Differentiate between Business Re-engineering and Business Improvement

Differentiate between Business Re-engineering and Business Improvement

Business process re-engineering is a fundamental re-thinking and radical design of the business process to achieve dramatic improvement in cost, quality, speed, and service. It cannot be possible business process re-engineered without the support of Information technology (IT). Information technology helps re-engineering business process. Information technology plays a major role in re-engineering most business process, the speed, information capabilities, and connectivity of computers and Internet technologies can substantially increase the efficiency of the business process as well as communication among the people responsible for their operation and management.

The difference between .business process re-engineering and business improvement are as follows –

Re-engineering –

  • Level of change – Radical.
  • Process change – Brand new process.
  • Starting point – Clean state.
  • A frequency of change – Periodic one-time change.
  • The time required – Long time.
  • Typical scope – Broad, cross-functionally.
  • Horizon – Future.
  • Participation – Top to down.
  • A path to execution – Cultural, structural.
  • Primary enabler – Information technology.
  • Risk – High risk.

Business Improvement –

  • Level of change Incremental.
  • Process change – Improve the new process version.
  • Starting point – Existing process.
  • The frequency of change – One time of continuous.
  • The time required – Short time.
  • Typical scope – Narrow, within functional.
  • Horizon – Past, and present.
  • Participation – Bottom to up.
  • The path to execution – Cultural.
  • Primary enabler – Statistical control.
  • Risk – Moderate.

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