Business Transformation Framework
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The document outlines a business transformation framework for banking that addresses the challenges posed by rapid technological advancements and changing customer demands. It highlights the importance of adapting processes, improving operational efficiencies, and utilizing data for effective decision-making to enhance banking services. The framework emphasizes identifying key problem areas, implementing innovative solutions, and fostering a culture of continuous improvement.
Business Transformation Framework
- 1. Business Transformation Framework Version 1.5 Feb’16 Confidential : Copyright of all information published in this document are held by Paynovation Technologies. No part of this document can be published or re-produced without authorization
- 2. Forces that adds up to operational costs March 23, 2016 2(c) Paynovation Technologies 2016 Current pace of advancements in technology and arrival of new banking platforms has been pushing the need for a highly adaptive, cross-breed integrated Banking model New Technology Economic environment has never been so dynamic as they are now. With new polarities appearing faster than ever, Banking processes need to be more agile to react to these changes quickly Economic Push Advance in technology & changing economy are creating new segments which demand cutomised solutions. Traditional Banking products need an upgrade to accommodate this demand Changing Customers Stringent regulatory requirements across the globe driven by customer sentiments are calling for much stronger and effective control points and handy MI for better governance Regulations Directing efforts on these dimensions generates synergy among operations with common touch points and support larger Transformation initiative by taking range of benefits beyond just right sizing
- 3. Addressing the Right Components March 23, 2016 3 Processing Cost Process Cost Opportunity Cost 1. Staff salary & Property Cost 2. Technology Overheads 3. Equipment Cost 4. Transportation Cost 5. Loss due to lower productivity 6. Managerial Cost/Span 7. Longer time to process 8. Manual Processing 1. Higher TAT due to idle time 2. Multiple Hand-offs 3. Bad Volume 4. Cost of quality (defects) 5. Rigidity : Process & Tech 6. Excess Authorization 7. Spaghetti like processes 8. Licensing Fees 9. Regulatory Fees & Fines 1. Non-availability of relevant MI (volume forecast, interest trends etc.) 2. Lack of business intelligence 3. Lack of integrated process views, process families and linkages across up-stream and down stream processes 4. Lack of a single customer view Organizations differ from each other in more ways than one and so do their problems. Every business has its own set of ambitions and measurement of success. Key to success of a business transformation program framework lies in its ability to accurately identify and address the right problem elements. Solving right problem is as critical as the effectiveness of solution itself. Our transformation framework begins with breaking down the components and then designing smart solutions and measurements. For example : Depicted below is the breakdown of cost components for a banking operations : (c) Paynovation Technologies 2016
- 4. Our Tool Kit March 23, 2016 4 Performance Management Framework Right-sizing, Cross Skilling & Hot Desks Challenging Existing role hierarchy and span Decision Making based on real time MI System enabled Poka Yoke mechanism A ‘Golden Source of data’ Challenging roles & profiles Business oriented MI architecture Customer journeys for each product Intelligent systems & process Self Service Channels STP Lean based approach First Time Resolu tion Below tool kit can address a variety of problem elements. These are so designed to cover most dynamics from real world business environment : - Customer Service Excellence - People : Their mindsets, behavior & performance - Processes, systems & products - Data, Business Intelligence & MI (c) Paynovation Technologies 2016
- 5. This is how the model works March 23, 2016 5 Define DiagnoseDesign Execute Transfor mation Strategy Leadership Commitment Capability Build-Up E2E Engagement of Operational Team Real-Time Data Driven analysis & design Holistic Design Approach Effectual Transformation Sustained, self-reliant culture of efficiency Inculcate ownership Low cost of implementation Tangible results People Process Technology Organizatio n Customer Enablers Outcome Change Framework Data / MI (c) Paynovation Technologies 2016
- 6. March 23, 2016 6 Thank You (c) Paynovation Technologies 2016 For further details, mail to contactus@paynovation.in