A Descriptive-Correlation Research to Explain Potential of BPR

Abstract

Increases in consumer requirements for both product and service efficiency and effectiveness have resulted in business process reengineering (BPR). The re-engineering of business processes is concerned with fundamentally rethinking and redesigning business processes to obtain dramatic and sustaining improvements in quality, cost, service, lead-times, outcomes, flexibility and innovation (Hammer & Champy, 1993). Nowadays, banking industry has reduced structural barriers to competition in domestic markets by abolishing interest rates ceilings on deposits and lending by financial intermediaries in the world. Iran also has not been expected. According to the government’s decision, the interest rate is going down to be around 9% (before: 22%, and right now: 15%), and this decision is very risky for the banks in Iran. On these reasons cited above, the banks should employ some strategies to solve their problems. It is because the customers have vital and key role in this sector, and the banks are dependent to them. BPR is one strategy to help them in this competitive situation. BPR implementation can provide them, to survive in this better customer service, as well as improvement and management of customer expectations satisfaction and loyalty (Winer, 2001). This study is a descriptive-correlation research to explain effect of BPR on strengthen of banking sector, focus on customer satisfaction as potential of BPR. The focus of attention with such applications is customer satisfaction. In this research, a questionnaire was developed containing the 18 items, each items employed a 7-piont instrument developed to find existent relationship between BPR implementation and customer satisfaction, relationship between employee’s productivity and efficiency and satisfaction level of customer and also affect of Information Technology on accomplishment of BPR. In order to validate the instrument, validity and reliability tests were performed and to get reliability. Alpha Cronbach has computed according a pilot study as shown in following items: r H1 (5 factors) = 75.7%; r H2 (with 7 factors ) = 75%; r H3 (with 5 factors ) = 81%; R total: (with 17 factors) = 92%.