BUSINESS PROCESS REENGINEERING

Cris Correia(18) Snehal Gawankar(28)

What is BPR?
Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.

WHY ORGANIZATIONS REENGINEER

Customers
Demanding Sophistication Changing needs

WHY ORGANIZATIONS DONT REENGINEER

Political Resistance New Developments Fear of Unknown and Failure

Competition
Local Global

Change
Technology Customer Preferences

KEY CHARACTERISTICS
Systems Philosophy Global Perspective on Business Processes Radical Improvement Integrated Change People Centred Focus on End-Customers Process-Based

Implementing a BPR Strategy

Select The Process & Appoint Process Team
Select the Process Appoint the Process Team
Capacity to view the organization as a whole

Understand The Current Process

Clearly define the process
Clearly Identify Improvement Opportunities Carefully resolve any inconsistencies

Develop & Communicate Vision Of Improved Process

Communicate with all employees so that they are aware of the vision of the future

Identify Action Plan

Develop an Improvement Plan
Plan/schedule the changes

Execute Plan
Define and eliminate process problems
Evaluate the change impact on the business and on customers

Indicate actions required and those responsible

Tackle any actions that need resolution

Introduce and firmly establish a feedback system

Provide advanced team training

IMPLEMENTATION OF BPR IN ICICI(Industrial Credit and Investment Corporation of India) BANK

In year 2000 and later when Anytime, Anywhere banking came to our country, ICICI Bank had to move away from the branchcentric model and make its services available nationwide.

The solution was to centralize its applications. Legacy systems: The banking transactions were limited to the respective branch offices as customer data was not available in other branches. ICICI realized the importance of offering nationwide banking but this would be possible only by having a centralized data repository.

Lets see how ICICI Bank had done Business Process Reengineering

 Infosys is one of technology partner for ICICI Bank which assisted to implement Finacle for handling all the banking activities
Bill Desk for online payments SYBASE SAS

Solution by Infosys
With the ICICI group having several companies under its umbrella, Finacle needed to seamlessly integrate with multiple applications such as credit cards, mutual funds, brokerage, call center and data warehousing systems. Another key challenge was managing transaction volumes. With Finacle, the bank currently has the ability to process 0.27 million cheques per day and manage 7000 concurrent users.

 For instance, in 1997, it was the first bank in India to offer Internet banking with Finacles e-banking solution. Enabled Finacle to successfully manage the resultant increase in transaction levels from 400,000 transactions a day in 2000 to nearly 2.1 million by 2005 with an associated growth in peak volumes by 5.5 times. The bank followed it up with offering several e-Commerce services like Bill Payments, Funds Transfers and Corporate Banking over the net.

 Currently, only 25 percent of all transactions take place through branches and 75 percent through other delivery channels. This reduction in routine transactions through the branch has enabled ICICI Bank to aggressively use its branch network as customer acquisition units. On an average, ICICI Bank adds 300,000 customers a month, which is among the highest in the world. The cost has also come down by around 15 percent.

Impact of the project as is: and "to be":

Using the support of companies like Infosys, Oracle, SYBASE, SAS it implemented such a system which provides centralized applications for 'any where' banking.

Conclusion
First time in history a private bank has merged a public sector bank. On 23 May ICICI Bank announced merger with Bank of Rajasthan It is said that this merger will also expand ICICI Bank's branch network by 25%. ICICI Bank is also carrying out its activities in Rural Areas by helping SHGs (Self Help Groups) and in other microfinance activities.

Summary
Reengineering is a fundamental rethinking and redesign of business processes to achieve dramatic improvements BPR has emerged from key management traditions such as scientific management and systems thinking Rules and symbols play an integral part of all BPR initiatives Dont assume anything - remember BPR is fundamental rethinking of business processes