Business process modeling concept: Methodologies guideline for process excellence. Business process modeling application and implementation for the banking industry

Abstract

The topic of Business Processes Modelling is one of the oldest widespread topics in the history of operational management. Companies locally and globally seek to have continuous operational improvement, and up until today the topic is still one of the most conversed areas that every Chief Executive Officer (CEO) is discussing within the company. There are many perspectives and solutions for Business Process Modelling and to illustrate the key contributes when conducting Business Process Modelling projects to Retail banks. From the very beginning of the thesis, it would very clear that the perspective for the thesis is be as practical and hands-on as possible, in order for the enduser whether it was a student interested in learning about the application of BPM in retail banks, or the CEO of the largest bank in the globe, the take-away from this thesis is to relate to the topic from a business and pro-active perspective and be able to have a better understanding the concept of BPM and the BPM lifecycle and its importance on the organization. Moreover, the thesis will then discuss Business Process Re-engineering and illustrate how BPR can be applied to an organization without resistance. Beyond this point in the thesis, the last two chapter aims to illustrate a Core Banking Transformation approach that focuses to understand the challenges banks are facing, and what is the trickle-down effect of BRP transformation on the whole organization. At this point of the thesis, the reader of the thesis is expected to be comfortable with understanding the approach for Core Banking transformation, and the importance of Business Process Modeling as an integral part of the whole value generation. After all, the last chapter titled “Core Banking Business Process modeling in Practice” sheds the light on a local boutique retail bank in Jordan, that has defined their strategic direction few years ago and are now ready to conduct Business Process Modeling projects in order to enhance their operational positioning, and focus on the number of business procedures that would be aligned to the strategic direction, system, people, etc. After conducting intensive research on the bank and interviewing employees from different branches, it is clear that the bank is currently facing various challenges in terms of branch operations and dealing with their customers in an efficient and effective way. To maximize the value derived from this new strategic initiative that the boutique bank has undergone and to minimize the associated challenges and risks of the implementation process, the thesis will model and redesign the business processes of selected core banking procedures and provide the proper graphical documentation to govern the utilization of the redesigned processes. One of the main tangible goals of the thesis is to enhance the operations of a selected boutique bank in Jordan from a processes perspective. Once the Business Process Modeling and Reengineering initiatives took place at the bank, and after a very short period postimplementation, there was a great success in having the customers, employees, and management sending an immediate impact on the operations, which will lead to operational excellence in the long run.