BPRE

EXAMPLES FROM INDIAN

CORPORATE WORLD

BY

RITU KARN
SAHAS P N

SHAMAL ABDULLA

DEFINITION
Reengineering is 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.
Business process reengineering (BPR) is the
analysis and redesign of workflowwithin and
between enterprises.

BANK OF INDIA

INTRODUCTION

Founded on 7th September, 1906.

Is an Indian state-ownedcommercial bank

HQ - Mumbai,Maharashtra

Pan-India presence

Controlled through 50 zonal offices.

In the forefront, introducing various innovative services
and systems
First among the nationalised banks to establish a fully
computerised branch and ATM facility at the Mahalaxmi
Branch at Mumbai in 1989.
Founder member ofSWIFT(Society For Worldwide Inter
Bank Financial Telecommunications)
One of the top five banks in India

REASON FOR BPR INITIATIVE

For faster work
To face competition
For secure data transfer
For making banking very easy for a retail as well
as corporate customer
Core banking system and centralized data
system
Automate all its branches across the country

TEAM INVLOVED
The Boston Consulting Group
Finacle of Infosys

PROJECT DESIGN
To streamline its growing business globally
Increasing branch network of 3159 to about 50007000 over the nextfive years.
To meet the credit need of the corporate sector
and help in faster decision making on the loans,
the bank would set up one corporate branch in
every state.
The bank would recruit 3295 employees which
would include 2250 officers in various
departments like agriculture, statistics, and
marketing among others.

SUPPORTING TOOLS AND

TECHNIQUES
Core Banking Solution
Core banking basically is depositing and lending ofmoney
CORE stands for "Centralized Online Real-time Exchange".
Core banking functions- recording of transactions,
passbookmaintenance, and interest calculations on loans
and deposits, customer records, balance of payments and
withdrawal.

Banks make these services available across multiple

channels like ATMs, Internet banking, andbranches.
The core banking applications run on Finacle from Infosys
and the database is set up using theOracle Financial
Service Architecture
This software was installed at different branches of bank
and then interconnected by means of communication lines
like telephones, satellite, internet etc.

PROCESSES
The bankfollows processes such asinformation
profiling which involves classification
ofinformation into categories, such as- secret,
confidential, corporate confidential, offices and
public.
Every new process is scanned for its risks and
vulnerabilities and various other security
clearance aspects.

CONTD...
The core banking applications run on multiple HP Superdome
servers while the storage solutions have been migrated to a HP
StorageWorks XP1024 disk array.
This is further connected through leased lines to various Cisco
switches and routers deployed across the country with the branches
forming a hub and spoke model that uses a central point to coordinate activities between variousbranches and the datacentre.
At present, the operations at about 2,433 branches across the
country are computerized out of which 108 operate in a partiallycomputerized mode.
The bank is a member of the RBIs VSAT Network and has installed
about 39 VSATs linking strategic branches and offices adding
redundancy during disaster.
To fulfil its deployment objectives BoI chose HP as consultants and
network integrators for the project

IMPACT OF PROJECT AS IS & TO

BE
Operations are carried out fast and customers are
happy with the quick service of the bank
The technological advancement has the changed the
working of bank of India totally
Account opening is done on the same day
Implementation of internet banking (more secure),
(wireless application protocol) banking, SMS banking
with no extra cost to the customer
Forms can be downloaded from the website itself and a
virtual keyboard is present on thelogin site (in case of
internet banking) toavoid hijacking of passwords.

INTRODUCTION
M&M was started off by two brothers J.C and K.C
Mahindra
The company started off as manufacturer of general
purpose utility vehicles and carried a production
capacity of 75 jeeps In 1948
Over the period they diversified into hotels financial
services auto components IT Infrastructure and
trading.
In 1994 the co established Mahindra USA to
promote tractor sales worldwide.
Top management philosophy was strengthen the
competitive position in the domestic market before
launching an ambitious globalization program

CONTD..
The top management realized that they had the
opportunity to become a truly global brand
In 1994 a BPR exercise started - a change in
functional to SBU structure
As a result 6 autonomous SBUs were formed
with empowered presidents for each sbu
The intention was to provide direction for the
future growth of various business lines

RESTRUCTURING FARM EQUIPMENT BUSINESS

Project Vishwajeet- a major restructuring

program conceptualized by MC Kinsey to turn
M&M into a leading tractor producer by 2005
As part of this strategy Farm equipment business
was divided into five divisions
- Marketing and customer relations ,
manufacturing and supply chain , product
development & r &d services, performance
management and international operations.

PROJECT BLUE CHIP

In 2002 M&M reached a low point in its historydepressed revenues and high costs reduced profits
margins
Share price fell from 322 in 2000 to 114 in 2002,
ROCE fell from 17.09 to 8.92
M&M set up a Corporate turnaround Program
Office and articulated need for a sharper focus on
financial returns
Due to this a restructuring exercise called blue chip
was initiated to raise the bar on performance

WHAT DID BLUE CHIP DO?

Benchmarks like market share sales and profits

were replaced by ROCE
A policy was imposed which stated that
businesses had to compete for capital- those with
the highest returns would get the capital
Operations were overhauled, M&M undertook
cost cutting and steramlined its manufacturing
facility

PRIOR TO BPR HR WAS NOT A KEY

ELEMENT OF STRATEGY FORMULATION

THE RESULTS

Tractor division undertook a major cost cutting

exercise and bought down Bep from 54000 to
35000 units

Net sales for first half of 2004 increased by 28% ,

operating profit was up by 34%

M&M stock touched a high of Rs 390 from a

Rs112 a year ago

IMPLEMENTING BPR IN ICICI BANK

Company Profile:
ICICI Bank (formerly Industrial Credit and
Investment Corporation of India) is a major
banking and financial services organization
in India. It is the 4th largest bank in India
and the largest private sector bank in India
by market capitalization. The bank also has
a network of 1,700+branches and about
4,721 ATMs in India and presence in 19
countries, as well as some 24 million
customers.
ICICI Bank is one of the Big Four Banks of
India, along with State Bank of India, Axis
Bankand HDFC Bank its main

REASONS FOR IMPLEMENTING BPR IN ICICI

BANK

BPR was implemented in ICICI 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 tocentralize its
applications.
Legacy systems: The traditional
systems at ICICI Bank were very centric
to the branch. ICICI realized the
importance of offering nationwide
banking but this would be possible only
by having a centralized datarepository.

TEAM INVOLVED:
Infosys is one of technology partner for ICICI
Bank which game the assistance to
implement Finacle for handling all the
banking activities
Bill Desk for online payments
SYBASE
SAS

SOLUTION BY INFOSYS:

SUPPORTING TOOLS AND

TECHNIQUES:
Finacle a core banking anduniversal
banking solution from Infosys
The network follows a hub and spoke
architecturea mix of VSATs (Very small
aperture terminal) , leased lines, ISDN and
radio links. It has around 800 leased lines,
about 600VSATs, approximately 800 ISDN
lines and multiple 34Mbps lines.

CONCLUSION:

ICICI Bank has grown immensely over a period of

time. First time in history a private bank has
merged a public sector bank i.e. ICICI Bank
announced merger with Bank of Rajasthan. On
23May ICICI Bank announced merger with Bank
of Rajasthan withit through share-swap in a noncash deal that values the Bank of Rajasthan at
about Rs 3,000 crore. Each 118 shares of Bank
ofRajasthan will be converted into 25 shares of
ICICI. It is said that this merger will also expand
ICICI Bank's branch network by 25%.

CONCLUSION:
The

scalable and open systems based

architecture, 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
5.5times. With Finacle, the bank
currently has the ability to process
0.27 million cheques per day and
manage 7000 concurrent users.