types information system: a case study of dhaka bank

8/10/2019 Types Information System: A Case Study of Dhaka Bank

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1.0 Introduction:

Market information systems (otherwise known as market intelligence systems, market

information services, or MIS, and not to be confused with management information systems)

are information systems used in gathering, analyzing and disseminating information.

A marketing information system (MIS) is an essential tool for translating raw data to useful

information. It is evident that managers need a wide range of relevant strategic information,

domain knowledge, and assistance with systematic strategic analysis to overcome their

limitations in the rocess of marketing strategy develoment.

!he banking industry has been undergoing a tremendous change in the ast few years. !here

are many changes in the number and variety of roducts offered because of the branching or

mergers and ac"uisitions of banks. !he intensity of cometition and information technology

growth within a harsh environment has led to restructuring of retail banking industries.

#ecent advances in information systems technologies i.e. A!M (Automated !eller Machine),

$%banking etc. offer new ways of managing banks relationshis within international banking

environment.

!he banking industry as a art of financial industries faces high risk in its oerations and

decisions because of money transactions. &n the other hand, technological innovations

reduced both geograhic and economic barriers to cometition and created additional

dimension of uncertainty within the financial industry. !hroughout our research, it is aarent

that marketing information system in 'haka ank may rovide better advantages over other

cometitors.

Overview of Dhaka Bank Limited:

angladesh economy has been eeriencing a raid growth since the *+s. Industrial and

agricultural develoment, international trade, inflow of eatriate angladeshi workers*

remittance, local and foreign investments in construction, communication, ower, food

rocessing and service enterrises ushered in an era of economic activities. -rbanization and

lifestyle changes concurrent with the economic develoment created a demand for banking

roducts and services to suort the new initiatives as well as to channelize consumer

investments in a rofitable manner. A grou of highly acclaimed businessmen of the country

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groued together to resonded to this need and established 'haka ank imited in the year

/++0.

!he ank was incororated as a ublic limited comany under the 1omanies Act. /++2. !he

ank started its commercial oeration on 3uly 0, /++0 with an authorized caital of !k.

/, million and aid u caital of !k. / million. !he aid u caital of the ank stood at

!k /,024,25,6 as on 'ecember 6/, 54. !he total e"uity (caital and reserves) of the

ank as on 'ecember 6/, 54 stood at !k 6,/50,788,4/6.!he ank has 2/ branches and /

usiness 1enter including 5 &ffshore anking -nits across the country and a wide network

of corresondents all over the world. !he ank has lans to oen more branches in the

current fiscal year to eand the network.

!he ank has a total number of 0 branches and / &ff Shore anking -nit at '$9: Savar

'haka, 4 SM$ Service 1enters, / ;losk (usiness 1enter) and / 1entral 9rocessing 1entre

as of March 5/. and lans to oen more by the end of 5/ to eand its network.

!he ank offers the full range of banking and investment services for ersonal and cororate

customers, backed by the latest technology and a team of highly motivated officers and staff.

!he ank has launched &nline anking services (i%anking),


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Availability of a wide range of in"uiry facilities, assisting the bank in business

develoment and follow%u.

Immediate relies to customer "ueries without reference to ledger%keeer as terminals

are rovided to Managers and 1hief Managers.

Automatic and romt carrying out of standing instructions on due date and

generation of reorts.

@eneration of various MIS reorts and eriodical returns on due dates.

ast and u%to%date information transfer enabling seedier decisions, by

interconnecting comuterized branches and controlling offices.

Significant cost benefits, time savings, roductivity gains and rocess re% engineering

oortunities are associated with the use of data warehouse for information

rocessing.

'ata can easily be accessed and analyzed without time consuming

Maniulation and rocessing.

'ecisions can be made more "uickly and with confidence that the data are both time%

relevant and accurate.

Integrated information can be also ket in categories that are meaningful to rofitable

oeration.

Bith automation, service no longer remains a marketing edge with the large banks

only. Small and relatively new banks with limited network of branches become better

laced to comete with the established banks, by integrating I! in their oerations.

!he technology has commoditizing some of the financial services. !herefore the

banks cannot take a lifetime relationshi with the customers as granted and they have

to work continuously to foster this relationshi and retain customer loyalty.

!he technology on one hand serves as a owerful tool for customer servicing, on the

other hand, it itself results in deersonalizing of the banking services. !his has an

adverse effect on relationshi banking. A decade of comuterization can robably

never substitute a simle or a warm handshake.

In order to reduce service delivery cost, banks need to automate routine customer

in"uiries through self%service channels. !o do this they need to invest in call centers,

kiosks, A!MCs and Internet anking today re"uire I! infrastructure integrated with

their business strategy to be customer centric.

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3.0 ethodo!o"#:

9rimary method of this reort has collected from the emloyee of the 'haka ank

head office only by face to face interview. !he secondary data we have collected by browsing the internet D various online

sources and also the official websites of 'haka ank.

$.0 Limitations:

&ur study was mainly limited by the following factors.

Shortage of time.

'ifficulties to disclose the data.

ack of coordination due to communication roblems.

%.0 Literature &eview:

!he information system of the banks lays a vital role in collection, analyses and

dissemination of the information across the deartments of the bank and the outside users of

the banks. !he modern banking system is totally deendent on the information systems. It

does not only let the banks manage the deartments well but also have an increase in the

consumer satisfaction, revenue and roductivity. !he online banking is one of the asects of

the Information technology. !he banks can bank anywhere in the world via the online

banking. !he online banking makes the communication fast and smooth through its modern

technology. !he future of the angladesh banking is the online banking. !o mitigate the

cumbersome rocess of the traditional banking system, the online banking lets the customers

transact with bank via online or using internet, using mobile, 9'A or latos. !he online

banking system allows the customers ay bill, oen account, aly for the loan, business to

business ayments. or the configuration of the online banking, the can have the comonents

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internally or they can outsource the comonents from the sources like another financial

institution, internet service rovider, internet banking software vendor, credit scoring

comany. In addition to traditional banking roducts and services, banks can rovide a

variety of services that have been designed or adated to suort e%business. Management

should understand these services and the risks they ose to the institution. !hese are the most

common suort services? web%banking, account aggregation, electronic authentication,

website hosting, ayments for e%commerce and wireless banking activities. !here are about

28 banks are oerating their business in the country. Among them 2 are nationalized

commercial banks, 2 secialized banks, 6 rivate commercial banks, / foreign banks. !he

nationalized banks are huge and their network covering almost every uazillas of the country

but they are still to adot the online banking technology. !he situation is the same for the

secialized banks and some first generation commercial banks. &n the other hand the third

generation rivate commercial banks and some 5nd generation banks are very much

aggressive to adot this new technology. 'utch%angla bank, a third generation rivate

commercial bank can be called the ioneer in this sector. Some other mentionable banks are

9rime bank, rac bank, remier bank, 'haka bank, !rust bank, $astern bank. ut the no. of

user of the online banking is less. A study done on / eisting customer ('utch

angla bank%5, 9rime bank%5, rac bank%5, 9remier bank%5, the trust bank%/,$astern bank%/) of the above%mentioned banks shows that the customers using the online

banking services are not as er eected. As the information technology is getting easily

available to the different users, the vulnerability to the IS is also increasing at the same time.

or tackling that vulnerability some guidelines should be followed by the banks which are

given by the angladesh ank. !he information should be rotected from that of hackers. I!

Management must ensure that the I! functions are efficiently and effectively managed. !hey

should be aware of the caabilities of I! and be able to areciate and recognize

oortunities and the risk of ossible abuses. !hey have to ensure roer maintenance of

aroriate system documentations, articularly for systems, which suort the financial

reorting. !he commercial banks should maintain the I1! olicy adoted by the angladesh

ank. $very bank having I! systems must have an EI! 9&I1FC which must fully comly

with this I! @uideline and be aroved by the oard of the bank. or foreign banks the

document must also be in conformity with their global olicy document.

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'.0 (heoretica! Back"round:

Information )#stem

An information system can be defined technically as a set of interrelated comonents that

collect (or receive), rocess, store, and distribute information to suort decision making and

control in an organization. In addition to suorting decision making, coordination and

control, information systems may also hel managers and workers analyze roblems,

visualize comle sub it is a form of an information

system which collects, stores, modifies, and also retrieves an enterriseCs data transactions.

!he transactions are considered to be any event that has assed the A1I' test in which

information has been generated or modified before being stored in an information system.

Bith a transaction rocessing system comanies are able to rocess transactions faster which

ensure that they have a smooth flow of information and a smooth rogression of rocesses

throughout the comany. Some of the characteristics that are transaction rocessing systems

have included raid rocessing, reliability, standardization, and controlled access.

I)

A marketing information system (MIS) is a way to manage the vast amount of information

firms have on handGinformation marketing rofessionals and managers need to make good

decisions. Marketing information systems range from aer%based systems to very

sohisticated comuter systems. Ideally, however, a marketing information system should

include the following comonents.

A system for recording internally generated data and reorts

A system for collecting market intelligence on an ongoing basis

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Marketing analytics software to hel managers with their decision making

A system for recording marketing research information.

D))

'ecision suort system ('SS) is a comuter%based information system that suorts

business or organizational decision%making activities. 'SSs serve the management,

oerations, and lanning levels of an organization and hel to make decisions, which may be

raidly changing and not easily secified in advance.

'SSs includeknowledge%based systems. A roerly designed 'SS is an interactive software%

based system intended to hel decision makers comile useful information from a

combination of raw data, documents, ersonal knowledge, or business models to identify and

solve roblems and make.

(he inde*endence between or"ani,ations and information s#stem

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-ardwareis the hysical e"uiment used for inut, rocessing, and outut activities in an

information system. It consists of the following? comuters of various size and shaes,

various inut, outut and storage devices> and telecommunications devices that link

comuters together.

)oftwareconsists of the detailed, rerogrammed, instructions that control and coordinate

the comuter hardware comonents in an information system.

Data mana"ement techno!o"#consists of the software governing the organization of data on

hysical storage media.

etworkin" and te!ecommunications techno!o"#, consists of both hysical devices and

software, links the various ieces of hardware and transfers data from one hysical location

to another.

Information s#stems are more than com*uters

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-sing information systems effectively re"uires an understanding of the organization,

management, and information technology shaing the systems. An information system

creates value for the firm as an organizational and management solution to challenges osed

by the environment.

Leve!s in a firm

usiness organizations are hierarchies consisting of three rincial levels? senior

management, middle management, and oerational management. Information systems serve

each of these levels. Scientists and knowledge workers often work with middle management.

(he two/wa# re!ationshi* between or"ani,ations and information techno!o"#

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Organizati

ons

Informatio

n

Technolog

y


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!his comle two%way relationshi is mediated by many factors, not the least of which are

the decisions made%or not made%by managers. &ther factors mediating the relationshi

include the organizational culture, structure, olitics, business rocesses, and environment.

Database

A database is a collection of data organized to serve many alications efficiently by

centralizing the data and controlling redundant data. #ather than storing data in searate files

for each alication, data are stored so as to aear to users as being store in only one

location.

Database ana"ement )#stems

A database management system ('MS) is software that ermits an organization to

centralize data, manage them efficiently, and rovide access to the stored data by alication

rogram. !he 'MS acts as an interface between alication rograms and the hysical data

files.

Data arehouse

A data warehouse is a database that stores current and historical data of otential interest to

decision makers throughout the comany. !he data originate in much core oerational

transaction system, such as systems for sales, customer accounts, and manufacturing, and

may include data from web site transactions. !he data warehouse consolidates and

standardizes information from different oerational database so that the information can be

used across the enterrise for management analysis and decision making.

Data inin"

'ata mining finds hidden atterns, relationshis in large database and infers rules to redict

future behavior. !he atterns and rules are used to guide decision making and forecast the

effect of those decisions. !he tye of information obtainable from data mining includes

Associations

Se"uences

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1lassifications

1lusters and

orecasts.

So, information travels throughout the Asia bank in the following ways.

.0 (#*es of Information )#stem in Dhaka Bank

Ho single system can rovide all the information an organization needs. A business

organization needs system that will suort rocess for each of the ma


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&etai!

&erational managers need systems that kee track of the elementary activities and

transactions of the organization. #etail is used forthe regular transaction haened between

customer and branches. #etail is similar as (ransaction +rocessin" )#stems 5(+)6. #etail

hels to record daily routine transactions necessary to conduct business such as?

1ustomer oen their account from here

!he customer get a /7 digit account number for oening an account

1ustomers make a transaction.

Information

Information is the central oint for the Information System of 'haka ank. Information is the

combination of all information system. Information is maintained by a & S$#J$#. &

server consists of several otions, like%

und !ransfer (!)

@eneral edger (@)

Automated !eller Machine (A!M) etc.

A bank officer can search from & server. !here he will get related all information for any

urose. ut no one can change the information. & Server also works like a ana"ement

Information )#stem 5I)6. y using & Server the middle manager can monitor and

control the entire business. & Server rovides middle managers with reorts on the

organizations current erformance. !he managers can maintain entire banking functionality

by using & Server. In case of international transaction SAM (Swift Alliance Messenger) is

used by the manager to monitor client history. SAM has two dimensions. In lives all the

current data is stored and in archives all the imortant old data is stored. Manager can use this

SAM in their international transactions to maintain accuracy and take decision.

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(he Database 7**roach to Data mana"ement

'haka ank maintains an Information System network that cover each of the ma


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any roblems in the system. !he managers and eecutives of I! division work continuously

to develo the total I! system of ' so that it can be oerated with ease, accuracy, and

seed. Since its


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Managers of 'haka ank can easily retrieve any information re"uired from the central server

through the & Server. !hey can collect information there but they cannot change or modify

any information there. In & Server there is a @eneral eisure which hels the manager to

find out the data in different attern such as se"uences, classification, cluster etc.

(he main )oftwares that DBL uses

' uses the following software for maintaining their daily activeties?

lecube

'1ube

SBI! Manager

Bord

$cel

$l 'orado

'haka ank Server

Hikash

-HI

Bestern -nion

'haka ank oreign !rade

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Benefit of Information )#stem in different of Dhaka Bank

Information system allows the emloyees of 'haka ank to erform their daily activities asaccordingly. !he emloyees can easily get the related information regarding the clients by

suing the & Server. In case of transitions of other banks, the @ hels the bankers to

maintain the data base. $very bank has a swift code. !his code is necessary when a bank is

involved in transactions with other bank and outside the country. !he information system

maintains this swift code in keeing all the transactions and hels the bank in roviding the

identity.

!he to level manager can easily monitor the risky are of the business by monitoring the

balance sheet rovided by the @ through the information system. !hey can take the future

decision for the information rovided by @. !his all think only be haen by the hel of a

roer information system.

&ecommendations:

Actually we have got an overall idea about banking activities of 'haka bank from that reort.

=owever here is some recommendation for 'haka bank in order to erform banking activities

more efficiently than cometitor in cometitive business market as well taking business

decision "uickly.

It should develo decision suort system that suorts non routine decision making

for middle management.

!o get cometitive advantage, the bank should emhasize on customer relationshi

management system.

!he bank should develo knowledge management system.

-sing information system, it should follow a standard using information system like

I9 (fair information ractice).

It can oen mobile banking system.

It should insist on security olicy in a way on unauthorized erson enter the system.

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onc!usion:

inally we can say that in the cometitive business world, business activities are becoming

simle when we are using information system. So the bank, 'haka has to introduce someesecial tyes of software and installing "uickly to rovide modern banking service than

cometitor. If it can, then the rocess of banking activities would be so faster and achieve

some cometitive advantage than cometitor

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types information system: a case study of dhaka bank

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