Research On Commercial Bank Business Process Reengineering Based On Activity Management

With the gradual mature of foreign bank development and the launch of local commercial bank trans-regional operation, the domestic banks is facing more intensified competition. In the fierce competition, how to remain the invincible position among others is the bank's corn question. The article is based on this, put forwards the reengineering of the bank, and introduces the Activity-Based-Costing method into the bank reengineering procedures.This thesis starts with the inter-relationship between banking process reengineering and task management as well as activity cost, trying to establish a commercial bank reengineering system on the basis of task management; furthermore, some supporting measures of the reengineering are also come up with. Banking process reengineering on the basis of activity management can enable the content of the rebuilding more concrete and targeted; in addition, the termination of this business process reengineering could be verified and security-ensured by activity management, which brings out the organic unity of reengineering the bank in terms of technology, program engineering, management and value creation. Consequently, business process reengineering based on activity management is an inevitable choice for commercial banks. This article will analyse and discuss this viewpoint form the following sections:Briefly describe some general concepts of reengineering the bank reengineering is a procedure re-construction focused banking business scope and operation, with the purpose of significantly reducing governing costs and advancing the activity value, fully drawing support from information technology and external professional systems. This thesis examines the overall principles of commercial reengineering the bank, furthermore introduces its ordinary process.The second part elaborates the general concepts of the commercial bank reengineering. The reengineering of the commercial bank is to draw support from information technology and external professional systems, to re-design the process system as a corn, extend the bank's scope of business and improve the bank's operation, to lower the commercial bank's capital cost and improve the commercial bank's value. This thesis examines the overall principles of commercial reengineering the bank, furthermore introduces its ordinary process.The third part analysis the linkages between commercial reengineering the bank and operation management. Business process reengineering is in the core of reengineering the bank. The banking process is composed of single pieces of operation; on account of this, business process reengineering need to be served with task rebuilding, with the implementation of cost management. The soul of operating cost management is to aggregate the series of task, resources, products and other elements with value as the central axis, and moreover, to connect service quality, operation conduct and performance appraisal accordingly. This thesis puts that the operation-based business process reengineering can fulfill the parity of authority and responsibility within banks, enhance the "customer-focused, market-oriented" concept to promote competitiveness, passively force banks to carry out institutional reforms, and improve the its ability of risk control.Taking a certain commercial bank as an example, illustrate the framework of reengineering the bank in specific. Initially, analyzing the operation cost driver. Secondly, using activity based costing method to balance the cost of related financial products and services, providing basic evidence and data to support operation management and business process reengineering. Then, conducting value chain analysis based on the results of the activity based costing method. After this, carry out the process of reengineering with the goal of customer value and enterprise value maximization. Fifthly, optimize customer relationships. As the financial product innovation in this increasingly competitive market, the pursuit of comprehensive customer relationship management and the differentiation of product management have become the commercial banks'primary means of competition promotion. Finally, exert evaluations of the operation management and business process reengineering.In order to successfully actualize reengineering the bank, commercial banks need to be implemented with organizational culture, leadership revolution, and information technology construction. The reengineering of commercial banks could be seen as operation management in manufacturing industry typically used for financial industry. Therefore, they are distinguished both in terms of product structure and business process. Obviously, this revolution is an innovation and learning, and admittedly, it is of great significance to establish an innovation-encouraged and learning-oriented organizational culture. The execution of reengineering the bank takes certain time and resources. To ensure the achievement, spiritual and material support from senior management is the key. The application of bank reengineering using Activity-Based-Cost method in commercial bank is an innovation procedure. The level that it implements is closely related to the information-based construction for the reason that the operating activity management is greatly different from the traditional activity management. Only if upgrading and developing the existing information system, could it serve the information of reengineering the bank in full-scale.All researches on this thesis are based on the relationship of reengineering the process of commercial bank operation arid operating activity management. The research methods which apply are mainly normative research, putting stress on both theory and practice, and the use of actual investigation and case analyses successfully enhance the realistic and practical feature of the author's idea. The principle innovations find expression in:first, this thesis gives the essential framework of business process reengineering of commercial banks, using job management in the subject of management associated with process reengineering in the subject of finance. It provides the concrete foundation and reliable assurance to the bank reengineering procedures and implementation; on the other hand, it clears the goal and direction of ABCM. It enriches the extension of cost and managerial accounting, as well as aiding the expending and deepness of financial practice. Secondly, based on fully grasp the theoretical and practical frame of the bank reengineering, combining with the specific current management status of the commercial banks in our country, trying to built the commercial bank's reengineering model with the combination of ABM and reengineering procedure.