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Book Review
Book Review
Book Review
Mahesh W. Kumthekar
This is a must read book for managers who are tasked with strategy development for an organization
and/or with implementation of IT infrastructure. This book summarizes the process of reengineering &
its implementation.
After laying the foundation with reengineering concepts (especially what it isnt) the authors explain in
sufficient detail the mechanics of the process. The important distinction between groups/departments
and process teams is explained. The consequences of reengineering organizations & processes are
discussed using the IBM credit case. There are far reaching implications of these changes to how
decisions are made, performance measurement of teams/individuals, role of different employees, and the
whole organization. Managers need to come out of their shell of supervisory role & embrace a more
mentorship-type role.
Reengineering and IT
The role of IT in any firms reengineering process is crucial. Implementing IT systems & processes
doesnt mean putting a bunch of computers & network systems in the building and training employees to
use them. The business process reengineering & implementation of IT systems go hand-in-hand. The IT
systems have to be engraved in the business strategy to have any meaningful gains proportionate to the
investment. The role of IT systems is to provide enabling technologies (possibly disruptive) and the
reengineering process needs to capitalize on them to open new markets, serve current customers better or
in general add value to the organization. Going further in the discussion on mechanics of the
reengineering the authors describe the functions of different key people/roles in the process.
From the organization behavior perspective it is critical to have all the affected groups/teams/employees
on board for the change that may ensue the reengineering process. The two messages that need to be
conveyed are: (a) Heres where we are & this is why we cant we stay here & (b) Heres where we have
to go. This is where the senior executives need to ensure that all the stake-holders are committed to the
plan.
The reengineering experiences of three companies, Duke Power, IBM, and Deere, are discussed in detail.
These case studies give account of specific situations of these three companies and how the IT and
reengineering processes enabled them to make strides in progress towards satisfying the customers,
employees and eventually leading to a healthier organization. It is claimed that about 50-70% of the
companies that under took reengineering failed to gain any significant gains. The most common reasons
and pitfalls to look for while reengineering the organization are described at the closing of the book.
Weaknesses of the argument
Although the authors have done a splendid job of proposing the argument for process &
business reengineering, one major concept the authors failed to touch was the necessity of
business expertise (or experts) for the purpose of reengineering. For e.g., the reengineering
efforts in a pharmaceutical research firm should be headed by a pharmaceutical researcher.
He/she is the one who knows the ins & outs of the business & will be better able to exploit the
techniques than an outsider.
The Solution: A group of people decided to set-up an internal website on the companys intra-net to
resolve the issue. Only a few people had access to put information on the web-site. The latest &
accurate information on the status of the approval process for every catalyst technology was posted on
the web-site eliminating the confusion. The PD engineers were able to get the accurate information
accurately and in an expedited fashion. This saved a lot of wasted trials and time for the corporation. A
schematic of the process of information flow before and after the reengineering is presented below.
Platform 2 Platform 2
Research Supplier 2
Supplier 2
Division
Platform 3 Platform 3
Information Flow
Overall Rating
Overall this is an excellent book for the managers who are starting to realize the need for reengineering
in their departments/organizations. I would give this book a rating of 4 on a scale of 1 to 5 (1:Dont
Bother even to go to the Library and 5:Must Buy and Read).