Business Analysis of Reliable Finance Company

This report discusses the business analysis of Reliable Finance Company, including stakeholders, scope boundaries, process model, and specific changes in business processes.

Running head: BUSINESS ANALYSIS OF RELIABLE FINANCE COMPANY
Business Analysis of Reliable Finance Company
Name of the Student
Name of the University
Author’s note

1BUSINESS ANALYSIS OF RELIABLE FINANCE COMPANY
Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1 The Stakeholders in the Project.............................................................................................2
2.2 Scope Boundaries of the Business.........................................................................................3
2.3 Process considered for the Project.........................................................................................3
2.4 Current Process Model for the Payment Processing System.................................................3
2.5 Specific Changes in the Business Processes..........................................................................4
2.6 New Process Model for the Business....................................................................................5
2.7 Modelling Diagrams..............................................................................................................7
2.8 Strengths and Weaknesses of the Various Modelling Techniques........................................8
2.9 Technical and Business Complexities within the Project......................................................9
3. Conclusion.................................................................................................................................10
References......................................................................................................................................11

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1. Introduction
The business analysis is based on the case study for Reliable Finance Company (RFC),
which had mainly initiated in the 1990s. RFC had primarily started by lending loans to
businessmen and farmers. With their inception, the company has achieved massive heights and
have thus redesigned their business process. Based on their deliberate efforts, RFC has expanded
their 178 branches to different parts of Sydney, Brisbane, Adelaide and Melbourne (Sinkovics,
Sinkovics and Yamin 2014). The company is also in the process of offering loans to individuals
for assisting them in making various purchases such as home appliances, improvements and
automobiles.
However, with the expanding of the business the company is also planning for the
inclusion of an enhanced Information System that would be able to support the processing of
transactions based on loans, settlements and payments (Wilson 2016). This report thus discusses
about the various aspects in relation to the new implementation of business processes.
2. Discussion
2.1 The Stakeholders in the Project
The stakeholders involved within the project are:
Bryce Clarkson – He is the grandson of the founder. He has formed a management team
within the company and is responsible for managing the growth plan for the company.
Branch Personnel – They are responsible for managing the Home Office Payment
Processing Department. They verify the status of each completed payment with the help of an
enclosed voucher.

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Branch Manager – They are responsible for managing the entire Accounting
Department and also keeping a track over each of the branch-by-branch payment report.
Customer Service Department – They are responsible for receiving customer calls,
settling of payment related queries with them, keeping a trace over each of the activities made
during the payment and many more.
2.2 Scope Boundaries of the Business
Some the primary scope boundaries of the current business processes can be described
from the fact that the Information System that would be implemented within the Delinquency
Analysis System and Settlement Accounting System would not affect any other department
(Laboni 2015). The IT administrator who would be responsible for keeping a track over each of
the systems would also ensure that the boundaries of the project would put its effect over both of
these department sections.
2.3 Process considered for the Project
Based on the discussed problems over the project, it could be considered that the
activities of the current payment processing system should be changed. An implementation of a
new Information System would be able to support the processing of transactions for payments,
loans and settlements. Each of the necessary areas would be changed by properly analysing the
existing processes and thus thinking of new and better steps that could be implemented for
mitigating the problems.
2.4 Current Process Model for the Payment Processing System
A current process model for the payment processing system have been described in the
following diagram:

4BUSINESS ANALYSIS OF RELIABLE FINANCE COMPANY
(Figure 1: As-Is System 1 of the Internal Processes)
(Source: Created by author)
2.5 Specific Changes in the Business Processes
Some of the specific changes in the business processes and information that would
improve the payment processing system are:
1. In the current problems, there is a certain problem to keep a check over the incoming
payments that are identified with a printout. This results in huge form of clerical work and
correcting of errors (Zakkariya and Nishanth 2014). The use of Information System would
reduce the manual work as it would send a notification of cleared payments to each of the
concerned departments and they would be able to better track the processes.

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2. There are certain levels of problems triggered during processing of payments. A
reminder is not sent to the customers about their due payments at the loan section (Makkonen
2014). An Information System would be beneficial in such situations as an intelligent system
would track each of the due dates of each person and thus forward reminder messages.
3. Manual work within the administrative systems consumes a lot of time. This problem
could be resolved by the Information System as it would be able to process the requests at a
faster rate, record payments, maintain the files for local branch loans and many others.
4. With the help of the Information System, the RFC would be able to track the details of
each person (Abdulmalik and Ahmad 2016). This Information System would also create a
personal profile for each customer and thus they would also help in identifying and maintaining
the records of each individual.
5. The Information System would also help in planning for cash flow and plan according
to the needs of the company.
2.6 New Process Model for the Business
The new process model based on re-designing of the payment processing system for the
business could be described as:
1. The Information System would provide options for the customer to register themselves
to RFC based on which they would be provided with a Loan ID.
2. A set of loan categories would be available for the choice of the customers and their
according needs.

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3. The customers could avail their loans as per their requirements. They would have to
fill some forms within the Information System (Jayaraman 2016).
4. After the loan is sanctioned, the customers would be assured of the same by an email
confirmation.
5. The customers could be able to repay their loan in several options that would be
provide to them. This could be in the form of direct loan repayment, monthly instalments.
6. These loan repayment would be verified by the Information System by verifying the
customer with their Loan ID (Eludire 2016). After a certain payment has been done, the
Information System would update their records and the customer would get an email
confirmation about the same.
7. After the entire loan has been cleared, the Information System would clear out the
name of the customer from their records and this information would be updated in the database
of the company.

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2.7 Modelling Diagrams
(Figure 2: As-Is System 2 of the Internal Processes)
(Source: Created by author)

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(Figure 3: To-Be Implemented System)
(Source: Created by author)
2.8 Strengths and Weaknesses of the Various Modelling Techniques
The strengths of the discussed modelling techniques are:
1. With the inclusion of the Delinquency Analysis System, the loans would be computer
generated and each of the receipts of payments would be sent through mail (Karim, Chahine and
Kaaki 2014).
2. Reminder is sent to the customers once their loan repayment due date has exceeded
over a time period of 15, 30, 45 and 60.
The weakness of the discussed modelling techniques are:

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1. The reminder is sent after the due date is over. However, it should have been sent prior
to their loan repayment date. This might have helped the customer to get an idea about the date
on which they have to pay their loans.
2. The clerical works that are handled by manual labour should be replaced by an
Information System. This would help in mitigation of errors from the system.
2.9 Technical and Business Complexities within the Project
The technical complexities that might have been experienced during the consideration
over the project are:
1. Analysis over choosing the proper vendor – Choosing the proper technical vendor
who would build the Information System for RFC is one of the biggest concern.
2. Check over the Quality of the Information System – Fixing of bugs within the
program would be highly essential. A proper system would be able to generate better business
outcomes (Narra et al. 2014). Hence, the quality checking can be also considered as the biggest
technical complexity.
3. Resource Rates – The cost rates of each computer software or hardware required
during the implementation of the Information System should be decided on an early basis
(Bhuyan and Uddin 2015). Fixing of costs and determining the proper resources is also regarded
as a technical complexity.
The business complexities that might have been experienced during the consideration
over the project are:

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1. Deciding over the Implementation Process – A common thought before the business
could be regarding the face whether the system would be able to incur profits for the company
(Moniruzzaman 2015).
2. Sustainability of the Information System – The sustainability of the Information
System within the business could be highly considered after the installation phase.
3. Conclusion
Based on the discussion supported from the report, it could be concluded that RFC is in a
high need to implement an Information System within their business processes. The discussion
focuses on the key stakeholders and the responsibilities that have been assigned to them. The
report also discusses about the scope boundaries based on the to-be implemented project. The
business processes of the company is facing some serious issues based on the loan section. The
business still depends on manual labour and other traditional processes for loan clearance and
other related processes.
This report thus puts emphasis over the usage of an Information System that could be
implemented within the system and which could help in improving the current business
processes. The current process model of the company is discussed and based on this the new
model have been discussed. The implementation of such systems would help in the future
outcomes for the company and ease their business processes.

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References
Abdulmalik, S.O. and Ahmad, A.C., 2016. Corporate Governance and Financial Regulatory
Framework in Nigeria: Issues and Challenges. Journal of Advanced Research in Business and
Management Studies, 2, pp.50-63.
Bhuyan, M. and Uddin, S., 2015. An empirical study on SME Banking System and Procedure of
BRAC Bank limited.
Eludire, A.A., 2016. The Development and Implementation of a Loan Classification Database
System.
Jayaraman, R., 2016. Project cost control: a new method to plan and control costs in large
projects. Business Process Management Journal, 22(6), pp.1247-1268.
Karim, N.A., Chahine, K. and Kaaki, O., 2014, November. Lebanon's qualifications to upgrade
for a Smarter Grid. In International Conference on Renewable Energies for Developing
Countries 2014 (pp. 122-126). IEEE.
Laboni, M.A., 2015. A Study on SME loan Products and Procedure of BRAC Bank limited.
Makkonen, A., 2014. Instant loans: Problems and regulations in Finland. Juridica Int'l, 22, p.96.
Moniruzzaman, M., 2015. A study on SME banking system and procedure of BRAC Bank
Limited.
Narra, S., Chaitanya, L.N., Ponugoti, S. and Kumar, N.S., 2014. Integrating and Organisation of
Multidimensional Virtual Citizen Database with Extinction and Limited Access. International
Journal of Computer Applications, 85(2).

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Sinkovics, N., Sinkovics, R.R. and Yamin, M., 2014. The role of social value creation in
business model formulation at the bottom of the pyramid–implications for MNEs?. International
Business Review, 23(4), pp.692-707.
Wilson, F., 2016. Making loan decisions in banks: straight from the gut?. Journal of business
ethics, 137(1), pp.53-63.
Zakkariya, K.A. and Nishanth, P., 2014. Barriers faced by micro, small and medium enterprises
in raising finance.