MIS REENGINEERED

THROUGH BPR IN AN
ORGANISATIONSUSHMITA KUMARI
CM15232
UDIT GUPTA CM15233
VAISHALI VERMA CM15234
 Business process reengineering

 Business process reengineering is the act of recreating a core business

process with the goal of improving product output, quality, or reducing
costs. Typically, it involves the analysis of company workflows, finding
processes that are sub-par or inefficient, and figuring out ways to get rid of
them or change them.
 Business process reengineering became popular in the business world in the
1990s, inspired by an article called reengineering work: don’t automate,
obliterate which was published in the Harvard business review by Michael
Hammer. According to Hammer, BPR indicates radical changes in the
business processes of the organization.
Steps in BPR

1) Identify and communicate the need for change to the management and
employees in the organization. Management needs to be informed and
convinced as BPR involves high investment and risk. Employees need to
be involved and convinced for job security. If the company is not doing
well, then the change is essential.
2) Put together a team of experts. A team should consist of senior
manager, operational manager, and reengineering experts.
3) Find the inefficient processes and define the Key Performance Indicators
(KPIs). Then do process mapping by drawing process flowcharts or use
process management software to analyse the processes.
4) Reengineer the processes and compare the KPIs.
Examples of BPR

• Introduction of new organizational model by Mahindra and Mahindra

• Introduction of core banking by SBI
• Use of ATMs, money deposit and passbook printing machines by banks
• Use of information systems by companies
• Use of internet in accepting orders by customers
• Use of technologies like RFID in warehouses and logistics
• Use of scanners and bar code readers in supermarkets
III) BP REENGINEERING AND ROLE OF IT

IT plays a significant role in reengineering the most business processes. The

speed, processing capabilities, connectivity of computers across the
organization and the internet can substantially increase the efficiency of
business processes.

IT has historically played an important role in the reengineering concept. It is

considered by some as a major enabler for new forms of working and
collaborating within an organization and across organizational borders.
Attributes of IT contributing to the BPR
effort in the organization
• Shared databases, making information available at many places
• Expert systems, allowing generalists to perform specific tasks
• Telecommunication networks, allowing organizations to be
centralized and decentralized at the same time.
• Decision support tools, allowing decision making to be a part of
everybody’d job
• Wireless data communication and portable computers, allowing
field personnel to work independently
• Interactive E-commerce portals, facilitating immediate contact
with potential buyers
• Automatic identification and tracking, allowing objects to tell where they are, instead
of requiring to be found.

High performance computing, allowing rethinking and

re visioning organizational objectives.

Advent of mobile computing and M-commerce, making organizations more agile and
gaining acceptance in corporate world.
METHODOLOGY

 1. ENVISION NEW PROCESSES

i) Secure management support

ii) Identify reengineering opportunities
iii) Identify enabling technologies
iv) Align with corporate strategy

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 2. INITIATING CHANGE
i) Setup reengineering team
ii)Outline performance goals

3. PROCESS DIAGNOSIS
i) Describe existing processes
ii) Uncover pathologies in existing processes

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 PROCESS REDESIGN

i) Develop alternative process scenarios

ii) Develop new process design
iii) Design HR architecture
iv) select IT platform
v) Develop overall blueprint and gather feedback

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 5. RECONSTRUCTION
i) Develop/install IT solution
ii) Establish process changes

6. PROCESS MONITORING
i) Performance measurement, including time, quality, cost, IT performance
ii) Link to continuous improvement

7. LOOP BACK TO DIAGNOSIS

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 BRIEF OVERVIEW OF SBI

 FOUNDED IN 1806
 INDIA’S LARGEST COMMERCIAL BANK
 24000 BRANCHES
 1,56,964 EMPLOYEES IN OVER 32 COUNTRIES
 SHARE VALUE OF 319.90 INR
 EPS OF 46.25 INR
The State Bank of India , the largest and oldest bank in india.

Computerized its branches in 1990s, but it was losing market share to private
sector banks that had implemented more modern centralised core processing
systems.

To remain competitive with its private sector counterparts, in 2002, SBI began
the largest implementation of a centralized core system ever undertaken in the
banking industry.

The state bank of india selected TATA consultancy services to customize the
software, implement the new core system, and provide ongoing operational
support for its centralized information technology.
Although, sbi initially planned to convert only 3,300 of its branches, it was
so successful that it expanded the project to include all of the morethan
14,600 SBI and affiliate bank branches.

The state bank of india has achieved its goal of offering its full range of
products and services to all its branches and customers, spreading
economic growth to rural areas and providing financial inclusion for all of
india’s citizens.
Need for MIS

 24 hours banking, 7 days a week

 Anywhere banking
 Introduction to new delivery channels, ATMs, Internet
banking etc…
 Efficiency in operation
 Strengthening DSS, EIS etc to improve in the strategic areas
like Trade finance, Treasury etc.
 Solution

The solution chosen by the SBI after due to evaluation and keeping the above
objectives in mind was

Core banking solution of financial network services like in Australia, where it had
already successfully implemented diverse centralised environment.

SBI had chosen TCS limited, the largest software and service company in the country
to customize the product to their needs and also to undertake pilot implementation.
The company is using SAP ERP to the needs of HCM and CRM processes.
Teams have been formed by the vendors as well as the bank, which define the product specific functionalities and
customise the software to meet the needs of the bank.

SBI’s ATMs were connected to the bankmaster branch system via a getaway PC and ATM transactions were posted at
the end of each day.

SBI adopts real time banking.

SBI allows the customer with option of online complaints.
All the records of customer are stored in main server of SBI.

exploit full potential of the package.

 Alongside, wherever considered expedient and in the interest of customers,
appropriate re-engineering of present systems and procedures and process will
be brought about to full potential of the package.

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THANK YOU!

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