Report on Informatics and Financial Applications for Business

This report examines the integration of information system concepts, particularly decision-support systems (DSS) and cloud computing, within the context of financial applications. It highlights the advantages these technologies offer to modern businesses, using the Commonwealth Bank of Australia as a case study. The report details how DSS aids in managing complex data for effective decision-making, especially in semi-structured situations like loan approvals, and cloud computing enhances operational flexibility and cost-efficiency by enabling global customer service and real-time data management. The report also emphasizes the benefits of cloud computing in terms of scalability, customer service improvements, and the ability to provide customized services, ultimately leading to increased customer satisfaction and global expansion opportunities for financial institutions. The conclusion underscores the role of DSS and cloud computing in fostering competitive advantages and supporting the long-term growth and development of businesses.

Informatics and Financial Applications
Assignment 1
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Informatics and Financial Applications
Executive Summary
The report has been developed to address the usefulness of integrating the information
system concepts by business entities. It has emphasized on the advantage of information system
concepts such as decision-support system and cloud-based computing system for modern
business world. The report has explained the importance of information system concepts with
reference to banking industry by citing the example of Commonwealth bank of Australia. It has
been analyzed from the report that decision-support and cloud-based system are the major
information systems concepts used by banking industry today,. These are providing to be
extremely advantageous to the banking industry for improving the scalability and flexibility of
their business operations. The decision-support system is providing a vital tool to banking
industry for recording, managing, controlling its complex database that helps the banks to take
effective decisions about improving the business processes and procedures. On the other hand,
cloud-based computing system enables the banking industry to provide customer service from
any part of the world and thus helps in minimizing the cost of their operations. It improves the
efficiency of banking processes through enhancing their flexibility by managing the real time
customer data effectively. As such, the significance of these information system concepts is
discussed in the present report in detail.
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Informatics and Financial Applications
Table of Contents
Executive Summary.....................................................................................................................................2
Introduction.................................................................................................................................................5
Use of Decision-Support System in Commonwealth Bank Industry............................................................5
Cloud Computing and Business...................................................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Informatics and Financial Applications
Table of Figures
Figure 1: Decision Support System.................................................................................................6
Figure 2: Cloud Computing............................................................................................................8
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Informatics and Financial Applications
Introduction
The business organizations are rapidly integrating the use of information systems for
managing effectively their complex data for supporting their decision-making process. The
information systems can be described as the software that provides help to an organization for
recording, controlling and analyzing the data in order to interpret useful information from it. In
this context, the present report aims to investigate and analyze the usefulness of the information
system concepts used by business entities such as decision-support systems and cloud
computing. These are specialized information systems that are specially designed for supporting
a particular business process within an entity in order to carry out specific tasks. The report has
evaluated and analyzed the use of decision support system in modern business entities for
managing their operational processes and activities. Also, the report discusses the opportunities
associated with the use of cloud computing for modern business entities. The usefulness of these
financial applications and information systems in modern business entities is discussed and
evaluated in respect of Commonwealth bank industry in the present report.
Use of Decision-Support System in Commonwealth Bank Industry
The decision-support system can be regarded to as a computer-based information system
used for supporting the decision-making process. The system provides flexible business
intelligence tools for analyzing the complex data through collecting, gathering and interpreting
the relevant business information. This is done through the help of interactive software-based
system of DSS that helps in gathering useful information from the raw data (Dimitris, 2012). The
commonwealth bank is a recognized multinational bank of Australia that has wide business
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Informatics and Financial Applications
operations across various parts of the world. The bank as such faces semi-structured and
unstructured situations where it requires the use of computer- based information system as a
decision-making tool. The semi-structured situations include requiring information related to
loan approvals and fingerprint matching while unstructured includes estimating the price of
stocks and assessing the risk involved in money lending (Kroenke et al., 2013).
Figure 1: Decision Support System
The commonwealth bank for resolving the semi-structured situations incorporates the use
of decision-support system such as use of borrowing power calculator and automatic fingerprint
identification system. The borrowing power calculator helps in estimating the amount of loan a
customer can borrow and the amount of repayment to be made. The automated fingerprint
identification system helps in generation of possible matches for making decision regarding the
fingerprint similarity detection. On the other hand, the DSS used by Commonwealth bank for
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Informatics and Financial Applications
resolving the structured situations include the use of spreadsheet, databases, and neural networks
and management information systems. The use of these decision-support systems helps in
recording the data that can be used at the time of emergency conditions for making decisions in
regard to prediction of stock prices, responding to risks through identification of potential
problem in advance and developing effective strategies for mitigating them (Yutaka, 2007).
Cloud Computing and Business
The cloud-computing system refers to an internet-based system that provides the benefit
of storing the data on a centralized location so that it can be accessed by anytime and anywhere
from any device. As such, the cloud computing presents various opportunities for transforming
the nature of business operations of Commonwealth bank. The increasing pressure of integrating
flexibility and agility into the IT infrastructure of banking industry has caused the banks such as
Commonwealth bank to adopt cloud computing systems. The cloud computing system will
enable the banking company to automatically assemble, integrate and configure the technology
resources for achieving the business goals and objectives. The most attractive opportunity
presented by the cloud computing system to bank industry is that it helps in overcoming the need
of having a physical infrastructure at each operating location of banks. Thus, the Commonwealth
bank can easily provide its services from anywhere and as such reduces the operating cost of
banking operations (Pearlson, Saunders, and Galletta, 2016).
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Informatics and Financial Applications
Figure 2 Cloud Computing
Also, the cloud computing software has large capacity to store real time data about the
need and preferences of customer. This in turn will help the bank to develop customized product
and services and thus achieving good customer experience. As such, the cloud computing system
helps the bank in meeting the customer expectations rapidly and thus achieving customer
satisfaction. The use of internet-based system for banks also helps them to provide an online
payment system that proves beneficial to them in reducing their operational cost and maximizing
their efficiency. The development of standard development process, scalability and service
offerings helps the banks to achieve customer engagement and respond to market changes
immediately. Thus, it can be said that cloud computing is providing the potential opportunity to
Commonwealth bank the opportunity of global expansion with reaching to huge customer base
instantly and rapidly (Nicoletti, 2015).
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Informatics and Financial Applications
Conclusion
It can be summarized form the overall discussion held in the report that use of
information system concepts such as DSS and cloud computing can help in improving the
efficiency of business processes of Commonwealth bank. This in turn can help the bank to
achieve a competitive advantage and thus fostering its long-term growth and development.
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Informatics and Financial Applications
References
Dimitris, F. 2012. Outsourcing Management for Supply Chain Operations and Logistics Service.
IGI Global.
Kroenke, D. et al. 2013. Experiencing MIS. Pearson Higher Education AU.
Nicoletti, B. 2015. Cloud Computing in Financial Services. Springer.
Pearlson, K., Saunders, C.S. and Galletta, D.F. 2016. Managing and Using Information Systems,
Binder Ready Version: A Strategic Approach. John Wiley & Sons.
Yutaka, K. 2007. Information Technology and Economic Development. IGI Global.
Commonwealth Bank of Australia. 2017. [Online]. Available at:
https://www.commbank.com.au/ [Accessed on: 2 September 2017].
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