Electronic marketing and business reengineering -with examples from the tourism domain

Abstract

A large number of contemporary companies all over the world have to cope with difficulties. Not only are their competitive capabilities deficient in low efficiency but also in the organizational structure and work style. Many tenets and techniques that were very expedient some time ago and brought companies to success had to be changed. The organizational structure of most contemporary companies is based on Adam Smith’s division of labor which means dividing work into repeatable tasks. Using this philosophy of work, companies created pyramidal organizational structure with a great number of controllers, planners and managers of all level. With the passage of time such a hierarchical structure became ineffective. The distance between the management and product users dilated. Companies turned out to be too slow and not enough flexible. Quick and rapid upheavals were the most important reasons that took place in their business environment. Customers expectations increased violently. For many companies their organizational structure and the way they used to do their work began to constitute a very big problem. Some managers noticed that if companies want to meet the requirements of the contemporary Market and their customers, they must focus on processes instead of tasks. And because of this the whole company should be seen as a set of processes.