Business Process Reengineering

Business Process Reengineering involves the exhaustive redesign of core business processes to achieve astonishing improvements in overall productivity, cycle times and quality of work. In Business Process Reengineering, companies start with a blank sheet of paper and rethink existing processes and hold them in a way to deliver more value to the customer. They typically adopt a new value system that places increased emphasis on customer needs. Companies may reduce organizational layers and eliminate unproductive activities in two key areas. First, they redesign functional organizations into cross-functional teams. Second, they use technology to improve data dissemination and decision making.

How Business Process Reengineering works:

   Business Process Reengineering contains five major steps. Managers should:

·         Refocus the company’s values on customer’s needs.

·         Redesign the core processes, often using information technology to save time and make improvements.

·         Reorganize a business into cross-functional teams with end-to-end responsibility for a process.

·         Rethink basic organizational problems and people issues.

·         Improve business processes from top to bottom, all across the organization.

Companies use Business Process Reengineering to:

Companies use Business Process Reengineering to improve performance substantially on key processes that impact customers. Business Process Reengineering can:

·         Reduce costs and cycle time. Business Process Reengineering reduces costs and cycle times by eliminating unproductive activities and the employees who perform them. Reorganization by teams decreases the need for management layers, accelerates information flows, and eliminates the errors and rework caused by multiple handoffs.

·         Improve quality. Business Process Reengineering improves quality by reducing the fragmentation of work and establishing clear ownership of processes. Workers gain responsibility for their output and can measure their performance based on prompt feedback.

Why Banks opt for Tab Banking?

Offering a collaborative, electronic process can meet your customer’s expectations and evoke a sense of loyalty. This can translate into greater customer retention and wallet share. Whether a customer is opening a new account, applying for a credit card or making an account change, tablets offer an interactive way for customers and representatives to complete a transaction.

From ICICI to the HDFC, every major bank in India offers tab banking. Although tablets are considered mobile devices, they have a place in a bank’s multiple business channels, including the branch. In fact, tablets could close the gap between the customer’s satisfaction rating and the bank’s perception of their service. In addition to improving customer service and potentially appealing to a broader audience, tablets offers a wide array of benefits to the banks, such as,

Going Paperless: By adopting an e-process that includes electronic signature capabilities, there’s no need to print and waste papers. The process is totally electronic from start to end, saving banks the cost associated with managing papers.

Multichannel Support: The same tablet application can be used in-branch, in-field and even by customers in the comfort of their own home. A similar process across multiple environments makes a bank’s multichannel strategy a reality while contributing to a better customer experience.

Collaborative Process: Instead of a stiff customer/representative interaction, tablets promote collaboration. 

Tablets are versatile devices that banks uses as leverage to improve the customer experience and benefit the organization by implementing paper-free, efficient processes.

Guidelines to make outsourcing in Insurance well structured.

IRDAI - Regulator Insurance Regulatory and Development Authority of India, has proposed outsourcing regulations for insurance companies operating in India, under which they can take services of individuals for activities such as medical examination, investigation of claims, and recovery. As per the exposure draft, every company should put in place a comprehensive board approved the outsourcing policy. In considering or renewing an outsourcing arrangement, an insurer should subject the agency to appropriate due diligence, the regulator said in the proposed IRDAI (Outsourcing of Activities by Indian Insurers) Regulations, 2016. “The insurer shall satisfy itself that the outsourcing agency’s security policies, procedures, and controls will enable the insurer to protect confidentiality and security of policyholder information,” according to the draft.

   

The new norms have been welcomed by the industry, as it will help regularize the outsourcing. As a better structured outsourcing mechanism can be put in place adhering to these rules. “The proposed regulations are trying to give a more structured and better shape to outsourcing activities by clearly defining core and non-core activities,” Puneet Sahni, Head-Product Development, SBI General Insurance, adding that the new norms will “positively” impact business processes and customer interests.

The proposed rules will bring more accountability, as outsourcing relationships will be governed by written agreements that are legally binding for a specified period. That clearly describes all material aspects of the outsourcing arrangement, including the rights and responsibilities of all parties. 

Why Vietnam is becoming the next big Outsourcing destination?

Offshore outsourcing is a time-tested way of saving on cost that almost every multinational company has accepted and used. Outsourcing the business processes in an emerging economy enable them to create the infrastructure and get the labor at a much cheaper price, than their native country.

  

Once India used to top the list of nations preferred for outsourcing, but that is changing. With the India’s economy reaching new highs every year, even surpassing the China in the race. In this growing economy where youth is getting better prospects than before and with middle class getting more and more empowered, the low labor cost might soon disappear. Foreseeing this, outsourcing companies are looking for new destinations to outsource to. And they are eyeing the Vietnam.

    

Vietnam’s economy quietly slipping, with the worst drought in the last decade country is far below the ambitious GDP aim it had set for itself. It’s becoming the next hot destination for offshore outsourcing. With Vietnam’s talent pool increasing in technical areas and modern tech infrastructure, as well as its reasonable rates, mean it’s catching the attention of tech companies big and small.

“The Vietnamese have a very strong desire to work with other parts of the world because they value the positive flow of money and funding coming into their country,” said Anna Frazzetto, chief digital officer and senior vice president at recruiting firm Harvey Nash. “All the big players are setting up their own facilities. If the companies that are the gold standard in technical competency are setting up house in Vietnam that says a lot about the technical talent Vietnam is offering.”