BUSINESS PROCESS RE-ENGINEERING FOR RETAIL BANK'S BRANCHES

Abstract

The objective of this research is to develop a blueprint of business and operation architecture to reengineer branches of a large retail bank to increase its flexibility in product and service development and to be proactively responsive to its customer needs. The development process follows IBM’s Business Reengineering Methodology and Enterprise Architecture framework. The Enterprise Architecture consists of many domains including Business Architecture, Information System Architecture, Technology Architecture, Strategic Gap Analysis and Transition. This development focused on the business architecture of branch operations. It started with an analysis of the banking industry and the bank’s business background, problems and targets. Business environment analysis was then performed to identify current strategic positions and relationships with other stakeholders of the enterprise. The key components of strategic positions are market segments, business strategy and value propositions. The next step involved capability configuration process, so that the bank could identify its required capabilities to align with its strategic components successfully. After that, resources were defined for enterprise capabilities process. The blueprint of business and operation architecture was finally constructed. It consists of business events, activities, information, role, location and structure of the retail bank’s branches. The blueprint was evaluated by two key stake holders – the bank staff (bank’s solution architects, branch managers, tellers, and campaign officers) and the IT service provider (program and project managers, IT architect, analysts, programmers, and software quality assurance). Both groups evaluated the blueprints with interviews and scorecards on criteria of objectives, scope, and benefits of the reengineering program, the method, business strategy, design of the architecture, technology, financial impacts, staff productivity, and overall result in meeting the program objective. Both the interviews and the scorecards were very positive