Sunshine State Share Dealing Limited (SSSDL) Support System Development - Essay Example

SUNSHINE STATE BUILDING NEW BUSINESS TECHNOLOGY Sunshine State Building new Business Technology Table of Contents Table of Contents 1 1- Abstract 2 2- Management of Information Systems Development 2 2.1- Challenges in the development of the system 2 2.2- Key factors in the successful development of the Share dealing system 3 2.3- ‘Clean-Up’ of the files important and its difficulty 3 2.4- Internet based offering 4 2.5- ‘Bricks and clicks’ or a ‘dot.bomb’ 4 2.6- Project management contribution to success 5 3- Business Strategy 5 3.1- Share dealing system risk or worth 5 3.2- Costs and benefits of the Share Dealing Service to Sunshine State 6 3.3- Telephone based dealing system 6 3.4- Sunshine State re-engineers share dealing 7 3.5- Innovation adoption theory 7 3.6- Cobit Strategic Alignment Maturity model 9 3.7- Luftman’s Six Strategic Alignment Maturity criteria 9 3.7.1. Communications maturity 10 3.7.2. Competency/value measurements maturity 10 3.7.3. Scope and Architecture maturity 11 3.7.4. Partnership maturity 11 3.7.5. IT Governance maturity 11 3.7.6. Skills maturity 11 4- Conclusion 12 Bibliography 12 1- Abstract Sunshine State Building Society is one of the biggest and best personal finance businesses in Australia. The company has turned into a bank and changed its business status to Corporation with 23% of the members sold a total of 569 million shares with a total value of $4.2 billion in 2005. Additionally, this deal was the biggest ever done on the Sydney Stock Exchange. This paper is about the Sunshine State Share Dealing Limited (SSSDL) support system development and implementation. This research will offer a deep insight into the system’s business and IT based aspects. This paper will also outline some opportunities and challenges that Sunshine State has faced in the development of the system. 2- Management of Information Systems Development 2.1- Challenges in the development of the system During the system development for the Sunshine State Share Dealing Limited (SSSDL) business, the management has faced a lot of problems and challenges. The new project at the Sunshine State is about handling and managing its large business departments. In this scenario the business has faced a lot of challenges regarding this system implementation. In this scenario the main challenge is about the software development that was essential to support all the business processes. Additionally, in this large size project the basic challenge was to meet the needs and requirements of all the type of system users, for instance, management, customers and working staff. In addition, the new system was indented to fulfill all the working aspects of users, since this system was a multi-site, multi-supplier, multi-system project. Moreover, another main challenge was to meet the project deadline that simply could not be missed. Thus, all these challenges and issues made this project more sensitive to manage and develop. 2.2- Key factors in the successful development of the Share dealing system This section outlines some of the key factors in the successful development of the Share Dealing system. Sunshine State Share Dealing Limited deals with more than 5 million customers and covers around 20% of the Australian mortgage market. Thus, to manage such a large size business the manual and paper based techniques were not helpful. In this scenario, Sunshine State Share Dealing Limited was also competing on an equal footing with the existing 4 major banks and to raise capital they decided to abandon their traditional mutual status. In this working environment the business was not able to gain better competitive edge and effective market through the traditional ways of working and business management technology. The new technology based system that was initially operated through the telephonic system and then moved into the web based system. The new technology based system was intended to support a large number of customers through the automatic voice recognition system. The intended system was also able to handle and tackle 2.6 million postal deals and 514,000 telephone deals, with average call times of only 2.5 minutes in a day. Thus, with such a huge working and operational capability the business could be able to gain better business advantages. 2.3- ‘Clean-Up’ of the files important and its difficulty Sunshine State Share Dealing Limited contains a large number of customers’ records those need to be cleaned and managed to achieve greater business efficiency. However, before the corporation was using legacy system to clean up the old data, which was very time-consuming. In this scenario, new technology based system can help manage old records with duplications, anomalies, dirty data, and replication of customer accounts information. However, here the main problematic tasks are about sorting, clearing, unifying, and normalizing over 12 million ‘account relationships’ resulting in the identification of 10.3 million customers. Moreover, this task is very important in effectively handling customer information, managing customer dealings, and satisfying the potential requirements of all the clients and users of the system. 2.4- Internet based offering Sunshine State desired to move toward the major player in the new world of internet banking. In this scenario, they have implemented the web based business in October 2006. The web based business offered internet based share dealing service. Since, the old business structure of Sunshine State was operational through the telephonic system, however in new internet based technology implementation the corporation was able to increase the volume of business dealings to 20 times. In addition, by implementing internet based business, the corporation was able to capture new markets and customers. Moreover, through the web based structure Sunshine State has effectively targeted the customers and potentially 40% of its all stocks dealings were made via the internet. 2.5- ‘Bricks and clicks’ or a ‘dot.bomb’ The Sunshine State business is bricks and clicks type business because it offers both web based and telephonic technology based business deals. Moreover, the business of Sunshine State is operational through both web based and manual business practices. However, approximately 40 % of its shares are sold over the internet. 2.6- Project management contribution to success In the overall IT and IS project development for Sunshine State Company the effective project management has effectively contributed to business. The business management has established the highly formalized project management system. In this scenario steering group was established for the project supervision and coordination among all aspects. In addition, the success of this project was due to the establishment of a number of programme charters those were then established for each major part of the project. Since, this Programme Office was established to organize and plan the programmes as well as all the diverse elements of the overall project. Thus, these all project management related steps led toward effective project management this technology project. 3- Business Strategy 3.1- Share dealing system risk or worth The new share dealing system of Sunshine State is encompassing a lot of advantages and risks. In new web based business structure implementation for the business Sunshine State has attained a lot of business advantages. Additionally, it has attained all those advantages which an ecommerce web site can offer. For instance, it is using web site for business customer targeting, marketing, promotion and dealing. Moreover, the web based business for the Sunshine State will enhance the business credibility and efficiency and power to reach the customer (iSoS OneSolution, 2007). However in technology based system there are also various risks such as business information hacking, virus attack and stoppage. In this scenario the web based business faces danger from outsider security attack on the business network. This attack can be DoS that can stop the overall business working and operational setup (River, 2010) & (Agbormbai, 2008). 3.2- Costs and benefits of the Share Dealing Service to Sunshine State The implementation of the web based business has offered a lot of business advantages. In this way the business was capable to attract approximately 5 ½ million members. The estimates indicated that the cost of business share handling and share allocation would be $16 million. In case of new technology based platform implementation the business was able to save $9 million for the Sunshine State, which was the difference between the costs of having the initial share issue done by the city institutions and the cost of SSSDL. Therefore, it can be concluded that Sunshine State was able to attain business advantages and potential revenue through the implementation of the web based platform for the business management. 3.3- Telephone based dealing system The implementation of the telephone based dealing system at the business was aimed at taking advantage of the entire infrastructure that Sunshine State was already having in place. Sunshine State was previously having the automatic call recording, call distribution, the IVR (Interactive Voice Recognition) and CTI (Computer-Telephony Interface) capabilities. These technology based platforms were actually using the touch-tone keystrokes to fire applications. This technology structure was perfect for the Sunshine State. Moreover, for offering platform support through this technology Sunshine State was capable to deal with a large number of customers at the same time. Thus, it can be concluded that this business structure has offered effective business support at less investment. 3.4- Sunshine State re-engineers share dealing The IT department at Sunshine State has established a new business design and solution. This new business solution has the capability to effectively handle, manage, and control the share dealing process. The business management has estimated that they can make money out of execution only through share dealing when it will be able to perform a transaction for a customer for some fee or a commission. The old paper based technology was replaced with the telephonic technology and then with the web based technology. These all lead towards effective management of the business activities and making more money for Sunshine State. 3.5- Innovation adoption theory The implementation of new technology at Sunshine State Corporation has offered a lot of business advantages. These advantages are related to business dealings and management. The application portfolio matrix can be used for taking a better insight of the new technology adoption at Sunshine State. Below is overall analysis of new technology based platform implementation (Luftman, Papp, & Brier, 1999) & (Motjolopane & Brown, 2004): Figure 1- Application portfolio matrix – Source-[Ward, John, Pat, and Whitmre, Paul, Strategic Planning for information system, John Wiley & Sons, 1990.] Support: The new system supports approximately all the areas and activities of the business. Thus, the new technology implementation is helpful to the corporation. Factory: the new technology platform has low dependency on old ways of working and business handling. In this scenario the old working structure is completely transformed to a new online technology based working platforms. Strategic: new technology based applications and systems offer high impact on the business strategic aspects. The old ways of working and dealing have completely transformed and offer a lot of advantages for the better strategy development and business resource management. Turnaround: new technology has a potentially high impact on the business. It has offered the ability to reach the new business markets. 3.6- Cobit Strategic Alignment Maturity model In Sunshine State business the purpose of COBIT is to offer management as well as business procedure owners with an information technology (IT) governance model that facilitates in delivering value as of information technology (IT) and managing and understanding the risks linked with IT. In scenario of new web based technology platform implementation at Sunshine State COBIT facilitates to bridge the gaps between business control needs, requirements as well as technical issues. It is a control model to convene the requirements of IT governance and make sure the reliability of information systems and information. In scenario of Sunshine State Corporation COBIT based strategic alignment maturity model application will offer an IT governance framework as well as supporting toolset that permits managers to develop clear policy as well as carry good practice of IT control all through organizations. COBIT highlights regulatory compliance, facilitates organizations to augment the value accomplished from IT, allows alignment as well as makes simpler the implementation of the COBIT framework (COBIT, 2010). 3.7- Luftman’s Six Strategic Alignment Maturity criteria In scenario of Sunshine State Corporation the new technology based system development involves addressing the IT business arrangement mystery that is a significant area to investigate. An even more convincing reason is empirical proof demonstrating the association among IT-business alignment as well as firm performance. Since, the present researches have shown an association among higher levels of IT-business position maturity and higher levels of corporation’s performance. These answers put in credibility to the significance of attaining a higher level of IT-business arrangement maturity. Luftman’s Strategic Alignment Maturity (SAM) evaluation unites 6 diverse organizational mechanisms. This section will discuss these components with respect to Sunshine State Corporation: (Luftman J. , 2000) 3.7.1. Communications maturity The new technology based platform implementation at the Sunshine State business has offered the understanding of business communication. Additionally, the new technology based platform has improved organizational learning. In addition, the traditional business protocol based rigidity has vanished. Moreover, the new technology has offered the knowledge sharing and connection effectiveness. 3.7.2. Competency/value measurements maturity New technology based arrangement at Sunshine State has offered the effective assessment of the IT metrics and business metrics; through which corporation is able to integrate IT and business metrics that has offered the facilities such as service level agreements as well as benchmarking. Additionally, through this technology the formal assessments/reviews have become easier. In addition, it has also offered the continuous improvement in business arrangement. In this way Sunshine State’s new technology is able to contribute in better IT governance. 3.7.3. Scope and Architecture maturity The new technology at the Sunshine State business has offered the standards articulation and architectural integration of business functions and tasks. In this scenario architectural transparency has changed and offered more effective infrastructure flexibility. 3.7.4. Partnership maturity The implementation of the new technology at Sunshine State Corporation has offered higher partnership maturity. In this scenario business perception of IT value and its role in strategic business planning has been changed by incorporating new and better technology platforms. Moreover, the new technology implementation is helpful in managing IT programs and better business relationship with business sponsors and all stakeholders. 3.7.5. IT Governance maturity The implementation of the new technology at Sunshine State Corporation has offered enhanced business strategic planning with more standardized and less dirty data. Also, the presentation of efficient data has improved its IT strategic planning and IT Reporting. The new business platform is also helpful in estimating and analyzing the IT budget as well as IT investment decisions. 3.7.6. Skills maturity Sunshine State Corporation’s new technology platform involves innovative entrepreneurial environment. Through this technology platform implementation business workers are able to get better opportunities of learning. Thus, their skills will be improved through effective interpersonal interaction. 4- Conclusion This paper has presented a detailed analysis of the Sunshine State business with respect to new technology based infrastructure implementation. This analysis was regarding the management of information systems and business strategy development. This paper has outlined some of main aspects regarding both activities of the business. In the last this papper has discussed the Luftman’s Six Strategic Alignment Maturity criteria and applied it into the Sunshine State case study. I hope this research will offer a detailed analysis of the systems implementations. Bibliography Agbormbai, A. (2008, November 04). 8 Deadly Problems With Starting an Online Business - And Their Solutions. Retrieved April 17, 2010, from EzineArticles.com: http://ezinearticles.com/?8-Deadly-Problems-With-Starting-an-Online-Business---And-Their-Solutions&id=1647663 COBIT. (2010). Aligning COBIT® 4.1, ITIL® V3 and ISO/IEC 27002 for Business Benefit. Retrieved April 15, 2010, from http://www.isaca.org/Template.cfm?Section=COBIT_Mapping1&Template=/ContentManagement/ContentDisplay.cfm&ContentID=45932 iSoS OneSolution. (2007). Advantages Of E-Business Applications:. Retrieved April 16, 2010, from http://www.isos.com.my/ecommerce/advantages.htm Luftman, J. (2000). Assessing business-IT alignment maturity. Communications of the Association of Information Systems Volume 4, Issue 14 , 1-50. Luftman, J., & Dorociaky, J. (2008). Strategic Alignment Maturity: A Structural Equation Model Validation. Americas Conference on Information Systems (AMCIS) AMCIS 2008 Proceedings . Luftman, J., Papp, R., & Brier, T. (1999). Enablers and Inhibitors of Business-IT Alignment. Communications of the ACM Voule 3, issue 1 . Motjolopane, I., & Brown, I. (2004). Strategic business-IT alignment, and factors of influence: a case study in a public tertiary education institution. SAICSIT; Vol. 75, Proceedings of the 2004 annual research conference of the South African institute of computer scientists and information technologists on IT research in developing countries (pp. 147-156). Stellenbosch, Western Cape, South Africa : South African Institute for Computer Scientists and Information Technologists , Republic of South Africa. River, C. (2010, February 03). Dangers of E-Commerce - Risky Business For Buyers and Sellers. Retrieved April 17, 2010, from EzineArticles.com: http://ezinearticles.com/?Dangers-of-E-Commerce---Risky-Business-For-Buyers-and-Sellers&id=3693411 Read More