Gap in Communication
Discuss about the Business Case for the Core Banking.
The banking sector has certain important functions to do in order to serve the consumer. These functions can be both internal and external. The internal functions of the banking includes different financial calculations and processing of the consumer’s requests. The external function includes providing the service to the consumers and managing the relationship with the consumers.
Presently, the gap between the existing process and the demands of the customers has been observed. Therefore, for the core banking process it is necessary to develop a sustainable change in the process to merge this gap (Rosemann and vom Brocke 2015). The strategic development of the core banking system has been hampered due to the communication failure and the cultural differences between the IT division and the business unit of the banking sectors. In this case, in order to achieve the merging of the gap, the synchronization between these two sectors in the banking system is needed to be performed.
In order to develop a sustainable system to manage the gap, the identification of the gaps are needed to be addressed in the banking sectors (Anaya ,Dulaimi and Abdallah 2015). The identification in this article is done on a general basis. However, the other areas of the gap can be identified in some cases, which differs from one particular bank to other bank.
Gap in communication
Gap in timing.
Gap in communication includes the difference in the process of communication for the technical division and the business units of the banks. The technical unit of the bank is responsible for the development of the advanced use of technology in the banking process (Sia, Soh and Weill 2016). The business unit of the bank is concerned about the business aspects such as the marketing, managing of the customer relationship and expansion of the business in the market (Bucchiarone et al.2018). The perspective of handling any situation is different for the technical unit and the business unit. The successful compilation and the process of providing the quality service the consumers is dependent on the synchronization of the work between the business and technical unit of the bank (Anaya ,Dulaimi and Abdallah 2015). In most cases it has been observed that both of the units are exposed to the advanced way of dealing the problems, however, these two units are not communicating with each other in a proper way. This gap in the communication is restraining the banks to provide better services to the consumers.
Gap in Timing
There is a gap between the timings to develop a technical process and the business process. The implementation of the digital disruption takes time . It can be regarded as a long term process. The strategy taken for these kinds of implementation needs long term planning.
On the other hand the business planning is dynamic and is based on the ever changing market situation. In this case, planning is done on the short term basis.
The proposed change will merge the above mentioned gaps in the banking sectors. This can be done by the digital disruptions and the use of advanced technology which will help to synchronize the activities of technical units and the business units (Harmon 2015). This change will help the banking sectors to give the quality services to the consumers along with maintaining a stable position in the competitive market.
- The banks can use the advantages of the emerging technologies along with the new business strategies.
- The merging of the business strategies and the developing an of the implementation of the technology will help to deliver the quality service.
- The banking sectors will expand its business in a sustainable way.
- Most of the banks are not habituate to adopt the certain changes. The employees will feel uncomfortable to work in the new environment.
- The merging of the gap needs proper supervision and without proper monitoring the objective of the change may not become successful.
The main purpose of this article is to develop and recommend a way for the merging of the gaps between the existing system and the required system in the banking sector, so that this sector can improvise its service.
Recommendation of the “analytics solution:
The effective case for change in the core banking system needs the following factors into the considerations:
- The overall business strategy should be benefitted from the implementation of the change case.
- Improvement of sales and service capacity.
- Enhancement of the risk management.
- Improvement of the overall business structure.
- Maintaining the main objective of the core banking system.
The main purpose of the proposed analytics solution will merge the gap between the technical and managerial sector in the core banking system (Anaya ,Dulaimi and Abdallah 2015). The result of these solutions will deliver the above mentioned core banking factors, which will enhance the quality of the whole system.
The analytics solution will improve the overall strategy for the core banking system. The enhancement of the service can be done in the different sectors such as management of assets, calculation of the revenue (Yeoh and Popovi? 2016). The improvement of the experience of the customers about the services provided by the bank can be done. Apart from that the analysis of the demands of the customer and the changing situation of the business market can be obtained the agility of the business can be achieved by maintaining the M&B activities and obtaining the future flexibility and the extensibility.
The analytical solution can provide the cost effective way of execution of processes and managing the complexity of the portfolio (Ahmed 2015). This will reduce the operational cost and will increase the efficiency ratio. The changes in the technological filed in delivering the services and the capability of the banking sectors to adopt the change can be increased and is supported by the change of the case in the core banking system (Orozco,Tarhini and Tarhini 2015). Managing the business using the assessment of the regulatory risk and the credit and operational risks can be done in the changed environment.
Proposed Change
In this way the analytical solution can help the core banking sectors to achieve merging of the gap between the business and the technical field and helps to manage the core banking business from all the aspects.
One of the major challenges in the implementation of the change is to identify the relevant available data. In the core banking system, the data and information are available in different formats and in different interpretations. Identification of the right dataset for the right module is important fo4 the development of the changing model (Vrhovec et al.2015). The identification of the existing gap and the elimination of the gap is the main challenge in this case. In order to face this challenge the experts and the business representatives are needed to be engaged in the process.
In the processing and analysis of the data, the application of the big data can be deployed (Kranz, Hanelt and Kolbe 2016). The data driven decisions can help the banking sectors to transform its organizational process through improvement of employee engagement and delivering excellent customer service.
The data that can be used in the future analysis are the name of the consumers, and their details, their searching keywords (Anaya ,Dulaimi and Abdallah 2015). The information that has been gained from the analysis of the searching behavior of the consumers can be helpful in understanding the requirements and demand of the consumers. The banks can provide the solutions based on those understandings.
On the other hand the analysis of the current market situation can be evaluated from the large amount of data the banks are interacting with. These information can help to find the opportunities in future for the banking sectors. Apart from that the effective use of these data can give certain advantage sin the core banking sectors.
The evaluation of the consumer behavior can be obtained from the analysis of the data. This evaluation can give the overview of the situation of the position of the specific bank in the market. The use of technology and the application of the right business strategy can be deployed with the application of the big data analysis in the core banking sector (www2.deloitte.com 2018). The banks can use the solutions from various third party organizations such as SAS for implementation of the big data analysis for the business change process. The selection of the organization depends on the requirements of the banks (Anaya ,Dulaimi and Abdallah 2015). The information about the asset management and other operational information can also be used in the big data analysis.
Recommendation of Analytics Solution
Reporting the result:
The result that can be obtained from the change in the business process is represented through various forms. The report should be discussed with the stakeholders in order to evaluate the effective decision making (Anaya ,Dulaimi and Abdallah 2015). The advantages and the disadvantage can be mentioned properly in the report. The requirement specification for the improvement of the core banking sector is needed to be evaluate at the beginning of the report (Tallon et al. 2016). The transparency in the requirements will help the banking sectors to make the decision of deploying the bests solution for the changing of the business (Omonaiye et al. 2015,). However, the main objective of the report should be the merging of the business unit of the banking sector and technical unit of the banking sector (Schulte et al. 2015). The result presented in the report should represent the outcome that supports the merging of the communication and the timing gap in the core banking system (Orozco,Tarhini and Tarhin 2015). The data which can be used for the future analysis can be described in a table format (Waddell 2017). The clear understanding of the goal in the change in the business process is stated at the beginning of the report (Paulet, Parnaudeau and Relano 2015). The business model is needed to be developed and the methodology for the implementation of the business process is needed to be done properly in the report. The data for the analysis can be of data related to the consumers and the market situations.
A separate table can be made in order to note down the possible software to be used. The comparative analysis can be done on the basis of the existing system and the improved system at the end of the report.
The evaluation of the progress of changing the business process can be done by generation of report after certain period of a time. The generation of the report can be done on the monthly basis (Orozco,Tarhini and Tarhin 2015). Weekly meetings can be held between the managers and the process developers in order to take the follow ups from both end. The meetings should be done by all the stakeholders related to the banking sectors before taking any major decision about the changes in the business process.
- The requirements of the improvement in the core banking sector is needed to be evaluated at the initial stage.
- The market analysis and the analysis of the data regarding the transaction can help to give the overview of market situation and consumer behavior.
- The opportunities indicate by the business report should be considered for the further research.
Conclusion
Building a change in the business case for the banking sector is not an easy task as it requires the o analysis the information regarding the consumers and the market situation. The main chain needed in this process is to merge the gap between the workings of the technical field and the business field of the banking sector. The periodic reporting of the progress regarding the change in the business process helps to evaluate the effectiveness of the whole changing system.
Challenges in Implementation
References
Ahmed, N., 2015. PC (personal computing) banking system to Core Banking System (CBS): a case study based on United Commercial Bank Ltd.
Anaya, L., Dulaimi, M. and Abdallah, S., 2015. An investigation into the role of enterprise information systems in enabling business innovation. Business Process Management Journal, 21(4), pp.771-790.
Bucchiarone, A., Dragoni, N., Dustdar, S., Larsen, S.T. and Mazzara, M., 2018. From Monolithic to Microservices: An Experience Report from the Banking Domain. IEEE Software, 35(3), pp.50-55.
Harmon, P., 2015. The scope and evolution of business process management. In Handbook on business process management 1 (pp. 37-80). Springer, Berlin, Heidelberg.
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Vrhovec, S.L., Hovelja, T., Vavpoti?, D. and Krisper, M., 2015. Diagnosing organizational risks in software projects: Stakeholder resistance. International journal of project management, 33(6), pp.1262-1273.
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Www2.deloitte.com. (2018). [online] Available at: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Financial-Services/gx-fsi-ca-consulting-making-the-case-for-change-2009.pdf [Accessed 20 May 2018].
Yeoh, W. and Popovi?, A., 2016. Extending the understanding of critical success factors for implementing business intelligence systems. Journal of the Association for Information Science and Technology, 67(1), pp.134-147.
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