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Re-engineering
Aspirations
An organization
Flexible enough to adjust to changing market
conditions
Lean enough to beat any competitor’s price
Innovative enough to keep its products & services
technologically fresh
Dedicated enough to deliver maximum quality &
customer service
The Crisis
So, if Managements want companies
Lean, nimble, flexible, responsive, competitive,
innovative, efficient, customer-focused, &
profitable
Why are so many companies bloated, clumsy,
rigid, sluggish, noncompetitive, uncreative,
inefficient, disdainful of customer needs & losing
money
The Problem
Most companies can trace their work styles &
organizational roots to the prototypical pin
factory – based on division of labour
Suddenly, the world is a different place
In today’s environment nothing is constant or
predictable – market growth, customer
demand, product life cycles, rate of
technological change or the nature of
competition
What has Changed
Three forces, separately & in combination, are
driving today’s companies deeper & deeper
into territory that most of their executives &
managers find frighteningly unfamiliar
Three Cs
Customer
Competition
Change
Customers take charge
Dominant force in seller-customer
relationship has changed
Seller no longer has upper hand
Customers now tell suppliers what they want,
when they want it, how they want it & what
they will pay
Competition intensifies
It used to be simple – the company that could
get to market with an acceptable product or
service at the best price would get a sale
Now, not only does more competition exist, it
is of many different kinds
Niche players
Disparate bases of competition – price, selection,
quality, service before, during or after sale
Foreign players
Change becomes constant
Change has become pervasive and persistent
It is normality
Pace of change has accelerated
Rapid technological change also promotes
innovation
A Change in the Meaning of Change
Time Payback
Emerging
2 Years
2001
Time Payback
Discontinuity
Time
Change
Projected to be 6 months by 2010
A Change in the Meaning of Change
Operational processes and technology enabled
applications expected life as installed.
Traditional
7 Years
1975
Time Payback
Discontinuity
Time
Change
Projected to be 6 months by 2010
What is the Problem
Factors beyond control?
Economic mismanagement by Govt?
Predatory pricing by foreign players?
Regulations?
Right products & services?
Corporate strategies?
Is automation the answer?
BPR
“Starting Over”
It does NOT mean tinkering with what already exists
or making incremental changes that leave basic
structures intact
It means asking the question:
If we were re-creating the company today, given what we
know and given current technology, what would it look
like?
Re-engineering a company means tossing aside old
systems & starting over.
It involves going back to the beginning & inventing a
better way of doing work
BPR
The Fundamental rethinking and radical
redesign of business processes to achieve
dramatic improvements in critical,
contemporary measures of performance, such
as cost, quality, service, and speed
BPR
Four Key Words
Fundamental
Radical
Dramatic
Processes
Fundamental
Why do we do what we do?
Why do we do it the way we do?
40000
VRS (n)
Web-enabled Processes
Projected 25000
Target
Core Banking Systems
However, in the future it will need to modify its operating model to emphasize a fundamental shift in strategy
and business focus…..
The New Business Model illustrates a critical change in focus - to a customer-centric organisation. Hence all recommendations contained in the
body of the Business Strategy are directed at achieving the following strategic goals and objectives;
Domestic, International, and Subsidiary operations to be repositioned along Lines of Business - Rural, Personal, Business, and Corporate;
Customer focus to be defined and re-positioned - to reflect that all existing/ new products and services are directed to customer segments
via a multitude of channels;
Corporate Centre to reflect the proposed organisational structure/ corporate governance model; and
Improve operational effectiveness and efficiency, resource management, and performance management.
HeadCorporate Centre
Office Operations
Group
Human Group Projects Group Group Performance Operations
Risk
Resources Strategy Office Technology Finance Management & Services
Management
Channels
Domestic Operations
Global Treasury Operations
Baroda Corporate
Customers
Current Position Assessment “Today”
Competitive Profile of Bank of Baroda
Critical to the attainment of the target workforce numbers and associated productivity improvement will be the
transition of branch-based transaction processing to centralised data/ transaction processing centres within
India.
Westpac recently announced Back-office Processing
outsourcing of vouchers and (off-site/ outsourced)
cheques to Unisys
Teller Positions
Back-office
Processing
Teller Positions
Financial Advisor Insurance Agent
Domestic Operations
Call Centre
(off-site/ KIOSK
Accounts Accounts
outsourced)
Q&A
Thank you