This is the fundamental reconsideration and redesign of organizational products/services in order to achieve drastic improvement of current performance in cost.
As organizations continue to evolve and reinvent themselves to develop new focus areas and cater to new markets, it is imperative that their business systems do not fall behind and become obsolete. An organization should provide maintenance and reengineering services to keep its products tuned so that business needs do not outpace business systems.
The Reengineering Process Model has the following phases:
- Product study phase
- Reengineering phase
- Regression testing phase
- Acceptance testing phase
Objectives of product/service reengineering
1.Productivity and competitiveness
This emphasizes increased productivity and competitiveness as one of the key guiding principles for expanding and maintaining the domestic and export markets in a liberalized environment.
The takes cognizance of the need to diversify and expand markets for industrial value added products. It addresses supply side constraints with regard to product quality, volume and standards.
3.High value addition and diversification
The recognizes high value addition to the resource endowment as key for optimizing creation of wealth, employment and regional development. It therefore emphasizes on further processing of primary products.
4. Regional dispersion
The underscores the need for equitable dispersion of industries throughout the country in order to accelerate the pace of development especially in the marginalized areas.
5. Technology and innovation
The recognizes innovation as central to meeting the rapidly changing consumer tastes and preferences while also boosting productivity and competitiveness of the industrial sector.
6. Employment Creation
This focuses on quality and sustainable employment creation.
7. Environmental Sustainability
The recognizes the need to promote sustainable industrial development that upholds environmental protection, management and efficient resource utilization.
8.Compliance with the New Constitution and achievement of Vision 2030
This is particularly in the Public Sector . Process reengineering should be well-aligned to the provisions of the constitution and takes into account the constitutional provisions for a devolved structure of government and the particular call to encourage regional dispersal of industries as a basis for equity and empowerment across the nation.
9.Education and manpower development
This recognizes that reengineering can only take place when there is a strong and well trained workforce from all levels of training.