Journal Of Enterprise Information Management: Business Process, Requirements, And System Essay.

Discuss About The Journal Of Enterprise Information Management.

Strategic information system is helped to develop in response to corporate business initiative. They are planned to provide competitive benefits to the organization. There is a salient feature in the strategic information system in the world of information technology. Enterprise resource planning is the system that facilitates business to attain the efficiency in their business process. It is an effective approach that assists an organization to automate their systems in a way that they can attain benefits in the competitive environment. It is hard for an organization to support their number of activities through utilizing an ordinary business process. It is considered as the helping system to the bank industries in developing the activities in a sufficient manner in the targeted market.

Moreover, the business process of the bank industry is defined below in this report and the needs of the business to adopt the software will be defined below. Along with that it also defined that selection of the vendor and software for the Banks and the process that elaborates that the banks have implemented successfully in their process to amplify the productivity of the banks. Furthermore, the report defines the various level of productivity of the implementation of the technology in which potential risks are linked with several activities of the banking industry utilizing the software and the moderate to solve these risks. It is necessary for the banking industry to execute the ERP/AIS software in the operations of the business to maintain the sustainability of the same industry in the target market. There are number of details regarding software are discussed below.

The business process of every industry is different from others but the aim of every industry is same to represent them in the target group. The Commonwealth Bank of Australia is multinational bank. This bank is provided number of services to the customers by entailing funds management, investment, insurance, superannuation and institutional banking with the help of strategic information system. CBA has 52,000 employees all over Australia for which it has adopted hierarchal organization structure. It shall be noted that this bank has repudiated position in the banking industry that facilitates in developing the sales continuously. It is essential for the bank to have the effective process of business to attract number of customers and make them satisfied through the services. The business process of bank is mentioned below which will be facilitated to understand the concept of the bank to attract the number of customers.

Requirements of Business

It is the business process of the bank that helps to develop the efficiency of the operation so that the business can develop more efficiency within the business. The business process handle the each activity manually related to financial of the customers so that they cannot face any issues regarding handling the accounts facilities. According to this process the agents as well as customers should cooperate in relation to attain the goals (Schlagwein, Thorogood and Willcocks, 2014). They should buy and activate the multi cash application to make electronic payments. They have to sign on the document and the request is being accepted by the bank which takes a lot of time. The bank technical helpdesk will get the annex of customers and validate it, if everything is perfect as per the requirement. The bank server administrators will activate the customers. It is considered as the collaborative process in which number of agents work as per the strict rules and procedures. A business process system of bank is thus created to automate a higher set of present bank operations and give tactical, operational and strategic information required in the process of decision making (Schlagwein, Thorogood and Willcocks, 2014). The main feature of a latest banking information system is the linked level between the aspects included in the banking activity.

Moreover, it must be noted that these activities developed of the organization were good till the time the ERP/ AIS system were not developed in the environment. It has been found that physical process of business creates number of errors in the operation that is why it is required for the banking industry to go for ERP system to increase the productivity of the employees and the comfort ability of the customers.

The banking industry has developed day by day by taking help of latest technology. It has been found that the business is required of the ERP system in the organisation for making the employees perform functions in a sophisticated manner. It is essential for the bank to open up to the innovative technology in the business environment. There are a number of bank that use this process for deviating the problems and brings the growth for the organisation.

Moreover, it can be found that from the above mentioned business process chart may bring the number of issues within the organisation that can hamper the productivity of the employees and trust of the customers over the banks. The employees of the bank perform all the functions regarding finance manually that brought number of errors in the paperwork. Along with that this function has become a burden for the employees of the bank that outcomes in reduce the level of efficiency of them. Along with that, the bank has hired some of the employees to maintain the paperwork or inventory system of the bank which outcomes in paying heavy cost to the bank. The above-mentioned business flow chart of the bank does not offer or amplifies the productivity level of the different activities of the bank. As a bank is related to the financial activities, it is vital for Commonwealth bank to handle the goodwill and well repudiated image by developing such activities and efficiently introduce the financial activities as well.

Requirements of System

The key requirement of the business process of the bank is to decrease its cost and amplify the sales of the bank by providing number of financial activities to the customers with Quality Services. The traditional business process of the bank is unable to satisfy the customers as a number of latest technologies have taken place in the banking industry appropriately. There is the presence of many errors in the system and the process which brings the complexity for the employees. Hence it is the requirement of the business to make use of ERP system to attain success in the target market. Commonwealth Bank is wide and diversified in nature that is why it is vital for the functions of the bank are increased in various parts of the world. Hence, for managing entire activities, operate sophistically, plan, and develop, the bank need one database. Single data base will be helpful for the bank to organize activities of finance and attaining growth in the market.

It is hard for the bank to execute the ERP system software which is the part of strategic information system in the business as it needs proper understanding communication and efforts by all the employees of the bank in a proactive manner. It is vital for the organisation to take care of the every aspect to implement this software within the operation. Hence, the system requirements from the company are defined below.

Financial and accounting: It is considered as the important aspect of the ERP system as it is the major process that it is required to being used and executed in the bank on regular basis. Financial activities is the major concept of the bank so it is required for the organisation to take care of each and every financial activities as the presence of any error in the financial accounting of the Commonwealth Bank may hamper the image of the organisation all over the world. The ERP system has the ability to convert the complex transaction into simpler ones by which the employees of the bank and find out the complexities in the financial transaction in a quick manner. Along with that this system enables employees to do not maintain the record of the repeated transactions on regular basis as the system can easily add it on itself.

Inventory management: the enterprise resource planning system has the ability to maintain the inventory management system of the bank in an efficient manner. It has been found that the inventory control as well as management is the huge activity for the banks unit as it needs the employees with good skills to manage the data of the customers related to each transaction. One mistake can lead the bank into adverse situation that is why it is required for the bank to have the effective and approachable ERP system in the operations to handle the each activities of financial in an effective manner. This system has least chance to make mistakes which brings the proficiency within the operations. Moreover, it shall be noted that it is the need of the system to attain access of all materialistic data regarding the bank and store it into the cloud.

Secure transactions and 24*7 data base: the functions of the banks ensure the customers of it that their information and the transactions details are confidential which maintain the trust of them over the bank. It is necessary for the bank to handle the bank exchanges with alert to fundamentally dispose of any odds of incidents happenings. The ERP system enables bank to make customer satisfied in the way of guaranteeing secure exchange. This system is upheld by cloud servers which are available for the employees as well as customers by 24*7. It facilitates to not give business supervisors an opportunity to control the business makes better, yet in additional handle the customers of the banks by making them refreshed for their record point of interests, EMIs and other financial activities make by them.

Customer service management: the customer service management is the essential process of the management that defines the use of ERP system within the operation of the bank. It shows that it direct likes with the satisfaction level of the customers which help to connect them with the bank for a longer period. The post sales services are entailed within this process that amplifies the level of satisfaction of the customers (Jinno, Abe and Iizuka, 2017).

At last, it shall be noted that the ERP system that is to be adopted in the financial activities of Commonwealth Bank also needs number of functions which should be developed by the management of the bank. The system wants the management to support with latest operations of the bank, the management should not refuse to accept changes present in the environment of the company rather they should go for a change to develop the positive working environment within the organization. There is another requirement that the management of the bank must initiate utilizing this ERP system at the time when all the concerns are resolved. It is because if the bank implements the system at the time of having issues within the operation, then the ERP system would get fail (Kapp, Latham and Ford-Latham, 2016).

It is very essential for the banking industry to select the software and vendor selection. It has been found that the working of the organisation is dependent on the business process that they utilise in their business. That is why it is required for the execution of new ERP system to facilitate in turning the face of bank and increasing the activities in the new terms in the business. It is the most important task for any bank to identify the right software and the correct vendor for the bank. The correct sort of software will facilitate the bank to get growth appropriately in the target market along with that the right type of vendor will facilitate the bank to gain after sale services in an appropriate manner. The selection of ERP software is a vital decision of the bank as it needs wide investment and expensive Automation decisions for the company. Thus, it has been found that the wrong decision in the selection of ERP system may lead the bank into adverse situation.

In order to gather the information regarding the selection of the adequate software and vendor, the bank requires to take care the requirements of their business, along with that the management of the bank required to recognize the errors in the business that are recently hindering their success. Commonwealth bank is being presented in Banking Industry that requires using software that shows their noteworthy financial activities in the target market. Along with that, the bank needs to have efficient software to handle the operational activities in an efficient manner. It is vital for the organization to select right system for the bank after analyzing the requirements of the operations. ERP system implementation can fail in many banks because of the lack of well-defined functional requirement. It has been found that the 60% of the ERP systems execution that lack wide needs definition fail. Over reliance on string customization due to ERP software inequality, support customization was needed in the program customization which makes the project of the bank delays and budget overspent.

Financial crimes have been developing at a disturbing rate and the fraudsters are finding a way to steal the personal information about the customers of the bank to hack the system. It is essential for the bank to select the right vendor with the help of vender selection approach.

Figure: vendor selection approach

Source: (Thakur and Anbanandam, 2015).

The process should reduce the complexity as well risk of the work for the employees. This process of vendor selection helps the organization to opt the best vendor. The organization is not only purchase the software with the vendor but they also carry out a contract with the vendor of software. This process will be helpful for the organization to use for a long term. In case the vendor of the organization is unable to provide the services after purchasing, it would not be able to make them satisfied towards the product (Banerjee, 2018). The vendor with which, commonwealth bank would develop alliance should be an effective organization that can effectively satisfy their needs. Along with that there are some description mentioned which should be considered by commonwealth bank while buying the software from the vendor.

• Post sale services: it is necessary for the bank to provide the proper guidance to the customers regarding the financial activities so that they get satisfied from the services of the bank. It will facilitate to develop the satisfaction level of the organization and facilitates them to proper coordinate the software in the organization. The contract that have made between the parties should be flexible with detail of non-compliance of the cases.  
• Licensed company: The Company with whom bank is linked should be licensed company and verified vendor. The vendor should be reliable and be able to offer the expected services by the bank.
• Fix the issues before implementation: it is necessary for the organization to fix the issues in the present system before selecting the vendor and software. It can be possible that at the time of testing the software, the bank might face several challenges that are why it is required for the operation department of the bank to fix the issues initially and then use the software in the organization.  

It has been found that the CBA’s capitalization has developed more than $100 billion for the very first time due to chase by investors in continuous manner for higher yielding stocks. Currently company is using Xero accounting software and SAP ERP system that offer the accurate information regarding the financial activities that will facilitates customers of using time in right manner (Xero Blog, 2018). This software is helpful to reduce the stress of the employees in the organization.

There are number of techniques with which the bank use the software SAP to amplifies its profits in the market and attain good image as well.

Creating security for organisation: The security of the organisation is increased with the help of this service software.  The threat of misplacing any sensitive information regarding employees as well as company can be eliminated by storing all the information in the cloud based software. It is the effective process that developed a number of security tools that increased the business function. The operation of the banks uses this software to store the information and record the transactions actively. The operation of the bank can display the personal and price sensitive information to the people who are connected by the organisation with the help of this process. It is the criteria of the bank to save the personal information of the employee as well as customers in those Areas where few people has access to reach. This process reduces the chance of losing confidential data. Along with that the digitalization of this work decreased the number of people to whom the information is to be shared that amplify the confidentiality for the company.

Source: https://www.sap.com/industries/banking.html.

Method of incorporation: It is necessary for the organization to use the ERP software for incorporating effective communication. The procedure of informal communication can increase by the company due to incorporation of several functions and centralize several activities under one server system. The use of ERP software within the operation of the bank incorporates the number of function and decrease the repetition of work which is able to increase the productivity of the employees (Ahmad, Ibrahim and Garba, 2015). The use of Change management program can be implemented by the bank with the help of this process. The software is not connected only with the employees but also with the supplier that facilitated them in understanding number of activities of these people.

Productivity and efficiency of the employee: The Commonwealth Bank uses this ERP software for the rationale of increasing the productivity of the employee and amplifying the security of the financial data. The growth of ERP System within the organization is advantageous for the company as it expand the range of profitability of its revenues. The bank has used to induce the employees in daily basis before execution of SAP software in which the employees kept financial information manually in the books of accounts. The fraudulence is eliminated in the bank with the help of this process.

The level of competency attained by the utilisation of ERP system in the organization can be signified by evaluating the success effectiveness and profitability of the banks over the past year data. The growth of the bank has been increased in a good manner with the help of ERP software. It has been found that the employees of the bank were unable to attain the growth of the organization as well as themselves before the implementation of the ERP software (Dwivedi, et. al., 2015). There is number of banks that have achieved innovative measures to level up the efficiency of the organisation after the introduction of this process. Every bank need exact evaluation to make and strategize the work forms, which is same pertinent for keeping money area. ERP system has the ability to provide the knowledge about business that helps organization to evaluate as well as assess the ideal loan fees, EMI, bank charges and compliance to keep them upright in showcase. Along with that the flaws of the operations can be decreased with the effective use of SAP software in which the organization increases the digital corporate accounting process.

There are several risks that are linked with the process of utilization and adoption of ERP system in the banks. The risks are related to the financial activities of the bank are defined below:

Improper decisions regarding software: As it has been discussed that the chosen of software for the organization is crucial decisions which should be made in an adequate manner otherwise it may hamper the image of the company in improper manner.  

Ineffective motive to implement software: it is necessary to have the proper motive to implement the software for the bank. It has been found that there are number of banks that use ERP software due to use by other organizations without any taking motives.

Customization: the vendors provide the chance to many companies to customize the software as per the need of the business. Bank use various customization methods to implement the software in which vendors do not take accountability of it. As the software is built as per the need of the bank, thus the bank cannot them accountable for the reason.

Revelation of sensitive data: it is possible for the hackers to get the relevant information about the employees as well as company by applying illegal policy which may hamper the position of the company (Deskera, 2017). A Cyber threat amplifies for the bank due to hack software in which the hacker can attain the information about the past, present and potential plans.

There are some points that mitigated the risks influenced with the EERP system:

• It is essential for the bank to take help of professional at the time of selecting the software and vendors. Bank should not get afraid in customizing the software only when they are entirely certain about the results of the process.
• The vendors of the company should be reliable as well as authentic.
• The bank should have the clear motive for the aim of utilization of software before implementing it in the organization.
• Banks have to evaluate the intangible advantages of the execution of the ERP system and train the employees as per the requirements of the software

Conclusion

In the limelight of above discussion, it can be concluded that enterprise resource planning is the vital system for every kind of organization. The report has been made on the bank industry in which Commonwealth Bank has been taken to describe the importance of ERP system. The report has been explained the benefits of the use of this process, risks regarding to it and the mitigations as well. Moreover, it has been found that the ERP software increases the internal performance of the organization that develops the capabilities of the external of the company automatically. Commonwealth bank has attained success in the target market with the help of SAP software.

References

Banerjee, A., 2018. Blockchain Technology: Supply Chain Insights from ERP. Advances in Computers.

Deskera, 2017. ERPsoftware for banking and financial services in industry. Available [online] https://www.deskera.in/erp-software-for-banking-and-financial-services-industry/. accessed on 22th may, 2018.

Dwivedi, Y.K., Wastell, D., Laumer, S., Henriksen, H.Z., Myers, M.D., Bunker, D., Elbanna, A., Ravishankar, M.N. and Srivastava, S.C., 2015. Research on information systems failures and successes: Status update and future directions. Information Systems Frontiers, 17(1), pp.143-157.

Jinno, H., Abe, H. and Iizuka, K., 2017. Consideration of ERP Effectiveness: From the Perspective of ERP Implementation Policy and Operational Effectiveness. Information, 8(1), pp.14.

Kapp, K.M., Latham, W.F. and Ford-Latham, H., 2016. Integrated learning for ERP success: A learning requirements planning approach. CRC press.

Schlagwein, D., Thorogood, A. and Willcocks, L.P., 2014. How Commonwealth Bank of Australia Gained Benefits Using a Standards-Based, Multi-Provider Cloud Model. MIS Quarterly Executive, 13(4).

Thakur, V. and Anbanandam, R., 2015. Supplier selection using grey theory: a case study from Indian banking industry. Journal of Enterprise Information Management, 28(6), pp.769-787.

Xero Blog. 2018. Xero and Commonwealth Bank unveil new innovations in small business banking. [Online]. Available at: https://www.xero.com/blog/2016/07/xero-commonwealth-bank-unveil-new-innovations-small-business-banking/. [Accessed on 6^thMay 2018].