INDEX

Introduction: ........................................................................................................................................... 2

Company Profile: ..................................................................................................................................... 5

Reasons for BPR Initiative: ....................................................................................................................... 6

Scope and Time Frame: ........................................................................................................................... 7

Team Involved: ........................................................................................................................................ 9

Project Design: ...................................................................................................................................... 10

Supporting Tools and Techniques: ......................................................................................................... 16

Impact of the project “as is: and "to be": ............................................................................................... 17

Conclusion and Recommendations: ....................................................................................................... 20

Bibliography: ......................................................................................................................................... 21
Introduction:
Today, organisations have to consider their structure and behaviour in order to
support their evolution and adaptation in a dynamic and rapidly changing environment.
Change has always been the case, but although in the past it was predictable,
incremental and evolutionary, today it is unpredictable, rapid and revolutionary. The
rapid deployment of new technologies, the globalisation of business operations and the
continuously changing customer expectations are the main forces behind this
transformation. Modern organisations in order to successfully face these difficult
operation conditions, should redefine their key strategies aiming at minimising the cost
of services and products as well as improving customer satisfaction, service quality and
job satisfaction.

Consequently, there has been an evolution from function-oriented organisations to

process-centred ones. Function-oriented organisations are organised around functions
(e.g. sales, production, procurement or product development), while process-oriented
organisations are organised around processes (e.g. process a client’s application for a
loan). Davenport and Short define business processes as a set of logically related
tasks performed to achieve a defined business outcome. Processes have customers
who are the recipients of process’ outcome, and are cross-functional meaning that they
occur between organisational functions. Thinking in process terms, business process
reengineering is becoming of increasing importance as a means to improve their
performance and enhance their competitiveness.

There are many approaches to BPR (e.g. Hammer, Davenport and Short), but
independently of the one that is followed, a BPR initiative is a risky undertaking and
several factors have to be considered for a successful effort. A very important success
factor is the top management sponsorship. A BPR Project usually requires many
resources, money and leadership, which can be assured only by a strong and
consistent top management sponsorship. Another important success factor is the

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alignment of the transformation effort with the organisation’s strategic direction
demonstrated from the perspective of financial performance, customer service,
associate employee value, and the vision of the organisation.

Additionally to the above, the selection of the right methodology that meets the
needs of the project and is understood and supported by the project team is very
important. A BPR methodology sets the framework for the undertaking of a BPR effort.
It is used to support related activities to reengineering such as: the definition of the
project boundaries, the selection of the right people to empower the BPR team, the
definition of a project manager, the selection, definition and analysis of the business
processes that are candidates for reengineering and so on. There exist a large number
of BPR methodologies, none of which is a panacea. The challenge in structuring a BPR
project is to select the approach that is best suited to the situation in hand, taking into
account organisation objectives, capabilities and economic or competitive requirements.

Furthermore, the right selection of the type of model and the computer assisted
tool that will support the modelling, analysis and redesign of the processes are crucial
factors for the success of a BPR project. During reengineering, a model is used as a
means of communication and understanding between the members of the working team
and it describes the “as-is” business process under study and the “to-be” redesign
process. Thus, it may be used to analyse current processes, to highlight weakpoints
and problems and to identify redesigning opportunities. Therefore, the selection of an
appropriate modelling notation is another important success factor. However, the
overwhelming number of available business process modeling notations in the market
and in the literature make the selection of the appropriate model a difficult task.

The role of a computer assisted tool in the success of a BPR effort should not be
underestimated. There are a lot of tools available in the market and their functionality
varies from simple drawing tools to more complex ones that provide simulation analysis
and integration with workflow management systems. In order to make a choice
between them one should consider several issues such as the applicability of the tool to
the given situation, its cost-effectiveness and its potential reuse. It has to be noted here

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that, the model supported by the tools and the capabilities of a tool are interrelated as
the latter depend heavily on the first.

This chapter recognises the importance of a successful combination between a

methodology, a modeling notation and a tool in a business transformation effort. It
identifies a requirements set on BPR methodologies and provides a comparative
presentation of representative methodologies.

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Company Profile:

ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major
banking and financial services organization in India. It is the 4th largest bank in India
and the largest private sector bank in India by market capitalization. The bank also has
a network of 1,700+ branches (as on 31 March 2010) and about 4,721 ATMs in India
and presence in 19 countries, as well as some 24 million customers (at the end of July
2007). ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and specialization
subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,
venture capital and asset management. (These data are dynamic.) ICICI Bank is also
the largest issuer of credit cards in India. ICICI Bank's shares are listed on the stock
exchanges at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India
Limited; its ADRs trade on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches
and representatives offices in 19 countries, including an offshore unit in Mumbai. This
includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary
through which the HiSAVE savings brand is operated), offshore banking units in Bahrain
and Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri
Lanka, and representative offices in Bangladesh, China, Malaysia, Indonesia, South
Africa, Thailand, the United Arab Emirates and USA. Overseas, the Bank is targeting
the NRI (Non-Resident Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in
total income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007.
The bank's CASA ratio increased to 30% in 2008 from 25% in 2007.

ICICI Bank is one of the Big Four Banks of India, along with State Bank of India, Axis
Bank and HDFC Bank — its main competitors.

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Reasons for BPR Initiative:

 In year 2000 and later when anytime, anywhere banking came to our country,
ICICI Bank had to move away from the branch-centric model and make its
services available nationwide. The solution was to centralize its applications.
 Legacy systems: The traditional systems at ICICI Bank were very centric to the
branch. For example a server at New Delhi was specific to the branch in that city;
the ATMs were standalone catering only to the city branch. The banking
transactions were thus limited to the respective branch offices as customer data
was not available in other branches. This made banking a limited service and
very branch specific. ICICI realized the importance of offering nationwide banking
but this would be possible only by having a centralized data repository.

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Scope and Time Frame:

In 1955, The Industrial Credit and Investment Corporation of India Limited (ICICI) was
incorporated at the initiative of World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development financial
institution for providing medium-term and long-term project financing to Indian
businesses. In 1994, ICICI established Banking Corporation as a banking subsidiary.
Formerly known as Industrial Credit and Investment Corporation of India, ICICI Banking
Corporation was later renamed as 'ICICI Bank Limited'. ICICI founded a separate legal
entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit
cards, car loans etc. In 2001, ICICI acquired Bank of Madura (est. 1943). Bank of
Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933)
and Illanji Bank (established 1904) in the 1960s. In 2002, The Boards of Directors of
ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, into ICICI Bank. After receiving all
necessary regulatory approvals, ICICI integrated the group's financing and banking
operations, both wholesale and retail, into a single entity. At the same time, ICICI
started its international expansion by opening representative offices in New York and
London. In India, ICICI Bank bought the Shimla and Darjeeling branches that Standard
Chartered Bank had inherited when it acquired Grindlays Bank.

In 2003, ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the
UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit
(OBU) in Singapore and representative offices in Dubai and Shanghai. In 2004, ICICI
opened a representative office in Bangladesh to tap the extensive trade between that
country, India and South Africa. In 2005, ICICI acquired Investitsionno-Kreditny Bank
(IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the
Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank
Eurasia. Also, ICICI established a branch in Dubai International Financial Centre and in
Hong Kong. In 2006, ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI

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opened representative offices in Bangkok, Jakarta, and Kuala Lumpur. In 2007, ICICI
amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State,
and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli
Bank had been founded in 1916 and was particularly strong in rural areas. With respect
to the international sphere, ICICI also received permission from the government of
Qatar to open a branch in Doha. Also, ICICI Bank Eurasia opened a second branch, this
time in St. Petersburg. In 2008, The US Federal Reserve permitted ICICI to convert its
representative office in New York into a branch. ICICI also established a branch in
Frankfurt. In 2009, ICICI made huge changes in its organisation like elimination of loss
making department and restreching outsourced staff or renegotiate their charges in
consequent to the recession. In addition to this, ICICI adopted a massive approach aims
for cost control and cost cutting. In consequent of it, compesation to staff was not
increased and no bonus declared for 2008-09.

Acquisition of Bank of Rajashthan

On 23 May, 2010 ICICI Bank announced merger with Bank of Rajasthan with it through
share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs 3,000
crore. Each 118 shares of Bank of Rajasthan will be converted into 25 shares of ICICI. It
is said that this merger will also expand ICICI Bank's branch network by 25%.

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Team Involved:

 SAS
 Bill Desk for online payments
 Infosys is one of technology partner for ICICI Bank which game the assistance to
implement Finacle for handling all the banking activities
 SYBASE

9
Project Design:

The big solution

What ICICI was looking for was a robust network, which would enable it to offer services
at the retail level throughout the country. The in-house ICICI Infotech was the obvious
choice for consultation. The ICICI Infotech team designed the initial network topology in
1999. The team had put forward a series of designs, not radically different from each
other.

Eventually, a design with a mix of VSATs, leased-lines, radio-links and ISDN was
selected. A mixed design was selected because of the disparate locations of the group
across the country. There were different technical problems in different locations and
the next best available solution had to be included.

The advantage in a hub and spoke architecture is that multiple nodes (spokes) are
connected with a hub location through a ring of single-mode fiber. Each hub-node
connection can consist of single or multiple wavelengths (lambdas), each carrying a full
Gigabit Ethernet channel. Protection from fiber cuts in the ring is achieved by
connecting the hub and nodes through both directions of the optical ring. Service
provider Gigabit Ethernet metro access rings are the main applications for this
architecture. And another advantage is that nodes can be added to the network more
easily.

The shift

The basic network was set up for providing the e-mail facility, but none of the
applications were linked to the network. The network comprised of a mix of servers
running different applications at various branches of the bank. With growing business
and rapidly increasing accounts, the company found it extremely difficult to administer
and manage the system.

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This also resulted in duplication of backend services and procedures, as the systems
were not centralized for the core banking applications.

There was a lot of additional cost being incurred due to the duplication of the backend
procedures at the branch offices.

The centralization procedure started around late 1999. ICICI Infotech (a company
promoted by ICICI) made the first network design for the group in 1999—it was a hub
and spoke architecture.

Utmost care was taken to design a network with a strong backbone. According to
Manoj, the key strength of a network is its back-bone. The group's various centers are
connected by 2 Mbps or 4 Mbps leased lines.

Manoj said the design considerations not only included high bandwidth availability but
also the fact that a single point of failure should not result in lines going down.

The group realized that it had to enter into the retail space, have local regional
presence, and provide alternate channels to the customer. They needed a solution
whereby they could offer services across the country.

Centralizing the operations was not the solution, but centralization of data was. ICICI
Bank had already centralized some of the operations but still had some branch
applications running independently which were not centralized and had ATMs which
were stand-alones. Two major criteria considered before designing were not only the
network, but also the infrastructure available in our country

In the past, the infrastructure here was such that a company could not rely on leased
lines completely. So ICICI needed backups on ISDN and VSATs, along with the 64
Kbps leased lines. The leased lines were too expensive then, now the lines are better,
more stable and offer good connectivity. The cost has also come down by around 15
percent.

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It was really important was to have a world class data center and centralize everything
in one place, as that's where the network can be used at the maximum. To ensure 24x7
service access and connectivity to customers one needs to have reliable backups and a
robust network in place. From a business perspective, the main reason to go in for a
network was centralization of data, provide all channels of communication and at the
same time provide anytime, anywhere banking. The problem ICICI Bank faced with our
legacy systems was that they were stand-alone systems and the data from one branch
was not available with another branch.

These problems led us to the new design of the hub and spoke architecture.

Methodology

The most important aspect to setting up a network is to have a good relation between
the technology consultant (network integrator), the vendor and the client.

The vendors in the market are more or less capable of giving the same results, like the
same amount of redundancy or strength of the network. What really matters is the
relation between the three. If there is harmony amongst the three, then better results will
be achieved.

The client plays the most important role as he has very low time to market, and delivery
is required at the earliest.

A series of products are available in the market. As the time to market is so short, ICICI
Infotech selects the products available in the market and integrates them. This takes
care of 98 percent of the solution requirement and then ICICI Infotech build the other
two to three percent around it nd deliver the perfect solution to the client.

The Network

The network follows a hub and spoke architecture—a mix of VSATs, leased lines, ISDN
and radio links. It has around 800 leased lines, about 600 VSATs, approximately 800
ISDN lines and multiple 34 Mbps lines.

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The network supports the ICICI group offices, banks, branches, and over 1000 ATMs.
There is a primary site from where spokes go out to the regional branches and the other
offices. The secondary site has the disaster recovery system.

There are around eight hub locations, which have 3, 4 or 8 Mbps lines as per the
requirements for connecting to the branch and regional offices.

High-end Cisco routers and switches have been deployed for connectivity. The network
is monitored using HP OpenView and CiscoWorks. Over 30 portals are operating using
a highly secure state-of-the-art security architecture, which consist of firewalls, intrusion
detection systems, virus protection and various other tools.

The main production site is at Mahalaxmi, Mumbai (the primary site), and has been built
to international standards.

The disaster recovery site (the secondary site) is located at ICICI towers in Bandra-
Kurla complex, Mumbai and is used for replication of data. A distance of 25-30 kms
separates the two centers and they are linked with two 34 Mbps leased lines. To ensure
reliability and 24x7 availability, the leased lines pass through separate exchanges.

Before the data moves on to the leased lines, it passes through two CNT storage
directors that convert this data into WAN-related traffic before it is sent on the leased
line to the other data center. The high-speed leased lines make it possible to
synchronize data in real-time between the two centers.

Hardware at both these sites varies from low-end NT servers to the high-end SUN E
10K along with 12 terabytes of data storage at each end connected through a SAN. The
group's facilities management team manages over 9,500 desktops, 500 servers and
works around the clock. CA Unicenter is used for managing the helpdesk, desktops and
servers, asset management, software delivery and remote control.

Unix is the preferred OS for most of the hardware while most of the databases use
Oracle with a few on Sybase and MS SQL. Over 200 databases are supported with

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24x7 processing. The state-of-the-art technology architecture adopted by ICICI Bank
needed robust security, and this was designed by qualified experts from its Systems
Security Cell. This security design includes preparation, implementation and
maintenance of the Systems Security policies and procedures across all systems,
ensuring general user awareness about these policies and enforcing the policies
through systems audits. The security cell has developed several tools, which are the
first of its kind to address several vulnerabilities on Unix, NT and MS-Exchange. The
system security is audited by KPMG.

Solution by Infosys

One of the biggest challenges for Finacle was ensuring straight through processing
(STP) of most of the financial transactions. With the ICICI group having several
companies under its umbrella, Finacle needed to seamlessly integrate with multiple
applications such as credit cards, mutual funds, brokerage, call center and data
warehousing systems. Another key challenge was managing transaction volumes. ICICI
Bank underwent a phase of organic and inorganic growth, first by acquiring Bank of
Madura followed by a reverse merger of the bank with its parent organization, ICICI
Limited. The scalable and open systems based architecture, enabled Finacle to
successfully manage the resultant increase in transaction levels from 400,000
transactions a day in 2000 to nearly 2.1 million by 2005 with an associated growth in
peak volumes by 5.5 times. With Finacle, the bank currently has the ability to process
0.27 million cheques per day and manage 7000 concurrent users.

Over the years, the strategic partnership between ICICI Bank and Infosys that started in
1994 has grown stronger and the close collaboration has resulted in many innovations.
For instance, in 1997, it was the first bank in India to offer Internet banking with
Finacle’s e-banking solution and established itself as a leader in the Internet and
eCommerce space. The bank followed it up with offering several e-Commerce services
like Bill Payments, Funds Transfers and Corporate Banking over the net. The internet is

14
a critical element of ICICI Bank’s award winning multi-channel strategy that is one of the
main engines of growth for the bank. Between 2000 and 2004, the bank has been able
to successfully move over 70 percent of routine banking transactions from the branch to
the other delivery channels, thus increasing overall efficiency. Currently, only 25 percent
of all transactions take place through branches and 75 percent through other delivery
channels. This reduction in routine transactions through the branch has enabled ICICI
Bank to aggressively use its branch network as customer acquisition units. On an
average, ICICI Bank adds 300,000 customers a month, which is among the highest in
the world.

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Supporting Tools and Techniques:

 The network follows a hub and spoke architecture—a mix of VSATs (Very small
aperture terminal) , leased lines, ISDN and radio links. It has around 800 leased
lines, about 600 VSATs, approximately 800 ISDN lines and multiple 34 Mbps
lines.
 Finacle – a core banking and universal banking solution from Infosys
 UNIX is the preferred OS for most of the hardware while most of the databases
use Oracle with a few on Sybase and MS SQL.

16
Impact of the project “as is: and "to be":

Earlier, the traditional systems at ICICI Bank were very centric to the branch. For
example a server at New Delhi was specific to the branch in that city; the ATMs were
standalone catering only to the city branch. The banking transactions were thus limited
to the respective branch offices as customer data was not available in other branches.
This made banking a limited service and very branch specific. ICICI realized the
importance of offering nationwide banking but this would be possible only by having a
centralized data repository.

But, later using the support of companies like Infosys, Oracle, SYBASE, SAS it
implemented such a system which centralized applications for 'anywhere' banking

17
18
19
Conclusion and Recommendations:

ICICI Bank has grown immensely over a period of time. First time in history a private
bank has merged a public sector bank i.e. ICICI Bank announced merger with Bank of
Rajasthan. On 23 May ICICI Bank announced merger with Bank of Rajasthan with it
through share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs
3,000 crore. Each 118 shares of Bank of Rajasthan will be converted into 25 shares of
ICICI. It is said that this merger will also expand ICICI Bank's branch network by 25%.
ICICI Bank is also carrying out its activities in Rural Areas by helping SHGs (Self Help
Groups) and in other microfinance acitivities.

Certain recommendations are as follows:

 ICICI Bank’s name comes in various controversies than any other bank mainly
the method of recovery. This may hinder the BPR process further in future if the
bank gets into any type of legal case. To avoid this ICICI Bank must follow the
rules and regulations.
 The ICICI VSAT network is large, with almost a thousand nodes. Keeping it going
turned out to be an even bigger challenge for the group. The entire network is
monitored from one center. Any error in the network at any point is rectified in a
short span of time and the system is up and running with minimum downtime.
ICICI must have a proper control and look over this issue

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Bibliography:
 http://www.icicibank.com/
 Business Process Reengineering: Text And Cases By Radhakrishnan,
Radhakrishnan/balasubramanian
 http://www.infosys.com

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