If a bank is to derive genuine value from its software implementation exercise, then it needs to avoid simply replicating the "As is" situation in the new system. This need not be the case, for putting a new core banking solution in place actually presents a golden opportunity to the bank to improve its organization and processes.
The opportunity notwithstanding, success in Business Process Engineering (BPR) is not a given. It requires consultants with a deep knowledge of the target software, with expertise in integration processes and a focus on process dynamics and organization that only come with superior client handling skills coupled with years of experience.
The BPR process involves diagnosing current processes and supporting organization & software by identifying bottlenecks, inefficiencies and unnecessary tasks and defining how, where and when improvements are to be made.
Illustration: Credit Management
BPR "As is" versus "To be" phase
The above example illustrates how improvements in the 44 sub-processes which underlie the credit management function may be improved upon. SOFGEN has 100+ templates covering a range of banking products, services and back-office functions so as to ensure that consultants do not reinvent the wheel at the commencement of each project.
Redesigning existing systems and organizational structures helps banks to gain competitive advantage by: