Final answer:
Business process reengineering is the tool that uses radical changes for enhancing business process effectiveness and efficiency. It involves innovation and may use a spiral design process, but requires careful resources management to avoid the Jevons paradox.
Step-by-step explanation:
The tool that uses radical changes to improve the effectiveness and efficiency of business processes is called business process reengineering. This approach often involves completely overhauling existing methods to ensure substantial improvements in performance and productivity. Business process reengineering aims to rethink and redesign the way work is done within an organization to better support the company's mission and reduce costs.
Innovation plays a key role in business process reengineering, where existing products, systems, or processes are radically modified to achieve significant improvements. The spiral design process is another methodology that can be used in this context. It allows for iterative refining of a design, leading to a superior end product. However, it requires careful planning of time and resources to prevent delays and cost overruns. These strategies can sometimes lead to the Jevons paradox, where enhancements in efficiency result in increased usage of the resource.