This assignment is an implementation plan for the IT system as discussed in Assignment 2
ASSIGNMENT COVER SHEET For use with online submission of assignments Please complete all of the following details and then make this sheet the first page of each file of your assignment – do not send it as a separate document. Your assignments must be submitted as either Word documents, text documents with .rtf extension or as .pdf documents. If you wish to submit in any other file format please discuss this with your lecturer well before the assignment submission date. Student Name: Courtney Cardow Student ID No.: 21935905 Unit Name: Managing Information Systems Unit Code: MNG93211-2020 Tutor’s name: Kevin Smith Assignment No.: 2 Assignment Title: Individual Project Proposal Due date: 29 November 2020 Date submitted: 29 November 2020 Declaration: I have read and understand the Rules Relating to Awards (Rule 3 Section 18 – Academic Misconduct Including Plagiarism) as contained in the SCU Policy Library. I understand the penalties that apply for plagiarism and agree to be bound by these rules. The work I am submitting electronically is entirely my own work. Signed: Courtney Cardow (please type your name) Date: 29 November 2020 Table of Contents Introduction2 Project Proposal2 Organisational Background2 Internal and External environment factors4 Understanding problems and opportunities5 System Development Life Cycle (SDLC)6 Planning - Phase 16 Design - Phase 26 Why the ERP system?7 System Strengths and support of IMB key strategic goals8 Cost Analysis9 Feasibility Study for the ERP10 Analysis11 IMB’s Current System11 Proposed System11 Conclusion11 References12 Introduction In recent times, it’s never been more appropriate to implement efficiencies across the banking sector. One way of doing this is through Enterprise resource planning (ERP). The easiest way of defining ERP is the management of every core process that is required to run a business successfully. Striving to ensure business integration for example customer service is efficient and effective including the security of customers’ information, finances and high-quality support services, in addition to standard business processes like procurement, Human Resources and finance. ERP integrates the processes at the most basic level into one single system. It is therefore considered that, designing and implementing an effective ERP will facilitate a in the improvement of IMB bank services and high-quality information management enabling a shift from individual manual management systems to an automated, all in encompassing electronic system which provide consistency and effectiveness across the bank and subsequent branches. The main purpose of this proposal is to advise the benefits that will improve the accessibility and consistent level of information in the business, reduce operational costs and allow greater flexibility once they implement the ERP. It will also provide a cost benefit analysis and feasibility study for the implementation. This proposal will also demonstrate specifications and analyse the system through detailed descriptions of the System Development Life Cycle used to implement. Project Proposal Organisational Background IMB is the longest standing building society located within the state of New South Wales, and the third biggest building society in Australia. Branches are located across the Australian Capital Territory (ACT), Victoria and New South Wales. Regulated through the “Australian Prudential Regulation Authority”, IMB are members of Customer Owned Banking Association (COBA) which is an independent organisation representing credit unions and building societies (Taniguchi and Onosato 2017). IMB was first established in 1880 and are considered lending specialist which services include a team of mobile lending specialists who go directly to customers (Ying 2016). IMB have 200,000 members and over $6 billion worth of assets, they also established The IMB Community Foundation in 1999 - providing over $10 million to more than 700 projects. Its success reigns from simplifying their processes to enable ease and effectiveness. There are plans of the bank expanding across other regions/states. The Executive and Management structure of the bank is as below: IMB Board of Directors Chairman: Noel Cornish Director: Cathy Aston Director: Harry Wendt Director: Peter Fitzgerald Director: Gai McGrath Director: Jan Swinhoe Director: Jann Gardner IMB Executive Management Chief Executive: Robert Ryan Chief Financial Officer: Chris Goodwin Chief Risk Officer: Michael King Chief Digital Officer: Nathan Campbell General Manager People & Culture: Rachael Heald General Manager Corporate Services & Company Secretary: Lauren Wise General Manager Sales & Marketing: Michael Brannon General Manager Membership & Alliances: Shawn Griffiths Source: IMB.com.au 2020 IMB’s key strategic goals are to attract new members as an alternative to the ‘Big 4 banks’ through competitive loan rates, a high standard of customer service/care and a continual investment in digital platforms. IMB branches located across numerous states, all business/customer processes are isolated in several different systems and in some cases isolated by branches. There is little to no visibility of real-time data throughout the branches which proves to be a costly and inefficient operational process. Through calling colleagues, jumping in and out of several different systems/databases to find the relevant data, this also increases the risk of human error and mistakes occurring. There is not just a need to consolidate processes, streamline and allow visibility there is a direct need to ensure the system has a high-level security. The banking industry is in a time of digital solutions and has been revolutionised by the information technology advancements in recent times i.e., online banking. So, it is not a far stretch to look at how an ERP system can further assist in supporting business with efficient processes throughout branches whilst also developing transparency of these services for customers to ensure trust and mutual respect is maintained and so that growth can occur in addition to revolutionising banking processes. The proposed ERP will assist IMB in meeting its values to provide the best and highest standard services to customers. Internal and External environment factors Firstly, there are operational and organisational factors that play a significant part in the banking industry and in particular the business strategies of IMB. From the analysis of the banking industry in Australia it is evident there is an increase rise in competition, not enough investments in improvements, sector rationalisation and the evolving nature of the customer preferences. This in addition to their key strategic goals has seen IMB focus on evaluating the emerging environmental factors like administrative, operational, technological, strategic, economic and competitive factors. The administrative and operational processes involve inaccurate record keeping in addition to faulty/outdated IT systems that are all factors of data security, minimal transparency across the business, little to no streamlined processes though an increased need/desire to reduce operational costs to improve profit margins. These are also a factor of the effects in changes of technological evolutions and customer demand (Ali and Miller 2017). In relation to strategic risks, these impact IMB’s ability to reach their business plan goals though understanding the various industry codes, rules and regulations the banking industry operate within. The lack of innovation creates serious risks for growing businesses, with no innovation it makes IMB irrelevant, stagnant and dull (Feng 2019). On the economic front there are different factors which will help to improve the customer confidence through customer relationship management and therefore the financial structure of the business. In Australia, we have a low national rate of saving and a low rate of saving per household. This is in addition to the drop in house process whilst oil prices remain stable. Keeping in mind there is a concurrent reduction in the employment rates of unemployment whilst the inflation rate has reduced in the recent year encouraging spending and lines of credit. In a social aspect, there is more people living and purchasing homes from 1.8 million in the year 2001 to the 2.8 million by the year 2020 which will increase the demand for more household purchasing (Riess 2012). Therefore, knowing the archaic and isolated processes developed around the banking product lines (loans, deposits etc.), the cost associated with maintaining all those systems will only increase with the projected demand. Understanding problems and opportunities There are easily identified issues when utilising multiple software working for various distinct processes. IMB use outdated and historical processes within multiple systems all of which run in isolation, resulting in inefficiencies, inconsistent standards, confusion and wastage of time (Acar et al. 2017), in addition to the high costs in maintaining these individual systems. There are many advantages associated in applying the ERP in IMB: · There is an opportunity to reduce redundant data, allows other employees to see the customers information and prior transactions (which occurs through no visibility or comparative measures across branches). · The ERP will be a single source of truth. This will reduce the risk of reduced or loss of corporate knowledge and communication, all information visible for the entire business if the software is used (Taniguchi and Onosato 2018). · An ERP system allows a high degree of flexibility and customisation to enable scalability, supporting/minimising day-to-day business and reducing operational costs. · IMB uses numerous systems for every different aspects of their processes (Turek and Dziembek 2018). Essentially this means there is a higher risk of mistakes in addition to the time-consuming tasks in the form of constant upgrading, integration and customising, one of greatest drawbacks of having multiple systems (Li and Li 2019). Having just a single system in place will minimise the work associated with managing numerous platforms and channelling their time and emphasis on one. Having one system also allows for businesses to spend less time with consuming processes and refocusing the emphasis on customers and enjoy the communal based company. · Another significant advantage of the ERP system is the workflow automation and the enterprise management which makes the workflow smooth and seamless. · It allows IMB to continue progressing their key strategic goals in terms of attracting new members as an alternative to the ‘Big 4 banks’ through competitive loan rates, a high standard of customer service/care and a continual investment in digital platforms. The ERP ticks all these boxes. The implementation of the ERP system for IMB will also come with its challenges: · The installation of ERP systems in the different branches of the bank across numerous states is very expensive. · There will be a requirement for staff to undertake a minimum training component in order to successfully use the program and interface. · The ERP system is only effective if there is transparency i.e., ensuring the data in the system is accurate and correct, allowing visibility to others. · There is a demand and requirement for hardware for the installation of the program. System Development Life Cycle (SDLC) The SDLC outlines the process for the development and implementation of the ERP. It also includes the disposal of the redundant information system through a multistage process comprising of the analysis, design, implementation and maintenance (Radack 2003). Planning - Phase 1 In the planning stage of the SLDC the appropriate system is recognised for its different features required to be applied to the business. This stage also includes the project feasibility assessment. The project feasibility cost benefit analysis will be undertaken alongside other feasibility assessments and the finalisation of the project plan is drafted. Design - Phase 2 IMB has decided an ERP system will assist them to meet the requirements of their