System Implementation for the Allianz Bank - Report Example

Information Systems Management Introduction The implementations of information systems have become necessary for almost all the organizations in order to survive in ever-increasing competitive world. Additionally, organizations use these information systems to manage their business activities. Thus, organizations use best tools and techniques to make these implementations more effective. This report presents a detailed analysis for the new open source technology based system implementation analysis for the Allianz bank. The organization is going to establish a new technology based platform that is known as FLEXCUBE system. The aim of this report is to assess and analyze some of the main aspects and scenarios regarding this system implementation. 1- ) A description of the organization and the application to be developed This project report is about the deep and detailed analysis of the Allianz bank which is the 10th largest bank located in Bulgaria, in terms of the assets, as well as in terms of the locations. It has a larger coverage across the country and it has also attained a large number of the customers dealing with huge business. This business is dealing with an asset size that is over 900 Million Euro. The business is covering 126 sites and 95 branches all over the country. The business is also dealing with large clients which are estimated to be 170 000 (i.e. 20000 business & 150000 trade customers). Keeping in view all the factors the business has taken a decision to implement and practice a modern technology based arrangement for an enhanced administration and handling of the business activities. This system is known as FLEXCUBE system (Case Study). 02- ) an explanation of the open source software used and why it was chosen The Allianz bank has planned to renovate their company model as well as their procedures and practiced to provide well-organized, less time and resource consuming, services and products. Additionally, Allianz bank has preferred a consistent platform based on IT communications technology in formation by means of Allianz Germany IT strategies, measures as well as requirements. Allianz bank has decided to introduce an online authorization module that is designed and developed by Sirma/i-flex, with the assistance of FlexCube which will be used as a system for master authorization. This system is going to reinstate old legacy system to provide an enhanced support for the domestic as well as worldwide payments by reducing their staff plus faster and more reliable and proficient services to the clients. This web based system will provide an online well-timed reporting that will facilitate all the levels of management proposed to perform simple and in control analysis with speedy response to the market trends as well as customer’s requirements. In addition, the new FlexCube system is designed to augment and improve the functions and working of the business by offering a better online support and also providing new innovative approach that can tremendously change the bank’s business along with the operational model from de-centralized structure to the centralized. In this connection, this new FlexCube system will provide a range of latest and useful services like that internet banking, online card authorization as well as events reporting. This new system will also offer customer scoring system that will be interfaced to FlexCube system to lessen the average time planned for taking administrative decisions as of 2.5 days to 6 Hours (Case Study). 03) A summary of how the application was used in the organization The new technology of IS and IT based infrastructure that is going to be launched at the Allianz bank is about the improved business handling and management. In this regard FlexCube system will renovate the conventional decentralized business arrangement and framework to a latest and innovative centralized online system that is designed to enhance business performance for the effective working of all the business staff and corporate customers. This project of establishment of FlexCube system will entail the 30 sub-projects that have been defined and planned through project teams as well as responsible groups. This FlexCube system will set up the novel business model as well as branch model, reorganizing plus centralizing all the significant functions of the corporate. So at this point the new FlexCube system will be establish the following business areas: Current Accounts Retail Term Deposits Savings Accounts Structured Deposits Retail Loans Cheques Corporate National & global payments, SEPA compliance Corporate Loans Capital – FX, MM Trade Economics – LC, LG, Invoices, collection of bills The new technology based platform of the FlexCube system will be responsible for handling and controlling the local and global payments. This facility will also provide a prospect in the decrease, faster, and extra reliable services to bank’s customers. Additionally, the new FlexCube system will facilitate online, convenient and well-timed reporting. This online and timely reporting will facilitate the entire levels of business management planned for valuable analysis and fast reaction to tendencies of marketplace and customer’s requirements. In addition, FlexCube system will offer a diversity of novel facilities and services arrangement like that online card authorization, in time reporting of various procedures and internet banking. This new business setup and bank’s IT department head count will be reduced through 42%. The back offices processes department of the bank will totally centralize as well as head count will also be decreased by over 50% (Case Study). 04- ) A critical analysis of the success (or failure) of the open source software used in the application Allianz bank is going to introduce FlexCube system that is an innovative online system for the establishment of the centralized business arrangement and management. This system is designed to offer more enhanced services and facilities in different areas and various features of the business. The new business system will be employed in place of the existing platform that is an old legacy system. Open source software is an application or software that has been released with the support of OSI (Open Source Initiative) specialized license. Additionally, the open source software is developed through an on-going, iterative process where people communicate the opinions which are added in the source-code. However, the basic intention here is that a massive society of system developers or users are competent enough to contribute to the development of software code, ensuring that it is free from bugs and various platform issues, and plan to provide an enhanced edition which is available to the people. Additionally, there is a rising awareness and uptake of open source software inside the private segment, by means of open source software and proprietary software is turning out to be more and more interleaved. In addition, considering the major companies like that the IBM presumes that it greatly helps them to build and utilize a worldwide community of software developers to enhance their products and services. Moreover, a large number of businesses critics recommend that open source software will definitely lead to a more enhanced business of the software sector (Parliament, 2005; Wheeler, 2007; Laudon & Laudon, 1999). While taking into account the success factors of the Allianz bank business the preamble of the FlexCube system is an important initiative for the establishment of the open source technology at the corporate. Considering the important features of open source technology the business management has deiced to approve this technology platform by thoroughly analyzing some of the extensive business and corporate advantages, which include the free of charge nature of software application that generally reduces the extra financial load on the business management for the purchase of the software. The main and foremost advantage of the open source software application is that it also provides an extensive support for trouble shooting and updating of the system. All these vital features will definitely lead to huge success in the implementation of the system. The updating of open source system is also free of cost which leads to slightly more effective handling and management of the new technology maintenance (Laudon & Laudon, 1999; Turban, Leidner, McLean, & Wetherbe, 2005). In case of the Allianz bank business the establishment of the open source FlexCube system will also involve a number of the issues or failure prospects. One of the biggest issues that can be faced in this overall implementation is the software piracy issue. In this regard copyright, patent and legal usage based issues has been observed in some of the specialized systems (Wheeler, 2007; Laudon & Laudon, 1999). Additionally, they can also face some issues regarding the system security and hacking threats and attacks. Since these systems are available to use without any cost. In this way a user who has illegal intention can take the code and then may add some ambiguity in the code. In case of bank based system this loop can direct to massive business damage and disaster. Therefore, from the above stated evidences it can be definitely said that the choice of open source system for banking corporate is a dangerous and poor choice that can lead to huge business security risk from insider as well as outsider attacks (Parliament, 2005; Laudon & Laudon, 1999). Conclusion This report has outlined some of the main aspects and areas regarding the new open source technology based system implementation for Allianz bank. In this report I have assessed and analyzed some of the main aspects about the new system implementation and assessment of the main operational structure that we are going to implement. The organization has decided to implement FLEXCUBE system, which is an open source system. This report has analyzed the advantages and disadvantages of this system implementation. Moreover, this report has also highlighted some issues in the open source technology implementation at the Allianz bank business. ‘ References Laudon, K. C., & Laudon, J. P. (1999). Management Information Systems, Sixth Edition. New Jersey: Prentice Hall . Parliament. (2005). OPEN SOURCE SOFTWARE. Retrieved 10 17, 2010, from http://www.parliament.uk/documents/post/postpn242.pdf Turban, E., Leidner, D., McLean, E., & Wetherbe, J. (2005). Information Technology for Management: Transforming Organizations in the Digital Economy . New York: Wiley. Wheeler, D. A. (2007). Why Open Source Software / Free Software (OSS/FS, FLOSS, or FOSS)? Look at the Numbers! http://www.dwheeler.com/oss_fs_why.html . Read More