Documente Academic
Documente Profesional
Documente Cultură
PartIIReviewonInformation
Technology
April2005
TableofContents
Page
I. Background Information 43
II. Impact of Technology on the Banks
Organizational Transformation 44
2.1 Impact of IT on Organization Arrangement 44
2.2 Impact of IT on Manpower Resources 48
III. Status of Computerization 50
3.1Office Automation and Networking 50
3.2 Payroll and Human Resource
Administration 51
3.3 Banking Services and Loans 52
3.3.1 Retail Banking 52
3.3.2 Loaning Functions 53
3.3.3 Other System Facilities 54
3.4 Remaining Tasks 54
IV. Benefits expected from The New System 56
4.1 Benefits 56
4.2 Capability available for employees 56
4.3 Business Process Management (the
Reward Facility) 57
V. Proposed Automations 59
2
I. Background Information
The Bank was using an old NCR Mini-computer system, which was
out of the market currently, to handle its regular banking
operations. The system provided partial services due to its low
processing and storage capacity. All the functions of the Bank were
not supported by the computerized information system.
Operational units were not entitled to get the service of the
computer through direct system access, rather only the Finance
and Banking Departments staff got some degree of access to the
system using dummy terminals. Most of the units of the Bank were
using personal computers with low processing power and without
any specialized applications or tools to handle their day-to-day
banking operations.
The old system, moreover, did not have any local support and spare
parts readily available for any hazardous conditions. The capacity
of the mini-system was extremely low and is about to stop
entertaining any additional data as its storage capacity was very
low. The MIS report processing requirements of the Bank were not
well addressed, for internal as well as external consumptions, by
the system for decision-making.
The software application that the Bank was using was very limited
in its functionality and scalability to the growing volumes of work.
Most of the required functions were not supported, and these
functions were done manually. Above all, during that time the
3
UNIX operating system, the old banking application system, and
related utilities were not made fully Y2K compliant.
4
2.1 Impact of IT on Organization Arrangement
The scope of technology that the Bank may adopt or employ is vast,
ranging from something seeming simple, such as buying personal
computers with commercial/off-the-shelf applications, to investing
in the latest state-of-the-art banking software solutions.
5
information technology can be linked to changes in factors such as
job design, physical layout or location, supervisory relationships
and autonomy, cooperation inside and outside the Bank, and
formation of work teams.
6
employee by saying "Employees in the new information-based
company will know what they have to do without a flock of vice-
presidents feeding them information and orders."
7
The above discussion emphasizes that the formal organization
structure will nearly always be affected by the implementation of
technological systems. More than being helped by computers, the
Bank will live by the technology, shaping the strategy and the
structure to fit the new information technology acquisition.
8
2.2 Impact of IT on Manpower Resources
9
technology. Whereas the number of IT staff would be increased to
support the technology in all facets of development (i.e.,
networking, software support, disaster recovery, and upgrade
efforts).
10
III. Status of Computerization
Currently the local area network system has been established and
various units of the Bank in the HO are linked each other and with
the central data center. The infrastructure has the capacity to scale
up and can easily be upgraded.
11
Desktop computers and related accessories basic requirements at
braches have been given so as to accommodate their needs.
12
3.3 Banking Services and Loans
- Accounts
- Data Capture
- Stop Payment
- Teller
- Standing Order
- Funds Transfer
- Bonds
- Equity Investment
- Time Deposit
- Waste Management
- Fixed Asset
- Nostro
- Trade Finance
- Treasury
- Image management
- Funds Transfer
- SWIFT
Currently, the domestic banking part of the software system has
been in catch up process from 1st July 2004.
13
3.3.2 Loaning Functions
Loans in general:
- Long-term
- Medium-term
- Short-term
Some of the specific functionalities being automated can be listed
as follows:
- Stabex Loans
- Managed Funds,
- Additional Loans
- Loan Rescheduling
- Guarantee Fund
- Staff Loans
- Own Funds
- RUFIP
- Local Borrowings
- Foreign Borrowings
- Limits
- Collateral
- Provisioning
- Syndicated Loan
- Decision Support
14
3.3.3. Other System Facilities
Several tools and facilities are being considered in the new software
application implementation among which the followings are few of
them:
15
remote branches will be made connect with the central server in
the Head Office through a wide area network using dedicated
leased lines. These tasks will be made step by step so as to fit
infrastructure requirements with software implementations plans.
The three branches whose roll out will be made following the Head
Office implementation include Bahirdar, Jimma, and Awassa. This
will help the Bank start roll outing branches with the new
technology.
These branch offices are required to keep their data cleansing and
conversion in place up front to the start of the software
implementation.
After Globus has been roll out at the three initial branches, the
next step will be implementing the software at the remaining five
branches. These branches are Nazareth, Addis Ababa and
Surrounding, Nekemt, Mekele, and Diredawa. This process
necessitates the wide area network connection of these branches
with the central server located at the Head Office.
16
VI. Benefits expected from the New System
By computerizing most of its functions, the Bank would be able to
achieve the following benefits:
4.1 Benefits
17
4.2 Capabilities Available for Employees
Risk Assessment:
- Evaluating risk and managing the collaborative process of
approval
Event Management:
- Managing specific events within the daily transactions on
any customer account
18
Insurance Claims Processing
- Dealing with queries, attaching documents for reference,
generating letters and contacts, etc.
19
V. Proposed Automations
20