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.

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

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 branch-centric model and make its services available nationwide.

• The solution was to centralize centralize its applications.• Legacy systems: 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 repositorycentralized data repository.

Let’s 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 Finacle’s 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

• Don’t assume anything - remember BPR is fundamental rethinking of business processes