RE-ENGINEERING THE BUSINESS PROCESS

OF BANK CASH DEPOSITS

Presented By:Amoah-Yeboah Yaw

OUTLINE OF PRESENTATION• Background Of The Study & Problem Justification• Research Questions & Objectives• Hints On The Literature Reviewed• Description Of The Existing System• Problem Analysis and System Improvement Objectives• Description Of The Re-Engineered Business Process• Functional Requirements Of The System• Voucher Generation Framework• Diagrams Of Various System Design Models Used• Results Obtained• Recommendations & Areas Of Future Research

BACKGROUND OF THE STUDY & PIECES FRAMEWORK• Finance and relatively other investment concerns have been at the heart of everybody across the nooks and crannies of the globe.• There has been the upsurge of bank deposits (from Gh₵19.5 billion in July 2011 to Gh₵24.3 billion in July 2012(Source: Central Bank’s 52nd monetary policy report (2012)• Habitual tendencies have caused the exponential growth of the number of banks.•Bank deposit being one of the core functionalities of banks is fraught with many difficulties.

Lets critically analyze the pictographic on the next slide

Fill out some documents…………………………

Now deposit is made………… 12:30pm

Now Maame Afia can go to the bank and withdraw the money …………… 12:35pm

Join a long and never ending queue at the bank………… 8:30am

Eeei!! Then I have to deposit money into her account…but before that I need to pay for the bus too

Help!! The baby is sick and I need money to take her to the hospital

Probably, a thief might attack and rob me off the money………… 8 a.m.

PIECES FRAMEWORK

P – PERFORMANCE The through-put is very low since it uses more time, energy and money on

the part of the customer.

Averagely the waiting time and service time is too high

I – INFORMATION Too much information is required; e.g. Amount in figures and words. It

makes the filling of the deposit foil somewhat stressful.

E – ECONOMICS Time cost to carry out this business process is too much (waiting and

service).

Papers and other resources needed to carry out this business process

make the cost of running very high.

C – CONTROL &

SECURITY

Control and security is appreciable but can be improved

E – EFFICIENCY Employees sometimes find it bulky to record information.

S – SERVICE Deposits are restricted to the confines of the bank. One cannot sit in

the comfort of his home and carry out this business process.

RESEARCH QUESTIONS & OBJECTIVES Research Questions How Can the Business Process of Bank Deposits Be Done with Less Cost, Time and Energy on the Part of Customers and Banks? This research question can be broken down into the following sub-questions:

• How can the waiting and service time needed for bank deposits be reduced?• How can customers deposit funds without necessarily visiting the banking hall?

Research ObjectivesRe-Engineer the Current Business Process of Bank Deposits to Save Resources on the Part of Customers and Banks.In order to fulfill the main objective, the following sub-objectives must be fulfilled

• To develop a real-time information system which will run on the VOUCHER CARD – DEPOSIT technology there by reducing waiting and service times.• To develop an internet depositing portal which the customer can easily access either via a personal computer or a mobile device to deposit funds.

LITERATURE REVIEWED

Literature was reviewed on the following areas•Banking •Business Process Re-Engineering•Software Engineering (meaning, software development life-cycles, methodologies)•Information Systems (meaning, types)•Database Management Systems•ICT Implementation Architectures

DESCRIPTION OF EXISTING SYSTEM

PROBLEM ANALYSISProblem Causes (C) and Effects (E)

The through-put is very low. The

business process uses more time,

energy and money on the part of the

customer. Correspondingly, waiting

and service times are high.

C1: The banking hall serve as the only channel to carry out this

process.

C2: Tellers would have to manually check for inconsistencies

like dates, corresponding amount in words, figures and

depositor’s name etc.

E1: This generates low and winding queues in the halls thereby

causing the high rate of waiting time.

E2: This manual process of checking inconsistencies increases

the service time. Information needed may contain a

lot of discrepancies and therefore

needs to be properly audited.

C3: Clerical errors occur due to oversights, spelling and

mathematical errors etc.

E3: The checking and correction of these errors delays the time

of other customers (increases in waiting time) Papers and other resources needed

to carry out this business process

make the cost of running very high.

C4: Due to these clerical errors, deposit slips are produced in

excess.

E4: High amounts allocated to deposit stationery in budget

causing financial loss to the bank.

SYSTEM IMPROVEMENT OBJECTIVESProblem System Improvement Objectives Constraints

The through-put is very low. The

business process uses more time,

energy and or money on the part of

the customer; waiting and service

times are high.

Reduce both waiting and service times by

creating an electronic avenue for bank

deposits.

D V,

D = SV, (where S is the proportionality

constant)

Deposit (D), Speed of Internet (S), and

Validity of inputs (V).

Core Business processes should

be maintained.

Bank deposits should be real-

time (technological).

Information needed may contain a lot

of discrepancies and therefore needs

to be properly audited.

Improve the mechanism for validating

inputs and checking for errors.

Core Business processes should

be maintained.

Mechanism for error checking

should be electronic.

Papers and other resources needed to

carry out this business process make

the cost of running very high.

Reduce as much as possible cost of

deposit stationery.

A decline in the budgeted sum

for deposit stationery.

DESCRIPTION OF RE-ENGINEERED BUSINESS PROCESS SYSTEM

FUNCTIONAL REQUIREMENTSREQUIREMENT DESCRIPTION

Register Cedi Denominations Registers all cedi denominations which will be associated with the

voucher numbers.Delete Cedi Denominations Delete cedi denominations which are not being used in the system.

Generate Vouchers Generate a set of voucher numbers which associated denominations.

Delete Vouchers Deletes vouchers (individual or batch) from being used.

Update Vouchers Updates vouchers (individual or batch) with respect to expired and

unexpired ones.Query Voucher Issues Queries system to retrieve and generate information on different

criteria about the voucher numbers generated with the system.Deposit funds Allows customers deposit funds into bank accounts via the internet.

Send confirmation SMSs Sends SMSs to customers to confirm deposit transactions.

Query Sent SMSs Queries system to retrieve and generate information on different

criteria about all sent SMSs.Query Deposits Made Queries system to retrieve and generate information on different

criteria about all deposits made using the customers’ deposit portal

• A Mathematical Function will be employed for use.

• Let us say we buy a cup of milo and pay by the mass it has.

We can say that the price is a function of mass. If the cost

of a cup of milo is Gh₵2.00 per kilogram (kg), half a kg is

Gh₵1.00, 2kg is Gh₵4.00, etc. We have the formula where

designates the purchased amount (kg) and is the price (in

Gh₵).

VOUCHER GENERATION FRAMWORK

• The linear function to be employed for use is modeled as follows: •

•For instance the system generates [200412710541] randomly,let Y1, Y2, Y3 represented the numbers to be calculated for (last set) 2004 – first set of four1271 – second set of four0541 – third set of four

• The complete voucher number is [200412710541819]

• Use Case Model

• Functional Decomposition Model

• Context Data Flow Model

• DFD

• ERD

DIAGRAMS OF SYSTEM DESIGN MODELS

RESULTS OBTAINED Let’s consider the pictographic presentation below

Recommendations•Continuous SMS API updates and renewal must be made with Nasara Mobile to enable the sending of confirmations SMSs.•Hardware and Software specifications must be adhered to the core to enable the smooth running of the system.•Series of advertisements and training must be given to customers on how to use the deposit portal. Areas Of Future Research Business Process Re-Engineering in the banking industry needs to be given a fervid attention by researchers. This will enhance how Ghana can attain a cashless system by 2020. The following areas can be considered for future research:•Depositing of funds via Unstructured Supplementary Service Data by low end phones.•Purchase of vouchers via a bank account for a third party via Internet and SMS technologies for deposits.

RECOMMENDATIONS & AREAS OF FUTURE RESEARCH