Solutions and Recommendations
One of the solutions in their problem is by using business process reengineering and computer based system (Kotler, 2003). These makes their problem in monitoring, controlling and supervising minimize. Managing in more scientific way clearly employs economic efficiency and results to more conceptual closure of the organization (Musgrave, 1984). It makes the repetitive tasks somehow to disappear and the quality of services to the consumer gets better.
One of the management approaches use to examine the aspect of the business and interaction. Business process reengineering is also known as BPR, Business Transformation, Business Process Redesign and Process Change Management (“Terms beginning with S: Substitue Goods”, 2006). It also improves business processes in more efficient way. One of its functions is to decrease non value activities or modify it. There are steps needs to following using the BPR.
First we need to define the purpose and goal of the BPR project. Next, define the scope or limit of the project. Third, we need to know the requirements that will meet the needs of the client. Fourth, know the environment of the business. Fifth, redesign the business processes and activities. Sixth, implement it. And lastly, monitor the success and failure of the redesign. The business project reengineering goal are be customer friendly, effective and efficient.
Today business are very modern and many of them use modern system and most of the system are controlled by Computer-Based Systems ( this is the example of systems controlled by Computer Based Systems-commercial management information systems, real-time embedded computer systems such as process control and computer integrated manufacturing systems, space systems, telephone and communications systems, transportation systems, medical instruments, avionics systems, missile control systems, and microcomputer controlled domestic appliances.
Computer- Based Systems can reduce their problems in inventory and security. It doesn’t require so much effort and more speed. Southwest Airlines offers another successful example of reengineering their company and using Information Technology the way it was meant to be implemented. In 1992, Southwest Airlines had revenue of $1. 7 billion and an after-tax profit of $91 million. American Airlines, the largest U. S. carrier, on the other hand had a revenue of $14. 4 billion dollars but lost $475 million and has not made a profit since 1989 (Furey and Diorio, 1994).
Michael Dell is the founder and CEO of DELL Incorporated, which has been in business since 1983 and has been the world’s fastest growing major PC Company (Churchwell, 2004). Michael Dell’s idea of a successful business is to keep the smallest inventory possible by having a direct link with the manufacturer. When a customer places an order, the custom parts requested by the customer are automatically sent to the manufacturer for shipment. This reduces the cost for inventory tracking and massive warehouse maintenance.
These are the sample of companies who become more efficient in using computer based technology and business process reengineering. Conclusion The biggest problem that businesses usually face with BPR is overzealous expectations. BPR is a business tool with a high price and gradual returns. BPR is quoted as having a 30% success rate due to the time and cost involved. Today’s businesses need to constantly evaluate and re-evaluate their processes and streamline them in order to provide the best services to their customers at the lowest possible cost (Aisner, 2000). If they do not do this, their competitors will at their expense.
Aisner, J. E. (2000). Global Brands: Connecting With Consumers Across Boundaries. Retrieved November 23, 2006, from http://hbswk. hbs. edu/item/1621. html Churchwell, C. (2004). Business History around the World (Q;A with: Geoffrey Jones). Retrieved November 23, 2006, from http://hbswk.hbs.edu/item/1621.html