Simson Dsilva Yogita Ghag Fayaz Khan Dilpesh Stanley

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 Reengineer?

Demanding Sophistication Changing Needs

Customers

Local Global

Technology Customer Preferences

Competition

Change

Why Organizations Dont Reengineer?

Complacency Political Resistance New Developments Fear of Unknown and Failure

BPR Seeks Improvements In

Cost

Service

Quality

Speed

A BPR Framework
Organization

Technology
Enabling technologies IS architectures Methods and tools IS organizations

Job skills Structures Reward Values

Process
Core business processes Value-added Customer-focus Innovation

Ford Accounts Payable

Before
More than 500 accounts payable clerks matched purchase order, receiving documents, and invoices and then issued payment. It was slow and cumbersome. Mismatches were common.

After
Reengineer procurement instead of AP process. The new process cuts head count in AP by 75%. Invoices are eliminated. Matching is computerized. Accuracy is improved.

Example of IBM

IBM Credit Corporation is in the business of financing the computers, software, and services that the IBM Corporation sells. The IBM Credit's operation comprises of five steps as follows
(1) When an IBM field sales representative called in with a request for financing, one of the operators in the central office wrote down the request on a piece of paper. (2) The request was then dispatched to the credit department where a specialist checked the potential borrower's creditworthiness, wrote the result on the piece of paper and dispatched to the next link in the chain, which was the business practices department. (3) The business practices department was in charge of modifying the standard loan covenant in response to customer request. The special terms to the request form would be attached to the request if necessary. (4) Next, the request went to the price department where a pricer determined the appropriate interest rate to charge the customer. (5) Finally, the administration department turned all this information into quote letter that could be delivered to the field sales representative.

This entire process consumed six days on average. From the sales representative's point of view, this turnaround was too long that the customer could be seduced by another computer vendor. Furthermore, no-one would tell where the request was and when it could be done. To improve this process They decided, for instance, to install a control desk, so they could answer the sale representative's question about the status of the request. That is, instead of forwarding the request to the next step in the chain, each department would return the request to the control desk where an administrator logged the completion of each step before sending out the request again. This fix did indeed solve the problem, however, at the expense of adding more time to the turnaround.

Eventually, two senior managers at IBM Credit took a request and walked themselves through all five steps. They found that performing the actual work took in total only ninety minutes. Clearly, the problem did not lie in the tasks and the people performing them, but in the structure of the process itself. In the end, IBM Credit replaced its specialists - the credit checkers, pricers and so on - with generalists. Now, a generalist processes the entire request from beginning to end. i.e. No handoffs.

Example of ICICI bank

Company Profile
ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major banking and financial services organization in India. It is the 4th largest bank in India and the largest private sector bank in India by market capitalization. The bank also has a network of 1,700+ branches (as on 31 March 2010) and about 4,721 ATMs in India and presence in 19 countries, as well as some 24 million customers.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and specialization subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.

ICICI Bank is one of the Big Four Banks of India, along with State Bank of India, Axis Bank and HDFC Bank its main competitors.

Problems / Identification

In year 2000 and later when anytime, anywhere banking came to our country, ICICI Bank had to move away from the branch-centric model and make its services available nationwide. The solution was to centralize its applications.
Legacy systems: The traditional systems at ICICI Bank were very centric to the branch. For example a server at New Delhi was specific to the branch in that city; the ATMs were standalone catering only to the city branch. The banking transactions were thus limited to the respective branch offices as customer data was not available in other branches. This made banking a limited service and very branch specific. ICICI realized the importance of offering nationwide banking but this would be possible only by having a centralized data repository.

Teams Involved
Infosys is one of technology partner for ICICI Bank which game the assistance to implement Finacle for handling all the banking activities Bill Desk for online payments SYBASE(Business Intelligence, Database Management Information System, Mobile Enterprise Solutions) SAS(Business Analytics Software and Services)

Implementation

The shift The basic network was set up for providing the e-mail facility, but none of the applications were linked to the network. The network comprised of a mix of servers running different applications at various branches of the bank. With growing business and rapidly increasing accounts, the company found it extremely difficult to administer and manage the system.

The Solution
What ICICI was looking for was a robust network, a design with a mix of VSATs(Very small aperture terminal), leased-lines, radiolinks and ISDN (Integrated Services Digital Network)was selected. A mixed design was selected because of the disparate locations of the group across the country.

The Network

The network follows a hub and spoke architecturea mix of VSATs, leased lines, ISDN and radio links. It has around 800 leased lines, about 600 VSATs, approximately 800 ISDN lines and multiple 34 Mbps lines. The network supports the ICICI group offices, banks, branches, and over 1000 ATMs. There is a primary site from where spokes go out to the regional branches and the other offices. The secondary site has the disaster recovery system. There are around eight hub locations, which have 3, 4 or 8 Mbps lines as per the requirements for connecting to the branch and regional offices.

Solution by Infosys

One of the biggest challenges for Finacle was ensuring straight through processing (STP) of most of the financial transactions. 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.

Supporting Tools and Techniques

Finacle a core banking and universal banking solution from Infosys The network follows a hub and spoke architecturea mix of VSATs (Very small aperture terminal) , leased lines, ISDN and radio links. It has around 800 leased lines, about 600 VSATs, approximately 800 ISDN lines and multiple 34 Mbps lines. UNIX is the preferred OS for most of the hardware while most of the databases use Oracle with a few on Sybase and MS SQL.

Recommendations

Certain recommendations are as follows: The ICICI VSAT network is large, with almost a thousand nodes. Keeping it going turned out to be an even bigger challenge for the group. The entire network is monitored from one center. Any error in the network at any point is rectified in a short span of time and the system is up and running with minimum downtime. ICICI must have a proper control and look over this issue ICICI Banks name comes in various controversies than any other bank mainly the method of recovery. This may hinder the BPR process further in future if the bank gets into any type of legal case. To avoid this ICICI Bank must follow the rules and regulations.