The radical rethinking and redesign of operational processes to achieve dramatic improvements in cost, quality, speed, and service are called ___________?
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Answer: A. reengineering
Explanation
Reengineering involves the radical rethinking and redesign of operational processes for dramatic improvements. It aims for quantum leaps in performance rather than minor, incremental efficiency gains. This approach challenges fundamental business assumptions to overhaul outdated workflows completely. Business process reengineering became popular in the 1990s as companies sought to leverage new technologies. It focuses heavily on horizontal end-to-end business processes rather than isolated functional departments. Reengineering projects carry high failure risks due to the magnitude of organizational change required.
Firms facing severe competitive pressures often initiate reengineering programs to transform their cost structures. Implementing enterprise resource planning software frequently requires reengineering core operational processes. Radical redesign helps organizations achieve dramatic improvements in customer service speed and quality. Differentiation focuses on creating unique product features to gain competitive advantage in the market. Bargaining relates to contract negotiations with suppliers or customers rather than process redesign. Targeting refers to setting specific strategic goals or customer segments rather than operational reengineering.
- Subject
- Accounting and Finance
- Category
- Accounting
- Topic
- —
- Difficulty
- medium
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