover the activities of not only one enterprise, but also the activities of all its potential suppliers and buyers, which would provide a lot of benefits to the business as a whole.

T. Davenport and J. Short (Davenport T. & Short J.) also suggested that BPO requires a broader view of IT, business operations, and the relationship between them. Information technology needs to be seen as a fundamental rethinking of the way work is done, rather than as typical automation or mechanization.

In turn, business operations must be viewed from a process perspective to maximize efficiency, rather than as a collection of discrete or functional tasks. IT and BPO are interrelated: IT is implemented to support business processes, and the business processes themselves must be performed in the conditions that information technology can provide. Davenport and Short view the relationship between IT and BPO as a new industrial engineering.

Based on Davenport's ideas, there are three types (categories) of changes that ensure the use of IT.

Changes that fall into the first category are aimed at improving the timing characteristics of the process without modifying its content. Such changes can significantly improve the process, although they are not revolutionary:

— work is automated and manual labor is reduced;

— data is analyzed using new methods that cannot be applied manually.

The second category includes cases of reorganization of the sequence of actions for the implementation of tasks in a business process. This reorganization is carried out to significantly improve processing processes through:

— simultaneous implementation of various works using databases and networks;

— distributed data organization, with the help of which information can be collected from different places;

— moving some processes outside the company’s activities, as well as providing access to information data for clients and suppliers;

— coordinating actions by providing quick access to internal company data;

— the use of expert systems that are capable of attracting semi-skilled employees to perform complex work and provide the necessary information base for this.

Changes in the third category allow you to monitor each specific instance of the process and determine where it encounters difficulties.

Another way to use such information support is to measure process performance parameters to identify bottlenecks.

While many useful and successful improvement processes can be achieved without the use of technological innovation or improvement of information systems, real and truly radical reengineering efforts invariably depend on the degree to which the capabilities of information technology are mastered and exploited.

By definition, an existing technology platform supports existing business processes. If it is possible to assume that existing technology capabilities do not fully support process requirements, then it is even more likely to assume that existing technology is outdated for process improvement. In this case, existing technology represents a barrier to improvement and, like other organizational barriers to organizational change, must be removed. Moreover, modern technologies are developing continuously and very quickly - those business rules that seem unshakable today may become outdated even before they are fully implemented.

Based on the above, it becomes clear that the role of IT in carrying out business process reengineering cannot be overestimated, but it is also a mistake to think that IT is the only essential element of reengineering.

We should note that IT alone does not provide the dramatic change that reengineering is intended to bring about. The results of studies on the impact of information technology on business generally do not look very impressive. It is obvious that business process reengineering, like any other area of organizational development, involves the use of a systematic approach when implementing it. Therefore, technology in general and information technology in particular should be considered only as part of a business system, which, along with technologies and methods of performing work, also includes the organizational structure, control and management systems, and corporate culture. Business process reengineering affects absolutely all components of the organizational system, since they are closely interconnected and require their complete or partial restructuring.

Chapter 2. Implementation of reengineering in world practice

2.1. Reengineering in various sectors of the economy

In world practice, reengineering first began to be implemented in several sectors of business areas:

telecommunications and energy;
chemistry, electronics;
Computer Engineering;
production of consumer goods;
insurance.

Since 1994, reengineering has also been widely used in banks and government agencies.

In order to attract additional investment, enterprises operating in various sectors of the economy sought to move from functional management to process-oriented management. This was largely due to the fact that the previously used functional approach turned out to be ineffective in market conditions. When management is focused on performing individual functions, consumers are left without due attention from management, which is unacceptable in a competitive environment. According to the process approach to management, the company's activities are a set of various processes for processing resources in order to satisfy customer needs. It is the consumer and his needs that are the main goal in process-oriented management.

With a functional approach, employees are interested in the effective performance of individual functions, rather than the entire process, which leads to contradictions in the work of individual structural units, a decrease in the efficiency of the organization and the speed of its response to changes in the external environment. Focusing attention not on individual functions, but on chains of operations (business processes), which are carried out jointly by many structural divisions, will solve these problems and improve the efficiency of enterprise management and the efficiency of its activities. In addition, the process approach to management is more effective in a globalized economy due to the widespread use of information technology.

In global management practice, the process approach to management has long been used by the management of various companies and is supported by relevant theoretical developments. In Russia, this is a relatively new direction in management, which does not have an accurate conceptual and categorical apparatus, effective methods and tools.

In case the company is not able to carry out reengineering on its own, for example, due to lack of staff the necessary specialists, management can turn to professional firms and consultants on BPR. Naturally, each such company or individual specialist uses different methods, considering them the most optimal. In this chapter we will compare some of them and give a brief description of each individually.

In modern literature, there are mainly five main methodologies for conducting reengineering, which are reflected step by step in Appendix 5.

By analyzing the five models presented in the table (see Appendix 5), a consolidated methodology was developed. With its help, it was possible to better structure the reengineering process and make it more understandable. Five main methodological steps were identified:

Preparation for business process reengineering.
Analysis of current processes (As Is).
Development of target processes (To Be).
Implementation of reengineering processes.
Support for continuous development.

Figure 6 shows a five-step consolidated reengineering methodology.

Rice. 6. Consolidated methodology for business process reengineering

This reengineering methodology is actively used in various sectors of the economy, including the banking sector, IT, etc. One of the main goals of reengineering in the banking industry is to reduce the time spent on transactions to improve the quality of customer service. However, clients themselves also note a number of shortcomings that arise after BPO: an insufficiently high level of security, failures of automated machines (ATMs, etc.), increased service fees. According to surveys of American bank customers, automated machine failures are considered the most pressing problem. Along with the disadvantages, clients still note that reducing the time spent on banking transactions is an unconditional advantage for them. As for the benefits of reengineering for the bank itself, the following can be included in this category:

increasing the level of transparency, manageability and control at all stages;
significant reduction in costs (time and financial);
increasing the effectiveness and efficiency of business processes;
possibility of creating additional branches and offices.

Undoubtedly, one of the most complex and controversial areas of modern management is the management of a commercial bank. This is explained by the fact that modern conditions of a market economy have introduced many contradictory processes into banking activities that are almost impossible to predict.

If the efficiency of doing business and the management of ongoing business processes are not constantly improved, then even the most successful bank will soon lose its high position in competition and, as a result, will incur losses, will develop at a slow pace, and will lose authority among clients and investors. First of all, such consequences arise with the obsolescence of previous management methods and, accordingly, reaching the limit of their capabilities at this stage.

Reengineering involves fundamental change, not just process improvement or updating. As a result of such changes, the activities of any organization are carried out at a qualitatively different and higher level.

Let's consider the oil production industry, an important component of the economy, especially the Russian one. Due to the fact that production services in the oil industry are not the main activity of oil production enterprises, a relatively small share of attention was paid to the organization of business processes for technological support of the oil complex, the use of technological services at enterprises, in contrast to the main production - oil production.

For many years oil industry significantly lagged behind auxiliary divisions in development and, naturally, did not have the necessary developments in the field of economics, the provision of technological services and the organization of support for main production, which was one of the reasons for the high level of oil production costs. In the process of transition to market relations, problems with technological and logistical support of production have become even more aggravated.

During the implementation of business processes at oil producing enterprises in the current conditions, the field inevitably enters a late stage of development at a certain point, which leads to a decrease in oil production volumes, an increase in the water cut of products, as well as an increase in production costs and a decrease in profits. Moreover, services (geophysical work, drilling, well repairs, etc.) have the lion's share in the cost structure as oil production conditions worsen, which requires the introduction of more complex (and therefore more expensive) technologies. Thus, the primary task arises of increasing the efficiency of production business processes in the oil and gas industry. By applying new technologies and using new organizational solutions, it is possible to reduce the unit costs of reserve growth and their production. It is these solutions that are developed through business process reengineering.

The results of reengineering business processes of oil and gas industry enterprises are usually the following:

the number of company personnel is reduced, while production volumes remain at the same level;
the cost decreases while maintaining the same volumes and quality of oil production;
the number of management levels is being reduced;
business value increases, which attracts investors;
the cost of business in the industry increases;
the profitability of the enterprise increases.

One of TNK-BP's subsidiaries, Samotlorneftegaz, approached the company's IT department and TBinform LLC with an initiative to automate the process of managing requests for service of customer departments and provide a unified database for facilities and equipment of the entire enterprise.

The goals of the project were determined:

increasing the efficiency of maintenance and repair of facilities;
improving the quality of service provided;
reducing costs for maintaining facilities;
formation of a unified network schedule of preventive maintenance work (PPR);
development of object passports containing all
possible technical characteristics.

As a result, specialists from TBinform LLC developed the ATP-Navigator software package, which allows you to automate business processes in service areas and is intended for:

managing applications for the customer’s departments and contractors;
detailed and transparent quality control of services provided and implementation of SLA (service level agreement);
maintaining a metrological database, signaling metrological deadlines and deadlines for preventive maintenance, etc.;
obtaining detailed information about equipment failures, their causes and measures taken, traffic history, equipment repairs;
generating reports.

The universal data structure implemented in the ATP-Navigator software package, the high functionality of the modules and the ability to flexibly configure routes for the movement of applications and equipment allow you to automate almost any business processes of service between the customer of the service and the contractor.

Currently, the software package has been replicated in nine TNK-BP exploration and production enterprises and is in commercial operation.

The implementation effect includes:

increasing control over compliance with service regulations;
the ability to identify the causes of violations of equipment operation technology;
obtaining detailed statistics and analytics on equipment operation;
increasing the efficiency of service;
reducing facility downtime and increasing the turnaround time;
reducing costs for maintenance of facilities and equipment.

In other words, the well began to stop for repairs much less frequently, the time for diagnostics was reduced several times, it became possible to quickly and easily coordinate the work of service organizations both during repair periods and during planned maintenance, which increases the time of uninterrupted operation and allows maintaining stable growth of the main company indicator – production volumes.

As already mentioned in the work, companies often resort to the help of specialized companies or individual specialists who provide reengineering services.

In general, it is possible to distinguish four types of reengineering firms:

Consulting firms. Such companies primarily provide audit services, as well as information flow management services based on their software.
Consulting firms working as system integrators. These firms may be at the highest management level of the company and do not deal with accounting procedures and technologies for their implementation. They create optimal models using foreign programs and improve document management systems.
Design firms. They provide a project for an ideal company. In other words, they are developing a project for an optimal business. At the same time, these companies are not involved in putting the project into practice and do not provide recommendations on this matter.
Firms that implement reengineering in practice. This category of firms is directly involved in implementing the results of the enterprise management system reorganization project in practice. Thus, this category of firms eliminates crisis situations that have arisen and then offers more optimal scheme management.

Since reengineering is directly related to the exchange of new technological advances, it is worth considering the structure of Russian technology trade with foreign countries by sector of activity in 2012. (see Table 3).

As can be seen from the table, it is in the business sector that the volume of technology trade is most significant. This is also due to the fact that businesses need to constantly update their technological base in order to remain competitive. It is on strengthening the technological base that business process reengineering most often relies.

Table 3

Structure of Russian technology trade with foreign countries by sector of activity in 2012

Often, professional reengineering companies arose on the basis of engineering companies (companies that were engaged in the rationalization of old processes). Most of them successfully develop both types of services provided. Of the most dynamically developing engineering and reengineering companies operating in Russian market, we can highlight the following (see Table 4):

Table 4

Key performance indicators of leading engineering companies in Russia in 2012

Russian engineering companies are expanding the range of services offered and strive to adopt the experience of the largest Western engineering companies, such as: Fluor (USA), HOCHTIEA AG (Germany), STRABAG SE (Austria), KBR (USA), Aker Solutions (Norway), Heidenhain (Germany) ), Bechtel (USA), VINCI (France), URS (UK).

Analysis of modern domestic and foreign experience in conducting BPR reveals typical mistakes:

The company is trying to modernize an existing process instead of redesigning it from scratch. Experts begin to use various irrational techniques when they realize that they have not achieved the desired results. The main mistake of companies in this case is the desire for partial improvements instead of implementing one radical restructuring of processes.
Incorrect rating corporate culture companies. Personnel must be motivated to carry out the redesigned processes. Sometimes the existing corporate structure and established principles can become an obstacle to even starting business process reengineering. For example, if decisions in a company are made based on consensus, employees may view top-down reengineering (from top-level employees to mid- and lower-level employees) as an insult to their feelings.
Inconsistency in mastering innovation. This mistake lies in the untimely completion of the RBP, as well as the limited formulation of the task. Quite often, practice shows that some companies are ready to abandon reengineering at the first difficulties.
Irrational distribution of tasks for the development of innovation. Carrying out reengineering from the bottom up, rather than from the top down, will certainly lead to unfavorable consequences, since lower and middle level managers will not be able to cope with all the assigned tasks on their own. There are explanations for this outcome: firstly, employees at these levels do not have a sufficiently broad vision, which is necessary for reengineering; secondly, business processes always cross the organizational boundaries of a company and extend to several divisions.
Insufficient resources. Reengineering should be carried out thoroughly, and not simultaneously with other programs and activities. It is also not recommended to re-engineer at the same time. large quantity processes, since the management staff will not be able to devote a sufficient amount of time to each process, and when implementing reengineering, it is extremely important to keep the attention of senior managers on a specific project.
Personal problems of renewal. It is impossible to carry out reengineering without infringing on anyone's rights. Many employees will be forced to change the nature of their work or lose it altogether, while others will simply feel uncomfortable. Since you can't please everyone, you need to make incremental changes.

Thus, a company whose management understands the basics of reengineering has every chance of achieving success in its implementation. A successful implementation of BPR can benefit not only the company itself, but also the entire state, considering how much of an impact reengineering can have within critical companies, organizations and institutions.

2.2. Reengineering of production activities of international corporations

Numerous public and private corporations have already experienced the effectiveness of business process reengineering. The technique was first used by multinational companies such as IBM, AT&T, Sony, General Electric, Wall Mart, Hewllet Packard, Kraft Foods, which as a result managed to achieve significant reductions in the organizational structure. Later, reengineering entered banking and credit institutions with great success: Citibank, Northwesternbank bank, Bank of America and others.

The most successful solutions for business process reengineering have been obtained in the areas of industrial production and information technology.

BPR has also been used to change the organizational structure of enterprises in the public sector. Reengineering processes were first used by the Government of Egypt, along with many municipal authorities in Europe.

As this technology has evolved, it has spread to small and medium-sized businesses. Today, many of these companies are actively introducing reengineering into their activities, largely because this development system is extremely understandable and accessible to them. This is evidenced by the rapid growth in demand for BPO consultants both in the United States and around the world.

In most cases, when a company introduces new information technologies, reengineering is already taken for granted. That is why we can now say that information technologies not only create new working conditions for managers, but also change the organizational structure of the enterprise.

As the experience of international companies shows, BPO is used under the following mandatory conditions:

the minimum number of company employees is 20 people (including at least 4 people occupy management positions);
the company actively supports innovative projects and innovations;
The company has a fairly strong technological infrastructure.

Most often, international companies resorted to reengineering their activities in the following cases:

had high operating costs;
the quality of services provided did not satisfy consumers;
low performance of middle managers;
irrational distribution of resources and responsibilities in order to achieve maximum efficiency.

In general, the experience of Western companies shows that BPO itself does not require much time. The duration of each project varies from 6 to 10 months. The period depends on the type and structure of the business and on the goals that management sets for the BPO. Moreover, it depends on the methodology used by the specific consulting company (usually participating in the BPO). For example, BPR HELLAS (today Business Architects Consultancy), an American company that supports business process reengineering, uses a methodology focused on a quick and painless transition from initial to final processes (REMORA), distributes BPR over time as follows (see Table 5 ).

Table 5

BPO in time frames (Business Architects Consultancy)

	Months
BPR project stages	1	2	3	4	5	6
Preparation and approvals for BPO
Business Modeling and Analysis
Management and control of innovations
Technological solution design
Adaptation and retraining of personnel
Implementation of changed processes

Undoubtedly, the importance and need for business process reengineering is obvious. The European Commission actively supports SMEs in implementing BPR.

Experience is considered a successful example of reengineering American company IBM Credit, which is a subsidiary of the largest transnational corporation in its industry, IBM.

The IBM Credit company was engaged in such activities as issuing loans to customers who contacted the IBM company with a desire to buy on credit the products that the company sold.

The following problems existed in the activities of IBM Credit in issuing loans. The first of them was that the business process for issuing loans lasted a long time and averaged 4 days, and sometimes reached two weeks. The second problem was that the process was unmanageable. The sales representative from IBM, who accompanied the client and was responsible to him for issuing the loan, did not have the necessary information about the stage of processing the loan, the time of its completion and, accordingly, could not manage this process. Therefore, the sales representative did not know what to tell the client and could not speed up the process by rushing the IBM Credit employee.

To solve problems of manageability and reduce the time for processing a loan, it was decided to introduce a control system that made it possible to track the stages of the loan processing process. At the same time, it was believed that, having information about the stage of obtaining a loan, a sales representative can influence the process by controlling the employees participating in it.

The business process for obtaining a loan before reengineering consisted of the following operations, for which the following structural divisions of the company were responsible (see Table 6):

Table 6

Operations and distribution of responsibilities in the business process “Loan Processing” at IBM Credit before reengineering

№	Business Process Operation	Responsible
1	Registering a request in the request form	Request registration group
2	Entering information into the information system, checking solvency and entering the results into the request form	Credit department specialist
3	Approval of the text of the agreement, entering additional lending conditions into the request form	Commercial department employee
4	Calculation and entry of interest rate into the request form	Commercial department specialist involved in price calculation
5	Writing a letter to a sales representative	Office administrator

During the process improvement, a control post was introduced. All results of work on obtaining a loan, transferred from one structural unit to another, began to pass through the post without fail. The control post employee recorded the fact of transfer of results and the stage of processing for each loan.

The business process for obtaining a loan after the improvement began to consist of the following operations, for which the following structural divisions of the company were responsible (see Appendix 6).

After improvements to IBM Credit's loan application business process did not produce the expected results, one of IBM Credit's senior executives picked up a request form and walked through the process with it himself. He asked each employee to put aside whatever they were doing and fill out a request form. After this he discovered the following fact. It turned out that the time it took to process the request was 40 minutes. Under standard conditions, the process lasted from 4 days to two weeks. This meant that most of the business process time consisted of downtime. The results of the work were either on the way, or lay on the employees’ desks and were waiting for their turn.

This example confirmed the rule that in modern processes the total time required to perform operations is 20% of the duration of the entire process, and 80% is temporary downtime and the transfer of results from one structural unit to another.

After realizing this fact, the management of IBM Credit realized that the main reason for the long time it takes to obtain a loan is organizational and lies in the fact that many structural units are involved in the business process.

To address this problem, a working group on BPR was created. As a result of a brainstorming session aimed at finding a way out of this situation, it was concluded that 80-90% of the total number of requests for loans are quite simple, which allows them to be processed by one employee who does not have to have high competencies in this area. Only 10-20% of requests were complex, which required the involvement of highly specialized specialists.

Based on the results of the brainstorming session, it was decided to divide all loan requests into two types: simple and complex. In addition, it was decided to implement two business process options for processing the process, which will be carried out according to different technologies. Thus, the system became more understandable for employees, time costs were reduced, and the company’s efficiency increased significantly.

As a result of reengineering, it became possible to implement the business process in two versions. If the request received from the sales representative was simple, it was processed by one person, who was called the transaction coordinator. If the request was complex, it was processed by an expert group. Expert group consisted of specialists who worked in the company before reengineering, but unlike the previous version, these specialists united into a single department, which was called an expert group.

The business process for obtaining a loan after reengineering began to consist of three operations, for which the following structural divisions of the company were responsible. Thus, IBM Credit managed to increase its efficiency indicators by almost 2 times, which, of course, affected the level of competitiveness of the company. Table 5 reflects the distribution of responsibilities in the business process according to each operation (see Table 7):

Table 7

Operations and distribution of responsibilities in the business process “Loan Processing” at IBM Credit after the implementation of reengineering

Another classic example of reengineering is the experience of the American automobile company Ford Motors. In the early 80s, the American automobile industry was going through hard times, and Ford Motors management carefully studied the work of each of its divisions in the hope of reducing costs and the number of employees. Along with everyone else, the department working with suppliers, which consisted of 500 personnel, was considered. The company's management believed that reengineering would reduce the above number by 20%.

The goal seemed important and worthwhile only until the management of Ford Motors became familiar with the state of affairs at Mazda. While for Ford Motors reducing the size of its supplier relations department to 400 people was supposed to be a major achievement, at Mazda the same function was handled by five people. The gap was so great that even recalculating this figure in proportion to the volume of car production (and for Mazda it was significantly lower), representatives of Ford Motors still received a five-fold difference in number; and this difference could not be attributed to the psychological characteristics of the Japanese organization or the habit of singing the company anthem in the morning. So, the managers of Ford Motors changed the statement of the task - the changes were supposed to help cut not a hundred, but hundreds of clerks, busy with work with suppliers. Solving such a problem was not easy, but possible.

First, an in-depth analysis of existing business processes was carried out. The picture that emerged was as follows: When the Ford Motors purchasing department generated a purchase order, a copy of this order was sent to the supplier relations department. After the ordered products were accepted into the warehouse, a copy of the invoice was also sent to the supplier relations department. The supplier also sent his invoice for payment of supplies to this department. Upon receipt of all these documents, the supplier relations department reconciled them and, if they matched completely, issued an order for payment. The majority of employees' time was spent trying to determine the cause of discrepancies between the purchase order, warehouse invoice, and supplier invoice. In such situations, an employee of the supplier relations department found out the reason for the discrepancy and did not make payment until all the circumstances were clarified.

The most obvious way to improve the described business process could potentially be to improve the information service for employees in the supplier department, which would help speed up the processing of cases of data inconsistencies in documents. But to bring about radical change required a decision to design a system in which such discrepancies were atypical. Here the management of Ford Motors introduced the concept of “working with suppliers without invoices” (“invoiceless processing”). Now, when the purchasing department placed an order, all data was entered into a centralized computer system. At the moment when the ordered products arrived at the Ford Motors warehouse, storekeepers checked their name and quantity with the ordered ones and rejected the receipt of products that did not correspond to the orders. Before the implementation of such a system, comparison of a purchase order, invoice and supplier invoice included up to 14 items. With the introduction of new operating technology, comparison was reduced to checking the product number, quantity of products and supplier code. Moreover, this comparison was not carried out by a person, but by a computer, which prepared a payment instruction for paying for the received products.

Thus, Ford Motors management did not optimize the work of the supplier relations division; The entire algorithm for processing data on incoming products was completely revised, which made it possible to achieve not a 20 percent, but a 75 percent reduction in the number of employees involved in payments to suppliers.

2.3. Reengineering in Russia using the example of AK Alrosa

There is no doubt that at the moment, reengineering opportunities are of interest to Russian enterprises in connection with the transition to a fundamentally new level of management, caused by increasing competition.

In Russia, the problem of business process reengineering arose much later than in the West. This was partly due to the instability of the economy in the 1990s; many enterprises at that time were at their origins and did not yet need such modern methods of increasing efficiency as reengineering.

However, the completed transition to market economic conditions has raised the challenge of radically improving the level of business management, and in other words, the problem of reengineering business processes. The current state of business in Russia is such that the vast majority of companies are forced to reengineer their business processes. This is required by the business environment of Russian business itself, otherwise it will simply be uncompetitive on the world stage.

In Russia, there is still an outdated opinion that reengineering is a kind of “step-by-step, incremental” mechanisms for improving business, or their further development. However, true business process reengineering does not involve such minor changes leading to minor (5-10-15 percent) improvement in performance. Its goal is a significant, breakthrough increase in efficiency (tens and hundreds of times). The essence of reengineering is that responsibility for a business process, from start to finish, is assigned to a team capable of performing the entire range of work. Reengineering reorients management from operational specialization to complete business processes. As a rule, for most companies to operate effectively, 3 to 10 business processes are sufficient. Usually this is: development of a company development strategy, creation of new products, deadlines for order fulfillment. These business processes, as a rule, are the key objects of reengineering; this is where all the main levers for increasing the efficiency of the company as a whole are located. And the size of the reengineering program is determined by how many and what business processes it will cover.

The global financial crisis that erupted in 2008 further increased the need for business process reengineering. Many large and small businesses around the world are on the verge of bankruptcy. And, naturally, the best, the most efficient, the most adapted to the realities of the market could survive. And business process reengineering has become more relevant than ever. After all, a significant, several-fold reduction in production costs and an increase in the volume of sales offered to consumers is precisely the decisive factor that ensures the company’s survival in a crisis.

One of the companies that managed to make a breakthrough during the years of the last financial crisis was the Russian diamond mining company Alrosa, founded back in 1992.

Over the more than 20-year history of its activities, the management of AK Alrosa has faced various economic situations. The global crisis that began in 2007-2008. affected the company. The level of debt increased significantly from 90.4 billion rubles. in 2007 to 111.8 billion rubles. by the beginning of 2010

To overcome this situation, a strategy was developed to increase diamond sales until 2011 and attract $3 billion. as a result of the IPO in 2012. The first part of the funds received was planned to be used for the investment program, the other for debt refinancing.

As for the marketing strategy, it was focused on promoting the idea of the investment attractiveness of diamonds. Diamond miners supported their positions with information that the state managed to earn about 40% per annum in 2 years by purchasing diamonds from Alrosa for the State Fund. However, advertising campaign did not prove to be so effective. Experts argued that creating a deep, liquid investment market for diamonds was impossible, since diamonds are a piece commodity. Therefore, it was decided to issue ruble and foreign currency bonds and thus solve the problem.

Then, by the end of 2010, precious metal prices exceeded pre-crisis levels by 8%. The revival of the market and a successful tactical move already in the second half of 2011 allowed ALROSA to receive about $850 million in net profit.

In preparation for the IPO, AK Alrosa got rid of non-core assets. 100% of the shares of OJSC Alrosa-Gaz, 99.3% of the shares of LLC Insurance Company Alrosa", all housing and communal services facilities and housing complexes, etc.

Thus, already in 2011, the diamond company increased sales by 1.5 times (to 35.9 million carats) with an increase in production of only 5%. Positive changes were also reflected in profitability, which reached 33%.

A qualitatively new approach to debt restructuring allowed Alrosa to survive the crisis and constantly increase its capacity. In 2013, production amounted to 36.9 million carats. According to data for 2012, the share of AK Alrosa in world diamond production is 27%, and in Russia – 99%. As for 2014, the forecasts are very positive: the company's revenue will exceed 12%, and production will exceed the level of 2013.

It is also worth noting that as a regulatory framework, JSC Alrosa relies not only on the internal legal framework, but also on federal laws RF: Federal Law dated 08.12.2003 No. 164-FZ “On the fundamentals of regulation of state foreign trade activities”, Federal Law dated 09.07.1999 N 160-FZ (as amended on 03.02.2014, as amended on 05.05.2014) “On foreign investment in the Russian Federation”, etc.

In general, the reengineering of business processes carried out by AK Alrosa in 2008-2011. formed the basis of the company's development strategy until 2020, which provides for concentration on core business and growth in rough diamond production to more than 40 million carats by 2020.

CONCLUSION

Recently, economically developed countries have been experiencing changes in the organizational structure of companies. This is caused by a radical restructuring of business processes in the context of the introduction of the latest information technologies.

The modern business world is highly dynamic, which in itself necessitates reengineering. Constant transformations in markets, needs, and technologies have become commonplace, and enterprises, trying to increase their competitiveness, are often forced to radically reconsider their strategy and tactics.

The results of our analysis allow us to draw some particular conclusions that are of interest to our research. Firstly, long-term operation of a company without reengineering is almost impossible. Any company, regardless of its type of activity and size, needs reengineering from time to time.

In the modern economy, market conditions are constantly changing, which, in turn, requires rapid adaptation to new conditions, reducing time and production costs. Naturally, in exceptional conditions, some companies operate successfully without resorting to BPO. However, such players, as a rule, are absolute monopolists in their market.

Secondly, reengineering must be directly related to the company's strategies: market, business and organizational. Otherwise, even the introduction of the most modern technological base will not have a significant impact on the efficiency of the enterprise. Moreover, in the worst case, the company may incur additional costs.

The specialists responsible for carrying out BPR, as well as the top management of the company, must understand in detail how to integrate their projects and programs with a number of important actions aimed at improving the organization, for example, achieving leadership positions in matters of quality, customer satisfaction, increasing economic added value .

The above suggests that the involvement of an experienced reengineering specialist is necessary. This especially applies to Russian enterprises intending to radically change their activities. A professional consultant can potentially suggest a proprietary methodology suitable for a specific company in certain market conditions.

It should also be noted that for successful reengineering it is necessary to create loyalty of the company’s personnel to the upcoming significant changes.

The study revealed that there are many ways to increase employee motivation during reengineering. The main thing is to improve the level of education. In addition, company management must always take into account the fact that people cannot change instantly, unlike the production processes that BPO is aimed at.

Numerous studies of the experience of foreign corporations, analyzed in the work, show that the chosen model has a decisive influence on the effective implementation of reengineering.

Process reengineering must be supported by appropriate corporate organizational structure, appropriate information technology, and current strategic considerations. RBP cannot be carried out autonomously.

The studied organizational, methodological and theoretical aspects of business process reorganization make it possible to recommend a process-oriented approach to management and business process reengineering for use by enterprises in various sectors of the economy.

In most companies, reengineering is implemented through five major stages: developing an image of a future company, creating a model of an existing company, developing a new company model, implementing redesigned processes, and evaluating a project.

The main distinctive properties of business process transformation during the reengineering process in service companies are:

reintegration (horizontal compression of the process) - a certain set of operations forms one, vertical compression of the process - performers to whom part of the management decisions are delegated make them independently, combining or parallelizing work that was previously performed sequentially, minimizing the number of checks and control actions, minimizing approvals, predominance mixed centralized/decentralized approach, division of activities according to the degree of contact with the consumer, increasing the degree of client participation in the service process.

Business process reengineering is associated with almost all components of the organizational system, since they are interdependent, and requires their complete or partial revision.

Of particular importance for the success of reengineering in service companies is the organizational mechanism for managing change, building a new cultural environment, motivation and reward programs, and programs to overcome resistance to change.

When describing the behavior of an organizational model during BPR, one should take into account not only the purely economic and engineering aspects of the transformation, but also the psychological ones. These issues relate to borderline areas of knowledge and require separate research.

At the stage of adaptation of the proposed methodology, there are a number of tasks for the implementation of the BPR project, which correspond to certain conditions each individual project to achieve maximum efficiency. Identifying the key stages and activities of the project, in order to correctly prioritize and allocate key organizational resources, such as the time of senior management and reengineering specialists, as well as financial resources, is an integral part of the adaptation process.

The main characteristics of a reengineering project in terms of its planning features are:

the scale of the project and its radical nature;
level of process structure;
the degree of customer orientation of the company;
potential impact of information technology on results.

Reengineering of business processes based on the introduction of new technological solutions in the field of information technology allows optimizing the activities of not only an individual company, but also all companies engaged in this industry and involved in the production and delivery of services to the end consumer.

The analysis of the place of information technology in BPO indicates the scale of the consequences of introducing IT into the activities of companies.

Active growth of the company's performance is a tempting prospect, but it is worth remembering that there is a risk associated with such an approach to reorganizing the management system.

Company management must carefully assess all risks and allocate a separate budget for the implementation of BPR. Influenced by both internal and external factors that are constantly changing, BPR only makes sense if it is implemented decisively and quickly.

The success of the very idea of carrying it out often depends on the speed of the RBP. This is due to the fiercely competitive environment in today's business world.

The process of integrating companies into a common structure based on inter-organizational connections and joint functions (business processes) in the process of providing services, aimed at improving the quality of services provided and reducing transaction costs, implies bringing the companies’ business processes to uniform standards of execution and management.

This process is impossible without implementing projects to reengineer outdated business processes that do not meet international standards for the quality of services provided.

APPLICATIONS

Annex 1

Fig. 1 Five-phase approach to reengineering

Appendix 2

Reengineering criteria

Criteria	Reengineering
Origin of the method	Engineering Sciences, Management Consulting Practice
main idea	Radical rethinking and redesign of an enterprise or production and economic processes
Manager's principled position	Thinking in discrete categories, clearly posing the question “Why is change needed?”, attracting the participation of convinced supporters of change
Nature of changes	Profound and all-encompassing changes, process discontinuity, abrupt changes
Project implementation deadlines	Several years with a focus on rapid, quantifiable success
Change object	Enterprise as a whole or key processes
Goals	Significant and sustainable increase in profitability (economic efficiency)
Type of crisis	Liquidity crisis, success crisis
Change strategy	Top-down strategy
Key Roles	Leader, reengineering group, specialists
Methodological aspects	Reorganization of key processes in accordance with the adopted market strategy, adaptation of organizational structures and job descriptions, changing values, introducing modern information technology, personnel development and new methods of remuneration

Strengths	Possibility of radical renewal, chances of a clear increase in profitability, speed of change, conceptual unity of activities, significant expansion of the competence of specialists
Weak sides	Instability in the phase of change, limitations in time and action due to the desire to quickly improve results, low social acceptability

Appendix 3

Participants in reengineering activities and their functions

Participants	Functions
1. Project leader - one of the top managers of the company	Leads reengineering activities, is responsible for the ideological justification of the project, creates a general spirit of innovation and responsibility
2. Steering committee - members of senior management, project leader, process managers	Monitors, coordinates goals and strategies, interests of work teams, resolves conflicts
3. Operations managers
4. Process managers	They develop reengineering methods and tools, conduct training, coordinate, and help in forming teams.
5. Working teams - company employees and external consultants and developers	Carry out direct work on reengineering

Reengineering of enterprise business processes. Reengineering of business processes in an enterprise: global and Russian practice