Business Process Reengineering

Submitted by- Kartick Raj

Roll no- CUHP17MBA27
Submitted to – Dr. Sarvesh Kumar
What is BPR?
• Business process reengineering is defined as the fundamental rethinking and and
radical redesign of business process to achieve dramatic improvement in critical ,
contemporary measures of performance such as cost, quality, and speed of product
and services, delivered by an organization.

• This mean that product/services delivered by the organization to it’s customers should
have the utmost quality with least cost and lead time.
 Business Process Reengineering – Objectives &
Components
1. Removing Redundancy – As time passes, organizations tend to add newer processes, without deleting the old ones. As a
result the organizations become process oriented rather than result oriented. BPR aims at eliminating redundant processes by
investigating the relevance of the process to the core activities of the organization.

2. Customer Centricity- The focus is to design processes that are customer centric so as to add value for the customer and
enhance their level of satisfaction.

3. Reducing Cycle Time – The steps involved in an activity or a process are reduced with BPR. This has a positive
effect on the process time and enhances customer value.
Customer Value = (Quality/Cost) + (Service/Time)

4. Flexibility – Flexibility implies that the organization needs to be on one hand customer focused so as to enables
them to spot weaknesses and simultaneously allow them to adapt to new
requirements of the market.

5. Innovation – BPR encourages innovative leadership through creative changes which, provides a
competitive advantage to the organization.

6. Quality assurance - The level of quality is always controlled and monitored by the processes.
BRP ensures the key performance indicators are met so that quality standards are well assured in
the organization.
Components
 Steps in BPR
• Development of process vision and determination of process objectives.
• Definition of processed to be reengineered.
• Measurement of existing process.
• Identification of information technology solutions.
• Design prototype and implementation.
PWC matrix
• We have understood the objectives, components and processes of BPR. However, the
real question for an
organization is, “to reengineer or not to reengineer?” PricewaterhouseCoopers’ matrix
is useful to select
process that needs to undergo reengineering (Dunn 2007).

Referring to the Figure 5, the Strategic – Non-Strategic cells on x-axis describes how critical the
proposed
processes are for the firm in achieving long term competitive advantage. While the second
dimension,
Competitive – Non-Competitive cells as labeled on y-axis refers to the comparison as to how
much the
processes under consideration for reengineering are performing when compared to the industry.
This
gives a trade-off between the cost of a process and response time and yields four outcomes is
illustrated in
the figure 5.
 Case study
State Bank of India is a banking behemoth, with nearly 18,354 branches in India and another 191 spread
overseas across 36 countries of the world. It is not only the oldest and largest public sector bank in India,
but the second largest in the world in terms of number of branches. SBI began the world’s largest core
banking system implementation ever undertaken in the banking industry to compete with its private sector
counterparts. Core banking solution offers a comprehensive, integrated solution catering to bank’s needs
and multiple business segments.
Mitigating the process with Information Technology has changed the organizational climate in terms of
operational activities and payments in the banking industry. Through the core banking system, the banks
can substantially reduce operational costs and build customer relationship. It enables banks to keep pace
with industry needs and offer the new product portfolio to a customer faster. It further helps manage
customer profiles as well as high transaction volumes.
TCS BaNCS – the Core Banking System created by Tata Consultancy Services is one of the largest core
banking deployments ever undertaken. This project is an exclusive set up for the State Bank of India.
While initially SBI intended to convert only 3,300 of its branches, the successful implementation later
scaled to include all of the more than 14,600 SBI and related bank branches.
.
Branch Redesign
Centralized
Processing

Implementation of Business Process Reengineering: Success Story of

SBI
State Bank of India, World's Largest Centralized Core Processing
Implementation
Applications of BPR
• Railway reservation system.
Sources-

• http://epgp.inflibnet.ac.in/ahl.php?csrno=23 E PG Pathshala Paper-6

Module-11

• Production and operations management, Third edition -

R.PANEERSELVAM. Pages-623,624,625