Although reports are made of reengineering attempts failing, and it not being very effective, actually it is very effective if it is performed correctly. Oftentimes, there are things fundamentally wrong with the processes. If the processes are not correct then the results will not be correct either. Equally important are the reasons for reengineering. Ultimately, these lie within the management or production of the company itself.
Competitors can also be an essential reason for reengineering.
It is important for a company to stay competitive with the other competitors in the market even if a company feels they have a stronghold on the market. It can always improve. Even if a company is profiting now, it must constantly be preparing for the future. Effective reengineering strategies are often misconstrued to be downsizing strategies. However, reengineering strategies are much more than downsizing.