2. Itisinthebusinessoffinancing thecomputers,
software&services
Its operations comprises of five steps
Sales rep. request for financing – call operator wrote down
the request on a piece of paper.
Specialist check the creditworthiness of the potential
borrowers & wrote on a piece of paper.
Business practices dpt. modifying the standard loan
covenant in response to customer request.
Price dpt. determined the appropriate int. rate to charge
the customer
Administration dpt. turned all the information into a quote
letter and delivered through Federal Express.
3. The entire process was taken six days on avg.
When the sales representatives calls
No one could tell where the request was & when it could
be done.
To improve this Process IBM Credit tried several fixes
4. ImprovementactionstakenbytheCompany
Install a control desk
They could answer the sales representative’s question about
the status
Each dpt. would return the request to the desk
Found out that the actual work took only 90 minutes only
Re-engineer the overall credit issuance process
Replaced its specialists with generalists
Developed a new, sophisticated computer system to support the
generalists
The new turn around becomes 4 hours instead of 6 days.
