Chapter 1

Introduction
1.1 INTRODUCTION The process of management information for any organization into a particular system. Management information system (MIS) as the study of information systems in business and management. MIS also designates a specific category of management level functions. MIS serves the management level of the organization, providing managers with reports and in some cases with online access to the organizations current performance and historical records. MIS primarily serves the functions of planning, controlling and decision ma ing at the management level. MIS summarize and report on the company!s basic operation. MIS usually serve managers interested in wee ly, monthly and yearly results not day activities. MIS provide answers the routine "uestions that have been specified in advance and have a predefined procedure for answering them. Kumari Bank Limited, came into e#istence as the fifteenth commercial ban of $epal by starting its ban ing operations from %haitra &', &()* +.S (,pril (-, &((') with an ob.ective of providing competitive and modern ban ing services in the $epalese financial mar et. The ban has paid up capital of /s. '(*0.&*& million, of which *( 1 is contributed from promoters and remaining from public. 2umari +an 3td has been providing wide 4 range of modern ban ing services through '5 points of representations located in various urban and semi urban part of the country, '' outside and ) inside the valley. The ban is pioneer in providing some of the latest 6 lucrative ban ing services li e 74+an ing and SMS ban ing services in $epal. The ban always focus on building sound technology driven internal system to cater the changing needs of the customers that enhance high comfort and value. The adoption of modern Globus So t!are, developed by Temenos $8, Switzerland and arrangement of centralized data base system enables customer to ma e highly secured transactions in any branch regardless of having account with particular branch. Similarly the ban has been providing -5) days ban ing facilities, e#tended ban ing hours till * 9M in the evening, utility bill payment services, inward and outward remittance services, and various other ban ing services. The ban has been able to get recognition as an innovative and fast growing institution striving to enhance customer value and satisfaction by bac ing transparent business practice, professional management, corporate governance and total "uality management as the organizational mission. The ey focus of the ban is always center on serving unfulfilled needs of all classes of customers located in various parts of the country by offering modern and competitive ban ing products and services in their door step. The ban always prioritizes the priorities of the valued customers.

'

1."
a.

#acilities$

S%I#T Trans er 2umari +an 3imited offers fast and reliable money transfer service through S:I;T. The amount will be credited immediately in your ban account maintained with us or it can be paid at the counter upon verification of valid identification documents. The remitter has to provide 2+3 S:I;T address <2M+3$92,===> and the beneficiary details to the remitting institutions for transferring money to $epal through S:I;T service. ;ollowing are the International correspondent ban s for S:I;T transfer. S. Name o bank Currenc& 'ccoint no. N. ' Standard %hartered I$/ -&&()'&*-*) +an 3td & ? %ity +an $.,. $ew ASB @or %ity +an , Mumbai I$/ ,merican 7#press ASB, +an -5&(4(?0) ''&5&((* *?--0) S!i t code 'ddress

S%+3I$++%,3 $eta.i Subhash '? /oad, 2ol ata, *(( ((', India %ITIAS-- ''' %ITII$+==== ,7I+AS-- * :all Street, 'C ;loor, $ew @or '((?Mumbai India :orld Trade %enter, 0th ;loor $ew @or , '((?0 AS, 2ol ota, India Deun4,lles, Eermany

) 5 * 0

,merican +an ,merican +an

7#press I$/ 7#press Theodor 4 I$/ B22

?'''(-5)) ?&?4 ('0'&C5(?()(*)&(& -CC5(**5?(

,7I+I$B=%,3 7A/ ,7I+B7;=

I%I%I +an 3td. Bans e +an

I%I%I$++ Mumbai India B,+,B222 &4 Dolmes 2anal '& B24'(C& %openhagen 2 E+9 +FM3,7,B ,7I+G9G==== Bubai, A,7 To yo, Gapan

Mashe" +an , Bubai

Bubai

'?505((C? -'-((C'(?

'( ,merican +an

7#press TF2@F G,9,$ G9@

Table.1 b. Demand Dra t :e have draft drawing arrangement with our correspondent ban s in different countries. 2umari +an 3imited accepts ban drafts drawn by various international ban s in various currencies li e AS dollar, 7uro, E+9 etc. &

Cas( )ana*ement Ser+ice 2umari +an 3imited also offers %ash Management Service (%MS) in $epal. Fur correspondent ban (I%I%I +an ) will help you to collect your che"ues more efficiently and timely from India. @ou can register for the service with us and our correspondents in India will start collecting che"ues in your favor from various parts of India. Tra+eler C(e,ue 2umari +an 3imited provides <,merican 7#press Traveler!s %he"ue> in lowest price that is accepted worldwide. Remittance rom abroad 2umari ban 3imited is one of the authorized agents of following leading remittance companies locally and internationally. =press Money Service Thamel.com (AS,) :estern Anion Money Transfer International Money 7#press (IM7) Instant %ash :orld wide limited 3iberal Money Transfer Samsara $epal ;inancial Service A2 3td 2umari +an 3imited has also developed online remittance system (i.e. 2umari /emit) that will be launched soon. 1.'nal&sis o Current Business .rocess e. d.

c.

)ission$

9rovide world class service to our customers at a higher satisfaction level. 9ractice total "uality management and embrace good governance. Fptimize our assets to achieve sound business growth.

/ision$

:e are customer oriented. %lient is always our first priority. 7mployees have direct input and control over wor processes. 7mployees are treated e"uitably, with respect and good faith.

%urrently mar eting department of 2umari +an 3td had launched three products in the m t. They areH 4 1. 2. 3. Twin le star saving ;ifty plus ()(I) Subha la#mi +achat

Stren*t($ 0 ,ttract the customers by its attractive advertisement. %eakness$ 0 Mar eting activities done manually. 1.1 Limitations o ordinar& )arketin* s&stem

1. Time limitation$ 0 :e need a concept of trader where there is a buyer and sellers! .There is time restrictions between buyer and seller. ". .(&sical locations$ 0 Transaction ta e place within particular place only.so, it has limited specified geographical territory. -. .(&sical 2resence$0 There should be physical presence. +oth parties should be present there. 1. Cost$0 ,ctual cost is high of the product. ,ll these things are ta en place in electronic way.

C(a2ter "
Strate*ic role o in ormation s&stem in marketin* ".1 De inition
Strategic is a long4term plan made in every organization. So it I plays vital role for managers while ma ing a decision. Three main categories of information system serve different organizational levels, operational level systems, management level systems and strategic level system. Strategic level system helps senior management tac le and address strategic issues and long4 term trends both in the firm and in the e#ternal environment with e#isting organization capability. , system to forecast sales trends over a five4year period serves the strategic levels. :e first describe the specific, categories of systems serving each organizational level and their value to the organization. Then we show how organizations use these systems for ma.or business functions.

"." In ormation 2rocessin* s&stem

There are ? processing systems which are as followsH 7#ecutive support system Becision support system Management information system Transaction processing system

".- C(aracteristics o in ormation 2rocessin* s&stem

T&2es o s&stem ') 7SS &) BSS In ormation .rocessin* In2ut ,ggregate data, e#ternal Eraphics, and e#ternal simulations, interactive 3ow4volume data or InteractiveJ massive database simulationJ optimized for data analysis analysis analytic modes Summary transaction dataJ /outine reportsJ high volume data Simple modelsJ 3ow level analysis TransactionJ events SortingJ 3istingJ MergingJ Apdating Table " In ormation out2ut 9ro.ections, responses to "ueries Special reportsJ decision analysis Summary and e#ception reports Betail reportsJ 3istJ Summarize Users Senior managers 9rofessionalJ staff manager Middle manager Fperation personnelJ Supervisor

-) MIS

?)T9S

'. Transaction processing system (T9S)H 4

It is the basic system that serves the operational level of the organization. , T9S is a computerized system that performs and records the daily routine transactions necessary to conduct business. ;or e#ampleH sales order entry, payroll, and employment record system. ,t the operational levels tas s resources and goals are predefined and highly structured. The decision to grant credit to a customer for an instance is made by lower4level supervisor according the predefined criteria. T9S are also ma.or producers of information for the other types of system.

&.

Management information system (MIS)H 4

MIS serve the management level of organization, providing mangers with report and often4 online access to the organizations current performance and historical records. Eenerally MIS depend on underlying transaction (T9S) for their data. MIS usually serve mangers primarily interested in wee ly, monthly and yearly resultsJ MIS primarily serve the functions of planning, controlling and ma ing at the management level.

-. Becision support system (BSS)H 4

BSS also serve the management level of the organization. It helps mangers ma e decision that are uni"uely, rapidly changing and not easily specified in advance. ,lthough BSS use internal information from T9S and MIS they often bring in information from e#ternal sources, such as current stoc prices or product prices of competitors. BSS has more analytical power than other system. They use a variety of models to analyze data, or they condense large amounts of data into a form in which decision ma ers can analyze them. BSS are interactive. Aser can change assumptions, as new "uestions and include new data.

?. 7#ecutive support system (7SS)H 4

Senior managers use 7SS to help them ma e decision. IT serve the level of the organization!s are designed the in corporate data about e#ternal events, such as new ta# laws or competitors, but they also draw summarized information from internal MIS and BSS.they filter, compress and trac digital data, displaying the data of greatest importance to senior manager. 7SS employs the most advanced graphics software and can present graphs and data from many sources. Fften the information is delivered to senior e#ecutive through a portal, which uses a web interface to present integrated personalized business content from a variety of sources. Kuestions 7SS assists in answering include the followingH In what business should be weL :hat are the competitors doingL :hat new ac"uisitions would protect us from cyclical business swingsL :hich units should we sell to raise cash for ac"uisitionL

7SS

MIS

BSS

T9S ;IE 'H /73,TIF$SDI9 F; S@ST7M :ITD F$7 ,$FTD7/

".1 Im2act o in ormation s&stem in or*ani3ations

Information systems and the organizations in which they are used interact with and influence each other. The introduction of a new information system will affect organizational structure, goals, wor design, values, and competition between interest groups, decision ma ing and day to day behavior at the same time information system must be designed to serve the needs of important organizational structure, tas s, goals, culture, politics and management. Information technology can reduce transaction and agency costs and such changes have been accentuated in organizations using the Internet .The information system department is the formal organizational unit that is responsible for the organizations information!s system functions. Frganizational characteristics and managerial decisions determine the role this group will actually play.

".4 Sales and )arketin* s&stems$

The sales and Mar eting function is responsible for selling the organizations product or services. Mar eting is considered with identifying the customers for the firm!s products or services, determining what they need or want, planning and developing products and services to meet their needs, and advertising and promoting these products and services. Information systems are used in sales and mar eting in a number of ways. ,t the Strategic level sales and marketing systems monitor trends affecting new products and services and monitor the performance of competitors. ,t the Management level and marketing systems support mar et research, advertising and promotional campaigns and pricing decisions. Mar eting systems support mar eting analysis wor stations. ,t Operational level sales and marketing systems assist in locating and contacting prospective customers trac ing sales, processing orders and providing customer service support.

".5 Data !are(ousin* and Data minin*

, data !are(ouse is a database that stores current and historical data of potential Internet to managers throughout the company. The data originate in many core operational systems and e#ternal sources, including web site transactions each with different data models. They may include legacy systems based on DTM3 documents. The data from these *

diverse applications are copied into the data warehouse database as often as needed4 hourly, daily, wee ly, and monthly. The data are standardized into a common data model and consolidated so that they can be used across the enterprise s for management analysis and decision4ma ing. The data are available for anyone to access as needed but cannot be altered. Data minin* uses a variety of techni"ues to find hidden patterns and relationships in large pools of data and information rules from them that can be used to predict future behavior and guide decision4ma ing. Bata mining is often used to provide information for targeted mar eting in which personalized or individualized message can be created based on individual preferences and there are many other data mining applications in both business and scientific wor . These systems can perform high4level analyses of patterns or trends, but they can also drill down to provide more detail when needed. Bata mining is both a powerful and profitable tool, but it poses challenges to the protection of individual privacy. Bata mining technology can combine information from many diverse sources to create Mdata image! about each of us our income, our driving habits, our hobbies, our families and our political interests.

".6 7o! in ormation s&stems (a+e a ected e+er&da& li e8

,lthough computer systems have been source of efficiency and wealth, they have some negative impact. 7rrors in large computer system are impossible to eradicate totally. %omputer error can cause serious harm to individual and organizational and e#isting laws and social practices are often unable to establish liability and accountability for these problem. 3ess serious errors are often attributable to poor data "uality, which can cause disruption and losses for businesses. Gobs can be lost when computers replace wor ers or tas s become unnecessary in reengineered business processes widespread use of computers increases opportunities for computer crime h and computer abuse. %omputers can also create health problems such as repetitive stress in.ury, computer vision syndrome and technosters.

".9 Incase o Kumari Bank$ )arketin* s&stem

Information is the process form of data. It is the final output that we get after the process of raw facts and figures. 2umari +an is doing the Mar eting activities and transactions manually. Systems used by them are as followsH4 They had their own staffs for the mar eting research They send their staff for the research. They gather information from these staff. There they now about the needs, wants and desire of the people and according to that they prepare product and services. ;irst the mar eting plan was made by the mar eting department and provides that new concept of product to the broad of directors. Then they approve it. ;inally it is selected.

Bankin* ser+ices
2umari +an 3imited serves best to your financial needs at your door step in a very friendly environment. The ban is the most dependable strategic partner for fostering your 0

small saving as well as solving your financial problems through offering uni"ue product customized to your needs only. The ban always prioritizes your priorities. 2umari +an 3imited provides a wide variety of competitive business ban ing services that facilitates to realize your goals. It not only sets to achieve its goals but also helps you to reach your goal. a: De2osit b: Loans c: #orei*n Trade 2umari +an has been offering one of the fastest, safest and the most secured system of money transfer from around the globe to $epal. ,nybody can send money to 2umari +an 3imited for handing over to their relatives in any parts of the country through our correspondent ban s, financial institutions and e#change houses in remitting place. ;ollowing mode of money transfer can be used to remit money. T&2es o bankin*$ 9ersonal ban ing 3oan 3oc er /emittance Beposit +usiness +an ingH Beposit 3oans ;oreign Trade Satary Management /emittance %onvenience +an ing 7vening +an ing :ee end ban ing 74 +an ing Internet ban ing Mobile +an ing (sms) Atility +ill 9ayment

Data !are(ousin*
Dere incase of umari ban ltd it has warehousing in umaripati which is using B/ server i.e. DISASTER Recovery server. This server e#tracts the information from the warehouse using hi4tech tools and gives analysis of future trends in several dimensions, which is nown as Bata mining. It helps in decision4ma ing process. It also helps to retrieve the hidden information from the server because server contains lots of or piles of data so it will be difficult to get the needed information but data mining helps to e#tract it and helps in decision ma ing processed server in umaripati is e"uivalent as main server .It is done incase id the server of ban is damaged due to fire, earth"ua e, it creates loss of data where as the +an ing data plays a vital role in decision support. So, in order to be away from these problems or loses, umari ban ltd has maintained a separates. C

C(a2ter Net!orkin* as2ect in t(e or*ani3ation -.1 De inition

If two or more than two computers are connected to each other to let the user share the resources. /esources might beH a: 7ard!are resources 9rinter Scanner Dard dis b: So t!are resources 8arieties of software c: Data s(arin*

-." Common Net!ork Com2onent

') &) -) ?) )) 5) *) 0) C) '() ServerH /esources provider %lientH /e"uest the resources MediaH path through which signal travels a) Euided media b) Anguided media $etwor adopterH Special card that provides the part to connect the computer. /esourcesH hardware and software $etwor 9rotocolH set of electronic language $etwor TopologyH ,rrangement6layout of the computer +andwidthH ,mount of data that the media can pass Bata rateH The rate at which data travels EatewayH connect two dissimilar networ

-.- T&2es o net!ork

1: L'N ;local area net!ork: It is privately owned networ within a single building up to few m in size. 4%onnect pc 4Share resources 47#change information ": %an ;!ide area net!ork) 4Ased in large geographical area li e countries to continent 4%omple# transmission technology 4%onsists of number of interconnected nodes. -: )an ;metro2olitan area net!ork: 4Semi mini wan 4%onfined within a single municipality. 7#ampleH T8 n6w. '(

-.1 Net!ork To2olo*&

To2olo*& means layout that the organization is going to use. Dere, umari ban ltd id using combination of star topology in place of hub that is central device used to control other computers connected with it within the organization.

-.4 T&2es o To2olo*&

Bus to2olo*&$ ,ll computers are connected with the straight cable Rin* to2olo*&$ ,ll computers are connected with physical ring. ,round the to en is propagated Star to2olo*&$ ,ll the computers are connected with the control device called hub. It provides the port to interconnect all other computer )ess to2olo*&$ In this topology every node is connected with every node with the networ 7&brid to2olo*&$ It is the combinations of best features of two or more than two topologies.

-.5 Incase o kumari bank ltd To2olo*&$ 0

Topology means layout that the organization is going to use. Dere, umari ban ltd id using combination of star topology.inplace of hub that is central device used to control other computers connected with it within the organization, umari ban ltd is using switch which is being popular nowadays. In head office, everyday department is connected wit different switch. ,nd the main switch is connected with a router. ,nd its branch offices computers are also connected with different switch and this switch is connected with router. +ranch offices router is connected with the head offices router to share the information. ,dvantages of using star topologyH 4 '. 7asy troubleshooting &. 3ess costs -. 7asy reconfiguration ?. 7asy to install BisadvantagesH 4 '. Bata transmission rate low &. 3ots of cable

Net!ork
2umari ban ltd is using 3,$ (local area networ ) within its head office as well as branch offices. +ut in umari ban ltd 3,$ differs from branch to branch. 3,$ is privately owned networ within a single building up to few m in size. It is confined within specific area. Its purposes areH 4 '. %onnect pc &. Share resources ''

Bifferent 3,$ has different I9 addresses 7#ampleH 4 2umari ban ltd using class ' I. address. Dere, class , I9 addresses ranges from (4'&5. +ut head offices server communicate through wan (wide area n6w) to its different branches and to its customers by umari ban ltd.

Centrali3ed<decentrali3ed 2rocessin*
2umari ban ltd uses centralized processing system. Main head offices server ta es the I9 from its branch offices, departments and others outside sources so that it can process it and provides bac final o6p The ban has used the networ ing aspect in other department rather than mar eting departmaent. In the mar eting department they are doing transaction manually. In the ,ccounting department the ban is using is using two software. This software is as followsH 4 ') ,ttendance Software &) ,ssets Management Software

To run the whole ban ing system the ban has used GLOBUS T=)=NOS So t!are. There is the /emittance Software also used which has been developed by themselves. The Software is 2umari /emit. ;or the Mar eting of the pro.ect and services the ban has given contract to the advertising agency and these advertising agencies do all the re"uired activities for the ban .The %entral Mar eting Bepartment controls the whole branch mar eting system through 7mail ,nd %ircular. If the +ranch office is near to the central +an then they used circular way flow of information and for the long distance branches ban them information flow is done by email. There is no automated system 2umari ban ltd is using TC.<I..T%96I9 (transmission control protocol6internet protocol reference model is that type of model, which is connection, oriented protocol. T%96I9 establishes the path before sending actual data. So it is reliable one. In this type of reference model the source (sender) nows whether the data has been successfully received the data or not. 2umari ban ltd is using Internet layer, which is concerned for routing the pac et from source to destination using I9 (internet protocol) protocol. On t(e basis o *uided and un*uided media> kumari bank ltd is usin* bot(. ') Ander guided mediaH 4 Fptic fiber cable 2umari ban is using optic fiber cable as guided media to flow its information from Dead office (putalisada )(sender)4to4 its branch office (receipting) in +iratnagar for fast and effective communication. ,nd it is provided by SA+ISA %ompany. '&

&) Ander unguided mediaH 4 8sat Mercantile company provides it. /sat ;+er& small a2erture tec(nolo*&: is used in all branches. Dere data is transmitted with the help of satellite system signal passing through it. +ut incase if these two medias are not wor ing, umari ban ltd uses $T% net phone. Dere, modem issued to connect the Internet and through it information is flown from Digher4level i.e. Dead office (sender) to other levels (receiver). Sometimes, this system of providing information may be late. %at) (catagory)) cable is used.

,dvantages and Bisadvantages of optic fiberH 4 ;ast data transmission

+ranch ' +ranch &

+ranch -

%entral +an

+ranc

+ranch ?

%ollect information

Mar eting staff

;ig &H ;low of Information

'-

C(a2ter 1
SDLC ;S&stem de+elo2ment li e c&cle: 1.1 De inition
The activities that go into producing an information system solution to an organization problem or opportunities are called system development. System development is a structured ind of problem solving with distinct activities. These activities consist of system analysis, system design, programming, testing, conversion and production and maintenance

1." O+er +ie! o s&stem de+elo2ment

Mentioning about the development of system it has its life cycle. The SB3% areH 4 System ,nalysisH 4 Befining 9roblem Identifying its causes Specifying the Solution Information re"uirement meet by system re"uirement b) System designH 4 %onceptual framewor Aser interface Bata design 9rocess design %onstructing 7/ diagram, B;B etc. c) System ImplementationH 4 %onverting the specification into actual program code. d) TestingH 4 <:ill the system produce desired result under nown conditionsL> Testing typesH 4 9rogram testing 6unit testing System testing ,cceptance testing a)

1.- Incase o Kumari Bank

)arketin* tool a) b) c) d) e) f) Similarly, Mar eting tools used by the ban are Mar et study $eed identification Bevelop product Eo to mar et 3aunch the product ;eedbac

'?

Conce2t o 12s
There is a debit card facility. It is using $arada Galamachili.The Mar eting information system has been greatly influenced by 1.s conce2t that isH

a:

.roduct$

9roduct is developed according to the need desire of the customer. 9roduct is developed according to the need desire of the customer and in price

b: c:

.rice$ .lace$

It is related with interest rate. They provide high interest rate to attrac the customer.

It varies with the location. ,ccording to the location there mar eting plan is different. +ut their main focus is on how to attrac the customer.

d:

.romotion$

They use internal and e#ternal mar eting system. 7#tra people are choose through "uestionnaire method, mouth to mouth method, research method they find out where the ban stand up to which level ban has to go and what are the need of ban . :hen the main prepare the new product then it has been sent to IT Bepartment where it has been placed in a electronic way. There they add the facilities and benefits of new product and its features. The features include interest rate, ta#, balance segments and many other things. :hen it is finally prepared then only it is circulated to all the branches and strategy is made. S&stem de+elo2ment li e c&cle o Kumari Bank Ltd.$ 0 .arallel strate*&$ 0 Incase of 2umari +an 3td., it is using 9arallel Strategy conversion where both old system and its potential replacement are run together for a time until everyone is assured that the new one functions correctly. This is the safest conversion approach because in the event of errors or processing disruptions, the old system can still be used as a bac up.

')

C(a2ter4
Desi*nin* and Data #lo! Dia*ram 4.1 Customi3ation %ustomization is the system that allows only that information which is re"uired by the customer. Incase o Kumari bank Ltd, it has the information customization system. It has mainly two parts that areH4 a: 'ccount order
'. &. -. In the account order system there is Sms +an ing Internet +an ing %ard SystemH %ard system is lin ed only with specific customer.

b: Sta in ormation$
In the Staff Information there is '. &. Separate en"uiries of the Staff To maintain information of group of customer

:hile doing mar eting they first publish in $ewspapers and then on leaflet and lastly then use audio and video media.

4." Data #lo! Dia*ram

It is the picture of the movement of data between e#ternal entities and the process and data stores within a system.

4.- D#D s&mbols

4.-.1 .rocess

:or or action performed on data 3abels should be verb phrases /eceives input data and produces output %an have more than one outgoing data flow or more than one incoming data flow '5

4.-." Data lo!

It is a path of data to move from one part of IS to another ,rrows depicting movement of data %an represent flow between process and data store by two separate arrows

4.-.- Data Store

Must have at least one incoming and one outgoing data flow.

4.-.1 Source

Must be connected to a process by a data flow.

4.1 Descri2tion o conte?t dia*ram o marketin* de2artment o Kumari bank

The IT Bepartment4I too the product re"uirement from the mar eting department, which is going to launch the new product. ,fter getting the information of product re"uirement from the IT Bepartment it provides feasibility report to them. :hen the mar eting department gets the feasibility report from the IT department, the mar eting department do survey and get some information from the customer. ,nd side4by4side it also follows the advertising of the product. ,nd customer also provides feedbac regarding the product. Since there are many competitors in the mar et, mar eting department do the competitive analysis of the competitors and point out the strength and wea nesses of the competitors. ,fter performing the S:FT analysis the mar eting department re"uests the IT Bepartment4II of Dead Fffice for the product launched. Then after IT Bepartment4II design and sets a new product and provide those in formations to mar eting department. ,fter that mar eting department finally re"uest for the product launched to the management team of head office. ,nd the management team provides permission beneficial to the mar eting department. Dence, at last the new product is launched.

'*

C(a2ter 5
=t(ical issues 5.1 De inition
7thics means the way, which guides individuals to .udges their behavior as right or wrong. 7thics is a principle of right and wrong that individuals, acting as free moral agents, use to ma e choices to guide their behavior. Information technology can be used to achieve social progress and can be used to commit crimes and threaten social values. +ut while using information system, it is essential to as , <:hat is the ethical and socially responsible course of actionL>

5." =t(ical> social and 2olitical issues

7thics refers to the principles of right and wrong that individuals acting as free moral agents, use to ma e choices to guide their behaviours.information systems raise new ethical "uestions for both individuals and societies because they create opportunities for intense social change thus threaten e#isting distributions of power, money, rights and obligations Social issues spring from ethical issues as societies develop e#pectorations in individual about the correct course of action. The central liability related social issues concern the e#pectations that societies should allow to develop around service providing information system. 9olitical issues spring from social conflict and are mainly concerned with using laws that prescribe behavior to create situation in which individual behave correctly. :hen the Eovernment changes its rules and regulation, organization too has to change its whole system and adopt new system as per the re"uirement. Service provider argue they will withdraw from the mar et place if they are held liable, whereas service user argue that only by holding providers liable can they guarantee a high level of service and compensate in.ured parties. So, political issues also directly or indirectly affect the organization!s information system.

5.- =t(ical issues raised b& in ormation s&stem include$ 4

7stablishing accountability for the conse"uences of information systems Setting standards to safeguard system "uality that protect the safety of the individual and society. 9reserving values and institutions considered essential to the "uality of the life in an information society.

'0

Information /ight and Fbligation

9roperty rights and obligations

Social Issues 9olitical issue

7thical Issues

IT @ IS
,ccountabilitontr ol

System "uality

Kuality Ff life

Fig: 4 Five Moral Dimensions 5.1 #i+e )oral Dimensions o t(e In ormation '*e
The ma.or ethical, social and political issues raised by information system include the following dimensionsH 5.1.1 In ormation ri*(ts and obli*ations$ /ights that individuals and organization have respect to the information by themselves. This will include the employee mail privacy, wor place monitoring, treatment of corporate information and policies on customer information. :hat information rights do individuals and organization possess with respect to information about themselvesL :hat can they protectL :hat obligations do individuals and organizations have concerning this information. 5.1." .ro2ert& ri*(ts and obli*ations$ The tangible property created by individuals or organization which is sub.ect to protect under trends secrets, copy rights, patent rights is intellectual property rights. Dow will traditional intellectual property rights be protected in a digital society in which tracing and accounting for ownership is difficult and ignoring such property right is so easyL 'C

5.1.- 'ccountabilit& and control$ The mechanism for accessing responsibilities for decision made and action ta en is accountability. This will give answer for what can and will be held accountable and liable for the harm done to individual and collective information and property rights. :ho can and will be held accountable and liable for the harm done to individual and collective information and property rightsL 5.1.1 S&stem Aualit&$0 :hat standard of data system "uality should we demand to protect individual rights and safetyL ,ll developers want to maintain system "uality and data accuracy. ,ll the venders should have the rights to select the "uality system for their use. , system, which is error free, affordable, maintainable is, regarded as best system. 5.1.4 Aualit& o li e ;AOL:$0 The "uality of system will maintain the "uality of life. ,ll information has their norms and values that play the vital role in "uality of life. This will help to give the answer for the different "uestions li eH 4 what value should be preserve in information and nowledge based societyL The main social, ethical and political issues raised by information course of action often in a situation in which two or more ethical principles are in conflict. Social issues arise from ethical issues as societies develop e#pectations in individuals about the correct course of action. 9olitical issues arise from social conflict and have to do largely with laws that prescribe behavior and see to use the law to create situations in which individuals behave correctly.

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C(a2ter 6
74commerce 6.1 De inition
,lthough most commercial transaction still ta es place through conventional channels, rising number of consumers and business are using the Internet for electronic commerce. The Internet provides companies with new channels of communication and interaction that can create closer yet more cost effective relationships with customers in sales, mar eting and customer support. %ompanies can use the web to provide on going information services and support, creating positive interactions with customers that can serve as the foundations for long4term relationships and repeat purchase. Some of the e4commerce areH4 ') Birect sales over the web &) %ustomer self service -) 7lectronic commerce payment systemH 4

6." Cate*ories o electronic commerce

There are many ways in which electronic commerce transactions are classified, depending on the nature of the participants in electronic commerce transaction. The three ma.or electronic commerce categories areH 4 1. ". -. Business to consumer e0 commerce$ 0 It involves retailing products and services to individual shoppers. 7.g.H 4selling boo s. Business to business e0 commerce$ 0 It involves sales of goods and services among businesses. 7.g.H 4 selling cutting tools. Consumer to consumer e0commerce$ 0 It involves consumers selling directly to consumers. 7.g.H 4 the giant web auction site. It allows people to sell their goods to other consumer by auctioning.

7#cept above three mobile commerce has also been widely used. +ecause mobile commerce is a hand held wireless device for purchasing goods and services.

6.- Some o t(e electronic commerce 2a&ment s&stems are$ 0

a: Di*ital credit card 2a&ment s&stem$ 0 Secure service for credit payments on the Internet that protect information transmitted among users, merchant sites, and processing ban s. ;or e#ampleH charge b: Di*ital !allet$ &'

Software that stores credit card and other information to facilitate payment for goods on the web. 7#ampleH msn wallet, master card wallet, ,F3 "uic chec out. c: 'ccumulated balance s&stem$ 0 ,ccumulated micro payment purchase as a debit balance that must be paid periodically on credit card or telephone bills. 7#ampleH trivnet payment one. d: Store +alue 2a&ment s&stems$ 0 7nables consumers to ma e instant payments to merchants based on value stored in a digital account. 7#ampleH ecount ,merican e#press blue smart card. e: Di*ital cas($ Bigital currency that can be used for micro payment or larger purchases. ;or e#ampleH ecoin.net : Di*ital c(eckin*$ 0 7lectronic chec with a secure digital signature. ;or e#ampleH western union money Nap echec . *: .eer to 2eer 2a&ment s&stem$ 0 Sends money using the web individuals or vendors who are not set up to accept credit card payments. ;or e#ampleH paypal yahoo pay direct. (: =lectronic billin* 2resentment and 2a&ment s&stems$ 0 Support electronic payments for online and physical store purchases of goods or services after the purchase has ta en place. 7#ampleH chec free yahoo bill pay, msn bill pay.

6.1 Interacti+e )arketin*

Mar eters are using the interactive features of web pages to hold consumers attention or to capture detailed information about their tastes an interest for one O to O one mar eting. :ebsites has detailed information about customers behavior, preferences, needs and buying patterns that companies P ban s can use to now promotions, products, services and pricing. /egistering online by customers, they are provided information about themselves. Fn this way organization can analyze the information about customer interest and behavior to develop more strong services for e#isting and potential customers. 9ersonalization formed by organization in order to maintain relationships with customers by providing individualized content, information and services. 7.g.H 4 ,mazon .com (/etains information on each customer!s purchases.)

6.4 T(e Internet and Or*ani3ations$ 0

The Internet, especially the :orld :ide :eb (:::), is beginning to have an important impact on the relationships between firms and e#ternal entities. Internet is capable of dramatically lowering the transaction and agency cost facing most organizations. ::: helps for the updates of information globally. +usiness are rapidly rebuilding some of their &&

core business processes based on Internet technology and ma ing this technology a ey component of their information technology (IT) infrastructures Intranet technology can be applied to internal management of sales and mar eting function. Sales staff can dial4in for updates on pricing, promotions, etc. They can access presentations and sales documents and customize them for customers. Intranets can also be used to simplify an integrate business processes spanning more than one functional area. These cross O functional processes can be coordinated electronically as well as can coordinate with the business process of other organization.

6.5 Intranet (el2s in$0

a) %ompetition analysis b) 9rice updates c) promotional campaigns d) sales presentation e) reduces consumers search cost and transaction cost f) find the right combination of trust, customer services and consumers need g) help in different services by using customization techni"ues and community mar eting techni"ues

6.6 Intranet a22lication or electronic business

Intranet technology is also useful for the internal management of the sales and mar eting functions. Fne of the most popular applications for corporate intranets involves overseeing and coordinating the activities of the sales force. Sales staffs consult the intranet for updates on pricing, promotions, rebates or customers or to obtain information about competitors. They could access presentations and sales documents and customize them for customers.

6.9 Incase o Kumari Bank

2umari ban ltd has also provided the services li e mobile ban ing, Internet ban ing, auto sweep Internet Bankin* The ;irst commercial ban in the country to provide <Internet +an ing serviceQ to its customers. This service has allowed the ban to streamline the services it offers to customers. It allows customers the fle#ibility to ta e control of ban ing activities via the Internet. ;urther it has enabled our core customers to transact with us from any corner of the world and made their .ob simpler.

)obile Bankin* :e ta e the pride to be the first ban in the history of $epal to start a mobile ban ing service. The ban has facilitated this service to our customers with the sole ob.ective of being an additional channel with a crucial role of responding to their en"uiries and transactional information via SMS messaging.

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'uto s!ee2 , revolutionary concept for the first time in $epal with a growth option to the chec ing account holder of transferring their e#cess balance to Time6%all deposit account.

/isa =lectron Debit Card$ :hich is accessible in entire 8IS, lin ed ,TMs (including '0 own ,TMs) and 9FS (9oint of Sale) terminals both in $epal and India, has also added convenience to the customers.

;igH ) Intranet ,pplication of Ma.or ;unctional ,rea of Frganization

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C(a2ter 9
Bud*etin* 9.1 Introduction
+udgeting is the allocation of money in different sectors li e human resources, mar eting, research and development etc. :ithout the +udget it will be impossible to e#ecute the pro.ect. +udgeting shows the direction in which sector, how much amount to be invested and get the best outcome from it. 9." In case o Bank 2umari ban has prepared the mar eting budgeting on the three bases which are as followsH4

Bud*etin*

Banking

Advertisement

9rinting Media
Fig: 6 Budget Allocations

,udio 6 8ideo

2umari +an 3td. has allocated its budget into two sectorsH a) +an ing b) ,dvertisement

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,gain the advertisement sector has further allocated budget into two media for better product. The two media are printing media and audio video media. ;or the advertisement of the product they choose the advertisement agency.

C(a2ter B Su**estions
B.1 C(allen*es$
9ossible management challenges will have to face by the ban ing organization Di*itall& enablin* t(e enter2rise re,uire a com2lete c(an*e o mind set$ Frganization must consider a different organization structure, changes in organizational culture, a different support structure for information system, a different procedure for managing employees and networ processing function.

#indin* a success ul Internet Business )odel$ many electronic commerce sites have turn a profit and ma e difference in organization sales and mar eting effort. So the organization should adopt electronic commerce to create a wor able business model on internet.

B." Su**estions$
System is allocation of collection of interrelated component built to attain a common goal. There must be control mechanism to stop deviation from natural flow of data in a system. Though, umara +an limited is being computerized but still in some department the wor has been done manually. There arise different problems from communication between customers to update the information in their ledger. So, it is not much more reliable in this new age information technology. 2umara ban has to follow a system to ma e their wor effective and easy, so that there may not be any problem to the staff as well as their customer. 7ven though it is difficult to adopt digital system, from the view point of a customer it has become the re"uirement of the time for ma ing their wor efficient and systematic. +asic awareness of IT should be provided to all the staff ,ll the warnings and errors should be properly diagnose. Staff should have the behavioral development training. Bepartment name should be mentioned. They should follow the 7SS and BSS tools as well.

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Conclusion
There is difference between theory and in practice in the real world. 7ven in the era of technology most of the wor s are being manually done. :hile preparing our report, we came to now that the 2umari +an is using star topology. They had the centralized processing system. :e came to now that how the networ topology and the media wor in real life. It has used both guided and unguided networ ing media. :hile preparing our report about mar eting system of 2umari +an , we came in conclusion that the +an is using manual mar eting recording system. +ut with the change of technology there is necessity of adopting digital mar eting information system.

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