Strategic Information System in Managementâ€Myassignmenthelp.Com

Question: Discuss About the Strategic Information System in Management? Answer: Introduction: The application of Enterprise Resource Planning software is apt for all kinds of organizations in all sectors of the economy which includes the banking industry. The wide applicability is widely possible as ERP offers significant flexibility for the customization of the software by customizing it to the every need of any organization. As per Ali-Hassan, Nevo Wade, information Technology has been having a dominating effect on the banking institution due to which the banks are forced to make adjustments to match up with the advancement in technology by the application of the solutions that are based on information technology (Ali-Hassan, Nevo Wade, 2015). According to Bakar, Suhaimi Hussin, the applications of these solutions have been effective in enhancing the operation of business along with increasing the overall productivity of the banking industry. Hence, in order to maximize the advantages of the information and integrated technology-based tool like Enterprise Resource Planning (ERP) need to be implemented. The ERP systems in the banking industry are related to a broad range of software products that are supported and encompassed for the daily operations of business (Bakar, Suhaimi Hussin, 2013, May). Business Process Baker Niederman said that the business process in ERP can be considered as an activity that happens in the banking industry during the operations of the bank. The business process in context to the ERP can be further described as the activity that occurs in the bank with and input and output. Output and input are defined with reference to the banking industry. For an instance, the activity regarding the expense of the banks, the input to be considered is regarding the service that the bank avails and the outgo or output can be related to the cash amount or expenses that go out from the banks (Baker Niederman, 2014). As per Baporikar, the team that is involved in the preparation of the systems for the study of the report is accountable for recognizing and enlisting of the processes of the business that occur in the banking industry. In order to ensure the business processes that take place in the bank are listed, an extensive chart is prepared that enlists all the processes of the business with an elaborate explanation. Every business process needs to be recorded data (Baporikar, 2017). The data defines the process of the business in the banks and instance of the process of the business. Most of the time, single form of data entry can be utilized for the recording data pertaining to many processes of businesses. This can be obtained by the data entry forms of optimization of the design. The processes of business that are made in the banking industry are the creation of a vendor account, customer account, creation of a bank account, general ledger account, enhancing the account charts, receiving cash or cheques from the customers, payments made to the vendors through cash or by raising cheques, and journal entries (Charki, Josserand Boukef, 2016). Business Requirement The business requirements in the context of ERP in the banking sector represents the planned changes and existing processes that are non-negotiable which are intended to obtain improvements in the future. According to Daniel, Ward Franken, the business requirements in the context of ERP can be defined as the choosing, implementation, post-implementation of the optimization. When these requirements are executed properly, these factors can lead to an enhanced ERP-enabled business for the banks. The financials and accounting are also included among the requirements for ERP. The strengths of the ERP system lies in the automation, analysis and streamlining the wide range of operations of accounting. The thorough accuracy and fast analysis of the ERP lead to the reduction in the errors and facilitates the banks to measure the financial condition in a proper way (Daniel, Ward Franken, 2014). As per Dery, et al, the human capital management is also considered among the business requirements for the ERP as it has an exceptional capacity to analyse and manage the human capital resources. The automated management of human capital is an effective solution that handles the data regarding hiring and regulates the productivity of individual employee in the bank. The task automation such as the calculation of the tasks and the benefits of the administration, ERP helps in minimizing the potential for any human error to a drastic extent (Dery, et al., 2013). The requirement of ERP in the business of a bank is due to the ability of the system to handle the manufacturing process which saves money and time by optimizing the staff hours. The SRP system ensures the accuracy, measures the productivity of the banks along with identifying the weaknesses which lead to the automation of the supply chain. The distribution and the manufacturing process management is very much beneficial as it complete the tasks that include the analysis of the quality, control of process and scheduling of the distribution which takes most of the working hours most of the time (Elysee, 2014). The management of the sales also needs the ERP system as it accurately analysed the data of the sales, monitors the performance and automates the transactions along with tracking the expenses. The credit of the customers of the bank is also managed in an effective way by the ERP system. This system uses the previous data in order to determine the prime inventory numbers and idea l price points which result in saving of a huge amount of time as the need of performing profit or price calculation in a manual way is removed. System Requirement As per Fielt, et al, the ERP is the software that facilitates the management of business integrates the applications which collect, manage, collect, store and interpret the data from the manufacturing, planning, delivery of the service, sales, marketing of the products and services of the banking industry (Fielt, et al., 2013). The common requirements of a common ERP in the banking industry would include an integrated system that is operating near or at the real time without many dependencies on the periodic updates. An ERP system also includes a common database that supports all the application along with a feel of all the modules and a consistent look. The installation of the system with descriptive application of the integration by the IT department of the bank is also required. Software and Vendor Selection The factors that are supposed to be considered when installing the ERP systems are the changes that the organizations have undergone in the recent times. It also includes the recent products that were used by the vendors in the past along with the probable products that the vendor is planning to issue in the upcoming years. The criteria regarding the age of the bank in the industry and how well the bank understands the industry is to be taken into consideration while selecting the vendor (Gleasure, 2015). The specialized experience of the vendor regarding the provision of the ERP solutions to the banks of similar type and size is to be considered during the selection. the direction on which the bank is heading to regarding its business and the probability of the bank to continue maintaining the current form during the lifetime of using the ERP platform has to be analysed before selection. For the selection of the ERP system for the banks, it was required to assess the needs of the bu siness and formation of the selection committee is necessary (Hoefnagel, Oerlemans Goedee, 2014). The key requirements should be outlined so as to identify the functional areas that the ERP is supposed to cover which would result in the reduction of the number of listed vendors. Making of an extensive and clear requirement list before initiating the search for the vendors is necessary. Karoui, Dudezert Leidner said that the scope of the business operations and the requirements of the systems are needed to be specified while selecting the software. Evaluation of the technically fit technology has to be done so as to understand the potential software solution that would be provided by the ERP to the bank which would be aligned with the current banking sector (Karoui, Dudezert Leidner, 2015). The total cost of the ownership has to be kept in mind by uncovering the hidden costs that are associated with ERP software that is expected to be installed in the banking organization. A realistic plan and its duration should be estimated so as to develop a comprehensive plan of the project in the banking organization which would include the plan to ensure the testing, functionality, and acceptance of the ERP system by the end-users. Three ways to improve business efficiency Generally, the banking industries use many systems or technologies that will help them in carrying out the processes without any delay. In that context, it is seen that they themselves try to manage the wide access to the business knowledge. In addition to that, the implementation of these systems will enable the minimization of the duplication within the organization. And specifically for the banking industries avoiding the duplication of various processes are quite necessary. This is only possible through the implementation of the enterprise solutions (Loebbecke, van Fenema Powell, 2016). The implementation of the enterprise system will basically make the business to reduce the cost of the information technology as well as the manual processing of input of data. Thereafter the implementation of the enterprise systems will provide particular benefits as a result of the teamwork with respect to the, marketplace. Thus there have been the three types of enterprise systems that will help in improvising the business efficiency. In return, the process will result in the increased work quality as well as the greater employee collaboration within the employees of the organization. Therefore the processes which will help the improvisation of business in the banking industries are the ERP system, Customer Relationship Management, and Supply Chain Management (Loebbecke, van Fenema Powell, 2016). ERP: This ERP or the Enterprise Resource Planning is the process that provides the banking sector the basic software applications that enable the efficiency of their business processes. It is just because the process engrosses the integrated business processes by the collaboration of the human resources, inventory management, finance, and purchasing (Mochoge, 2014). Thus by choosing ERP as the mode of the technology for the business, the banking industries will get successful by the enhancement of sales, accounts receivable, communication, share data and the quality management. Specifically, the banking sector makes the use of the ERP applications in carrying out the operational as well as the administrative tasks. Customer Relationship Management: It is again one of the important processes that will improvise the business efficiency in the banking industries. It basically enhances the communication within the sales department in banks. The reason behind it is the CRM functions the bank basically learns about the customer needs and behaviour to enhance the sales. It also successfully carries out the improvisation of the employee productivity to continue the workflow. Supply Chain Management: The process of supply chain management is one of the vital processes during the management processes in the banking industries. It is because the supply chain is the process that basically indicates the collection of various tasks, equipment, data, people and many other resources to carry out the business (Morgan Finnegan, 2014). Thus by using the supply chain management the banking industries successfully carry out the physical flow of the transport, manufacturing and the storage of goods as well as materials. The level of efficiency of the technology implementation The above section provided the basic knowledge of the valuable techniques which will make the enhancement of the business productivity as well as the employee productivity. In that case out of all the processes or the techniques that are mentioned the ERP system is the most efficient system that can be used in the banking industries to enhance their production processes (Naidoo, 2016). Basically, it can be said that the use of the ERP process helps in building the business along with its products and services quite unique in its nature. However, the implementation ERP system in the banking industries will result in the growth of the business. It is then very much well described by the clearly understanding the level of efficiency of the ERP technology. Thus the benefits which will provide the level of efficiency of the ERP system are mentioned below. Improvised Work Flow: The system makes the employees of the baking industries aware of every possible process by acquiring relevant information which basically leads to the increase in productivity. It also enables the process to get simplifies through various user-friendly interfaces. Streamlining of the Processes: The use of ERP in the banking industries makes it efficient with respect to the completion of all the business processes. In that context the use of ERP in the banking industries makes the process quite easier with the integration of the various functions into a unified platform (Rajendran, 2015). Thus this will help in enabling the success of the business model incorporated within the banking industries. Efficient Business Automation: This parameter is very better judged by evaluation of the fulfilment of the future goals. In that process the installation of the ERP within the business process will help in the automation of the business process which allows the employees to make the sharing of data along with the maintenance records as well as the metrics (Spagnoletti, Resca Sb, 2015). Elimination of the Redundancies: The implementation of the ERP in the processes results in the proper process of the management system. Basically this will stop the repetition of the data which will result in the correction of the incorrectness and inconsistencies. Excellent Customer Satisfaction: The implementation of ERP basically provides advantage to the customers because it helps in providing the up to data information to the customers regarding the products. In that case there will have the presence of the customer representative who will deal with the customer efficiently. Transparency throughout the Organization: The implementation of the ERP services basically keeps the data quite secured which will help them to access the data. The implementation of ERP can also be quite helpful in handling the strategic information. More specifically the implementation of the Role based system will add on to the efficiency of the ERP systems which make it secure (Shollo, Constantiou Kreiner, 2015). A clear insight of operational, financial and strategic processes: The implementation of the ERP in the banking industries will facilitate the real-time updating of the data which will eventually help the customers in accessing the accurate data and dealing with the customers efficiently. Potential security risks, data breaches The above portion mentioned how the implementation of the ERP can provide advantage to the banking industries and help the customers to evaluate the processes more efficiently. But apart from that the data security processes or the attacks on the data are one of the important processes which generally a matter of concern (Silvius Stoop, 2013). The enhancement of the technology in return have brought the threat to the online marketing specifically along with the social media networks, email, mobile and personal banking. Thus it can be said that the critical data are basically facing the issue of security breaches and risk (Spagnoletti, Resca Sb, 2015). The topmost place for any kind of security risk goes to the viruses. Most of the times there are 72% of the emails that are received from the company are infected from the worms of the viruses like Trojan horse. Thereafter the threat report provides the knowledge regarding the malignancy of the internet. Like the viruses the after effects of those viruses are quite dangerous. The reason behind this the back door viruses generally leave the door by waking. By this it gets clear that they are removed but they still remained exposed. Hacking is another security breach that becomes risk for the security of the data. The banking industries also face this issue by the process of buffer overflows. Another kind is the phishing or the identity theft which is the most common risk as well as the security breach faced in the bank. It makes the exposure of the confidential information unawares. Blended attacks are some of the security breaches and the risks that are quite alarming. It can be cleaned through the combining of the system with the piecemeal security. Guidelines to mitigated The Risks The implementation of the ERP system no doubt provides many advantages but it also many risks as mentioned in the earlier condition. It therefore gets possible by its discretionary nature it provides many processes which will help in making the data to go live. Thus there are many of the processes that enable the mitigation successfully without any hindrance. Thu the managers generally carry out the testing of the process before implementing so that they do not suffer from the time constraints (Sood, 2013). The security risk can be mitigated by the help of the reduction of the costs related to the redesigning process. Thus it will make the internal and external auditors carry out their duties successfully. Again the data management risks the programs are very thoroughly tested to make the assessment of the data risk Moreover the technical risks in the banking industries can be mitigated by the process to customization (Spagnoletti, Resca Sb, 2015). The customization process should be aligned along with the development of the life cycle to counteract the risk. Conclusion The paper provides the key insights of the process of implementation of ERP within the banking industries. The ERP system also helps in the decision-making process of the business. The ERP provides service in various platforms in its integrated approach which helps in the automation of most of the operations from the management of the supply chain, relationship management, human resource, cost and financial accounting and control of the inventory. The above-described scenario of the banking industries will enable the success of the banking industries by the implementation of the ERP. References Ali-Hassan, H., Nevo, D. and Wade, M., 2015. Linking dimensions of social media use to job performance: The role of social capital.The Journal of Strategic Information Systems,24(2), pp.65-89. Bakar, F.A., Suhaimi, M.A. and Hussin, H., 2013, May. 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