Case Study: Strategic Information Systems at Macquarie Group Limited

This report presents a case study of Macquarie Group Limited, a global financial services group, focusing on its strategic information systems (SIS). It examines the challenges faced by the organization, including issues related to risk management, market competition, and technological advancements. The report analyzes Macquarie's adoption of IT and its IS strategy, highlighting the importance of updating systems, hiring skilled employees, and maintaining security. It further explores the adoption of new and innovative ideas, such as internet banking, and the strategies employed to improve customer experience and optimize costs. The study also addresses outsourcing versus end-user computing, the role of IT/IS in strategic information, and a critical analysis of internal controls within Macquarie Group Limited. The report emphasizes the need for Macquarie to adapt to the rapidly changing environment through technological innovation and strategic planning to maintain a competitive edge in the financial services industry.

Running head: STRATEGIC INFORMATION SYSTEM
Strategic Information System:
A case study of Macquarie Group Limited
Name of the Student
Name of the University

1STRATEGIC INFORMATION SYSTEM
Table of Contents
Introduction..........................................................................................................................2
Overview of Macquarie Group Limited..............................................................................2
1. Issues and challenges faced by Macquarie Group Limited.............................................4
2. Adoption of IT and critical assessment of IS strategy.....................................................5
3. Adoption of new and innovative ideas............................................................................6
4. Outsourcing vs End-User Computing in Macquarie Group Limited...............................9
5. Strategic information of Macquarie Group Limited through IT/IS...............................12
6. Critical analysis of internal control in Macquarie Group Limited................................13
Conclusion.........................................................................................................................14
References..........................................................................................................................15

2STRATEGIC INFORMATION SYSTEM
Introduction
Strategic information system helps to facilitate the business of an organization through
providing effective strategy and regulation. In other words, vital information system offers a
business strategy to remain competitive in the market. It is useful for the organizations for
storing, processing as well as accessing confidential data. It assists the groups to apply various
tools so that the business activities can be empowered. On the other hand, strategic information
system provides multiple opportunities so that operations of the business are allowed.
In the present study, Macquarie Group Limited is considered a case study. The
organization is a global financial services group that provides banking as well as financial
advisory. Also, the team includes investment as well as funds management services to several
institutional, retail as well as corporate clients (Macquarie.com 2018). However, Macquarie
Group Limited is currently suffering from various issues such as storing and accessing data in
the database. The study presents major components of the strategic information system. It
describes various elements of vital information system as well as consisting of outsourcing and
end-user computing processed in Macquarie Group Limited. Also, the study evaluates internal
control and the process of adding value by strategic information to the organization. It also
illustrates management aspects of the bank in detailed format, compares and contrast the issues
along with challenges.
Overview of Macquarie Group Limited
Macquarie Group Limited is an Australian financial organization headquartered in
Sydney. It provides several types of financial services. Macquarie employs more than 14,000

3STRATEGIC INFORMATION SYSTEM
staffs in around 70 office locations across the world. There are approximately $A450 billion
assets reported under management. The company is listed in Australia and regulated by
Australian Prudential Regulation Authority. The company gains high margin of profit as well as
lucrative rewards for executives and shareholders (Macquarie.com 2018). In 2010, Macquarie
Group Limited completed its most significant acquisition by purchasing Delaware investments,
which is a leading US-based diversified asset management organization. It results in Macquarie
as one of the top asset management group in the world. In 2017, Delaware investment has been
rebranded as Macquarie Investment Management. Laudon and Laudon (2016) stated that the
company has remarkably increased it's renewable energy activities in the decade. Macquarie
group limited acquired a stake in Baltic 2 offshore wind park from EnBW that has a total fee of
720 million euro. The organization employs 13,597staffs in 27 countries. The business activities
of the company are organized into five principle operating groups.
Asset management: Macquarie is considered as the most prominent infrastructure asset
manager across the world and included in the list of 50 global asset manager (Peppard and Ward
2016). The company is presently managing nearly $A450 billion of assets of superannuation
funds as well as different institutional investors.
Corporate and asset finance: The Company lends to the consumers as well as leases
assets to several businesses consisting of a fleet of 600,000 cars and passenger aircraft, medical
equipment, rail stock, medical equipment as well as mining equipment.
Banking and financial services: The Company comprises retail-banking operations as
well as provides personal banking along with wealth management and products of business as
well as services to nearly one million clients.

4STRATEGIC INFORMATION SYSTEM
1. Issues and challenges faced by Macquarie Group Limited
There are several areas concerned for Macquarie Group Limited that general issues and
challenges with the system. To implement IT/IS technology, public as well as private sector face
challenges.
Private sector: The banks under private sector suffer mainly from the issues related to
risk management. On the other hand, government banks usually receive more security than
private banks (Macquarie.com 2018). Thus, in the case of risk management, government based
financial organizations are more secured, whereas private banks face loses. Also, private sector
banks face issue for having strict completion in respective field (Pearlson et al. 2016). As new
marketing trends and innovations become part of the banking sector, it is challenging the
company to launch new products, schemes, and facilities. As new services include several issues
and bugs to be fixed, it is challenging the company to deal with it (Oliveira et al. 2014). The high
rate of interest and challenging market trends is a challenge for the private banks. Moreover,
strategic system designer faces various issues in adopting and maintaining IT/IS strategically.
Public sector: Thakor (2015) mentioned that banking under public sector also faces
several challenges to deal with strategy development. The planners need to perform various
operations and take a go through various challenging situations. Capital base is one of the areas
that public sector banks face. As they have a poor capital base, it is required through the initial
public offering. Public sector banks usually earn low capital based than private banks. Also, the
public sector banks include less number of bank branches, which can be considered a threat to
public banks. The gap in innovating and applying new technology can be a serious issue for
public sector banks (Shaikh and Karjaluoto 2015). Backdated technologies are used by the public
banks, whereas private banks provide latest technologies and applications including several

5STRATEGIC INFORMATION SYSTEM
features and functionalities. Also, there are any security personnel or systems are implemented in
public banking services that protect data of the customers. The public sector bank has issues and
complaints about providing poor services. The banks are struggling for offering quality services
as well as not meeting demands of the customers. On the contrary, the private sector is
committed to providing quality service to the customers.
2. Adoption of IT and critical assessment of IS strategy
Tam and Oliveira (2016) commented that at present days, rapidly changing environment
leads to adopting information technology within the organization and continuously improved. It
is driven by the external push of technological advancements as well as the internal pull of
increasing requirements of the organization (Macquarie.com 2018). For achieving a great return
on IT investment, the diffusion process of IT within the particular organization needs to be
analyzed properly (Tarhini et al. 2015). Due to several advantages of IS strategy, Macquarie
Group Limited needs to adopt IT applications properly to support business. Adoption of IT
differs from larger organizations as there are particular characteristics like resource limitations.
Hence, it is significant to provide a better and deeper understanding of the process of adopting IS
strategy. The information system strategy for Macquarie Group Limited can be described as
followed.
Updating prevalent IS strategy: The organization needs to act responsibly as well as take
the responsibility to update the system. The enterprise needs to update the system regularly.
Appointment of new employees: Macquarie Group Limited needs to change common
management system as well as the adoption of the new management system. The new system
planned for incorporating IS strategy for managing the system. In this case, the management of

6STRATEGIC INFORMATION SYSTEM
Macquarie Group Limited needs to hire talented, hardworking as well as creative people. The
staffs should have the capability to bring innovation to the organization.
Maintenance of system and database: Macquarie Group Limited needs to focus on
maintaining the system as well as financial operation (Karpovsky and Galliers 2015). The IS
strategy is helpful for Macquarie Group Limited for maintaining the system as well as the
database.
Maintaining security: IS strategy is helpful for the organization to ensure privacy and
security in the organization. As security is one of the major aspects of a financial organization,
management of Macquarie Group Limited needs to focus on it.
3. Adoption of new and innovative ideas
As banking industry is considered as a flourishing industry, it is required to focus on
technological innovation. Internet banking has emerged as one of the biggest emphasized areas at
present days (Rubino and Vitolla 2014). Thus, organizations need to develop new and innovative
ideas by improving customer experience and optimizes cost structure. On the other hand, there is
a wide variation of technology agendas along with implementation capability in distinctive
players of the banking industry. Macquarie Group Limited requires adopting specific strategies
through which they can be able to furnish business and financial activities. The organization
needs to improve banking value and to revamp digital agenda (Macquarie.com 2018). Also,
moving from information to insight needs to be focused on this approach. Dealing with changing
the risk regime is one of the major approaches need to be focused on the organization. As the
existing market is moving from cash to electronic modes of payment, Macquarie Group Limited
needs to emphasize on it. The ability of technology to bring services to customers is considered

7STRATEGIC INFORMATION SYSTEM
as the biggest driver to achieve comprehensive financial inclusion. The approaches followed by
Macquarie Group Limited can be explained as followed.
Mandate creation: According to Shaikh and Karjaluoto (2015), it is one of the types of
approaches, can be helpful to improvise business activities of Macquarie Group Limited. A
mandate usually provides right direction so that changes can be appropriately deployed. On the
other hand, the mandate is related to distinct strategy as well as expected for bringing
innovations to the premises of banks. The role of top authority in Macquarie Group Limited is to
create a mandate where initiators of mandate adoptions as well as improvisations. The approach
towards people with the same passion for creating order is required in the case.
Beany model: It is one of the types of approaches followed by Macquarie Group Limited.
The top-level management needs to keep strategies so that it can be processed efficiently.
Macquarie Group Limited needs to give prioritization in the business thinking process.
Issues and challenges with stakeholders and employees: Macquarie Group Limited
needs to ensure that information system needs to analyze the problems that arise in the particular
order and ensure that there are any loopholes existed in the process of decision making as well as
problem solving techniques (Tam and Oliveira 2017). Macquarie Group Limited provides
training to the employees that can be helpful to analyze the issues as well as sort out easily. The
staffs can be able to find out the best possible solution through which they can be able to mitigate
problems effectively.
Developing dedicated team: Macquarie Group Limited needs to analyze specific issues
inside and outside of the organization. Management of the organization needs to understand

8STRATEGIC INFORMATION SYSTEM
several solutions through which the problems can be mitigated. The team needs to understand
alternative solutions through which the financial organization can enhance business activities.
Access to people: Macquarie Group Limited deals with customers effectively. The
customers need to provide proper login access. Feedback from the customers is necessary for the
business organization. Macquarie Group Limited should also consider input from the customers
individually, analyze them and provide effective solutions according to the demands.
Designing and developing a system: Macquarie Group Limited should design and
develop a system in such way that can be helpful to manage new system (Alenezi et al. 2015). It
is required to provide effective service profitably. New management system provides services in
such way that can bring competitive edge.
Establishing a business network with other workers of the bank: Macquarie Group
Limited needs to design and develop a system in such way that the system can profitably provide
efficient service. The new system of management provides solutions so that the organization can
gain competitive advantage. The workers need to discuss with every issue occurring in the bank
that is based on the way taking critical decisions to solve the problems.
Roztocki and Weistroffer (2015) stated that the change towards internet banking has
fueled through changing dynamics in the banking industry. Hence, organizations need to be
smart and adopt effective IS strategy so that the demands of customers can be quickly fulfilled.
Also, it is important to focus on business intelligence by taking IT and IS strategy in the
organization. The banking industry is involved in customer management. Therefore, it is
essential for the agencies to implement effective IT and IS strategy and participating in

9STRATEGIC INFORMATION SYSTEM
performing activities like customer segmentation, co-creation, and utilization of alternative
channels, useful cross as well as upsell and CRM to the customer experience.
Also, risk management and information security are considered as important aspects that
deal with adopting effective IT/IS strategy. It is important for the organization to focus on some
elements such as credit systems, liquidity risk systems as well as enterprise risk management
system (Baskerville et al. 2014). The advent of mobile banking generates several security risks
and vulnerability. In this perspective, it is important for the organizations to adopt effective
strategy so that security risks can be mitigated. Moreover, Macquarie Group Limited needs to
follow and implement IT Act 2000 so that privacy of customers can be ensured. Along with
these, it is vital to frame efficient payment and settlements Act to provide regulation as well as
supervision of the payment system in banking. Providing robust RTGS/ NEFT platform can be
effective in this case. Regulation, as well as promotion of the acceptance channels consisting
ATMs, payment gateway policy along with POS implementation, can bring competitive
advantages in Macquarie Group Limited. Issuance guidelines, as well as security measures for
card transactions, can be helpful for the organization.
4. Outsourcing vs. End-User Computing in Macquarie Group Limited
The use of outsourcing methods is mainly applied by various companies or organizations
to get functionalities from various efficient service partners. This process can be utilized by the
Macquarie Group Limited to work with efficient and effective business partners (Deresky2017).
In various cases, it is seen that employees are transferred for meeting the outsourcing
requirements.

10STRATEGIC INFORMATION SYSTEM
End-user computing or EUC is defined by the utilization of non-programming personnel
to work with related applications (Wheelen and and Hunger2017). In this type of outsourcing
process, the end users associated are utilized for addressing the programming environment.
The process of outsourcing is considered effective solutions where Macquarie Group
Limited can enjoy more significant benefits. The director of the associated company must adopt
the strategy associated with this adoption process to enjoy maximum benefits (Tucker et al.
2017). This report has discussed the processes by which the director will be benefitted by the
adoption process.
Macquarie Group Limited focusing on Basic Actions: Macquarie Group Limited can
enhance their business operations with the help of IS Strategy. The financial operations and the
business operations can get enhanced, and the bank should focus on these basic operations to
gain the desired profit they want (Wheelenand and Hunger2017). Macquarie Group Limited
must also focus on the outsourcing of financial and business operations.
Expenses Savings and Efficiency in Macquarie Group Limited: The company must
choose the process of outsourcing which will be responsible for cutting off the expenditure of the
work. Also, the efficiency of the bank is also increased (Tucker et al. 2017). The reduction in
spending concerned and the increase in efficiency are very useful for Macquarie Group Limited
as these will be helpful in increasing the profit associated.
Lessening Overhead: The process of outsourcing helps in reducing the cost associated
with overhead charges as this will be effective for the bank (Wu2017). Also, the expenses
incurred for back-office operations are also very high.

11STRATEGIC INFORMATION SYSTEM
Macquarie Group Limited Control in Operations: As operations are normally being
outsourced, the need for control is absent in this case (Tjemkes, Vosand Burgers2017). The
departments of Macquarie Group Limited can be affected due to poor control and operating
processes. As a result, the bank will be able to get the greatest services in operations as well. In
addition, this will be a cost-effective solution for the bank (Rahimi and Kozak 2017). Thus, the
bank will be benefitted from this adoption.
Macquarie Group Limited ’s Staffing Flexibility: For any organization, an adaptation of
a new management system can pose problems for them (Serenkoand and Bontis2017). A major
vital point ion outsourcing is the flexible staffing process. The staffs are responsible for
contributing to the success of the bank (Rahimi and Kozak 2017). In addition, various operations
can be managed with ease through outsourcing.
vi) Risk Management in Macquarie Group Limited: Mostly, all organizations consider
the aspects of risk management. The management team along with the workers associated with
Macquarie Group Limited must consider the need for addressing risk management in their office
(Durand et al. 2017). For this reason, risk management can be effectively applied by outsourcing
processes by undertaking minimal investments.
vii) Developing Internal Staff: For every organization, the complex or large projects can
be effectively accomplished only when the employees associated with them are working well
(Durand et al. 2017). In a similar case, the management process of Macquarie Group Limited
must address the training process of their employees in an efficient manner (Wolfand Floyd
2017). The internal employees of the bank are responsible for maintaining the business
operations and outsourcing of them. The training programs will be responsible for strengthening