Answer To: 1 | P a g e HI5019 SIS INDIVIDUAL ASSIGNMENT T3 2018 HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION...
Soumi answered on Jan 15 2021
INFORMATION SYSTEMS
Table of Contents
Introduction 3
Part 1 3
1. Background of the Business 3
2. Its Industry 4
3. Analysis of General Environment 4
4. Industry Environment of CBA 5
5. Competitive Environment 6
6. Opportunities and Threats 6
Part 2 7
1. Tangible and Intangible Resources of CBA 7
2. Capabilities of CBA 7
3. Analysis of the Core Competencies of CBA 8
4. Suggesting an Appropriate Information System Solution for CBA 8
5. Evaluation of the Proposed System and Offering Recommendation 9
Conclusion 9
References 10
Bibliography 12
Introduction
The aspect of accuracy in business plays a vital role when it comes to business success through proper strategy implementation and therefore, information of the internal as well as the external environment of an organisation caters significance on satisfactory levels. The collection process of information, its storage and processing help in deriving to identification of statistical and market trends, making the organisation aware of the necessary changes required. The entire process of data collection, storage and processing for deriving information reaches completion through the collective use of technology, socio-technical data and company information, namely information technology. A proper assessment of information technology uses a formal approach to process data for the benefit of organisational efficacy and proper strategizing, while an improper assessment undermines organisational performance and strategies. In the current assignment, the significance of information system in discussed in depth and critically, with a special reference to Commonwealth Bank of Australia (CBA).
Part 1
1. Background of the Business
Constructed under the Commonwealth Bank Act of 1911 and it started operating in 1912, through offering moderate level of saving and current account based banking services. Over the years, the organisation went through two World Wars, which influenced its capacity drastically. The bank policies and its working structures were affected by mergers, taking place before and after the establishment of the bank itself. In 1960s, the banking system changed as the Reserve Bank of Australia took the authority of Banking in Australia. The bank started with only 12 employees and a single office (Commonwealth Bank of Australia, 2019).
With the advent of time, CBA accumulated to 800,000 shareholders, 52,000 employees and 15.9 million customers in total. Adapting the changes in the banking industry, CBA expanded its business from small-scale banking services, revolving around domestic purposes, started offering commercial offers, products such as bonds, certificates and heavy investments. The remarkable progress of CBA has clearly been the reason for its accurate strategy formulation and implementation. The bank uses a sophisticated data collection and processing technology that considers proper data collection areas as well as their processing, hinting at the use of an efficient information system used by CBA in Australia (Commonwealth Bank of Australia, 2019).
2. Its Industry
The chosen organisation, namely, Commonwealth Bank of Australia is a part of the banking industry in the country, which first emerged more than 200 years ago, in the year 1817, when The Bank of New South Wales was established. In the earlier era, there were four major banking groups in Australia, however, with modernisation; the banks in Australia went under the regulatory body of Australian Banking Association (ABA), which started regulating the ethical practices, standards of banking services and the preservation of the rights of the customers of the banking industry (Australian Banking Association, 2018).
With the advent of technological innovation and implementation, the E-banking became popular; therefore, ABA also made norms and standards for them. The banking industry in Australia is very competitive and there is very little scope for profiting, therefore, the transactions, the preferences of the customers, the impact of loan on the customers and the potential risks of the banking sectors are assessed properly, with information system. The banking industry in Australia uses the process of background check and risk assessment factors to minimise the changes of failed loans, both in commercial and personal purpose loan borrowing. The industry also prioritises the ethical norms by offering legal help to failed borrowers, while maintaining the interest of the banks and its shareholders (Australian Banking Association, 2013).
3. Analysis of General Environment
Australian market is strong and stable in terms of its economic condition is concerned. The GDP growth of the country has been slow yet consistent and the growth of the industry is promising, which makes it evident that the banking sector in the country has a bright future and the potential chances of economic slowdown are less likely. As supported by Thelen (2019), a strong economy is always beneficial for business organisations as they deal with customers who have higher buying power and scope for high profit generation. Australia has a work-favourable geographic property, which promote faster communication, availability of resources and consistency of business (Australian Banking Association, 2018). Considering the geographical condition of Australia, it can be ascertained that banking business is favoured by the geography of the land.
Based on the stronger economy of Australia, the technological advancement has been easy, effective and frequent. The changes in the technological implementation have been aided by the flexible socio-cultural nature of Australians, which makes them accept changes very easily, achieving a global standard, making international standard abidance easy for business organisations (Australian Banking Association, 2018). The political condition of Australia is also stable, which has helped the market to remain consistent in terms of its trends. The demographic division of the Australian population shows that majority of the population is of middle age groups, which hint at consistent demand for monetary investment and rising banking transactions. Considering the socio-cultural, political, technological and global aspects in the context of the CBA, it can be assumed that the market for banking is full of potential and favourable for business expansion.
4. Industry Environment of CBA
Aspects
Degree of Risk
Rivalry Among Competitors
High
Power of the Suppliers
Low
Power of the Customers
High
Threat of New Entrant in the Market
Low
Threat of Substitute Products and Services
High
In the banking industry the customers, who deposit their money in the banks, the investors and the shareholders are considered as the major suppliers of the business. Considering the strong economy of the country and huge number of banking customers available, it appears that the power of the suppliers in the context of CBA is moderately on the lower side. The buyers of the banking business, as identified by Chang et al. (2019), are the borrowers, both domestic and commercial, who take the loans and repay them along with interest...