Reengineering sometimes called Business Process Reengineering (BPR), involves a complete rethinking and transformation of key business processes, leading to strong horizontal coordination and greater flexibility in responding to changes in environment. Because work is originated around processes rather than function, reengineering often involves a shift to horizontal structure based on teams.
Reengineering basically means starting over–throwing out all the notions of how work was done and deciding how it can best be done now. It requires identifying customer needs and them designing how it can best be done now. It requires identifying customer needs then designing processes and aligning people to meet those needs.
Banks and insurance companies, manufacturing and mining companies, and service companies throughout the world, all have achieved breakthroughs in speed, flexibility, innovation and quality through reengineering.
Source: Management by Danny Samson and Richard L. Daft.