Reengineering Benefits
Lower costs. Evidence from a number of US projects suggests that reengineering an existing system costs significantly less than new system development. Ulrich, for example reports on a reengineering project that cost $12 million, compared to estimated redevelopment costs of $50 million.
Lower risks. Reengineering is based on incremental improvement of systems, rather than radical system replacement. The risk of losing critical business knowledge, which may be embedded in a legacy system, or of producing a system that does not meet its users’ real needs, is drastically reduced.
Better use of existing staff. Existing staff expertise can be maintained, and extended accommodate new skills during reengineering. The incremental nature of reengineering means that existing staff skills can evolve as the system evolves. The approach carries less risk and expense which is associated with hiring new staff.
Revelation of business rules. As a system is reengineered, business rules that are embedded in the system are rediscovered. This is particularly true where the rules govern exceptional situations.
Incremental development. Reengineering can be carried out in stages, as budget and resources are available. The operational organisation always has a working system, and end users are able to gradually adapt to the reengineered as it is delivered in increments.
Reengineering Benefits Lower costs. Evidence from a number of US projects suggests that reengineering an existing system costs significantly less than new system development. Ulrich, for example reports on a reengineering project that cost $12 million, compared to estimated redevelopment costs of $50 million. Lower risks. Reengineering is based on incremental improvement of systems, rather than radical system replacement. The risk of losing critical business knowledge, which may be embedded in a legacy system, or of producing a system that does not meet its users’ real needs, is drastically reduced. Better use of existing staff. Existing staff expertise can be maintained, and extended accommodate new skills during reengineering. The incremental nature of reengineering means that existing staff skills can evolve as the system evolves. The approach carries less risk and expense which is associated with hiring new staff. Revelation of business rules. As a system is reengineered, business rules that are embedded in the system are rediscovered. This is particularly true where the rules govern exceptional situations. Incremental development. Reengineering can be carried out in stages, as budget and resources are available. The operational organisation always has a working system, and end users are able to gradually adapt to the reengineered as it is delivered in increments.
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