Research On The Effect Of Commercial Banks' Business Process Reengineering On Its Operation And Management

At present China's economic is confronted with severe challenges which will bring great impact on China's banking,such as the reduction of spread income and the rapid development of the Internet economy.China's commercial banks choose business process reengineering(BPR)as the reform direction and tools in order to overcome these problems and improve their status in the international competition.Business process reengineering was introduced in America in 1993 as a new concept and theory to improve the enterprise management mode.It enables a business to take a process-centric approach for management redesign so that all-round improvements of products and services in efficiency,performance and feedback can be achieved.Operation management effect is the final result of this series of activities,including timeliness,integration,low cost,standardization,diversity,specialization,scale,information,flexibility,sensitivity and rapid feedback.Commercial banks try a variety of ways to perform business process reengineering in order to improve their operation management effect.In this paper,empirical and theoretical methods are introduced to analyze the internal data of several banks.Based on the theory of business process reengineering,operation management effect is divided into six dimensions,namely timeliness,integrity,burden reduction,normative,operational risk and customer satisfaction.The six dimensions respectively correspond to the business processing time,the quantity of business moving upward,the quantity of foreground business,the quantity of revised regulations,business processing accuracy and customer satisfaction so that quantitative analysis of operation management effect can be achieved.In this paper,conclusions of existing research are introduced by literature review of business process reengineering,operation management and the relationship between the two.Taking business process reengineering of A bank as an example,the analysis of the relationship between the operation management effect and business process reengineering is introduced in this paper.First of all,the basic situation and operating difficulties of A bank before process reengineering describes are described.Then,based on the purpose of business process reengineering of A bank,business process reengineering modes of other commercial banks are compared and analyzed in order to develop business process reengineering plan to meet the interests of A bank.Finally,the hypothesis that operation management effect is positively correlated with business process reengineering is proposed by analyzing business process reengineering data of A bank.Taking the asset size,the crew size,the number of outlets and the age of the staff as auxiliary variables,the hypothesis is validated by analyzing business process reengineering data of other 70 banks.The empirical analysis shows that the correlation between business process reengineering and quantity of foreground business is the highest,followed by the number of business.According to the correlation degree in descending order,the six factors are the quantity of foreground business,the quantity of business moving upward,business processing accuracy,the quantity of revised regulations,the business processing time and customer satisfaction.Whether the operational management effect has been significantlyimproved can be judged by the changes of the quantity of foreground business and business moving upward.In order to provide new ideas for the development of commercial banks in China,this paper puts forward the following suggestions: develop information technology,improve personnel quality,design business process reasonably and improve relevant rules and regulations.