Transformation of a Korean Bank Essay Example for Free

Transformation of a Korean hope Essay irresolution 4The IT related decisions taken by the Kwangju Bank include the downsizing of the discipline systems and the reengineering of banking processes, headed by the then chairman of the board for the bank. These were impacted by the competition in the global market in that having sedulous the former information system, the bank was too was weak compete against the foreign banks in the US, Japan and Europe. The bank could not establish its individual business sector strategies to get prominently in the global market for the reason that the information system active. Hence, all these factors led to the important decisions in the area of information technology (Rainer Watson, 2012).Question 5RisksThe OLTP system is the most significant and critical system of a bank due to its direct linkage to the financial interests of the customers. Any trivial issues in the system may critically impinge on the credibility of the bank. For this reason, downsizing the OLTP system of a bank is a pioneering, yet exceedingly risky bet on for any bank (Young, 2011).Opportunities* Catch the attention of customers by assisting them in managing their financial interests rather expediently * Capable of providing banking services whenever and wherever the customers wish for * Support electronic wallets, automatic teller machines, self-service terminals, home banking, and commercial banking * Adequately flexible for helping the development of saucy products and the making of more effectual banking decisionsQuestion 6The new system facilitates the customers in getting better service as in quality and timeliness. For instance, the transaction processing speed has been enhance considerably from quadruple to six seconds to 0.7-2.0 seconds for every transaction. The bank is now capable of serving customers 7 days a week and 24 hours a day, rather than the typical octette hours. Also, customers have a greater number of financial servic es to select from since development cycles of new product have been considerably trimmed down from months to weeks (Young, 2011). Additionally, having employed the new system, the bank was capable of reducing the operating costs with optimized performance and pursuing novel strategies of business, more effectively. The new open information system imparts enhanced freedom from the domination of vendors and flexibility, and permits more convenient espousal of new technology.Question 7The programs had been developed in a bit by bit path without a general outline. As a consequence, it was very costly and difficult to modify or maintain the programs. Moreover, it was very difficult to efficiently develop novel programs responding to the swiftly modifying market environment.Question 8The vendors supplying the systems based on mainframes attempted to hinder the project for the order of protecting their potential as advantageously as current markets. The superior personnel at the computer center of the Kwangju Bank were mocking regarding the project since they were uncomfortable with the novel technology. Moreover, academicians who were paid for evaluating the project inferred that projection involved a great risk because the technology was not adequately mature.Question 9Yes, the banking process reengineering had to accompany with the development of the new information system. This is because the banking trading operations were obstructed by its computer vendors and computer systems. The bank was unable to establish its distinctive business approaches since the existing information systems were incapable of supporting them. Conversely, the expenses on information systems were escalating at a greater rate compared to the rate of escalation of the banks returns (Rainer Watson, 2012).ReferencesICFAI Center for Management Research. Learning with cases. Retrieved from http//www.icmr.icfai.org/casestudies/learn_case.htm on Jan, 26th, 2012. Rainer, K. Watson, H. (2012 ). Management information systems moving business forward. John Wiley Sons, Inc. Young Moo Kang. (2011). International Case Study 3 From a dinosaur to a chameleon Transformation of a Korean Bank. Dong-A University, Korea. Retrieved from http//www.wiley.com/college/turban/0471400750/ internationalistic/dino.html on Jan, 26th, 2013.