Business Reengineering in a South American Oil Company

Abstract

The competitive environment of business today is the most challenging obstacle management must surmount in its quest for corporate success. In the past, corporations have applied several techniques such as automation, quality programs, and motivational theories to increase productivity and profits. However, these approaches have produced results only in the short run. Now the new concept of business reengineering offers the key to reducing costs, enhancing quality, and increasing sales. The present paper explores the concept of business reengineering. It then examines a case study for reengineering in a South American oil company. The case study presents a proposed top‐down plan for conducting a reengineering project and suggests how to reengineer two specific business processes—developing information systems and international procurement. These examples emphasize the main role of information technology as the most powerful enabler of reengineering projects.