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What is Business Systems Engineering?

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  • Written By: Vasanth S.
  • Edited By: Kathryn Hulick
  • Last Modified Date: 11 November 2016
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Business systems engineering is a detailed approach to identifying and implementing the business processes, tasks, and transactions that are required to successfully operate a business. The main component of this approach is business process engineering, which consists of a review of the business process, a detailed work flow map, and data analysis. Business systems engineering is usually undertaken during an expansion or in response to sky-rocketing operating costs. The goal is to find a cost-effective and efficient way to run a business.

A business process review is one part of business systems engineering. It involves identifying a series of elements within the business, including the objectives and activities of the business, with the goal of re-working the way the company does business. The specific processes used to produce a product and deliver it to the customer, as well as the support elements such as the materials, labor, and infrastructure, must be evaluated.

Another aspect of business systems engineering is work flow mapping. This is a graphical tool used by companies to illustrate the flow of materials and information required to complete an objective. It outlines the data in a sequential fashion to show how a specific job is completed from the initial concept to the finished product or service. The actual graph diagrams the work flow with specific symbols and may represent an entire process or just a portion of it. A work flow diagram can be adapted to different units within the company.

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Business systems engineering also involves metrics, which are a standard measure against which performance is measured. Usually, these involve identifying key business indicators in specific areas such as marketing, manufacturing, and sales. Customer base and customer base growth rate are two indicators of progress in marketing. To evaluate manufacturing, the rate of production and volume of production are usually measured. Sales volume and percentage of returns are usually analyzed to evaluate how the sales department is doing.

A company usually conducts an evaluation of its business process when the economy slows down. As orders for the product or service decrease, the company generally looks for ways to reduce costs. This could including combining different units within the company or temporary halting production of a particular product.

During times of economic growth, a company may also evaluate its business process to expand and grow. This could include adding additional production lines or introducing new services. Also, the implementation of new systems generally requires the information obtained through business systems engineering.

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