Business process transformation in financial market: A hybrid BPM‐ELECTRE TRI for redesigning a securities company in the Iranian stock market

Abstract

PurposeBusiness Process Management is a systematic way to design, implement and manage business critical processes at different organizational levels to ensure business sustainability. In this paper, we conduct a business process re‐engineering exercise for KBK Securities Co., a small size security company operating in Iranian stock and mercantile market. The company suffered from in‐efficiencies and poor and delayed decision‐making due to poor visibility and complexity with business critical processes.DesignWe employed a semi‐quantitative approach using ELECTRE TRI decision‐making method to identify the business critical processes. Through document analysis, we identified 103 financial and stock market processes to streamlining purposes. We use Multi‐Attribute Utility Theory (MAUT) and ELECTRE TRI methods for first, arriving to a consensus for the imprecise information elicited from a group of departmental managers, and second making a decision‐making to determine the 32 business critical processes out of 103, and third clustering these processes for business process re‐engineering. We make significant contribution in theory by employing a multi criterion decision‐making (MCDM) in the financial sector in the context of a developing economy like Iran.OriginalityWe provide a structured framework along with an off the shelf software tool for practitioners to implement this approach to rationalize the number of processes and subsequently to improve the business critical processes to enhance financial performance in the stock market.FindingsOur findings suggest that company can cut down approximately 68% waste by reducing its business critical processes and spend their available time and resources in growing the business.