ECONOMIC FEASIBILITY OF THE REENGINEERING PROJECTS
ECONOMIC FEASIBILITY OF THE REENGINEERING PROJECTS

Summary/Abstract: Fundamentally, a reengineering project should have, as its common objective, the delivery of a fully functional business/customer service. The reengineering project should be complementary to and supportive of business processes within the enterprise. The paper presents an overview of economic feasibility of reengineering projects. Therefore various financial and accounting justification techniques such as payback period (PP), return on investment (ROI), net present value (NPV) and internal rate of return (IRR) are frequently used by managers in order to assess the economic aspects of the project. Furthermore, these methods could be misleading when employing too short payback periods or too high discount rates, neglecting various benefits of the reengineering projects or being unable to quantify them properly in financial term.

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