Research On Business Engineering Business Essay


Business structures were known as stable within many decades. Several years ago, I followed my fathers job procedures when I began a university course in my own country. He is a chemical engineer and executed various chemical, petrochemical and food projects from empty land to operating factories. In addition to his normal functions as well as equipment supplier choice, installation, commissioning and start up he also did a real market study and business planning and arranged product sale and distribution. His models for business planning were traditional and he was always anxious they were not dynamic and always said to me that models will become dynamic in future and all these stable structures will be reengineered in future.

Those days I did not understand him well and he said these things to me because none of his colleagues listened to him. At present time as a student I read many news and advertisement about process reengineering, organizational transformation, and this shows the implication of new industrial environment that transforms traditional stable business structures to complex packages to coincide present business requirements. I can easily conceive that such transformations have resulted in some alterations in the world of work [3]. For example functional departments is changed to Process teams, simple tasks to empowered employees, controlled people(by management) to multidimensional work, training of employees to education of employees, ''..

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AM changes severely needs cross disciplinary qualifications and should strictly comprise business strategy and process, information technology systems and even corporate cultures. [2]

In this research I am trying to indicate a simple and understandable vision of business engineering features and at the end practical steps to promote a business process reengineering (BPR) implementation in spite of the fact that I am a new comer in this field. As I have used several references, In fundamental and abstract cases I have narrated directly the context of reference for the sake of trust considerations.

1- Definitions

Several definitions are cited indifferent literatures:

1-1- Business engineering circumscribes the domain of designing new business fields. As more detailed description of this definition, following points should be carefully taken into consideration [1] :

1-1-1- Unlike business development, business engineering does not include only marketing, but also covers most of business administration tasks.

1-1-2- Operational and financial tasks have the same validity and importance in business engineering.

1-1-3- Business engineering includes all activities necessary to develop and maintain an independent business line. It is comparative with starting business. In other word means that there is not a core market in the beginning and business engineering should create that [1].

1-2- Business engineering is the function of defining and understanding the goals, critical success factors and the environment that the business currently operates within and then challenges the way business are performed [4] .

2- Business Engineering goals

2-1- Establishing new future oriented forms of business but with reference to existing or emerging needs.

2-2- Business engineering is the tool for combining the establishment of a completely new business in a prospect business environment. But it should be taken into consideration when business engineering faces an aged traditional structured company, it redesigns or in other words reengineers business structure and process.

3- Business Engineering Functions

3-1- From Business engineering stake holders viewpoint, because of their focus on business and technology respectively, general managers or system engineers can not conceptualize the matter holistically and manage large holistically transformation projects. Here the presence of business engineering staffs is necessary who have sufficient dominancy to both. They can also assess IT innovation patents and create strategic visions, analyze and redesign new processes, plan and control transformation project and get people actively involved in change process [2]. This change process is usually well characterized in business process reengineering (BPR) [3].

3-2- Business Engineering Topics: Business engineering topics can be summarized as follows.

3-2-1- Technology and Innovation Management

3-2-2- Strategic Planning

3-2-3- System Engineering

3-2-4- Total Quality Management

3-2-5- Organizational Design

4- How Does Business Engineering Do Its Functions?

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As a holistic, conclusive and integrated definition, it can be said that business engineering is a set of methods and models for transformation management of traditional business structures to dynamic ones, using IT innovation assistance. Figure 1[2] indicates workflow or mechanism of such procedure and relation between IT and transformation. Figure 2 [2] indicates overall business engineering process.

As indicated in figure 2 above:

' Transformation is triggered by IT innovation.

' Other enablers need to be monitored and assessed in relation with new business opportunities.

' Transformation process covers business strategies, business process and information system level.

5- More detailed Explanations of Business Engineering Functions

5-1- Technology and innovation management dimensions if which should be well understood to recognize , for example, whether it is a high or low level and what is the outcome of their usage in organization. Technology and innovation management should be aware and able to analyze the followings:

5-1-1- What is new?

5-1-2- New for Whom?

5-1-3- Where does the innovation start or end?

5-1-4- Is novelty equal to success?

5-1-5- And finally how technology and innovation outcome can be used for approach to organization targets?

5-2- Strategic planning: Strategic planning is development and evaluation of one or more alternative strategies to distinguish the one with more or most probabl potential for organization success and usually a computer simulation program is used to solve strategic planning conflicts.

5-3- System Engineering: System engineering is an integrated part of business engineering and includes following features [6] :

5-3-1- Organizing people's role and responsibilities.

5-3-2- Defining policies and procedures.

5-3-3- Managing complex business models and programs.

5-3-4- Introducing the change without which system for support of complex environment cannot be developed.

5-4- Total Quality Management (TQM) or Continuous Improvement Process (CIP): Both are considered as alternatives of business process reengineering (BPR): refers to programs and initiatives, persisting on incremental improvement in work process, the result of which is touched within an open ended period and used for small scale cases. On contrary BPR involves discrete initiatives made for radically redesigned and improved processing in a bounded time frame and is used for large scale cases [3].

5-5- Organizational Design: Organizational design is methods and technology to understand models, development and analysis of all important aspects of changing organization. It entails understanding the relationship and dependencies between strategies, business processes and supporting information system.

6- Business Engineering in Present Time Practical work Environment

In spite of the fact that business engineering is a new subject (Born in 1990), there are some companies doing business engineering services as consultant firms. The most popular subject of contract is business process reengineering which covers a vast range of business engineering services.

BPR is usually implemented via its specific methodology through several steps summarized as follows [3]:

6-1- Selection of Strategic Process for Redesign.

6-2- Simplifying New Processes.

6-3- Organizing a team for each Process.

6-4- Organizing the Work Flow.

6-5- Assigning responsibilities and roles of each process.

6-6- Automation of Processes Using IT.

6-7- Training Process Team for each Process.

6-8- Emergence or introducing the redesigned or in other words reengineered process into the business organizational structure.