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

• Published date: 01 July 2020
• Author: Khalid Hafeez,Hannan Amoozad Mahdiraji,Seyyed Hossein Razavi Hajiagha
• Date: 01 July 2020
• DOI: http://doi.org/10.1002/kpm.1632

RESEARCH ARTICLE

Business process transformation in financial market:

A hybrid BPM-ELECTRE TRI for redesigning a securities

company in the Iranian stock market

Hannan Amoozad Mahdiraji

1,2

| Khalid Hafeez

3

| Seyyed Hossein Razavi Hajiagha

4

1

School of Strategy and Leadership, Coventry

Business School, Coventry University,

Coventry, UK

2

Faculty of Management, University of Tehran,

Tehran, Iran

3

Professor of Digital Transformation, Faculty

of Business & Law, De Montfort University,

Leicester, UK

4

Department of Management, Khatam

University, Tehran, Iran

Correspondence

Hannan Amoozad Mahdiraji, School of

Strategy and Leadership, Coventry Business

School, Coventry University, Coventry, UK.

Email: ad3989@coventry.ac.uk

Purpose: Business 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 criti-

cal processes.

Design: We employed a semi-quantitative approach using ELECTRE TRI decision-

making method to identify thebusiness 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 econ-

omy like Iran.

Originality: We provide a structured framework along with an off the shelf software

tool for practitioners to implement this approach to rationalize the number of pro-

cesses and subsequently to improve the business critical processes to enhance finan-

cial performance in the stock market.

Findings: Our 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.

1|INTRODUCTION

Businesses are facing rapid changes in today's competitive environment.

Process based management is one of the approaches that organizations

are adopting to become more competitive. In contrasts with previous

thinking where an organization was treated as a combinationof dis-

parate systems, processes are considered as core business of any

organization (Aalst, 2001). These individual systems were unable to

meet the overall goals of the organization; thus, the idea of

integrated organizational systems was created. Therefore, organi-

zations were designed to integrate these independent subsystems

to meet the overall business objectives. Yet a fundamental problem

that still existed was a lot of work to design and implement for

these systems. Business process management through employing

multiple organizational models requires an integrated approach for

defining, implementing, reviewing and managing business processes;

Received: 16 December 2019 Accepted: 20 January 2020

DOI: 10.1002/kpm.1632

Knowl Process Manag. 2020;27:211–224. wileyonlinelibrary.com/journal/kpm © 2020 John Wiley & Sons Ltd 211