Strategic Information System Of Westpac Banking Group - Samples

Question: Discuss about the Strategic Information System Of Westpac Banking Group. Answer: Introduction This report is conducted to determine the use of Accounting Information Systems and ERP System in the banking sector. In order to clearly portray the study, Westpac Banking Group is chosen to deeply understand their business processes and their requirements of the various systems in order to achieve their goals and growth (Swalhah, 2014). The impact of using such systems will also be stated in the study. In this study, a deeper analysis will be conducted and certain risks and issues connected with the implementation of the systems in the organization along with the recommendations will also be discussed. The report outlines all the possible outcomes in order to have a better understanding of the research topic. Business Processes The business processes of any organization can be determined by its functions. This study revolves around, the Westpac Banking Group. Thereby, it is important to first have a deep knowledge regarding the bank. The Westpac Bank is the largest and the first Australian Bank, which has its headquarters in Sydney, Australia. It is one of the Australias big four banks. This bank was founded in the year 1817 and currently has 14,000 branches along with 32,569 employees working in them. This bank has its operations in various countries. The bank aims at providing the best financial services to its customers. The banks vision is to provide high returns to its shareholders and build high and good customer relationships. This bank provides a comprehensive framework of various financial products and services to assist and convince the customers. This bank serves a large number of customers globally (Driga Dura, 2014). Coming to the business process of the Westpac Group, the functions of bank are divided into two parts: Primary and Secondary functions. The primary functions are accepting the deposits from fixed deposits, saving accounts and also granting advances. The secondary functions of the bank are divided into two categories: agency and utility services. The agency function refers to the functions provided by the bank on being an agent. The bank acts as an agent for its customers. The utility function of the bank refers to as the functions relating to issuing of drafts, letter of credits, currency exchange, locker facilities and etc. All such functions are performed by every bank along with their additional services (Westpac Banking Corporation , 2017). From the chart below, a clear picture can be obtained. These are the basic functions performed by the Westpac bank, but various additional financial services are provided by the bank to its business clients and customers. The bank aims at providing the superannuation services, funds management, insurance, investment banking and etc. All these are the additional services, which are not included in the primary and secondary functions of the banks. Thereby, it is clear that the Westpac bank has a huge business process, which satisfies its customers by providing them with financial assistance (Biggar, 2005). Business Requirements This report is concerned with the study of the banking institution, thereby, it is important to understand the business requirements in the Westpac Bank in order to perform its functions. The banks aim at providing the financial services to its customers and for that they need a setup, which helps them in operating. The banks have infinite business activities to perform on a daily basis, thereby, their business requirements are quite big and large, which has to be fulfilled in order to compete with the dynamic technological environment. The banks require various core technology platforms in order to conduct their business activities (Mwenje, 2013). With the increase in the innovation in the technology, the banks have to develop a platform, which can support their business activities. The banking system has to stay updated all the time in order to understand the needs of their customers as well as the stakeholders. The advent of information technology has brought huge challenges for b anks in providing the services to its clients. The banks have to stay connected with its customers by developing huge information systems in order to fulfil their needs and all this is possible by developing the Accounting Information Systems in the banking sector. Such systems have helped the banks in providing services to its customers and also in gaining competitive advantage over the other market leaders. The banks are consistently aiming at increasing their productivity and efficiency by adopting the innovations in information technology (Daniela, 2007). System Requirements The rapid change in technology has encouraged certain system requirements in the banks. The Westpac bank has been consistently aiming at taking the charge of digital banking in order to fulfil the needs of the customers. The banks have a huge amount of data, which is to be stored and maintained as secrecy, thereby, the banks require reliable softwares in order to face the competition and protect the data from cyber attacks. Various innovations in the technologies have led the banks to adopt such technologies like big data system in order to handle their data. The Westpac banking group also has adopted cloud technology in order to keep pace with the technologies and other market leaders. There are numerous reasons as to why the banks must adopt the systems and based on their activities, system is required for them to commence their business (Kesharwani, 2005). The Westpac Bank must adopt the system, which integrates all the data, provides a massive network in order to stay connected w ith other operating branches and aligns with the various functions of the bank. For all such activities, only one system is recommended, which will help in performing such activities and will also increase the productivity of the bank, i.e., the ERP System. This system is the solution for all other problems. Although the installation and implementation of this system is quite difficult, but this system has provided the banks with an effective digital framework to work within (ATkearney, 2015). Software and the vendor selection Innovation in technology has increased the number of softwares that are available for the banks to perform their functions. The softwares like Finacle, EBANQ, SecurePaymentz, Cashbook, Temenos T24 and etc. Are available in the market for the banking sector. All such softwares have the ability to handle the various operations of the banks, but installing the best platform is the main idea (Capgemini, 2016). The Westpac Bank must definitely aim at installing the best software and the vendor that provides that software. But the best system for the bank is to develop the ERP System in order to prevail the best services. It highly depends on the vendor the bank selects in order to install the platform. Thereby, the Westpac Bank must also select the best vendor for implementing the ERP system in their business operations. Also, the ERP System is the single vendor system, which will be a very cost effective system to be implemented in the bank (Holland Wills, 2000). The SAP for ERP system is the suitable vendor for the Westpac bank. This system is usually adopted by all the banks and is considered as the easiest and cost effective system of software. The system helps in generating various services to the customers, which increases the profitability of the bank. This system will build an effective digital infrastructure, which can be easily understood by the employees of the Westpac bank. The banks are increasingly adopting this system and vendor as this has helped the banks in bridging the gaps of technology and has helped in increasing the efficiency and effectiveness of the banks (SAP Team, 2013). Ways of utilizing technology to gain business efficienc The banks have consistently adopted the various ways of technology in order to increase their productivity, efficiency and competitive advantage. It is very important to know the way the Westpac bank must utilize the ERP technology in order to gain efficiency in their business operations. Following are some certain ways to utilize the technology: Information and Communication: Through innovations in technology, the banks can utilize the technology for communicating with its employees easily across the globe without any geographical barriers. Funds Transfer: The technology has helped the banks and the customers in transferring the funds electronically from anywhere and at anytime. The banks can easily grant such services, which increasing the customer satisfaction (Arabyat, 2014). Online banking: This helps in providing the services to customers, where they can pay the bills and perform various transactions electronically. The customers can make payment of cash without having a direct contact with the supplier. The ease in banking has increased the efficiency. Customer engagement: The banks through technology can target customers through social media and various other forms of technology, which enables a large number of clients for the banks that helps in increasing the customer base of the bank. Automated clearing services: The banks can easily use the technologies like MICR technique in order to ease the cheque transactions. It helps in the easy flow of cheque and reduces the faults of clearing the cheques. The cheque transactions have been eased due to the use of technology (Oluwatolani, et al., 2011). Accounting System: Through the use of information technology, the accounting systems and standards have been changed and have shifted from the traditional use to modern use. The accounting standards have been regulated and have become easy to formulate due to the use of technologies. Smart selling: The use of technology has helped the banks in knowing the needs of the customers and the banks can easily provide the services to the customers according to their specific needs and desires. This has helped the banks in gaining customer loyalty as well. Efficient employees: The technological services have helped the banks in training their employees, according to the needs of the banks and the manual system of work has been shifted to the electronic system, which reduces the burden of the employees and make the employees efficient and effective. Infrastructure: The technology can be easily utilized to build an effective digital framework within the bank, which supports the innovations in technology and helps in competing in the technological environment (Ho Mallick, 2006). Time and space effectiveness: The technology used in the banks has reduced the space and time constraints. The technologies can be utilized to store huge amount of data of the banks and has helped the banks in performing speedy transactions without any limitations. Efficiency achieved from technology implementation The Westpac will and has achieved high efficiency levels after the implementation of the various technology systems in their banks. The ERP system and other technologies have increased the productivity and efficiency levels of the banks across the globe. The ERP system helps in the integration of all the data and protects the data. The technology has helped the Westpac Bank in facilitating the information systems everywhere in order to reach to its customers and employees. The system helps in reducing the labor expenses as they are trained and developed according to the needs of banks and has also helped in improving the customer relationships (Ovidiu Dascalu, 2010). The operational costs of the bank have reduced due to the installation of a single ERP system, all the activities are performed on a single system. The day-to-day activities are easily managed and implemented by the Westpac bank, which also increases the sales of the bank. The effective management of the services also h elps in increasing the productivity and profitability levels. The use of technology has helped in gaining customer satisfaction and loyalty as the banks are able to provide the services on time as per the needs of the customers. The integration of the data and operations through the use of ERP system, the banks have been able to improve their accounting system and claims. The ERP system has reshaped the business process of the Westpc Bank and has also brought automation in the business processes. Thereby, all such factors have contributed in gaining high efficiency levels by using the technology systems in the banks. The ERP system has increased the productivity and efficiency levels of the banks worldwide (Tilahun Tafa, 2016). Potential Risks Technology has undoubtedly increased the efficiency and effectiveness of the banks, but the use of technology has also caused serious threats in the banking sector. With the numerous advantages of using technology systems, there are various risks involved in the usage of technology in the banks. The Westpac bank must consider potential risks that are related to the implementation of technology in the banking sector. The implementation of ERP system involves huge cost along with the customization, configuration and consulting services in order to install the system in the banks (Vayyavur, 2015). The installing of ERP system in the banks requires a lot of time, which disrupts the operational activities of the bank for a very long time. Also, the implementation of ERP system in the banks may not align with the objectives and goals of the organization, which is another biggest risk. Risk is involved if the ERP system is implemented in the bank only because of the trend in the market. Lac k of technical knowledge and skills in the banks result in the failure of ERP system deployed in the banks. Insufficient knowledge to the customers regarding to the use of the system can also pose a serious threat to the efficiency levels of the bank. Risk is involved, if any failure in the ERP system is caused, the network system of the bank will completely break down. The risk is also involved with the lack awareness among the banks and the people about the innovations in the technology. Lot of resources are required for the implementation of this system, which is not possible for all the banks to attain and manage. Thereby, it is clear that various risks are involved with the use of technology systems in the banks (Mukti Rawani, 2016). Mitigation Strategies It is very important to take remedial measures in order to protect the banks from the potential risks associated with the implementation of the ERP system. The Westpac bank must take into account the measures to overcome the risks and threats involved with the usage of the technology system in the bank. The foremost step to overcome the risk from the implementation of the ERP system is to identify the business process of the bank and then mold the technology system according to the process of the organization. Secondly, the banks must have flexible and agile business applications in order to change their processes according to the needs of the technology system (Aloini, et al., 2007). Third, the risk can also overcome by the continuous alignment of the business processes of the bank with the ERP system. The continuous supervision will help in handling the potential risk. Fourth step is to encrypt the sensitive data and information of the bank in order to protect it from the misuse of the hackers. The banks must adopt a holistic approach towards the safety of the bank. Fifth step is to monitor the employees and customers in order to foresee any potential risk. If any risk is ascertained, it should be immediately addressed. Sixth step is to provide full knowledge and information to the employees and the customers regarding the usage of the ERP and other technology systems in the banks (Ramco Corporation, 2005). Also, the banks must keep themselves updated with latest technologies in order to overcome the risks and this will also help them in gaining competitive advantage. Therefore, these are some ways through which the potential risks involved with the implementation of the ERP system can be mitigated. Conclusion This report was conducted in order to understand the business process, system and business requirements of the Westpac Bank in order to adopt the technology system. This study has deeply explained the suitable technology system for the Westpac Bank. The ERP system is the most beneficial system for the bank to gain efficiency and productivity in their operations. This report has outlined all the possible outcomes that the Westpac Bank must consider while implementing the ERP System in their operations. It can be easily concluded that the advent of information technology and various innovations have changed the overall outlook of doing business and has provide the banks with numerous benefits. The ERP system through SAP is the most suitable system for the Westpac bank in order to achieve profit and efficiency. The use of technology in the banks has also caused various threats and risks, which are illustrated in the study. 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