The document discusses using an actor-dependency technique to model change management and risk management for an organization undergoing business process reengineering due to adopting a new information system. It presents i* models of the current and reengineered loan repayment processes at a rural finance company. The current process faces problems like outdated records and clerical overhead. The reengineered process uses an integrated database accessed by a web portal to address these issues. Risks of the new system like failures and fraud are also modeled. The study demonstrates how actor-dependency concepts can analyze organizational change management and integrate issues related to change processes.

1. An Actor-dependency technique for modeling strategic actor
relationships, change management and risk management in
organizations undergoing Business Processes Re-engineering
due to Information System adoption
Submitted by:
Gaurav Shah(15125014)
Sapna Tuteja(15125032)
Soumya(15125037)
Vibhu Upadhyay(15125041)
MBA 744: BUSINESS PROCESS MODELLING

2. Business Process Reengineering
 It is a method to improve business performance by introducing certain set of
activities and redesigning the existing business processes.
 In todays competitive scenario, organizations are comprehensively dynamic
and they aspire to rationalize, improve and adapt to changing situations as
part of BPR attempts.
 The main element of BPR is change management.
 in today’s competition, it has become necessary to integrate changes and
associated risks explicitly in the modeling of system processes
 In early phase processes, dependencies have been modelled and then
changed for the reengineered process.
 Aim is to present a tool for depicting and examining change management.

3. i* Modelling
 It is a language used for modelling early stages of case studies to grasp properly, the
main issues involved in the problem domain.
 Used to model ‘as-is’ and ‘to-be’ situations.
 It involves heterogeneous actors with several goals, tasks and inter-dependencies.
 It also presents a blueprint of the problem domain and highlights the basic outline of
the necessary dependencies, organizational tasks and processes.

4. i* modelling (contd.)
Strategic
dependency
Model(SD)
• Depicts dependencies between actors.
• Describes dependencies at a higher level of abstraction.
• The essential and basic components of SD diagram are: goal
dependency, task dependency, resource dependency, softgoal
dependency.
Strategic
Rational
Model(SR)
• These diagrams internally models each actor to rationalize and
justify their dependencies..
• Unlike SD diagrams, It concentrates on the internal working of
the actor and supports its dependencies.
• efficient in depicting both external and internal information
For modelling of change management, two types of i* representations are used:

5. The study of change management & risk management at RFC
 Background of the Business:
 Started lending money to farmers and businessmen at slightly higher interest rates.
 Has presently 178 branches.
 Its policy is to make loans to individuals to assist them in making such purchases as automobiles, appliances
and home improvements.
 Planned to expand to 400 branches within next 3 years and 1000 within next 5 years.
 Expansion plans require an enhanced information system to support transactions processing for loans,
payments and settlements.
 Current loan Repayment process:
 The loan can be repaid in 3 different ways:
 Physically bring their payments into the branch in the money order/ cash/ cheque/ demand draft form
 Mail their payments using postal services to the branch
 Customers can pay home office physically or through mail
 The Payment Processing System produces a payment report for the Accounting Department and a branch-by-
branch payment report for each Branch Manager.

6. Modelling:
 Actors recognized for the current loan processing system:
 External actors: Debtors
 Internal actors: Branch office, Home office
 The home office of RFC divided into Office bank, Accounting Department and
payment processing department.

7. Strategic Dependency (SD) model for the current loan repayment process Method 1
 Method 1
Dependee:
Debtor
Depender:
Branch Office
Dependum:
Repayment

8.  Method 2 - Mail their payments using postal services to the branch

9. Strategic rational (SR) model for the current loan
repayment process for methods 1 & 2

10. Strategic Dependency (SD) model for the
current loan repayment process (Method 3)

11. Strategic Rationale model for the current loan
repayment process method 3

12. Strategic Rationale model for Delinquency
Analysis System

13. Strategic Dependency model for the Settlements
accounting system

14. Problems in the current loan repayment process
at RFC
 The customer forgets to mail the voucher booklet to the Home office. This makes it problematic
to trace payments.
 Plan: Introduce an integrated database so that there is common access to a relational database by all
branches and Home office. For its security, an administrator’s role is defined who will provide security
measures for authorized access. By typing name or address in the integrated database, a debtor’s details
can be accessed quite easily.
 When people do not pay until 10 days after their due date, sometimes due to various delays,
their payment does not get posted to the Outstanding Loans File. The personnel has to call the
Home Office to trace the payment to its sources.
 Plan:
1.Using an Integrated Database would save time.
2. Web Portal to play the role of Delinquency Analysis system.
 All through the system, unnecessary clerical overhead takes place.
 Plan: Using an integrated database will remove the excessive clerical work. There is no need to pull
voucher copies (optional), print files or make APRs. The concept of local and central branch files has
been removed as the integrated database replaces its usability.

15. Problems in the current loan repayment process
at RFC (contd.)
 As Outstanding Loans File is several days outdated, it becomes tough to separate
delinquent loans until it is too late.
 Plan: A delinquency profile(including age, occupation, income, family size, location,
mobility, and a host of other criteria) will aid in identifying “High potential for
delinquency” accounts.
 The Integrated database allows itself to be updated regularly and quickly.
 Because of error and adjustment activities, it is rarely possible to balance the books
for month end before the twelfth of the succeeding month.
 Plan: Parallel activities should be linked during the process, rather than at end of the
process, saving time and effort.
 New roles and authorial positions should take the place of traditional structures.

16. SD model for the Reengineered loan
repayment process with actor Branch

17. SD diagram for the Reengineered loan repayment
process with actor Home office

18. SR model for the reengineered loan repayment
process for Branch and Home office

19. SD model for the Reengineered loan repayment
process using Web Portal

20. SR model for the Reengineered loan repayment
using the Web Portal

21. Risk Management
 Risk can defined as the product of the result and probability of a hazardous event or
occurrence.
 Risk management is the identification, valuation, and ordering of risks followed by
coordinated application of resources to minimize, monitor, and control the
probability and/or impact of unfortunate events or to maximize the realization of
opportunities
 The concept of risk management allows managers to acquire knowledge, remove bad
decisions- mainly from past experiences or analyzing all the possibilities.
RISKS INVOLVED:
Credit
Card
System
failure
Database
failure
Customer
fraud

22. Risk Management for Credit Card System Failure

23. Risk Management for Database failure

24. Risk management for Debtor fraud

25. Conclusions
 Actor Dependency Concept
 To analyze & model organizational change management
 Explains the opportunities & changes associated with BPR
 Integrate the issues related to change in process
 Re-Engineering
 Explores various vulnerabilities & opportunities of risk associated with re-engineering
base for new opportunities, such as eBusiness (Web portal in the case)
 Re-engineering with ERP enables organizations to be more receptive and alert to
changing markets and to shifts in competitors’ strategies.

26. Thank you !!