The intense competition environment demands companies to innovation.To improve a single process or local function can only bring limited gains. So a new reengineering technology has been brought forward,which is supported by advanced information technology and focuses on the development of optimal business strategies.For each stage of reengineering methodology -goals orientation, vision creating, design and implementation,it is necessary to deeply understand from the viewpoint of system and to organize and manage by system means.Then the realization of reengineering could be efficient. Since reengineering is an advanced technology that is consistent with the situation and basic policy of our own country,it is possible and necessary to carry out reengineering in our national companies, and the application prospect is wide and promising.