Before presenting into the subject I would wish to explicate what is BPR. BPR ( Business Process Reengineering ) is all about reinventing. rethinking. redesigning. redirecting and rebuilding. It touches five sections scheme. procedures. organisation. engineering and civilization. In other words “Reengineering is the cardinal rethinking and extremist redesign of concern procedures to accomplish dramatic betterments in critical. modern-day steps of public presentation. such as cost. quality. service and speed’’ . BPR is an on-going procedure critical to a company’s success. Faced with a invariably altering concern environment. companies are scampering to hold on the authority of this tendency -propelled by competition. globalisation and demand for velocity. The most of import ground for companies to establish BPR undertakings is to derive efficiency and productiveness. Once this is achieved. they can hike organisational efficiency and streamline concern and production procedures. BPR helps companies optimize work flow and productiveness
ICICI BANK: TECHNOLOGY – LED TRANSFORMATION
Established in 1994. ICICI Bank is today the 2nd largest bank in India and among the top 150 in the universe. In less than a decennary. the bank has become a cosmopolitan bank offering a well diversified portfolio of fiscal services. It presently has assets of over US $ 79 billion and a market capitalisation of US $ 9 billion and services over 14 million clients through a web of about 950 subdivisions. 3300 ATM’s and a 3200 place call centre. The trademark of this exponential growing is ICICI Bank’s firm focal point on engineering. ICICI Bank ( once Industrial Credit and Investment Corporation of India ) is a major banking and fiscal services organisation in India. It is the 4th largest bank in India and the largest private sector bank in India by market capitalisation. The bank besides has a web of 1. 700+ subdivisions ( as on 31 March 2010 ) and about 4. 721 ATMs in India and presence in 19 states. every bit good as some 24 million clients ( at the terminal of July2007 ) .
ICICI Bank offers a broad scope of banking merchandises and fiscal services to corporate and retail clients through a assortment of bringing channels and specialisation subordinates and affiliates in the countries of investing banking. life and non-life insurance. venture capital and plus direction. ( These informations are dynamic. ) ICICI Bank is besides the largest issuer of recognition cards in India. ICICI Bank’s portions are listed on the stock exchanges at Kolkata and Vadodara. Mumbai and the National Stock Exchange of India Limited ; its ADRs trade on the New York Stock Exchange ( NYSE ) . The Bank is spread outing in abroad markets and has the largest international balance sheet amongIndian Bankss. ICICI Bank now has wholly-owned subordinates. subdivisions and representativesoffices in 19 states. including an offshore unit in Mumbai.
ICICI Bank is one of the Big Four Banks of India. along with State Bank of India. Axis Bank and HDFC Bank — its chief rivals.
REASONS FOR BPR INITIATIVE:
In twelvemonth 2000 and subsequently when anytime. anyplace banking came to our state. ICICI Bank had to travel off from the branch-centric theoretical account and do its services available countrywide. The solution was to centralise its applications. another ground is to offer Internet banking and established itself as a leader in the Internet and e Commerce infinite. The bank followed it up with offering several e-Commerce services like Bill Payments. Funds Transfers and Corporate Banking over the net. The cyberspace is a critical component of ICICI Bank’s award winning multi-channel scheme that is one of the chief engines of growing for the bank
Bequest systems: The traditional systems at ICICI Bank were really centric to the subdivision. For illustration a waiter at New Delhi was specific to the subdivision in that metropolis. the ATMs were standalone providing merely to the metropolis subdivision. The banking minutess were therefore limited to the several subdivision offices as client informations was non available in other subdivisions. This made banking a limited service and really branch particular. ICICI realized the importance of offering countrywide banking but this would be possible merely by holding a centralized information depository.
Change has ever been the instance. but although in the yesteryear it was predictable. incremental and evolutionary. today it is unpredictable. rapid and radical. The rapid deployment of new engineerings. the globalisation of concern operations and the continuously altering client outlooks are the chief forces behind this transmutation. Icici in order to successfully confront these hard operation conditions. should redefine their cardinal schemes taking at minimising the cost of services and merchandises every bit good as bettering client satisfaction. service quality and occupation satisfaction.
One of the biggest challenges for Finacle was guaranting directly through processing ( STP ) of most of the fiscal minutess. With the ICICI group holding several companies under its umbrella. Finacle needed to seamlessly incorporate with multiple applications such as recognition cards. common financess. securities firm. name centre and informations ware lodging systems. Another cardinal challenge was pull offing dealing volumes. ICICI Bank underwent a stage of organic and inorganic growing. first by geting Bank of Madura followed by a rearward amalgamation of the bank with its parent organisation. ICICI Ltd. attendant addition in dealing degrees from 400. 000transactions a twenty-four hours in 2000 to about 2. 1 million by 2005 with an associated growing in extremum volumes by 5. 5 times. With Finacle. the bank presently has the ability to process0. 27 million checks per twenty-four hours and manage 7000 concurrent users
RESTRUCTURING PROCESS SUCCESS
Earlier. the traditional systems at ICICI Bank were really centric to the subdivision. For illustration a waiter at New Delhi was specific to the subdivision in that metropolis ; the ATMs were standalone providing merely to the metropolis subdivision. The banking minutess were therefore limited to the several subdivision offices as client informations was non available in other subdivisions. This made banking a limited service and really branch particular. ICICI realized the importance of offering countrywide banking but this would be possible merely by holding a centralized information depository. But. subsequently utilizing the support of companies like Infosys. Oracle. SYBASE. SAS it implemented such a system which centralized applications for ‘anywhere’ banking • 1- the bank has been able to successfully travel over 70 per centum of everyday banking minutess from the subdivision to the other bringing channels. therefore increasing overall efficiency. Presently. merely 25 per centum of all minutess take topographic point through subdivisions and 75 per centum through other bringing channels. •2- This decrease in everyday minutess through the subdivision has enabled ICICI Bank to sharply utilize its subdivision web as client acquisition units. On an mean ICICI Bank adds 300. 000 clients a month. which is among the highest in the universe. •3- Increase in dealing degrees from 400. 000transactions a twenty-four hours in 2000 to about 2. 1 million by 2005 with an associated growing in extremum volumes by 5. 5 times. •critical success factors
For case. it was the first bank in India to offer Internet banking with Finacle’s e-banking solution. 1. Enabled Finacle to successfully pull off the attendant addition in dealing degrees from 400. 000 minutess a twenty-four hours in 2000 to nearly2. 1 million by 2005 with an associated growing in extremum volumes by 5. 5 times. 2. The bank followed it up with offering several e-Commerce services like Bill Payments. Funds Transfers and Corporate Banking over it 3. Presently. merely 25 per centum of all minutess take topographic point through subdivisions and 75 per centum through other bringing channels. This decrease in everyday minutess through the subdivision has enabled ICICI Bank to sharply utilize its subdivision web as client acquisition units. 4. On an norm. ICICI Bank adds 300. 000customers a month. which is among the highest in the universe. The cost has besides come down by around 15percent
It is cardinal to take a holistic attack and incorporate the impact on scheme. people. procedures and the enabling engineerings. This allows for expecting hazards and jeopardies during the procedure. non as an reconsideration. and guaranting that the alteration is effectual. FACILITATIVE Approach
When organisations feel like victims of alteration instead than instigators of it. opposition can construct. By utilizing a methodological analysis that includes a facilitative attack to implement the new concern procedure. opposition can be reduced. Consultancy
Using the support of companies like Infosys. Oracle. SYBASE. SAS it implemented such a system which provides centralised applications for ‘anywhere’ banking. •Infosys is one of engineering spouse for ICICI Bank which aid to implement Finacle for managing all the banking activities. •Bill Desk for online payments
•SYBASE ( Deliver mobile package to pull off. analyze and mobilise information ) Sybase Helped ICICI Prudential Life Insurance To Lower Reporting Total cost by 50 Percentage
•SAS ( Statistical Analysis System ) Business analytical package
Support TOOLS AND TECHNIQUES:
1-The web follows a hub and spoke architecture—a mix of VSATs ( Very little aperture terminus ) . leased lines. ISDN and radio links. It has about 800 leased lines. about 600 VSATs. about 800 ISDN lines and multiple 34 Mbps lines.
2-Finacle – a nucleus banking and cosmopolitan banking solution from Infosys
3- UNIX is the preferable OS for most of the hardware while most of the databasesuse Oracle with a few on Sybase and MS SQL
SWOT Analysis: ICICI BANK
1 ) Online Services: ICICI Bank provides on-line services of all its banking installations. It besides provides D-Mart history installations on-line. so a individual can entree his history from anyplace he is. [ D-Mart is a dematerialized history opened by a salaried individual for purchase & A ; sale of portions of different companies. ] 2 ) Advanced Infrastructure: Branchs of ICICI Bank are good equipped with advanced engineering to supply the clients with taste tester banking services. All the computerized machines are located in suited mode & A ; are really utile to the clients & A ; staff of the bank. 3 ) Friendly Staff: The staffs of ICICI Bank in all subdivisions are really friendly & A ; assist the clients in all instances. They provide faster services along with bonding & A ; personal relationship with the clients.
4 ) 12 hour. Banking services: Compared to other bank ICICI bank provides long hour. of services i. e. 8-8 services to the clients. This service is one of it’s sort & A ; is really helpful for the clients who are in pressing demand of money. 5 ) Other Facilities to the Customers & A ; Employees: ICICI Bank besides provides other installations like imbibing H2O installations. proper sitting agreements to the clients. And there are besides proper Ventilation & A ; healthful installations for the employees of the bank. 6 ) Late dark ATM services: ICICI bank provides late dark ATM services to the clients. The ATM Centres of ICICI bank plants even after 11:00pm. at dark in certain subdivisions 7 ) Solid proficient leading by Infosys ( engineering spouse ) who has successfully completed a similar undertaking A sound methodological analysis
1 ) High Bank Service Charges: ICICI bank charges extremely to clients for the services provided by them when compared to other bank & A ; that are why it is merely in the range of higher category of society. 2 ) Less Credit Time period: ICICI bank provides recognition installations but merely upto limited period. Even when the recognition period is non over it sends reminder letters to the clients which may rag them
1 ) Bank –Insurance services: The bank should besides supply insurance services. That means the bank can hold a tie-up with a insurance company. The bank will publicize & amp ; advance the different policies introduced by the insurance company & A ; convert their clients to purchase insurance policies. 2 ) Addition in per centum of Returns on addition: The bank shouldprovide higher returns on sedimentations in comparing of the present state of affairs. These will besides upto big extent aid the bank earn net incomes & A ; popularity. 3 ) Recruit professionally guided pupils: Bank & A ; Insurance is a particular non-aid class where the pupils specialize in the operation & A ; services of the bank & A ; besides are knowledge about assorted revenue enhancement policies. The bank can enroll these pupils through affiliations with colleges. Such pupils will certainly turn out as an plus to the bank. 4 ) Associate with societal cause: The bank can besides tie in itself with societal causes like supplying alleviation assistance patients. support towards natural catastrophes. But this falls in the 4th quarter-circle so the bank should pretermit it. 5 ) Credit expense to precedence sector ( agribusiness and little accomplishment industry ) Menace
1 ) Competition: ICICI Bank is confronting tight competition locally every bit good as internationally. Bank like CITI Bank. HSBC. ABM. Standard Chartered. HDFC besides provide tantamount installations like ICICI do and besides ICICI do non hold consistence in its international operation. 2 ) Internet Servicess: ICICI Bank provides all sort of services online. There can be easy entree to the e-mail Idahos of the clients through incorrect people. The confidential information of the clients can be leaked easy through the e-mail Idahos. 3 ) Decentralized Management: Each subdivision director is given the authorization of taking determinations in their several subdivisions. The determinations made by different directors are diverse and any one incorrect determination can put to heavy losingss to the bank. 4 ) No Proper Facilities To Uneducated clients: ICICI Bank provides all services through electronic computerized machines. This creates jobs to the less educated people. But this menace falls in the 4th quarter-circle so it’s negligible. The company can avoid this menace
CONCLUSION AND RECOMMENDATIONS:
A powerful. scalable and flexible engineering platform is indispensable for Bankss to pull off growing and vie successfully Finacle provided merely the right platform to ICICI Bank. therefore fuelling its growing. ICICI Bank has grown vastly over a period of clip. First clip in history a private bank has merged a populace sector bank i. e. ICICI Bank announced amalgamation with Bank of Rajasthan. On 23May ICICI Bank announced amalgamation with Bank of Rajasthan with it through share-swap in a non-cash trade that values the Bank of Rajasthan at approximately Rs 3. 000 crore. Each 118 portions of Bank of Rajasthan will be converted into 25 portions of ICICI. It is said that this amalgamation will besides spread out ICICI Bank’s subdivision web by 25 % . ICICI Bank is besides transporting out its activities in Rural Areas by assisting SHGs ( Self Help Groups ) and in other microfinance activities. Certain recommendations are as follows:
1-The ICICI VSAT web is big. with about a 1000 nodes. Keeping it traveling turned out to be an even bigger challenge for the group. The full web is monitored from one centre. Any mistake in the web at any point is rectified in a short span of clip and the system is up and running with minimal downtime. ICICI must hold a proper control and expression over this issue
2-ICICI Bank’s name comes in assorted contentions than any other bank chiefly the method of recovery. This may impede the BPR procedure farther in future if the bank gets into any type of legal instance. To avoid this ICICI Bank must follow the regulations and ordinances