APPLICATION OF BUSINESS PROCESS RE-ENGINEERING IN ENHANCING BUDGETING PROCESS OF PT INSURANCE INDONESIA

• Main Author: Noviani, Theresa
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68566
• Institution: Institut Teknologi Bandung

In the era of competition, understanding the position of the company is crucial in order to be able to set the strategy to strengthen and increase the position in the competitive market. One of the important steps to do that is by having a strong budgeting and forecasting process to establish the target to be achieved which then set as the basis to plan the business strategy in more detail. Budgeting provides guidance, direction and target for the Company to achieve within a period of time. It helps the business units to understand of the available agreed budget that they can use for operational and conducting improvement projects. It also provides the sense and insights to the management of the estimated achievements. However, it is no doubt that the budgeting process has been painful, taking much effort and time, that has led to the engagement team feeling the burden in doing the preparation. The pain points focused on three main areas; process, people and technology. Among others, too many iterations while doing the work manually, lack of coordination and guidance, and people turnover leading to new team members performing the work in tight schedule led to the challenges faced during budgeting process. To solve the business issues, the business process should be improved. The research proposes how Business Process Re-engineering (BPR) would give solutions to overcome the issues. Automation, Beyond Budgeting approach and establishing Standard Operating Procedures (SOP) are part the solutions to solve the business issues in the budgeting process.