ASSIGNMENT PGDM BATCH
2018-2020
Subject: Business Process Re-engineering Subject Sumitted By:-
Code:PGO10 Parnika pranjali GM18146
FacultyName: Dr Dileep Singh
Q1 (a) How do you compare the private sector organizations and government
organizations in terms of scope and potential of business process re-
engineering? Discuss different levels of reengineering and risk associated with
these levels.
Answer:-
Private sector Re-engineering
Business process reengineering, although initially developed for and within the
private sector, is an approach that can form a valuable part of information age
reform if it can transform the work processes of public sector organisations.
Information technology (IT) has played a central role in reengineering. This
chapter therefore describes many ways in which IT can be used to support
public sector reengineering, including applications identified from analysis of
the ‘political value chain’. Nevertheless, IT-supported reengineering originated
from technical/rational organisational models that do not necessarily reflect the
realities of the public sector. The chapter therefore proposes the concept of
public sector process rebuilding (PUPREB): an approach to reengineering that
includes a special awareness of the public sector context.
Government Process Re-engineering
Increase the speed at which document intensive processes are conducted
and reduce associated costs and administrative burdens
Add flexibility to organisational processes, allowing your business to
scale up or down as required by customer or internal demand
Help reduce capital expenditure by reducing the need to invest in the
assets required to perform a service internally
Organise information and documents with electronic document
management systems and processes, for example transition to electronic
invoicing
Minimise document loss and information leakage
Utilise electronic document formats more often in internal and customer
transactions
Improve operational efficiency and customer service levels
Mitigate risk by improving compliance to legal requirement
Q1 (b) How does information technology act as an enabler for re-engineering?
Explain with suitable example from various successful cases in Indian industry.
Discuss various IT tools which can create business value trough re-engineering
in businesses.
Answer:-
In any organization worldwide IT is the biggest enabler and driver of Business
Process Re-engineering (BPR). BPR aims at enhancing customer service by
improving productivity, eliminating waste and reducing the cost. The driver for
BPR is to realize dramatic improvements by fundamentally rethinking how an
organization work should be done instead of mere process improvement that
focus on functional or incremental improvement. Reengineering involves
“radical improvements” and not only incremental changes. In this sense,
reengineering without an IT support is nearly impossible. The evolution of IT
provides multiple options for process execution that were not possible erstwhile,
which opened the possibility of reengineering in first phase. There is a
relationship between BPR and information technology (IT). IT is considered
as a key implementation of BPR. He says the use of IT is to challenge the
assumptions inherent in the work processes that have existed since before the
advent of modern computer and communications technology. Heargues that at
the heart of reengineering is the idea of discontinuous
thinking. Discontinuous thinking is a way to recognize and break away from the
outdated rules and fundamental assumptions that underlie operations.
An example of business process reengineering that we can cite is that of a fast
food company.
Completely redesigning the delivery of products can give you unexpected
results. In this type of restaurant, the process goes like all others, the customer
orders, the order goes to the kitchen, which prepares the meal and then delivers
to the consumer.
Business process analysts realized that it would be more advantageous if the
meal portions were previously prepared in a separate center, and delivered to
the restaurants daily.
When the customer orders, staff place everything together and deliver it. This is
a complete change in the process, resulting in greater control, fewer accidents,
greater employee satisfaction, and increased ability to focus on customer needs,
all without losing quality.
CURIOSITY: The next time you go to a hamburger fastfood restaurant, note
that your cup is always placed in the center of the tray, reducing the risk of it
falling over.
Tools used in Business Process Reengineering can include organizational
charts, workflow analysis, benchmarking, job descriptions, business process
mapping, and others.
online Business Process Reengineering collaboration tools allow any team or
organization to instantly begin working with our web templates and input forms.
Our digital platform goes far beyond other software tools by including progress
dashboards, data integration from existing documents or other SaaS software,
elegant intuitive designs, and full access on any desktop or mobile device.
Q2 (a) Discuss scenario of BPR implementation in Indian banking
organizations. Also give your creative suggestions
Answer:-
Currently, the most advanced commercial banks that have undergone expansion
and cost reduction have realized the need for a differentiation strategy -
ensuring margin over the market average and / or loyalty by personalizing
customer relationships. Although the burden of customer base growth and
market share gain is still relevant, it is necessary to pay more attention to
retaining profitable customers and increasing revenue growth from existing
customer base. A business model defines how the bank creates and delivers
value to customers and then converts payments received into profits. To take
advantage of innovation, business people need to excel not only in product
innovation, but also in designing the business model, design options, and the
technological needs of customers. The main objective of the research is to
identify business processes in a client-oriented bank that would ensure the
achievement of goals by controlling the quantitative indicators. In this context,
it is necessary to determine not only the methodology of optimizing the business
processes within the bank, but also to successfully implement the results of
business process reengineering. The most promising strategy for establishing
long-term contacts with existing and potential customers is a strategy based on
the Customer Relationship Management (CRM) concept. This concept implies a
reorientation of the strategic directions of banking business development from
the products and characteristics of the bank's internal device to the client's needs
and expectations. We mention that the process of implementing CRM systems
in banks is linked to a rather complicated integration process with many back-
office and front office applications used for passive and active operations, card
processing, call centre automation, etc. This requires changing many internal
processes and bulky investments. In addition, the CRM system differs from
standard solutions, as it is associated with service provision rather than with
goods. In a client-oriented bank, the activities of all subdivisions are
subordinated to one main objective - to increase sales through a fast, high-
quality customer service. With such an organization of the commercial bank,
the subdivisions that perform the basic functions are coordinated with each
other, being links of a horizontal technological chain and fulfilling the tasks of
serving the sales subdivisions. Today, in the face of a changing economic
situation, the reengineering of business processes involves a radical and
revolutionary restructuring of obsolete business processes and is one of the
ways to increase banking efficiency.
Q2 (b) "Customer is interested in only an output and not necessarily the steps
followed to achieve that output". Comment on this statement in the light of
process view of a business.
Answer:-
Customer is interested in only an output and not necessarily the steps followed
to achieve that output.I completely agree with the above statement as customer
buy the product or service for the final output majorly but it final output is the
usage of the product due to which customer buy the product .But incase of
sustainable products customers also keep track of the steps that makes the final
product .. Customer value models are based on assessments of the costs and
benefits of a given market offering in a particular customer application.
Depending on circumstances, such as availability of data and a customer’s
cooperation, a supplier might build a value model for an individual customer or
for a market segment, drawing on data gathered from several customers in that
[Link] instinctively compare each new experience, positive or
otherwise, with their previous ones and judge it accordingly. Expectations can
also be shaped by market conditions, the competition, and the customer’s
personal situation. Even when it is the company’s own brand that establishes
expectations, the customer can be set up for disappointment
