Academic journal article Management : Journal of Contemporary Management Issues

The Steps towards Successful Reengineering in Slovenian Companies

Academic journal article Management : Journal of Contemporary Management Issues

The Steps towards Successful Reengineering in Slovenian Companies

Article excerpt

The authors have been researching the theory and practice of BPR (business process reengineering) since early nineties. In the paper, their own definition of the steps toward a successful BPR is briefed and applied as a background of the author's benchmarking of management concepts of ISO 9000, TQM, BPR, and 20 Keys. These are the most influential management concepts in Slovenian organisations, as a case of the countries that are now new members of European Union. BPR was found supported most of all. The presented management concepts are compared on the basis of clearly defined criteria, such as targets, initiative, IT role, customer role, degree of BPR, role of implementation and management, HRM, and rate of project implementation. Results may allow for a wider application of BPR concept offered here anew in different countries as business environments in a similar stage of economic development.

1. INTRODUCTION

The period we live in differs significantly from that of 10 or even 20 years ago. Today, companies are searching for responses to their customers' increasingly demanding wishes. The competition in the world market has grown and Slovenian companies can no longer hide from it in any way. Not only is the competition great today, it is also diverse. In their search for market niches, competitors have changed the characteristics of almost all markets. Currently, specific partial markets determine their own measures of competitiveness. In some markets competition is based on prices, in others the measure is choice, quality or post-sales services, etc.

The better companies force the worse companies out because the lowest price, the best quality or the best service offered by any of the companies soon become the standard for all the competitors. Obstacles to trading are being diminished; meaning that no Slovenian company is safe from foreign competition any longer. In contemporary markets, it is thus sufficient for a single company to elevate the competitive level for all the companies around the world. If a company is no longer in the position to rival with the best competitors, it is bound to be forced off the market soon.

In the business world of today, change has become a rule. The business environment is changing faster than ever before. Globalisation, development of technology, demographic changes, shortening life-cycle of products, companies and entire industries are the factors which are causing and further fuelling such an environment. A characteristic of today's business environment is that there is no more permanency and predictability of markets, demand, product life cycle, development of technology and the nature of competition, etc. (Ursic, Nikl, 2004).

Constant innovation regarding the organisational system is one of the most important elements in ensuring the continuing existence and development of a company because it has great influence on the company's competitiveness, efficiency, success and social responsibility.

To withstand global competition, an efficient organisation is needed from which all that is unnecessary and does not contribute to the final goal of operations should be eliminated. The final goal is essentially a product or service of good quality, at low cost, and with prompt and timely supply. This means that companies should only perform those activities that are essential to achieve the final goals or are significant to the final value of the product or service. It is the customer who determines the final value of the product or service nowadays. Hence, the customer has become much more demanding due to increased competition in the market and a wider range of choice. This paper presents some basic conclusions of our field and desk research work which has been done in the last years.

2. COMPARING REENGINEERING WITH OTHER INFLUENTIAL MANAGEMENT CONCEPTS

An overall evaluation of successfulness has not yet been made for most of the widely adopted management methods in the Slovenian economy, where strategic management, benchmarking, TQM, BPR, ISO 9000 and the 20 Keys Method are prevalent (Pivka, Ursic, 1999; Pivka, Ursic, 2001). …

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