STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS

Verified

Added on  2021/06/14

|19
|4790
|73
AI Summary
Determine at least three (3) ways which companies or organizations utilize such technologies to improve business efficiency 7 5.1 Customer service 7 5.2 Integrated information management 8 5.3 Streamline efficient processes 9 5.4 Reporting and scalability 9 5.5 Cost saving and flexibility of the banking processes 10 6. Provide guidelines on how these risks could be mitigated12 Recommended ERP & BPM 13 Conclusion 14 References 15 Introduction Enterprise resource planning (ERP) is importantsoftwarethat currently assists businesses to organize, manage and planed its operational processes. One of the areas where

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running head: Strategic Management and Information Systems 1
STRATEGIC MANAGEMENT AND INFORMATION SYSTEMS
Student Name
Institution

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Strategic Management and Information Systems 2
Table of Contents
Introduction.................................................................................................................................................3
1. Overview of Commonwealth Bank of Australia...................................................................................3
1. Define business processes...................................................................................................................4
2. Develop business requirements..........................................................................................................5
3. Determine the systems requirements.................................................................................................6
4. Software and vendor selection............................................................................................................6
5. Determine at least three (3) ways which companies or organizations utilize such technologies to
improve business efficiency.........................................................................................................................7
5.1 Customer service...............................................................................................................................7
5.2 Integrated information management................................................................................................8
5.3 Streamline efficient processes...........................................................................................................9
5.4 Reporting and scalability...................................................................................................................9
5.5 Cost saving and flexibility of the banking processes........................................................................10
6. Evaluate the level of efficiency of the technology implementation...................................................10
7. Examine potential security risks, data breaches................................................................................11
8. Provide guidelines on how these risks could be mitigated................................................................12
Recommended ERP Pega BPM..................................................................................................................13
Conclusion.................................................................................................................................................14
References.................................................................................................................................................15
Document Page
Strategic Management and Information Systems 3
Introduction
Enterprise resource planning (ERP) is important software that currently assists businesses
to organize, manage and planed its operational processes. Many businesses currently have
adopted and implemented the software that automates various customers support processes. One
of the areas where ERP has been implemented is banking industry where the software is used to
manage the operational process, customer relationship management, monitoring and
management of risk and compliance, resources management and financial service management.
One of the banks that have highly adopted the software into its business operation is
Commonwealth Bank of Australia. Commonwealth Bank of Australia needs to adopt the ERP
software commonly referred as Pega BPM. Pega BPM is used within the business to manage
business processes such as new business acquisition and onboarding, intelligent automation,
customer relationship management, and, risk, fraud, and compliance. In addition, the software
has enables the bank to achieve some business benefits and efficiency in operation. Studies show
that there are some potential risks associated with the implementation of ERP software in the
banking. The following paper explores the strategic management and information system with a
focus on ERP implementation on business such as Commonwealth Bank of Australia.
1. Overview of Commonwealth Bank of Australia
Commonwealth Bank of Australia is a multinational banking organization that has spread
its operations to New Zealand, United States of America, United Kingdom and Asia. The bank
was formed in 1911 making the bank one of the oldest financial institution in the world. The
bank is based at the darling harbor, Sydney Australia (Bronwyn & Hock 2011). The company
has evolved to offer various services that include financial services, funds management,
institutional banking and insurance services, investment and booking services. The company also
Document Page
Strategic Management and Information Systems 4
takes part in securities exchange within Australia stock exchange. Commonwealth Bank of
Australia is listed as the largest bank in the southern hemisphere and this is attributed to its
institutional and online banking services (Commonwealth Bank of Australia 2008). The bank has
more than 1100 branches and more than 4300 ATMs worldwide. The bank has various divisions
such as retail banking, institutional banking, wealth management, business and private banking,
international financial service management. The company needs to integrate its divisions,
operational processes, and services through adoption and implementation of the enterprise
resource planning (ERP) (Smith 2016).
1. Define business processes
ERP help in banking industry through integration of various processes that aim to provide
good services to customers. In the context of the ERP, there are various banking processes that
have been enabled through the use of ERP (Sidorova, Torres & Al Beayeyz 2014, pp. 421–444).
Some of the examples of these processes as offered at the commonwealth bank of Australia
includes new business acquisition and onboarding, intelligent automation, customer relationship
management, and, risk, fraud, and compliance. Firstly, the Commonwealth Bank of Australia
within the scope of business process management can apply the software which is the ERP used
to roll out a promotion or enter the new business market. The software also enables the bank to
evaluate and optimize financial campaigns for more effective or efficient non-boarding processes
(Shaul & Tauber 2012, pp 360–384). Secondly, the bank uses ERP to integrate or organizes
intelligence automation process that performs quick banking automatic processes with ease and
limited cost. Thirdly, customer relationship management is another business process within the
bank where the bank can use ERP to deliver high-quality customer level services with high per

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Strategic Management and Information Systems 5
customer profit. In addition, the software increase point of interaction process that is used for
decision-making process by the bank management since the software gives real-time data of
customers point of contact. Lastly, risk, fraud and compliance process are other areas where the
bank can vastly use the ERP to perform. Within these areas the bank can use the software to
mitigate risk, complies with the regulation and analyses signs of frauds in banking finances
(Palmer 2015, pp. 349–361).
2. Develop business requirements
Banking business requires ERP that can integrate business processes, resources planning,
and customer service management. Firstly, the banking sector has evolved and currently, there is
an increasing demand for automated digital banking operations with integrated financial
processes, risk and compliance system with the capability of reducing cost and increasing
profitability. This implies that current banking business requires ERP that is able to digitalize
banking operation at the minimal cost and time spent. Secondly, the ERP should carry out risk
and compliance analysis to determine the likelihood of risk or frauds in the system (Lapalme
2010, pp. 37–43). This involves monitor and analysis of data about risk, compliance, and fraud to
determines the fraud before it occurs. Thirdly, another banking business requirement is an
analysis of accounting record, performance management, and financial data. Lastly, customer
relations management is another area that an ERP need to fulfill and this relies on the optimized
processing of customer services with excellence applications. Customer relationship
management is an important banking process that also gives data used to analyze the customer
service operation perfumed by the ERP system over a specific period of time (Malakooti 2013).
Document Page
Strategic Management and Information Systems 6
3. Determine the systems requirements
ERP software requires a certain system that is mainly server for the company to use the
system in the banking services. For instance, commonwealth bank of Australia can use the Pega
BPM that also has specific system requirements. The main system requirement is basically
Pegasystems Pega 7 Platform. The Pega system combines various application systems that
enable articulation of various business-related application such as data integration. The system
allows accesses of resources that are hosted within the cloud. The company hosts the data for
various customer organizations (Rosing, Foldager & Hove 2015, pp. 265–341). The system has
an adaptable interface that fits with the various application or operating systems such as android,
apple and other operating systems commonly in use. This allows the software to be used in
smartphones that are in the market since currently, many businesses need to mobile applications
to ease the work. Some other server requirements include Web Logic server, which is placed on
Web Logic will place them in the $WEBLOGIC_HOME/application directory. Moreover, the
users can also install the designer studio that articulates business systems (Pegasystems 2018).
4. Software and vendor selection
Firstly, ERP software is currently used in business for various business processes
management operations. Some of the banking business processes management includes customer
relationship management, financial management and order processes management. Secondly,
There are many different vendors that develop or sell software for the banking industry. These
software vendors market their software that is mainly based on the business requirement.
Suppliers of ERP sell software that ranges from different size, shape, and categories serving
different business requirements (Vedabrata & Lederer 2011). When selecting ERP software
vendor there are some factors that need to be considered. Firstly, the category of the software can
Document Page
Strategic Management and Information Systems 7
be used to select the software since there are many different types and categories of ERP
software. Some of the common ERP software categories include customer relationship
management, business process management, human resource management and financial
management ERP. Secondly, the size of the business is another factor that is used to select the
software since the software application cut across different business size. Lastly, the structure of
the ERP is another factor that is used to select the software and vendor since some design of
software is not acceptable by some other business and used by other businesses (Arif 2018).
Thirdly, ERP software vendor is many in the current banking industry and some common
software vendors include Microsoft Dynamics, Oracle E-Business Suite, SAGE, SAP Business
One and Pegasystems. The Commonwealth Bank of Australia needs to adopt the Pega BPM
software that is mainly supplied by the Pegasystems Inc. Pegasystems provides the bank with
Pega BPM that mainly consist of business process management enabling the bank to carry out
business processes integrations and customer service management.
5. Determine at least three (3) ways which companies or
organizations utilize such technologies to improve business
efficiency
There are many different ways in which companies and organizations utilize ERP to
improve business efficiency. Three such ways are customer service, integrated information
management and streamline processes and efficiency.
5.1 Customer service
The banking sector has experienced widespread adoption of ERP system, especially on
the customer's service management due to its efficient ability to serve customers with fast and

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Strategic Management and Information Systems 8
flexible. The software enables customer and banking personal interact in a more flexible since
the system allows the company to effects transaction from any location globally. In addition,
current banking application of the ERP has enabled customers service over the internet fastening
transaction anywhere. This implies that customer can be served through automatic customer self-
service is made easy through the ERP system. Pega BPM will enable the Commonwealth Bank
of Australia to serve customers throughout the world making a high number of customers served
at any time. This data on customer transaction and demographic data are used by the company
for planning and decision-making process of the company. Therefore, the software will help in
faster or real-time customer service with more efficient enabling forecast and planning (Coelho
2015).
5.2 Integrated information management
The ERP software work to integrate information and various type of customers data
throughout the business services. For instance, in the banking sector, the software integrates data
such as orders and inventory in a unique, consistent and accurate. The information is stored in
one location that facilitates faster access and use of the information. Banking transaction details
are stored and are used to forecast sales and marketing of various company services to
customers. Moreover, the integration benefit of the ERP enables the combination of data from
online and offline for more efficient storage. The integrated benefit of the software is also based
on the integration of various company departments such as financial, human resource
management, customer service, risk and compliance, and operation department (Kirchmer 2017,
pp. 1–28). These departments are integrated in a more flexible manner that enables operation and
transactions. Human resources being one of the departments within the organization require
Document Page
Strategic Management and Information Systems 9
safekeeping of employee data for faster payment. This is also integrated with accounts
department enabling faster transfer of funds in the event of paying staffs (WorkWise 2017).
5.3 Streamline efficient processes
The ERP streamline various complex processes that include customer relationship
management, integration processes, acquisition and onboarding, intelligent automation and risk,
fraud and compliance. Commonwealth Bank of Australia will be in the forefront to implement
ERP through its Pega BPM software making various business operation processes efficient
without redundant data. In addition, the software enables the company to streamline these
processes for faster business service delivery. This implies that the company has software that
works far ahead in business process integration. The software enables the company to organize
and store real-time data on these banking processes at any time of the operation. The harmonious
operational process is linked to faster customer service especially on the online banking platform
that totally depends on software. Commonwealth Bank of Australia being a bank with
international operation has a high volume of operations that are conducted at any particular time
and this has been enabled through high efficient operation processes management (Shaul &
Tauber 2010).
5.4 Reporting and scalability
Application of the ERP within the banking sector has fastened the business reporting
operation with high scalability. Firstly, The ERP enables users to extract data that is essential for
reporting within the management. The software stores a huge amount of data on transactions,
customers and staff information and data on various financial services of the business such as
mortgage and compliance. The data gives the accurate on the state of the business at a particular
Document Page
Strategic Management and Information Systems 10
time that enables the business to give a report to stakeholders. Secondly, the software enables
scalability through the growth of the business since the business relies mostly on the software for
the organization of the data, processes and operational activities. Commonwealth Bank of
Australia, for example, will realize growth with the adoption and implementation of the software
within the organization. Moreover, the application of the software in managing various resources
within the organization has enabled growth in terms of the volume of the customers served at a
single time (Weske 2012, pp. 25–72).
5.5 Cost saving and flexibility of the banking processes
The ERP software gives the business flexibility that is required in operation and service
delivery. The flexibility of the business is enablsing through robust, flexible, and configurable
services. The software makes the organization of resources in the business flexible and with the
capability of handling a high amount of data at a particular time. Secondly, the business is able to
reduce the cost of transaction and maintenance of various operational processes. The software
reduces the administrative cost through its operation management in the course of application.
The software enables the business to save the time of the operation and ease the decision-making
process. Moreover, the business is also to reduce the operational cost of the management leading
to low cost of the business (Shaul & Tauber 2013, pp 4).
6. Evaluate the level of efficiency of the technology
implementation
The efficiency of the ERP is evaluated based on the various application of the software in
the banking industry. Firstly, faster communication and problem-solving is one area that shows
the efficiency of the software as used in the bank. The efficiency enables the bank to fasten the

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Strategic Management and Information Systems 11
communication between management and other staffs within the organization (Rubina, Paula &
Alta 2011, p. 229 – 238). In addition, the ERP software offers an opportunity for the company to
solve the problem of slow communication that always characterizes the high business situation
present within the bank. Secondly, analysis of performance with greater ease since the software
has made an analysis of real-time data possible within a short period of time. Moreover, the
Commonwealth Bank of Australia will be on the forefront to implement high-end ERP software
that offers analysis with ease for better reporting. This enables the management and various bank
stakeholders to understand the performance of the bank at any time of its operation. Thirdly,
another area of evaluating the efficiencies of the software is based on its ability to monitor the
progress of employees within the organization. The software helps the bank to manage and
monitor performance and progress of employees within the bank and its international
subsidiaries. Lastly, the bank efficiency can also be based on synchronizing business processes.
The organization uses the software to synchronize the business process such as customer service
process that makes the process easy and uniform throughout the organization. This can be
described as the management that allows all employee to be on the same page within a specific
time (O'Brien 2011, p. 324).
7. Examine potential security risks, data breaches
Despite the widespread application of ERP within the business today, the software is
associated with some potential risks. Some of these risks include security risks and data
breaches. Firstly, the software is vulnerable to data from any attack since most of the current data
are stored or hosted within the cloud (Walsh 2009). The commonwealth bank of Australia, for
example, can use the Pega BPM software that is cloud-based software and the software service
Document Page
Strategic Management and Information Systems 12
providers host the system within their server. This is associated with the high-security risk that
can lead to attack leaving the banking operations paralyzed. In addition, the software can be
attacked since most operations are done online and through the company’s data network (Chen
2012, pp. 187–212). The data on various transactions has been on the risk of attack from hackers
who target the banking sector owing to their reach financial resources. Integration of company
and its online platforms has a potential risk from attacks mostly originating for the potential
hackers that follow the company website (Vilpola 2008, pp 47–76).
Secondly, the cloud hosting has been known to pose data breaches risk since the third
party can easily reach the data. The data breaches risk is always derived from the fact that data
being hosted in another organization is liable to the government policies and laws that operate in
the country of the host (Ross 2013). This is risky with the ability of a third party reaching the
data or accessing the data for their own use. In addition, most businesses fear data being accessed
with various data mining software that can access the data through the hosting company. For
instance, some companies such as Cambridge analytical have been accused of accessing various
company data for their own use. This is based on the software with ability to illegally accessed
and mine business data for specific uses. This practice poses potential risks given the current
interconnectivity of various businesses throughout the world (Eckartz, Roel & Hillegersberg
2009).
8. Provide guidelines on how these risks could be mitigated
There are many steps that the business has developed to mitigate the potential risk that
affects the business. Firstly, there are different security software that protects the business from
any attack. This security software has a firewall that prevents any unauthorized access to the
Document Page
Strategic Management and Information Systems 13
business from any point. In addition, the business has devised many software protections that are
sued to prevent the business from any potential risk. This can be described as security layers that
are developed mainly by the software vendor. Moreover, the software itself also has its security
layer that makes the business safer for business operation. Secondly, at the hosting security level,
many ERP hosting companies has their security terms of services that highlights the security
requirement (Swenson & von Rosing 2015, pp. 79–88). Through this security check, for
instance, the vendor of the Pega BPM has security details that prevent data breaches.
Recommended ERP
Pega BPM is selected since the software has been used by many companies in the
banking sector to manage their robust operation processes. In addition, the software offers
security advantage over other software that is currently in the market. The Pega BPM software
has been known to offers solution to international business integration through its flexibility and
expandable nature with the capability to handle the vast amount of data at a single moment.
Firstly, the complexity of the software data system enables the company to host data with
minimal security breaches. For instance, the system requirement for the ERP has been rated as
very complex an not easy to accesses from the unauthorized system. Secondly, accessibility of
the banking services at the time of operation is easy and compatible with local information
system used in the bank. Moreover, with the online banking system, clients are able to access the
services at any place using the device of their choice whether Smartphone or computers
(Pegasystems 2018).

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
Strategic Management and Information Systems 14
Conclusion
In conclusion, enterprise resource planning (ERP) software has been in high demand due
to the requirement in the business management process. The banking industry requires ERP
software to help manage the various operational business process, service integration and
analysis of business data. Commonwealth Bank of Australia is a banking company that offers
various business and financial services. There are many different software vendors that supply
ERP software of different size, shape, and categories. In addition, the company needs to
implement software that has robust, scalability and flexible nature. This characteristic is offered
through the Pega BPM that manage various business resources and factors.
Document Page
Strategic Management and Information Systems 15
References
Arif, M. (2018) Enterprise Resource Planning (ERP) software suppliers – Essential Guide.
Computer Weekly Topics. Available at https://www.computerweekly.com/feature/Enterprise-
Resource-Planning-ERP-software-suppliers-Essential-Guide [Accessed on May 8, 2018]
Bronwyn, P. & Hock, P. (2011) 100 Years Together. North Sydney, New South Wales: Focus
Publishing.
Chen, M. (2012) Chapter 8: BPR Methodologies: Methods and Tools. In Elzinga, D.J.; Gulledge,
T.R.; Lee, C.-Y. Business Process Engineering: Advancing the State of the Art. Springer Science
& Business Media. pp. 187–212. Available at https://books.google.com/books?
id=HX3gBwAAQBAJ&pg=PA198 [Accessed on May 10, 2018]
Commonwealth Bank of Australia (2008) Commonwealth Bank Core Banking Modernization,
available at https://www.commbank.com.au/about-us/news/media-releases/2008/280408-news-
cbamodern.html [Accessed on May 10, 2018].
Coelho, C.M. (2015) The client-consultant relationship in the implementation of ERP in
government: exploring the dynamic between power and knowledge. DGO: 140.
doi:10.1145/2757401.2757405
Eckartz, M. D., Roel, W. & Hillegersberg, J. (2009) Cross-organizational ERP management:
how to create a successful business case? Available at
http://dl.acm.org.ezproxy.wales.ac.uk:2048/ft_gateway.cfm?id=1529641&type
=pdf&coll=DL&dl=ACM&CFID=53545748&CFTOKEN=52291637. [Access on 8 May 2018].
Document Page
Strategic Management and Information Systems 16
Kirchmer, M. (2017) Chapter 1: Business Process Management: What Is It and Why Do You
Need It? High Performance Through Business Process Management: Strategy Execution in a
Digital World. Springer. pp. 1–28. Available at https://books.google.com/books?
id=Nz1RDgAAQBAJ&pg=PA3 [Accessed on May 10, 2018]
Lapalme, J. (2010) Three Schools of Thought on Enterprise Architecture, IT Professional, vol.
14, no. 6, pp. 37–43.
Malakooti, B. (2013) Operations and Production Systems with Multiple Objectives. John Wiley
& Sons.
O'Brien, James (2011) Management Information Systems (MIS). New York: McGraw-Hill,
Irwin. p. 324.
Palmer, N. (2015) "iBPM - Intelligent Business Process Management. In von Rosing, M.;
Scheer, A.-W.; von Scheel, H. The Complete Business Process Handbook: Body of Knowledge
from Process Modeling to BPM. 1. Morgan Kaufmann. pp. 349–361.
Pegasystems Inc. (2018) Business Process Management (BPM), Available at
https://www.pega.com/bpm [Accessed on May 10, 2018]
Ross, M. (2013). Analytics & Business Process Management. Analytics. Institute for Operations
Research and the Management Sciences. Available at http://analytics-magazine.org/analytics-
and-business-process-management/ [Accessed on May 10, 2018]
Rosing, M., Foldager, U. & Hove, M. (2015) Working with the Business Process Management
(BPM) Life Cycle. In von Rosing, M.; Scheer, A.-W.; von Scheel, H. The Complete Business

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Strategic Management and Information Systems 17
Process Handbook: Body of Knowledge from Process Modeling to BPM. 1. Morgan Kaufmann.
pp. 265–341.
Rubina, A. Paula K. & Alta M. (2011) Acceptance of enterprise resource planning systems by
small manufacturing Enterprises. In: Proceedings of the 13th International Conference on
Enterprise Information Systems, edited by Runtong Zhang, José Cordeiro, Xuewei Li, Zhenji
Zhang and Juliang Zhang, SciTePress, p. 229 – 238
Shaul, L. & Tauber, D. (2012) CSFs along ERP life-cycle in SMEs: a field study". Industrial
Management & Data Systems, vol.112, no.3, pp 360–384. doi:10.1108/02635571211210031
Shaul, L. & Tauber, D. (2013) Critical Success Factors in Enterprise Resource Planning
Systems: Review of the Last Decade. ACM Computing Survey, Vol.45, pp 4.
doi:10.1145/2501654.2501669
Shaul, L. & Tauber D. (September 2010) Hierarchical examination of success factors across
ERP life cycle. MCIS 2010 Proceedings.: 79. Available at http://aisel.aisnet.org/mcis2010/79/
[Accessed on May 8, 2018]
Sidorova, A., Torres, R. & Al Beayeyz, A. (2014) The Role of Information Technology in
Business Process Management. In vom Brocke, J.; Rosemann, M. The Role of Information
Technology in Business Process Management. International Handbooks on Information Systems.
Springer. pp. 421–444. doi:10.1007/978-3-642-45100-3_18
Smith, P. (2016) Commonwealth Bank on board as US cloud star Workday focuses on Australia.
The Australian Financial Review. Available at
Document Page
Strategic Management and Information Systems 18
http://www.afr.com/technology/enterprise-it/commonwealth-bank-on-board-as-us-cloud-giant-
workday-focuses-on-australia-20160414-go6kg8 [Accessed on May 10, 2018].
Swenson, K.D. & von Rosing, M. (2015) Phase 4: What Is Business Process Management? In
von Rosing, M.; Scheer, A.-W.; von Scheel, H. The Complete Business Process Handbook:
Body of Knowledge from Process Modeling to BPM. 1. Morgan Kaufmann. pp. 79–88.
Available at https://books.google.com/books?id=RT7LAwAAQBAJ&pg=PA79 [Accessed on
May 10, 2018]
Vedabrata, B. & Lederer, A. (2011) Agency theory and consultant management in enterprise
resource planning systems implementation. Available at
http://dl.acm.org.ezproxy.wales.ac.uk:2048/ft_gateway.cfm?id=2038058
&type=pdf&coll=DL&dl=ACM&CFID=53545748&CFTOKEN=52291637. [Access on 8 May
2018].
Vilpola, I.H. (2008) A method for improving ERP implementation success by the principles and
process of user-centered design. Enterprise Information Systems vol.2, no.1, pp 47–76.
doi:10.1080/17517570701793848
Walsh, K. (January 2009) The ERP Security Challenge. CSOonline. CXO Media Inc. available at
http://www.csoonline.com/article/216940/The_ERP_Security_Challenge [Accessed on 7 May
2018]
Document Page
Strategic Management and Information Systems 19
Weske, M. (2012) Chapter 2: Evolution of Enterprise Systems Architecture. Business Process
Management: Concepts, Languages, Architectures. Springer Science & Business Media. pp. 25–
72.
WorkWise LLC (2017) Top 15 Benefits of Implementing ERP Software. Available at
https://www.workwisellc.com/erp-software/15-benefits-implementing-erp-software/ [Accessed
on 8 May 2018]
1 out of 19
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]