A strategic alignment approach for effective business process reengineering: linking strategy, processes and customers for competitive advantage

Abstract

Global competition has forced firms to rethink their approach to providing products and services to their customer base. Business process reengineering has been adopted by many firms in an effort to improve their competitive position and enhance their ability to provide customer satisfaction and delight. Although many firms have implemented business process reengineering programs, approximately 60–80% of these programs have failed. Therefore, an approach is needed to increase the probability of success for reengineering programs. This article presents a conceptual framework and key principles for effective business process reengineering. The principles are derived from a case study of a successful reengineering program instituted by the Cummins Engine Company, and a strategic alignment framework which examines the congruency between a firm's strategy, business processes, and customer requirements.