Research On Enterprise's Financial Process Reengineering

With the development of enterprise and the managerial levels increase, administrators become more and more inefficient. In order to change this complexion, Michael Hammer and James Champy brought forward Business Process Reengineering (BPR) theory in 1990's. Subsequently, a big wave of enterprise's BPR covered the world for a way to increase administrative efficiency. Despite much failure in enterprise's BPR, return for success is very huge. During the process of BPR practice, BPR theory was enriched and improved.Under guidance of BPR theory, this paper tries to establish Financial Process Reengineering (FPR) theoretical frame. Under direction of the frame, supported by current IT, we study how to reengineer financial process of a enterprise. Main body of this paper is divided into three sectors: the first sector is about Financial Process Reengineering theory; the second sector is about application of Financial Process Reengineering; the third sector discusses a few key problems in Financial Process Reengineering.The first sector is divided into two chapters. The first chapter introduces BPR theory in brief. The second chapter is based on the first chapter, trying to establish Financial Process Reengineering theory, including financial value chain theory; the meanings of FPR; the target of FPR; the principle of FPR; the process of FPR and the method of FPR.The second sector is also divided into two chapters. The first chapter studies how to reengineer financial accounting process. Firstly, current financial accounting process is introduced in brief; secondly, financial value chain and IDEF0 were employed to describe current processes and to reengineer these processes; finally, we make use of a case to show outcome of financial accounting process reengineering. The second chapter studies how to reengineer fund supervisory process. Firstly, current fund supervisory process is introduced; secondly, financial value chain and IDEFO were employed to describe current fund supervisory processes and reengineer these processes; finally, we make use of a case to show the outcome of fund supervisory process reengineering.The third sector discusses some key issue of Financial Process Reengineering such as primary task of enterprise's IT; regulations of new processes; security of information system and persistence of Financial Process Reengineering. Formal analysis has been adopted, and case study has also been added make this paper bend theory with practice. Innovations can be seen in this paper as follow: firstly, under direction of BPR theory, we establish a Financial Process Reengineering frame; secondly, financial value chain is putted forward to guide Financial Process Reengineering.