Business Process of Commonwealth Bank

This paper evaluates the business process of Commonwealth Bank along with the existing ERP system of the organization. It discusses the challenges of the business processes in the existing ERP system and the identification of the issues in the existing business system. The paper also discusses the possibilities of the risks in the organization and the ways to mitigate them.

Running head: BUSINESS PROCESS OF COMMONWEALTH BANK
BUSINESS PROCESS OF COMMONWEALTH BANK
Name of the Student:
Name of the University:
Author Note:

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BUSINESS PROCESS OF COMMONWEALTH BANK
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Development of the business requirements:................................................................................3
Determination of the system requirement:..................................................................................4
Selection of the software and vendor:.........................................................................................5
Utilization of the technology for the improvement of the banking system:................................6
Evaluation of the level of efficiency of the technology discussed:.............................................7
Evaluation of the potential risks in the functioning of the commonwealth bank:.....................10
Mitigation of the risks:...............................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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BUSINESS PROCESS OF COMMONWEALTH BANK
Introduction
Commonwealth Bank is one of the significant bank in Australia. The bank operates both
retail and the investment banking. The business process for the bank is complex and has several
modules of operations. The primary functions of the banking system is to provide the users to
open the bank account and the make the possible gateways for the transaction of the money.
Apart from that the other business operation of the bank includes providing the loan to the
individuals and the organizations (Alalwan et al.,2016). The main objective of this paper is to
evaluate the business process of the organization along with the existing ERP system of the
organization (Leonardi et al.,2016). The paper discusses about the ERP process of the
organization and the challenges of the business processes in the existing ERP system (Dube,
Muzinda & Ndlovu, 2017). The identification of the challenges and the issues in the existing
business system will help to develop the mitigation plan of the issues. Apart from that the
possibilities of the risks in the organization can be reduced in this way.
Discussion
Commonwealth Bank is the largest bank in Australia. It operates in different parts of
country and has several branches. The operation of the banking process includes the assigning of
the loan and providing other financial services to the consumers. Apart from that the bank has
several business dealings with the other organizations (Shaikh, Glavee-Geo & Karjaluoto,2018).
Moreover, along with providing several services to the consumers, the bank is also concerned
about the expansion of the business outside of Australia. It can be said that the Commonwealth
Bank Australia has various goals and objectives in the business process. Handling all these
process in a correct manner the ERP system has been implemented in this banking organization
(Scheibe & Blackhurst,2018). However, there are certain challenges and issues in the existing

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BUSINESS PROCESS OF COMMONWEALTH BANK
ERP system. The challenges and issues raises as the requirements of the banking operation
changes and the several new business objectives added in the list. The modification and the
implementation of the ERP system will help to meet all the requirements of the business
objective of the Commonwealth Bank.
Development of the business requirements:
The business requirement of the organization is concerned with the primary requirements
of the processes those are needed to meet the business objective of the organization. The
documentation of the requirement is needed to be done in a proper way so that it can help to
mitigate the scope creep during the processing of the functions in the business organization
(Winarso & Salim, 2017). The scope creep refers to the change on the requirement during the
processing of the operations. The scope creep can increase the overhead cost of the organization
(Kweh et al.,2018). Apart from that the delivery time or the processing time of the operation can
be increased which is not desirable for the organization.
The business requirements for the Commonwealth Bank is complex as the bank operates
various operations for different purposes. The basic requirements for the bank is to maintain the
infrastructure that can provide the services to the consumers regarding the retail banking process.
The use of the emerging technology can be done in this context (Capponi & Chen,2015). The
bank has implemented certain use and application of technologies for increasing the flexibility of
the processes related to the retail banking. Some of these application includes the implementation
of the ATM machines in different parts of the city so that the users can get the money easily
from the ATM. In order to use the ATM the bank has provided unique PIN number to the each
users of the banking services. Apart from that the bank has implemented the secured payment
gateway for the safe transaction of the money through online processes (Reim, Parida & Sjödin,

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BUSINESS PROCESS OF COMMONWEALTH BANK
2016). All these things are handled through the proper management planning. The enterprise
resource management processes helps the organization to manage all the processes in an
organized manner. Apart from that the bank has implemented various technical system to
enhance the flexibility of way of providing the services. Those technical systems are designed in
such a way that they can cooperate with the business requirements of the bank. In that case the
business unit provides the requirements to the technical team. In this case, the flow of the
communication between the technical team and the business unit is important. Improper
communication can lead to the misunderstanding of the requirements (Srivastav &
Hagendorff,2016). Along with that the other important requirements includes maintaining the
quality of the services of the organization (Dube, Muzinda & Ndlovu, 2017). The system in the
business organization is needed to be flexible enough so that the system can be flexible enough
to adopt the change in the business process.
Determination of the system requirement:
The systems used in this banking organization are based on the technologies which are
emerging in nature. The commonwealth bank of Australia has implemented various machines
and systems which is based on the high end technology and is capable of delivering the quality
service within small time span. The use of cloud computing can be seen for the storage purpose.
The hybrid cloud model issued for the storage of the information of the bank. Te security of the
cloud computing is maintained partially by the organization (Peters & Panayi,2016). The
information includes the user data and the information regarding the business process of the
organization. The information are confidential and sensitive in nature in that case, the cloud
storage provides better security so that the possibility of the breaching of the data can be
managed. Apart from that the use of the artificial intelligence and the application of the machine

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BUSINESS PROCESS OF COMMONWEALTH BANK
learning has been implemented in the various systems. This increases the efficiency of the
system along with delivering of the result in a correct way or form (Schlagwein, Thorogood &
Willcocks,2014). For the authentication purpose the bank has implemented different bio metric
systems. For the unique identification of thee users in the ATM the use of the PIN number has
been implemented. However, there are certain requirement for the technical improvement of the
whole system (Dube, Muzinda & Ndlovu, 2017). The negotiation between the third party cloud
provider and the organization is needed to be done in order to enhance the security of the storage
system of the cloud. For the management of the database system of the bank, the bank is needed
to implement the proper software application for the service.
Selection of the software and vendor:
The selection of the software and the vendor is an important process for brining the
flexibility of the system. The right selection of the software and the software vendor will help to
meet all the requirements of the business process. The selection of the vendor is done in case of
the implementation of the hybrid cloud. Public cloud and private cloud are used in case of
hybrid cloud. The security of the public cloud is maintained by the cloud providing vendor. In
selection of the right vendor is needed to be done so that the content and the information of the
bank and its users can be secured. The selection of the software is important so that the software
can serve all the requirements needed by the bank. Recently the bank has developed the interest
to invest the amount in the application of the block chain technology for ensuring the
enhancement of the security. The application of the emerging technology needs the deployment
from the users (Martins, Oliveira & Popovič, 2014). The bank has a bunch of promising software
developers who are responsible for the application of emerging technology for the processing of

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BUSINESS PROCESS OF COMMONWEALTH BANK
the different operations of the banking system. The selection of the software can be done on the
basis of the expert advice provided by the software professionals working in the banking system.
Utilization of the technology for the improvement of the banking system:
There are various ways through which the bank can use the technology for the
improvement of the banking system. The management of the banking organization can use the
latest and emerging technologies for the improvement of the current business process. The
implementation and the application of the technology can be used on the basis of the requirement
of the banking sector and the issues present in the current business process. Three ways have
been described for the improvement of the business process of the Commonwealth Bank:
Use of block chain technology for the enhancement of the security: The block chain
technology can be implemented by the commonwealth Bank for the successful implementation
of the security system in the banking process. Block chain technology mainly used in keeping the
security of the ledger of the bitcoin is using for the various purpose. The main advantage of the
block chain technology is that the nature of this security system is decentralized in nature. The
control of the security system is distributed in this case (Yip & Bocken, 2018). The block chain
technology can be used for the enhancement of the supply chain management in the banking
system. Apart from that the implementation of the block chain technology in the online payment
gateway will enhance the security of the transaction of the payment system Moreover it will also
help to keep the information regarding the users secured during the transaction.
Use of the ERP system in the organization: Enterprise resource planning is used by most
of the large organizations. The commonwealth Bank of Australia can use the ERP system for
managing all the information and the business processes running at the different branches of the

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BUSINESS PROCESS OF COMMONWEALTH BANK
organization. The main advantage of using the ERP system in the bank is that that this software
will help to make the integration between the processes of the business unit, technical unit and
human resources. It will make the system more compatible (Poledna & Thurner, 2016). Apart
from that the financial processes will be managed in an effective manner through the
implementation of the ERP in the banking system. Some of the recommended ERP system those
can be considered for the implementation in the banking system are SAP, Oracle EBS, and
EBANQ (Dube, Muzinda & Ndlovu, 2017). There are different variations in the services the
different ERP system provides to the organization. Commonwealth Bank of Australia needs to
select the ERP system based on the requirements of this banking organization.
Innovation in the payment system: the payment system cannot improvised through the
application of different technologies. One of such initiatives is the innovation of the Albert, a
smart EFTPOs tablet. The users can make the online payment through the use of this tablet. The
main advantage of using this tablet is that it allows the users to make payment through the
secured payment gateway. The secured gateway is protected by secured payment gateway. The
user’s data and the card details will be secured and the merchant cannot access the details
regarding the card (Dube, Muzinda & Ndlovu, 2017). Apart from that the transaction of the
money can be done for various merchant from this tablet. All types of payments can also be
received through this gateway. Once the transaction is made the users from the both side can
print the receiving and the payment copy of the transaction along with that they will get the
notification regarding the transaction through email.
Evaluation of the level of efficiency of the technology discussed:
The level of evaluation of the technology is needed to be done in order to know the
significance of the technology used in the organization (Tenhiälä & Helkiö, 2015). The

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BUSINESS PROCESS OF COMMONWEALTH BANK
evaluation of the technology can be done through the analysis of the results those can found after
the implementation of the technology. In the discussion three ways have been described those
can be used for the implementation of the technology in the banking organization.
The use of the block chain technology can be helpful for the banking organization. The
block chain technology is the new technology which can be used for the advanced security
system. The use of the block chain technology can enhance the security of the transaction
system of the Commonwealth Bank. The users can make payment from the online transaction
system. The payment will be secured through the use of the block chain technology (Elbardan,
Ali & Ghoneim, 2016). This will prevent the chances of the breaching of the data regarding the
users and the organization.
The bank has already implemented the cloud architecture for the storage of the
information. The implementation of the cloud storage will reduce the overhead cost of the
company. Apart from that it will also enhance the security of the stored information. The
implemented cloud model in Commonwealth bank is hybrid cloud (Ahmad, Ibrahim & Garba,
2015). The main advantage of the hybrid cloud is that the data is partially implemented in the
public cloud. In the public cloud most of the data of the banking organization is stored (Tamm et
al.,2015). On the other hand the confidential and the sensitive information is stored in the private
cloud. The security of the private cloud is maintained by the organization itself. On the other
hand security of the public cloud is maintained by the third party cloud vendor. In this case the
negotiation between the cloud service provider and the bank is needed to determine the level of
the security of the public cloud.

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BUSINESS PROCESS OF COMMONWEALTH BANK
The implementation of the dedicated POS of the consumers of the bank can be beneficial.
The POS system comes in the form of tablet. The users can use the system for the transaction of
the money. The payment can be made or can be received through the system. The name of the
system is Albert. The main advantage of this system is that it will reduce the overhead cost of the
company. The manual processing of the money can cause the errors (Willcocks & Lacity,2018).
This will mitigate the chances of errors. Apart from that the use of this system will help the
Commonwealth Bank to reduce the overhead cost (Chen et al.,2014). This will help the bank to
increase the profit margin. Apart from that the transaction of the money can be done at anytime
of the day. So the availability of the system will enhance the flexibility of the transaction
process. The implementation of the POS system will help to increase the acceptance of the retail
banking system to the consumers and the users of the bank.
The implementation of the ERP system will help the Commonwealth Bank to get the
synchronization between the works of the different modules. The knowledge sharing between the
different modules of the business process will help the banking organization to get the desired
result. The outcome will meet all the requirements of the organization. Apart from that the
proper sharing of knowledge between the business unit and the technical unit will enhance the
quality of the services the bank provides to its consumers (Metaxiotis & Liagkouras, 2017). The
proper sharing of the information will help to keep track of the different systems. The financial
and accounting information can be handled in a proper way. Overall, the bank will get benefits
from different aspects of the business modules. It would be easier for the commonwealth bank to
manage the complex banking business. Apart from that the bank can simultaneously manage
both retail banking sector and investment banking sector.

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BUSINESS PROCESS OF COMMONWEALTH BANK
Evaluation of the potential risks in the functioning of the commonwealth bank:
The risks are the main problems and issues those can become constraint in the occurrence
of the daily business. The identification of the risks will be helpful for the mitigation of the
threats and the risks in the organization. The threats for the commonwealth bank is associated
with both technical and the business aspects (Abbas, 2015). Identification and the mitigation of
these risks will enhance the service quality of the company. The main security vulnerability for
the Commonwealth Bank is the breaching of the data. The data breaching can be considered as
the act of cybercrime. The bank is using the information technology in effective way. In this
case, different branches are connect through the emerging technology and internet (Katsigiannis,
Agarwal & Jin, 2015). In this case the breaching of the data can happen through the cyber-attack.
The data contained in the storage of the banking system is related to the user data and the data
regarding the business of the bank. The nature of the data is confidential and sensitive. The
breaching of the data can become a thereat for the individual users and the banking organization.
There is a chance that these information are misused by the cyber attackers. In this case the
business of the banking organization will face the security threat.
Another identified vulnerability regarding the security of the technical fault in the system
of the organization (Reynolds & Yetton,2015). The Commonwealth Bank is using the
technology for the processing of all the operations related to the banking and the financial
dealings. In that case, the systems in the organization are responsible for keeping the track of the
data and the information. The failure of the system can lead to the major breakdown of the
operations of the banking organization. In that case, the bank can face loss of large amount of
money (Dube, Muzinda & Ndlovu, 2017). Apart from that the consumers may suffer from the
serious data loss and the disruption of the services (Willcocks & Reynolds,2015). This will affect

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BUSINESS PROCESS OF COMMONWEALTH BANK
the goodwill of the organization. Apart from that the business process of the organization may
face legal problems in case certain rules and regulations are not followed.
Mitigation of the risks:
The identification of the risks will help to mitigate the possible threats for the
Commonwealth Bank Australia. The identified risks can be categorized in two types- technical
risks and the business risks. The technical risks are concerned about the threats from the cyber-
attacks in the systems used in organization (Anginer,Demirguc-Kunt & Zhu,2014). On the other
hand the threats from the business context are concerned with the legal issues and the faults in
the system. This also includes the miscommunication between the different modules of the
business sector.
The technical risks involves the cyber-attack and the breaching of the data. The
mitigation of this problem can be done through the several ways (Dube, Muzinda & Ndlovu,
2017). The application of the VPN and the firewall will prevent unnecessary traffics to enter into
the network of the organization. This will help to keep the network of the organization secured
from the external threats. Moreover the employees are needed to be aware about the threats and
the consequences of cyber-attacks (Wang, Shih & Yeh,2018). The employees are needed to be
trained to handle the systems in a proper way and they are needed to be instructed not to use any
suspicious web links. This will help to mitigate the threats from the attacks of ransomware and
the malware. The systems used in the organization are needed to have the anti-virus software
installed in it.
In order to mitigate the threats from the business process the management of the
organization should be concerned about the happening of the processes are following the rules

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BUSINESS PROCESS OF COMMONWEALTH BANK
and regulation regarding the banking sector (Dube, Muzinda & Ndlovu, 2017). Apart from that
the proper communication plan is needed to be adopted so that the communication between the
technical unit and the business unit can be carried out in a proper way. Following these steps will
help to mitigate the possible threats for the Commonwealth Bank Australia. Moreover, the bank
can maintain its good will and continue to deliver the quality services to the consumers.
Conclusion
The discussion is regarding the security issues and the implementation of ERP for the
operations for the Commonwealth Bank Australia. Commonwealth Bank Australia is the largest
operating bank in Australia. In this context it is expected that the bank will deliver the quality
services to the consumers. There are certain steps mentioned those are responsible for the
improvement of the services provided by the bank. In order to evaluate the improvement of the
services provided by the bank the processing of the operation exist in the bank has been
described in the right manner. Apart from that the use of three emerging technologies have been
described in order to enhance the existing banking and the business system of this bank. The
scopes and the opportunities shows the area of improvements. Apart from that the identification
of the risks in the existing system is done. The identification of the risks will help to mitigate the
possible threats for the organization. In this context the mitigation plan has been proposed. It can
be concluded from the above discussion that the following of the risk assessment plan and
implementation of the merging technology will help to improve the business process of the
Commonwealth Bank along with that these will also help the bank to provide the quality service.

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