How is "process reengineering" defined?

The definition of "process reengineering" is centered around the concept of fundamentally rethinking and radically redesigning business processes. This approach aims to achieve significant improvements in critical performance measures such as cost, quality, service, and speed. Unlike smaller incremental improvements, process reengineering involves a more extensive evaluation of existing workflows with the goal of optimizing them from the ground up. By reconsidering how work is done and leveraging technology and innovative practices, organizations can transform their processes to be more efficient and effective, ultimately leading to enhanced outcomes.

In contrast, smaller improvements to existing processes represent a more incremental approach and do not capture the essence of what process reengineering entails. The gradual evolution of processes over time also emphasizes minor modifications rather than the drastic changes associated with reengineering. Outsourcing standard tasks focuses on delegating specific functions to external vendors and does not involve rethinking or redesigning existing processes at all. Therefore, the focus on fundamental and radical redesign within the definition highlights why this option accurately reflects the principles of process reengineering.