Deutsche Bank: Management Information System Report Analysis

This report provides a comprehensive analysis of Deutsche Bank's Management Information System (MIS). It begins by examining the interconnection of various divisions within the bank, including Corporate Bank, Investment Bank, Private Bank, and Deutsche Asset Management, highlighting their roles and data flow. The report then delves into different forms of data, distinguishing between quantitative and qualitative data, as well as primary and secondary data. It explores the role of data warehousing in the bank, proposing a big data solution to modernize its information technology infrastructure. The proposed solution addresses the need for scalability and flexibility in handling large datasets. The report also outlines the advantages of implementing a big data strategy, such as improved business processes. Finally, the report summarizes key concerns regarding legal, ethical, and professional implications associated with information security and handling within the bank.

MANAGEMENT
INFORMATION SYSTEM

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
QUESTION 1..................................................................................................................................1
Interconnection of different divisions of Deutsche Bank............................................................1
QUESTION 2..................................................................................................................................4
Different forms of the data and role of data warehousing in Deutsche Bank. Proposed solution
with the advantages and disadvantages.......................................................................................4
QUESTION 3..................................................................................................................................7
Summary of key concerns about legal, ethical and the professional implications associated
with the information security and handling.................................................................................7
REFERENCES..............................................................................................................................10

QUESTION 1
Interconnection of different divisions of Deutsche Bank.
Deutsche Bank is German international investment bank and the financial service providing
company which is headquartered in the Frankfurt, Germany. It is dual listed on Frankfurt Stock
Exchange and New York Stock exchange. The network of banks spans over 58 countries having
large presence in the Europe, Asia and Americas. Banking structure of the various global
multinational banks are established for providing dynamic and expert financial services to the
communities over large. Banking structure formulations are based primarily over key parameters
like trading sales, debt & equity, product risk management etc (Remington and Pellicano, 2019).
The bank is having four divisions Corporate Bank, Investment Bank, Private Bank and Deutsche
Asset Management. Bank is also having different infrastructure functions that perform the key
management task.
The bank is following divisional structure. It refers to the structure that organises
activities of business around the geographical markets or products and the service groups.
Company is thus organised over the divisional lines can have the operating groups for Europe,
US or for the commercial customers, or for green widget products line. Every division is formed
with complete set of the functions. Thus, green widget divisions handle the own activities,
marketing, sales, production and so forth. Approach is beneficial when the decision making is
required to be clustered at divisional level for reacting quickly to the local conditions. This type
of structure is beneficial where company is having various markets, regions or products. It could
have high total cost and could also result in the number of quarrelling, small fiefdoms within the
company which do not work necessarily for good of entire entity.
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Organisational Structure
Corporate & Investment Bank
It oversees capital market business of the Bank that comprises of origination, trading and
sales of the capital market products such as debt, equity and the other securities with corporate
lending, corporate advisory and the transaction banking business. The bank is having clients
from both the private sector and the public sector serving entire range of the corporate clients
including medium sized to the large corporations. It is further subdivided in two divisions which
are Global transaction Banking and the Corporate Banking and Securities. CB&S consists of the
Corporate Finance business and also cover group’s sales, origination, corporate advisory, trading
of the securities and MA businesses all around the world along with other activities of corporate
finance (Çaycı, 2020). GTB cover cash management for the financial and corporate institutions,
trading finance business and trust and the securities services.
Private and Commercial Banks
PCB Clients Germany/ International is retail banks of the Deutsche Bank. It operates in
Germany under the two brands Post-bank and Deutsche Bank. It has operations over Italy,
Belgium, India and Spain. Wealth Management function as private banking arm of the bank that
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serves the high net worth people or families worldwide. It provides discerning clients fully
integrated services on wealth management and also philanthropic and the inheritance planning
services. Private and Business clients provide the range of different banking services such as
deposits, loan, current accounts, pension products and investment management to the self
employed and private individual clients. Division has the presence in private banking hotspot of
the world including Luxembourg, Switzerland, Caymans, Channel islands and Dubai.
Deutsche Asset Management
It holds the majority stake in listed asset management DWS Group that was separated
from bank in the March 2018. AM provides retail clients across globe with the mutual funds
product through the investment franchise DWS. Bank offers institutional clients insurance
companies and pension funds broad services ranging from traditional to the alternative
investment products (Lackovic, Kovsca and Vincek, 2016). It conducted strategic review of the
DAM division as the part of successful policy to continually optimise the business mix,
especially against changes in regulatory environment and the competitive landscape.
All the divisions of the bank are interconnected with each other the as corporate division of
the bank attracts from the different nations across the world. It uses the clients from the world by
suggesting them the services of investment bank divisions. It provides the local and global
clients the services of investments for better handling of their funds. Private and commercial
banking division of the company by providing the quality services to clients. The deposits and
savings of the different clients in the commercial banking division are again transferred to the
investment banking division for deriving profits and inflows for Banks.
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Data Flow Diagram
The departments are all interconnected with each other for effectively managing the funds
from every division deriving revenues and gains for the bank and providing maximum benefit to
its clients. The asset management of the company provides services to clients (Macedo, 2018).
The asset management division enables the management to assess the best investment products
that could provide better returns to the clients and also help company to gain its benefits. The
asset management and investment banking divisions are connected to make allocation of the
funds and make investments. It could be evaluated that all the services of different divisions are
interconnected. There is no fixed flow of data among the different divisions. The information of
clients is used interchangeably in the divisions as per the demand of customers. The divisional
structure of the bank works actively and adequately for the purpose of earning adequate returns
and providing most efficient services to its clients.
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QUESTION 2
Different forms of the data and role of data warehousing in Deutsche Bank. Proposed solution
with the advantages and disadvantages
Data could be described as backbone of any operation or project. Form of data depends on the
purpose for which data is required. There are different forms of data available but the selection
of data depends on the purpose for which is going to be used. The different forms of data are
Quantitative and qualitative data
Quantitative and qualitative are the two main forms of data. The quantitative data deal
with the things and numbers that are capable of measuring the objectivity, dimensions like width,
height and length. Every data that could be quantified or measured is known as the qualitative
data. On the other, qualitative data deal with the descriptions or characteristics which could be
measured easily, but could also be observed subjectively like the textures, colour, tastes which
could not be measured in terms of quantity. It is based on classification and judgement.
Primary and Secondary data
The data which is gathered on or behalf of other person or party that are going to use the
data it is called Primary Data. For example if the bank contacts the guarantor of the borrower for
knowing the credibility of person the information gained is primary data (Georg, 2017).
Information collected for the first time and has not been used by other for their purpose is known
as primary data or information.
On the other data which is used by people or person other person for whom or by whom
information were collected is referred as secondary data. The secondary data means information
which is already collected for some other purpose. Due to number of reasons secondary data is
also used which requires careful understanding as it may be gathered with the different purpose
by the investigator.
Data Warehouse
It is defined as warehouse of the historical data of the organisation; it is consolidation of
the organisational data. This is database of the databases. In other words, it is the collection of
different decision support techniques and technologies which are aimed at enabling knowledge
worker like manager, executive and the analyst in arriving at the faster and better decisions. they
are also defined as integrated, subject oriented, time variant, non volatile collection of the data in
supporting decision of the management. It provides access over data for the knowledge
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discovery, complex analysis and decision making. They are used widely within large
organisations and complex businesses of the world. It used within the moderately big
organisations having more than 2000 employees.
In this method the data is collected periodically from applications supporting the business
processes and are copied in special computers. There it could be reformatted, validated,
summarised, restructured, reorganised and supplemented with the other sources’ data. Resultant
warehouse becomes main sources of the information for the report generations, analysis and the
presentation by ad hoc portals, dashboards or reports (Sardjono and Cholik, 2018). Data
warehousing are prepared for supporting the online analytical processing.
Current Information System
Information technology of the Deutsche Bank is essentially its director as the technology
is heavily used throughout the organisation. IT is used to with the core procedures, mergers,
tracking of information and reports and any sharing of the information. The current software and
procedures are not up to date and were having number of issues. Changes made for correcting
the defects of information systems were not effective. The update problems was not resolved
properly and this did not allowed bank to run its operations efficiently, decision making
capabilities without effective tools is not an easy task. The bank is required to modernise the
existing information technology with more advanced and featured technology. Reengineering of
existing systems would not provide the required results. As the bank is growing speedily and the
large network requires it to use the Big Data that would help in efficiently managing its data.
Big Data
It emerged originally as the term for describing large data sets which could not be stored,
managed, captured or analysed using the traditional databases, Definition has significantly
broadened over years. The Big Data refers to data itself and set of technologies performing all
aforementioned functions and the varied collections solving complex problems and making
unlocking the value from data more economically.
Big Data as Solution
Around 9 out of ten leaders consider that the data is fourth factor of production and is
fundamental as labour, land and capital. Use of the Big Data has improvised performance of the
businesses by 26% at an average and is estimated to be over 41% in coming three years. Even
after challenges related with organisational resistance and privacy concerns, investment in Big
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Data has continued to gain momentum around the world (Big Data, 2020). The main motive of
the businesses in making investments is to handle the data and complex information with them
properly.
Bank puts data at top priority for the sales and marketing decisions. It increases the
returns over investment around 15-20%.The promising figures and good reputation is being with
investments in Big data. The reasons why Big Data solutions would help the Bank in managing
the data effectively: It has four aspects
Infrastructure: Key to the big data infra is scalability and flexibility for handling petabytes of
the data, so cloud becomes natural choice. The key public cloud service providers are Gogrid,
Amazon Web and Rock-space.
Data Storage: Legacy, traditional methods and systems for storage are optimal because of the
scalability and price restrictions. The new methods DFS and NoSQL of storage represent
paradigm shifts in storage arena.
Data Processing & Management: The framework helps in processing growing mass of the data
paralleling. The main data processors are Hadoop, Greenplum and Cloudera.
Data Analytics: This area provides the predictive and visualisation analytics. The key data
analytic providers include Clickfox, Splunk, MapR and Rainstor.
The big data solutions are different from the data mining and Business intelligence in
terms of the data volumes, numbers of data sources and numbers of transaction are complex and
big.
Advantages of the Big Data
Improved Business Process – The biggest advantage is that it helps the business in gaining
competitive advantage (Mrass, Peters and Leimeister, 2018). Apart from understanding the
target customers, big data analysis could result in optimisation and improvement of the certain
facets of the operations.
Fraud detection – It helps the bank and other financial institutes to detect the frauds such as
fraudulent purchases from credit card before it is known to card holder.
Improved Customer service – It helps the users to analyse massive information from different
sources to help to identify the needs and requirements of customers. It helps in creating more
responsive, accurate and personal experiences to the customers.
Disadvantages of the Big Data
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Security and privacy concerns – It is biggest disadvantage of the big data that businesses could
become softer target for the cyber-attackers. Even big businesses have encountered data
breached at instances.
Technical Expertise – It requires high level of technical proficiency to work with big data. It
requires the users to pay high to the data scientists and data experts. Training existing or hiring
new experts could increase cost of the business at a considerable level.
QUESTION 3
Summary of key concerns about legal, ethical and the professional implications associated with
the information security and handling
After crisis of 2008, Deutsche bank is struggling with the enormous changes of banking
industry. One of the problem was bank submitted untimely and incomplete credit default data
and also failed to supervise the employees properly who were responsible for reporting the swap
data. The efforts of bank to end system caused new issues of reporting adding to problems that
existed already. Swap data of the Deutsche Bank presented continuous issues and numbers of
invalid legal entity identifier making it as banks problem. The problems were faced as the
Deutsche failed to manage the business continuity and the disaster recovery plans at the time.
Main reasons behind their failure to provide right information were bank’s antiquated technology
(Total, 2018). The antiquated technology refers to poor information system that caused many
issues since 2008. Costs and efforts for reducing the problems were great resulting in the banks
to use old systems for handling workload. The bank tried different solutions, in which billions
dollar deal with the HP for simplifying and standardizing the IT infrastructure for creating
modern technology platform.
As per the latest information from report of the Deutsche Bank and new GDPR data
protection legislations brief summary on ethical, professional and legal implications associated
with the information handling and security is provided.
The report sets minimum standards for the employees for ethical conduct. These standards
promotes ethical and honest conduct in all the business activities. It particularly involves acting
responsibly, with due care, in good faith, diligence, prudence and competence without
misrepresenting the facts or information or allowing own decisions or judgements to be
subordinated or be guided by the extrinsic considerations.
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It actively ensures ethical behaviour for data handling and security. It is active participant of
the international efforts for combating corruption, frauds, money laundering, terror funding and
the criminal activities. This is done mainly through mismanagement of the information of bank
for unethical practices. It has prompt reporting process for the frauds or suspected activity. It
maintains anti-money laundering global programmed that requires to prevent illicit activities by
the bank. It follows strict safeguard information for the non-public, material inside information.
The disclosures of price sensitive data and information are made to those having authentic
authority for information and it prohibits use of the price sensitive data to make unethical
personal gains or for benefit of third party.
The complete information acquired of the customers about current position and other helps
to provide with best financial services and for safeguarding the assets. Bank whil acting as
fiduciary acts in interest of customers whose assets are being managed. It employs measures to
resolve and minimise the conflicts. All the information gathered are kept in the information
systems with highly secured software where no unauthorised access is permitted. The ethical
practices of the bank allows it ensure that all the employees are complying with the standards to
maintain the secrecy of client information.
Every division of the bank is responsible to implement the policies which are necessary for
observing the bank secrecy laws and for maintaining the appropriate information security and
data handling. Company is aware of importance of the information that is entrusted to them. It
the ethical and fundamental responsibility of the bank to protect information entrusted of the
clients. Bank is aimed at constantly enhancing customer experience. Due to this information is
collected through website in anonymized form (Schmidt, 2020). It uses information for
marketing and statistical purposes only and not for disclosing them to the third parties. The
website is using programmatic services provided by the Cadreon. It uses cookies which are the
text filed containing smaller amount of the information that are downloaded on device on visit to
the website for providing personal browsing experience.
The use, collection, transfer and retrieval of the client information is required to comply
with the data protection policies, laws and the contractual obligations. Bank considers the client
confidentiality as critical factor for the business and seeks to protect the information all time. It
prohibits the collection, processing or the use of personal data without proper authority. The
personal data of the clients could be obtained only for the lawful purposes and is required to be
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processed lawfully and fairly (Code of Conduct, 2019). The data of clients is maintained as long
as it is required by the bank until the purpose for collection is met. All the data and information
of clients is kept in high security that prevents the unauthorised access, transmission, alteration,
loss, damage or publication. Competent Data Privacy/ Protection Officer is always of all the new
plans and procedures for processing personal data for complying with the regulatory
requirements and avoiding reputational risks. It ensures that all the irregularities, errors and
breaches are escalated promptly to the supervisor.
It ensures that the professional practices related to managing the client information are not
compromised for the cost. It is having trained and expertise professionals managing the hug data
related to the clients and their assets. The bank is effectively managing the information of clients
with adequate security safeguards ensuring that no security breaches are there (Kaya and et.al.,
2017). The team of professionals with designated officer monitor all the transactions and ensures
that no unethical practices are being committed in the organisation. Despite of various issues
faced regarding the information technology system it effectively handles the data and ensures
high security standards.
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