Business Process Reengineering in Service Sector

Over the years, there's been a realization that for those businesses, manufacturing or service, change is paramount to success. Increasing costs, challenging timelines, cutthroat competition, and technologies are some of the major factors propelling change. Since the majority of the services are people / process focused, the change is challenging to carry. Add to it, the fast vanishing physical boundaries make the responsibilities even more complicated for the organizations. If the company operates in making sector or in services; organizations have been obligated to rethink their strategies. Many a time, service sector has been before manufacturing available Process Reengineering queue. Increased Product / Service quality, reduced pattern time, lower cost to the customer are direct effects of BPR.

BPR is essentially not the same as other changes in an organization that it defies the "Old wine beverages in a fresh bottle" process. Business Process Reengineering is by meaning, the means where an organization can achieve radical change in performance as assessed by cost, pattern time, service, and quality, by the application of a variety of tools and techniques that concentrate on the business as a couple of related customer-oriented core business functions rather than group of organizational functions. The switch is imminent. Competition is now global as against Local or local before. Markets are focused compared to Mass. Procedures are flexible in contrast to controlled. The target is on Best service than performance. BPR is the answer as it speaks of radical change vis-a-vis Traditional methodology which limits itself to incremental changes.

Business Process Reengineering includes trying out the organization's DNA and producing an evolved kinds. The problem companies makes is pick the incorrect process to be reengineered, or make only superficial changes. Relating to James A. Champy - one of the founders of the management theory behind Business Process HYPERLINK "http://en. wikipedia. org/wiki/Business_process_reengineering"Reengineering, and proponent of a process focused view of business management, BPR is not merely about minimizing cost but also improving quality, speed to advertise and changing the client experience.

Why BPR?

The changing economic environment has resulted in an increasing desire for improving organizational processes to enhance business performance. BPR has been instrumental in success of various organizations. Sidikat, Ayanda (2008) in newspaper titiled, "Impact Evaluation of Business Process Reengineering on Organisational Performance" concluded that business process reengineering has become useful weapon for just about any corporate organization that is seeking for improvement in their current organizational performance and intends achieve cost authority strategy in its operating industry and environment.

Different objectives of BPR include

Reduced deal process time

Improved customer service

Increased level of business

Reduced working cost

Higher profitability

Improved Employee loyalty

Key enablers of BPR

BPR entails a rationale change at every level of organization starting with top management. The main thing to keep in mind while implementing such exercise is to work across operations and not functions. Equally important is to truly have a strong interior team that is working on the execution. Key enablers of BPR can be outlined the following


Management & Leadership

Organizational Culture

Functional Expertise

Instantaneous reaction

Performance Indictors - Quality, Lead Time, Cost, Service

Service Sector in India

The service sector has experienced immediate growth through the years as many countries including India shifted from a manufacturing-based market to a service economy. A major spur in this transfer happened because of this of computerization and progress in telecommunication. Along with this shift, the consumers' expectations have grown manifold. It is rather difficult to meet desired service levels in today's age with out a shift from years old systems to high-tech advanced systems. Before discussing about BPR operating sector, a short set of different Service sectors is really as follows.


Hotels and Restaurants


Other Transportation & Storage

Communication (Post, Telecom)



Dwellings, Real Estate

Business Services

Public Supervision; Defense

Personal Services

Community Services

Other Services

BPR & Service Sector

Though Business Process Reengineering has been instrumental in changing the fate of many developing industries, it offers played an similarly pivotal role operating sector. Additional Ps - "People & Process" that differentiate Services from Products along with "PhysicaI Evidence" are the most important drivers leading to this overhaul. Suzanne Wintrob (1995) in research newspaper titled "It will not work if users retained in dark" mentioned the incomparable role of men and women in Business Process Reengineering. Matching to Sunil Chandiramani, National Director - Advisory services, Ernst & Young, "The external team (consultants) can assist in the process, but it has to be led by the inner team. "

In recent past, many service sector companies have effectively seen the transition from being overloaded with paperwork to technology powered time-saving systems. In India, with government supplying a go-ahead to private players in 90s, open public sector companies thought heat and started dropping market share to private counterparts. The private companies implemented modern centralized core processing systems. Bank is among the many Indian industries where this change is true. Indian Post and Indian Railways are other two takers of the dynamism.

Banking & Finance

Public Sector Banking companies in India are the building blocks of Indian market. Ironically, that they had been deprived of most modernized systems till later 90's. They offered the standard services such as manual debris and withdrawals when compared with a bouquet of services such as facility of ATM, 24-hour banking, E-banking, M-banking provided today.

State Standard bank of India is one such example which possessed undertaken an enormous computerization effort to automate all it's branches, putting into action a highly custom-made version of Bankmaster main bank operating system. However, because of Bank's traditional use of manual systems void of centralization and problems in communication systems, it got to holiday resort to decentralized system to begin with. The necessity for reengineering arose because SBI along with other open public sector counterparts started losing existing customers and were handicapped to touch the ever before growing potential of middle income.

In 2000, SBI engaged KPMG because of this overhaul and in 2002, KPMG recommended an IT influenced systems to counter the private players' led competition. To begin with 3300 branches were picked for implementation which was later broadened to 14600 of SBI & affiliate marketing branches considering unparalleled success. SBI organized to give a single windows system, better customer service, wanted to reach out to urban as well as rural inhabitants and control the client moving over along with many other objectives that this sought. The largest problem that drove this restructuring because of this Public sector giant was that since branches were not connected, the client was a 'Branch' customer rather than a 'Loan company' customer. In addition Information Technology till now, was directed only at Internal efficiency. Hence, it was planned to share operations for back-office functions and rework the workflows and operations.

Indian Postal System

BPR has targeted at radical improvements through elevating efficiency and performance of the business enterprise processes which exist within and across section. The main element for BPR is to check out business processes from a "clean slate" point of view and determine how they can best construct these processes to enhance the way business is conducted. Division of Posts once in a while conducts workshops related to BPR relating to the people such as Nodal Officers who are part of BPR strategy and execution. India Post has been making several upgradations to existing systems and has started offering bouquet of services such as Money Exchanges, One-stop bill payment (Cell phone, electricity), Driving certificate renewals etc.

Speed Post, started out by Section of Content in August 1986 for providing time-bound and communicate delivery of characters' documents and parcels across the nation and in foreign countries, is the market head in the domestic express industry.

Through ePOST service launched in 2004, customers can send their text messages to any address in India with a combination of electronic transmission and physical delivery by using a network greater than 1, 55, 000 Post Office buildings. ePOST sends emails as a smooth duplicate through internet and delivered to the addressee by means of hard backup at nominal demand of Rs 10 per A4 sheet.

ePayment is a thorough bill payment service proposed by India Post to help meet the needs of the business enterprise customers. This allows collection of expenses (telephone bills, power bills, university fee, institution charge, insurance premia etc) with respect to any group. The collection is consolidated electronically using web based software and repayment is manufactured centrally through cheque from a given post office. The repayment information can be assessed online by the user.

Instant Money Order (iMO), the instant on-line money copy service, provides swiftness, mobility, safety and reliability for money transfer. IMO can be an instant online money copy service through Post Offices (iMO Centre) in India between two resident individuals in Indian territory.

Though the number of services offered is many, still huge spaces can be found in quality as compared to international standards. To enable Department of Posts to attain the business objectives of becoming the IT allowed complete service provider, Project Management Device have been entrusted with the duty of creating state of the art digital network covering all its office buildings and everything products and services including alternative party services and enable electronic transmitting of information for conducting & monitoring operations, consolidating ventures data and making a highly effective MIS. Business Process Reengineering organizations were created and their information are being assessed by worried Divisions of Directorate, which would form the bottom to make the comprehensive IT strategy and roadmap for Section of Articles.

Indian Railways

It's been long since computerized traveler reservation system was started out by Indian Railways. Today the booking related workload has increased manifold but railways have had the opportunity to manage the work without much upsurge in manpower. Different systems incorporated by railways includes-

Software Aided Train Scheduling & Network Governance - Main objectives of train scheduling are that it ought to be convenient to the passenger and feasible to perform on the system. Introducing new train services and augmenting old ones can be an artwork and a select group of organizers are very skilled in this task. Indian Railways have finally started using information technology to aid the look process.

Web Enabled Statements System - The world's biggest company, the Indian Railways, which previously used to prepare various say (Judge/Accident) documents by hand, has shifted to web says format which keeps up to date database of all such cases. Thereby, eliminating complex record maintenance & providing for queries that gives the complete status of registered cases in Chief Statements Office.

Punctuality Module - This module was implemented in Feb, 2004. This component captures the delays involved in train jogging at interchange things and detention triggers for the delays at the divisional level. Based on this input, records are made for traffic professionals.

CONCERT - Country-wide Network for Computerized Enhanced Booking and Ticketing - developed by CRIS, is a total networking solution to Indian Railways Passenger Reservation System. Chair Availability / PNR / Journey Planner / Fare / Time Table enquiries and e-Reservation of seat tickets can be found on the internet.

Along with above initiatives, ATM integration with booking/enquiry system is being prepared as well. Several Lenders in India will be issuing Reserved and Unreserved Tickets through their ATMs under an set up with Zonal Railways.

It isn't only the old stalwarts who have reengineered. Even the private sector and novice companies in upcoming sectors have observed this change. For Spencer's, RPG Group's retail string, large ramp-up in functions necessitated a series of restructurings. The chain prepared to increase from an area of 2. 5 lakh square foot to 15 lakh square foot i. e. from 52 to 400 stores. This designed that the elderly systems were no more adequate. Hence, instead of doing an incremental improvement on the existing processes, the business introduced an automated replenishment system. This has resulted in diminished stockouts and increasing efficiency. It might be concluded that BPR initiatives have less to do with controlling costs plus more about managing business, which underlines the importance of this theory.

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