The following are the benefits of reengineering of a Business Process:
(i) By reengineering, an organisation can achieve radical changes in performance (as measured by cost, cycle time, service and quality).
(ii) It boosts competitiveness in the operations network through simpler, leaner and more productive processes.
(iii) Reengineering encourages organisations to abandon conventional approaches to problem solving and to “think big” (revolutionary thinking).
(iv) The slow, cautious process of incremental improvements leaves many organisations unprepared to compete in today’s rapidly changing market place. Reengineering helps organisations make noticeable changes in the pace and quality of their response to customer needs (i.e. break-through improvements).
(v) Through reengineering, an organisation can be transformed from a rule driven and job centred organisation structure to a marketing organisation structure that focusses directly on the customer.
(vi) Reengineering often results in radically new organisational designs that can help companies respond better to competitive pressures, increase market share and profitability and improve cycle times, cost ratios and quality (organisational renewal).
(vii) The major accomplishment of the reengineering effort is the change that occurs in the corporate culture and the basic principles by which departments operate. Workers at all levels are encouraged to make suggestions for improvement and to believe that management will listen to what they have to say. Reengineering will eventually help the culture in the organisation to evolve from an insular one to one that accepts change and knows how to deal with it.
(viii) Reengineering has helped create more challenging and more rewarding jobs with broader responsibilities for employees (job redesign).