Exploration of Use of Business Process Reengineering in the Qatar Banking Sector - Assignment Example

Project Title: Exploration of use of business process reengineering in the Qatar Banking sector Does the title use Masters level language? Refer to Bloom’s Taxonomy – 2 marks Has the student thought about the breadth of work required? Is there enough for a Masters project without being too broad? – 2 marks General English and style of language (no acronyms) – 1 mark Feedback Mark Abstract/ Summary: Please provide some background about the project, company, situation and overall summary as to the nature of problem and what is required (approx 500 words) The emergence of the global economy, the transcendency of the global village and society, and the rapid transformation of industries economies into information- and knowledge-based economies have posed new challenges that business must meet for survival so that they are able to stay competitive. These metamorphoses require that every business needs to rethink, not just the elements of its economic and social milieu, but in the technological contexts as well. The challenges that pertain to this context continue to undergo evolution over time and redefine the understanding that one has about the nature of the business environment, its organizational structure, business processes, management and competition. One needs to understand the fact that with the evolutionary stages that an economy touches, new technology would affect business processes and organizational structures in various ways. This effect is actualized through the automation, information and communication. By automating parts of the business processes through information systems, organizations are able to attain greater efficiencies. With the very encouraging reports from various think-tanks and Qatar at the helm of development in different sectors, the country’s banking industry is set to be one of the best performing in the region. The country and its banking sector have drawn a lot of attention over the past five years given the trend of increasing economic growth which it has witnessed since the beginning of the decade. The sector in fact ended up recording real GDP growth of 8.5% in 2007’s third quarter In this region, it is noteworthy that Qatar is one of the wealthiest countries, with a GDP per capita of around US$76,129 in 2007. On account of the high economic growth Qatar’s banking industry has got a tremendous boost, thus resulting in exemplary profits in the last few years. The growth can be gauged from the fact that total deposits and loans and deposits have seen 30% and 35% growth in 2002-2007 CAGR. Total profitability has been pegged at a whopping CAGR of 48.5% during the same tenure, which is seen as something with a new functional structure. This would in essence be a new functional-divisional structure. Restructuring would happen along reorganized functions which are already in present existence but are currently under a diffused divisional structure (Stillwagon and Burns, 1993). A matrix of competitive position of the Banks versus market attractiveness was also able to highlight strategic thrusts. The idea that one could suggest here is that there is a need for serious efforts to be put in for personal banking, corporate banking and banking for medium businesses for cooperatives. The suggested functions would constitute proposed strategy. No process defined by value chain across functions and along the vertical line from branch upwards is identifiable. There is also the need to define clear reporting lines, ensuring that existing processes remain well controlled, roles defined and business structures set up around the target audiences (Stillwagon and Burns, 1993). Variables inclusive of the equation are variations on quality, cost, speed and service. In a developing economy with huge disparity in wealth distribution, it is but understandable that there is a scope for churning and for growth. In this context the nature of application of a western concept-reengineering to the improvement of the banking sector at large will be an interesting study. Is there some background to the project? – 2 mark Does it describe the nature of the problem to be investigated? – 2 mark Does it include an AIM for the project? – 3 mark Is this aim detailed enough for the reader to understand what the project is? - 2 marks Are there at least 2 good references correctly referenced? – 3 marks Feedback Mark Objectives These should be measurable and will be used in part in determining the level of achievement of the project. The key features are high asset quality, healthy margins, adequate capitalisation, and high non-interest income. The process of business process reengineering (BPR) has been defined by Hammer and Champy (1994) as the basic review and fundamental revamp of processes so that the organization is able to attain stunning betterment in the nature of decisive and existing dimensions of competence. The idea therefore is that most banks in Qatar would need to not just compete among themselves but with the larger global forces that characterize the sector. There will be a need to depart from prior accepted processes, experimenting on the work in the absence of intolerance, thereby setting up the overlooking of systems used up to now. There is a trend of unexplained variation by way of business usage in terms of process development, especially in the context of disparities in access and utilization. Errors are common and quality issues tend to persist. Most of the errors that characterize the industry are manifestation of insufficient accessibility of talent. Due to the industry being largely disorganized even now, sufficient data remains unavailable. Redesigning, one could understand as being the process initiating change. Reengineering is centered in the processes. Short and Devenport [1990] define a process as a sequence of tasks executed logically to perform and achieve desired outcomes and goals. In this context, the research could be identified the following objectives: 1. An analysis of the growth points and pitfalls of the Qatar Banking sector, comparing the characteristics with the larger global banking scenario. 2. Defining reengineering and applying the concept to Qatar. 3. Identifying areas that require benefits, with specific focus on the implementation of e-banking and technology to the sector. 4. Specific areas of growth identification, along with the challenges likely to be encountered when the process is implemented. Are each of the objectives clear and of Masters level (Critically evaluation/analysis)? – 5 marks Are each of the objectives SMART (Specific, Measurable. Achievable, Time based) – 5 marks Are the objectives comprehensive – when looked at together do they encompass the overall aim of the project – 2 marks Feedback Mark Project Deliverables: Provide a list of key outcomes of the conducted project (can be for each of the above objectives/ stages) these can be studies, reports, recommendations etc 1. Transforming a stricture conditioned by constraints imposed by outsiders to the structure is difficult speed. These structural constraints also tend to impose limits and deformations in the business process. The bank would tend to share similar business processes of branch-based and bank-based banking with other public banks. Near uniformity across competing banks in detailed business processes such as credit disbursal, retail banking and personnel policy-implied that success would depend on the quality of intangibles in a business process. Two processes are often not linked except that furnished from branch-based processes acquire value addition through bank-based processes. The former is employee-intensive non-value adding while the later is potentially technology-intensive adding most value (Barczak et al., 1987). The key strategic services from the Banks in the country need to be divided and subdivided in categories that would be inclusive of corporate banking, small and medium business banking, personal banking, retail and mass market banking, and rural and development banking. The deliverable will answer questions on the nature of the banking sector in Qatar with the macro scenario. 2. Where the dimensional use of technology in the process of business process reengineering is concerned, one needs to understand the fact that it is easy to identify three types of process that would be part of the package: inter-organizational, interpersonal and inter-functional. Where the usage of information technology in BPR is concerned, processes such as data interchange through electronics databases, reduction in the costs of transaction and the elimination of intermediaries where the organizational processes are concerned. Networks that could find association in networks make concurrent employment in various locations possible in inter-functional processes (Ollala, 1999). Technology has made it possible to integrate image and work into interpersonal processes. Delving into this will throw open options of the challenges of technology integration within banking.Delving into this will throw open options of the challenges of technology integration within banking. 3. Banks in the context of Qatar also need to be able to open branches in areas that are deemed unprofitable or locations that have a higher density of total number of banking branches. The idea thus is to aim at the development of skills for deposit mobilization which needs to get developed in every branch. This will answer the dilemmas about the nature of Qatar as a country and whether or not reengineering models have any hope of showing success given the wealth disparities. 4. Moreover, one needs to, also as a measure of business process reengineering focus on the importance of mergers and acquisitions. The idea to aid the economies of scale which would in turn enhance rent monopolies. Mergers are a standard of posit phases of business crisis such as the recession or during the upswing feature of the business cycle aimed at the initiation of innovation and growth. One could associate reasoning by way of synergy augmentation, considerations of taxation, economies of scale in operations, diversification as the benefits associated with mergers. If this idea is applied to Qatar banking sector it would mean further consolidation of services in this sector and particularly to the banking sector (Pamarty, 2009).. 5. Challenges to the banks at present are also inclusive of the factors of globalization. Changes that take place in terms of the global world are more often than not come with changes in the manner by which the human resources are managed within the company. Are each of the deliverables clearly described and link to an objective? - 5 marks Are each of the deliverables SMART (Specific, Measurable. Achievable, Time based) – 5 marks Are the deliverables comprehensive – when looked at together do they encompass the overall aim of the project – 2 marks Feedback Mark Why are you interested in the project? Provide a reason for your interest, what greater general interest it serves (In Industry or as part of Research) and who it could benefit (the target audience(s) that this project would be beneficial to) This should indicate why the student is interested but also should cover the broader issues of the interest of others. The primary forces that drive the process of business process reengineering is inclusive of the requirements of better nature of work and services provided, reduction in terms of cost and the ensuring balance in terms of cultural change, could be outlined as the three primary reasons justifying the process reengineering. In light of the growing competitiveness within the business environment that characterizes the banking sector in Qatar it is a fact on the part of most HR as being hard pressed concurrently to aim at a reduction of costs of administration, ensuring the delivery of better quality of services and the creation of more effective factors within the business environment. While it is true that the new millennium has brought with it a new passion on the part of the sunshine sector to become closer to the consumer aiming at the achievement of a more customer-oriented business vision and strategy, the nature of the business and the evolution of the consumer from being physical buyers to trading more and more over the internet, ensures that there is a growing distance between the company and the consumer. Technological compression of time and distance has effectually elevated customer expectations and tilted the balance of power in the buyer-seller interaction. The study intends to conduct a quantitative descriptive research banks in Qatar. It is hoped that the data collected from this research adds to the existing body of literature relating to business process reengineering and the challenges associated with the same. In addition, the data collected from the study can aid to put in measures that aim at enhancing business efficiency. Developing banking culture systems may also find the data of benefit. There is also the rapid growth of information and technologies (ICTs) and unpredictable market dynamism. There is a tendency within the banks in Qatar to be on the lookout for expansion by way of new geographies and new products, which would qualify in the long term in increasing market share aiding improvements in operational processes (Akamavi, 2004). It is this involvement of ICTs in the banking industry worldwide and the challenges that the adoption of new processes within set moulds that is of interest to me, which I would like to delve further into and explain in detail, within the larger framework of a country that is all at once modern and yet largely rural with wealth disparities. The challenges that change and growth throws up for Qatar will be largely applicable to some of the larger underdeveloped countries of the world, allowing for growth. This should indicate why the student is interested but also should cover the broader issues of the interest of others. – 5 marks Feedback Mark What research methods do you intend to use? The study intends to use inferential and descriptive quantitative approach to gain a deeper understanding of the research objectives. The approach would help in the examination of the current levels of efficiency in banks and the kind of effort change would take. The method would help in ensuring that the research retains its empirical nature. The quantitative research used several indicators which are numerical and/ or statistical based in order to derive results and ascertain size of the entity being researched Smith (1988). According to Morgan & Smircich (1980) this has its basis in the assumption that social reality has an objective ontological structure and that individuals are responding agents to this objective environment. With regard to positivist paradigm, Cassell and Symon (1994) opine that everything if considered as an objective truth can be measured through various methods and scientifically. This would therefore be effective in the instance of our case given the fact that the basic issue is the measurement of behavioral trends in the most scientific manner possible. The method is highly deductive and particularistic. This in turn implies that the research would be based on the formulation of research hypotheses. Frankfort-Nachmias & Nachmias, (1992) explain that the method is then followed by verification backed by data that has been empirically obtained. The scientific hypotheses are researcher's own values, and in a sense value-free; free from subjective preferences and biases, which is probably why researches consider communication processes as tangible and in a sense concrete, without actually establishing real contact or communicate with people. Is there an indication of an understanding of the difference between qualitative and quantitative research? – 2 marks Do the students acknowledge a range of research methods to be used? – 4 marks Are the research methods suggested appropriate to the project? – 3 marks Would they be able to collect the data in the methods suggested? – 2 marks Do they acknowledge any problems with their research methods? -1 mark Feedback Mark What primary and/or secondary data sources do you intend to use? The first problem can be researched using a combination of the models of case studies and the Grounded theory. Case studies would mean going back to research already available with regards to the issue along with the identification of a restricted number of cases, which can be then studies and conclusions can be drawn on a case by case analysis. Although time consuming and long, the method has proven to be very effective. This cannot however be done in isolation and the researcher has to make use of the grounded theory here. The phrase “grounded theory” refers to theory that is developed inductively from a corpus of data (Glaser and Strauss, 1967). The basic points of conclusion as drawn from the data collected are then marked with codes. The codes with similar aspects are grouped together to form categories which serve as the basis for the creation of the theory. In this regard, the variables to be observed will be the patients themselves. The primary data will be the samples that will be collected through the process of case studies and interviews. The secondary data will be collected through research of the existing literature on the same. Documents from government offices, census reports and online journals will all serve as the corpus of the secondary data. Basic understanding of what primary and secondary data is – 2 marks Several reasoned examples of each of these – 5 marks Detail on what information is being looked for and why – 5 marks Feedback Mark Please provide draft chapter headings for your report 1. Introduction 2. Literature Review 3. Methodology 4. Data Collection 5. Results and Discussion 6. Conclusion 7. Appendix 8. Reference If they only have the basics – 2 - 3 marks If some areas have a little detail – 3 – 4 marks If detailed drafts – 5 marks Feedback Mark Please attach or outline a project schedule (Gantt chart) which incorporates the phases of your project and activities to undertake, duration, start and end dates, any milestones/ deliverables and major dependencies. Project Milestones Duration Start date End date Major dependencies Initiation and Planning Identifying the need for the project 1 day 4 Nov 2010 4 Nov 2010 Creating a concept proposal 1 days 5 Nov 2010 5 Nov 2010 Defining the scope of the research 1 day 5 Nov 2010 5 Nov 2010 Researching Literature Review 5 days 8 Nov 2010 12 Nov 2010 Availability of past literature on the topic; Internet connection; Well-stocked library Formulating research hypothesis 1 day 15 Nov 2010 15 Nov 2010 Methodology Identifying research methodologies 1 day 16 Nov 2010 16 Nov 2010 Understanding data analysis tools 1 day 17 Nov 2010 17 Nov 2010 Conducting Study Researching for case studies 3 days 18 Nov 2010 22 Nov 2010 Availability of information/data on various banks; Internal strategies through networks Writing case studies 2 days 23 Nov 2010 24 Nov 2010 Formulating primary data collection strategy 1 day 25 Nov 2010 25 Nov 2010 Identifying survey population 1 day 29 Nov 2010 29 Nov 2010 Information through networks Creating questioner 1 day 30 Nov 2010 30 Nov 2010 Contacting possible survey participants for approval & fixing interviews 1 day 1 Dec 2010 1 Dec 2010 Availability of the possible survey participants Conducting interviews 3 days 2 Dec 2010 6 Dec 2010 Availability of the possible survey participants Data collection and analysis Collating data (creating one master sheet with all the results) 2 days 7 Dec 2010 8 Dec 2010 Analaysing data 1 day 9 Dec 2010 9 Dec 2010 Formulating findings and discussions 1 day 10 Dec 2010 10 Dec 2010 Providing recommendations 1 day 10 Dec 2010 10 Dec 2010 Preparing research project Preparing draft proposal 1 day 13 Dec 2010 13 Dec 2010 Discussing with supervisor 1 day 14 Dec 2010 14 Dec 2010 Availability of the supervisor Preparing final document 1 day 14 Dec 2010 14 Dec 2010 Submission of the thesis 1 day Is there some form of project plan? – 1 mark Is it systematic, structured and does it cover the schedule of work? – 2 marks Is there an acknowledgment of the resources required? – 2 marks Does it acknowledge any potential problems that they may encounter – 2 marks Is there a detailed, understandable comprehensive Gantt chart? – 3 marks Feedback Mark References You will have needed to refer to articles, journals and books in order to have researched your project proposal. You must supply a minimum of 5 references (at least one book, one journal, one website and one e journal) these must be correctly cited, numbered and presented. Akamavi, R. K. (2005).’Re engineering Service Quality Process Mapping: E-Banking Process’. International Journal of Bank Marketing 23 (1), 28-53. Barczak, G. C., Smith, C. and Wilemon, D. (1987). ‘Managing Large Scale Organizational Change’. Organizational Dynamics 16 (2), 23-35. Cassell, C. and Symon, G. (1994). Qualitative research in work contexts. In C. Cassell, & G. Symon (Eds.), Qualitative methods in organizational research (pp. 1-13). Thousand Oaks, CA: Sage Publications. Frankfort-Nachmias, C. and Nachmias, D. (1992). Research methods in the social sciences (4th ed.). New York: St. Martin's Press  Morgan, G. and Smircich, L. (1980). ‘The case for qualitative research’. Academy of Management Review 5, 491-500. Ollala, M.F. (1999). Information Technology in Business Process Reengineering. Presented at the Forty-Seventh International Atlantic Economic Conference in Vienna, Austria, March 16-23, 1999. Pamarty, M. (2009). ‘Re-Engineering of Banking Sector Through Merger & Acquisition’. (with Reference to Selected New Private Sector Banks in Chennai) (August 24, 2009). Available at SSRN: http://ssrn.com/abstract=1460919 Smith, M.J. (1988). Contemporary communication research methods. Belmont, CA: Wadsworth Inc  Stillwagon, W. and Burns, R. (1993). ‘Improving Manufacturing Competitiveness Through the Application of Human Performance Engineering’. International Journal of Technology Management 8 (3/5), 411-21. Teng, J. T. C., Grover, V. and Fiedler, K. D. (1994). ‘Business Process Reengineering: Charting a Strategic Path for the Information Age’. California Management Review 36 (3), 9-31. Are there references throughout the work, are they of a Masters standard and correctly presented – 10 marks Feedback Mark Presentation of work and use of English and Grammar – 5 marks Feedback Mark Key Areas of Strength: Key Areas for Improvement: Mark: Marker: Final Mark: Moderated Mark: (if applicable) Moderator: Date: Marker Signature: Read More