STRATEGIC INFORMATION SYSTEM
The strategic information system is one of the essential systems to gain an advantage in the competitive advantage in the banking sector. The automatic identification system (AIS) is mainly noted for the tracking of the services with the medium of the satellite. In the banking sector, there are various news of the hacking of the accounts so this system is helpful for the tracking of the accounts as well as the person those are trying to hack the accounts of the others. In the banking sector, the implementation of the AIS system has made them free form tracking along with that hacking of the accounts of others. In order to develop some of the advantages there is need for identification of the stakeholders, vendors as well as the softwares which are capable enough for achieving the goals. The implementation of the AIS software in the banking sector has some risk as well that are required to be mitigated as quickly as possible because it can create trouble for the other softwares also. Moreover, there are some ways that helps for the efficiency of the business in the banking sectors with the use of the AIS software.
Strategic information system is a common and eminent procedure utilized in most successful industries today. It influences an organization largely and controls the entire method of information collection to information security in the workflow. Information strategies are used to set firm and stable objectives for an organization. Most of the MNC’s today adapt the process in order to keep the business in control. It involves collection of information of data in various forms and managing them. The structure of the organization largely depends of strategic information which is operated by technical experts, researchers and planners. This particular method is important for banking purposes, as a bank deals with huge amount of financial data. This process is required for data preservation, retrieving of data, providing access to others when required as well as organization of the financial information. The most important purpose of strategic information in a bank is security of the existing data.
An overview of business process
The improvement and betterment of the business involves the adoption of effective strategies. According to Orozco et al. (2015, p.1), some of the useful strategies used by experts are mapping of the business or graphing, process re engineering, process transformation and more. A business process can be described as a flow of work or a management chain that explains the complete structure of several tasks that needs to be executed in order to provide a quality service or come up with a particular product.
One of the categories of business process is the process of management. Management process is about the management structure of the specific organization. Banking sector includes numerous activities like billing system, accounting process, cash receipts and also maintaining the data of the customers in a secured way. Accounting Information System (AIS) can provide several reports related to investment as well as lending. A banking sector is a place where these activities are provided major concern. This system helps in displaying the amount delivered along with the paid dividends. It is the duty of the manager of the banking venture to conducts ratio analysis for management of the entire capital of the entity in a proper way.
The above process shows in the way by which this particular system assists banking sector to conduct its financial work in a proper way. Business analyst, Chief Financial Officers and auditors prefer to work with AIS as it provides the assurance regarding immense level of accuracy in workplace. The financial transactions of the banks are regulated by AIS, which aids in maintaining the information in an intact way. Moreover, information of the employees of the financial institution is also kept in a confidential way by this system. Usage of this system is done with the help of information technology infrastructure for better service.
Determining the business requirements
The motto of the banking business sector is to understand the needs of the customers so that such financial services can be provided to them (Galeotti et al. 2013, p.1751). Initially, it can be said that customers needs to be identified. It can be followed by the understanding of the preferences of the users so that they can be served properly. However, capital requirements are required to be considered by the banking business houses. Regulation of the banks is required to be set suitably so that no unexpected loss incur in the business progression of this industry. Certain grades can be maintained by providing grades as per the risks involved:
Capital of Tier
1: This capital helps in continuation of the banking activities without any issues.
Capital of Tier
2: In this case, the depositors are repaid in case of bank becoming insolvent.
These banking business activities are the major requirements. AIS will help in easing these activities by entering into each part of the activity so that risk can be reduced further. Leverage is another requirement of the business. Elbanna (2016, p.220) has mentioned that leverage is considered as the relationship in between entire assets of the bank along with that of the capital base of the bank. All these are worked upon with the help of the information technology infrastructure thereby, adding immense of efficiency in the work process. Last but not the least is the monitoring of the business activities of the bank. Visibility of the system is essential so that flexibility can be maintained in the competitive market. Proper understanding of the requirements has to be kept with the employees so that this industry can operate successfully in the coming years.
Determine the system requirements
AIS is basically the amalgamation of six segments like people, procedures and instructions, data, software, information technology as well as the internal controls (Azaria et al. 2015, p.65).
People are none but the users of this system. Sarstedt et al. (2014, p.106) commented that in the banking industry, people include accountants, chief financial officers and the auditors. With the help of this system, every segment of the organisation can work in a collaborative way as it provides the platform to work suitably. For example, it can be said that management of the banking sector, sets some goals for the workers. When the sale is to the customers by the workers, an invoice is made by this system so that no issues incur in the long run of the business.
Procedures and instructions:
This comes under the process where the entire work of AIS is underlined like storing, processing of information along with retrieving that. These methods can be done automatically and also manually with the help of AIS system. Kwon et al. (2014, p.387) has stated that for information storage, AIS contains a database structure like SQL. This is essential for data handling in an effective manner.
All the financial data of the banking sector is stored in a highly secured environment under AIS. Large number of accounting organisation prefers to have AIS due to this amazing storage structure. Some of the information contains the following:
Billing statements of customers
All these are stored under AIS in a secured manner thereby, improving the security of the data.
Software used for this task is SAP, Microsoft’s Dynamics, Sage Groups’s MAS 90 and Oracle Peoplesoft (Hosseinian-Far and Chang, 2015, p.663). All these software assists in easing the work of AIS in a more appropriate way. Information is kept secret and private using these storage programs. Sometimes, this system can be easily outsourced by the venture so that third party users can be easily involved in this sector.
Information Technology Infrastructure:
Entire hardware used in this system comes under Information Technology Infrastructure. Some the items that are included for this system are computer system with high processor for better work, routers, storage devices and a power backup supply. AIS is such a platform that is compatible for any kind of software. Maintanence, proper servicing and upgrading of the hardware components is required to be done for gaining optimal performance from the above mentioned system.
In the viewpoint of Peppard et al. (2013, p.5), internal control is considered as the security measures that helps in safeguarding the sensitive data from being hacked. These types of data include account numbers of customers, salary of employees of the banks and credit card information. Encryption is the major requirement of the data that is to be done for each data stored under this system. This will help in adding more efficiency to workplace.
Software and vendor selection
It is very important for any organization to select appropriate software and also the vender because both this break the security policy of the organization.
In the configured software fail to provide proper protection in the system then an unauthorized user and total information system of the database get compromised. Apart from that any kind of technical error can create major problem. Any kind of lack of performance of the software can compromise the total security of the system (Jones et al. 2014, p.300). Therefore in order to protect the information or data file in a database most important thing is to install effective and original security software.
Manual or physical risk is also need to maintain at the time of selecting the vendor because they play major role in case of banking sector. It is very important for any banking sector select only trusted vendor otherwise there is a huge of information leakage. Some time it can also be seen untrusted vendors, shareholders publish all the valuable information to the rival organisation and if this kind of situation happens then it will create major impact over a particular organisation.
Determine at least three ways to improve business efficiency
In order to improve the efficiency of the business, some ways to use such technologies are enlisted below:
Management of data in the cloud:
Cloud has been considered as a boon the technology of the 21st century and storage of data in the cloud is the safest way to maintain the data without any issues (Kandjani et al. 2014, p.1). AIS can be used to store its data in the cloud itself so that proper management of the work can be done suitably. Services of the cloud can be scaled easily thus, using it for such purposes can help in the business growth properly.
Usage of remote system:
One of the best ways to access the work files is the remote system. Such systems can be only worked upon only when particular software is installed in the system. A particular IT team can be engaged in the process so that without any obstacles, data can be accessed properly (Wu et al. 2015, p.500). For the sake of technical support, usage of remote desktop in the banking sectors needs to be implemented. Advanced software features will add more productive features to the process of the work.
Contact with the customers of the bank:
Maintaining proper with the customers is the main requirement of the banking sector because it will help in enhancing the banking services properly. Email programs like Mad mimi and Hootsuite can be used to maintain suitable connectivity with the customers. These programs will help in adding more efficiency in the process of the work.
Accounting Information System is responsible for every constructive activity of the process of the business. Such system can be easily handled if the abovementioned ways are considered properly.
Evaluate the level of efficiency
In case of banking sector, it is very important to imply proper information security system otherwise all the security of important database will be compromised. Banking sector the data base contain huge amount of data and not only the customer details. Generally all the data base of any banking sector various kind of sensitive information. Therefore, if the security level is not implemented in a proper manner then there is a possibility of information and data file manipulation and hacking of information (Fullerton et al. 2014, p.418). In order to evaluate the efficiency level banking sector can imply various kind of security processes and such as data authentication, data encryption and network security and many more. Apart from that latest technology that can also be implemented for maintaining security of the information is the AIS ERP solution. Specially in case of banking sector it is more use full because with the help of this approach it is possible to make a clear view on the entire area of the database that contain all the important information’s.
Performance of AIS
It is a process that helps both the small and large scale business. Apart from that with the help of AIS solution it is possible to integrate of all the data across the enterprise and AIS solution process has the visibility in the entire area of a database. That contain huge amount of information. In case of banking sector AIS solution process is more effective because to identify the financial opportunities that helps any organization to save the cost and improve the efficiency. All these things are possible with the use of AIS solution process.AIS solution approaches also provide high level view on the core database. Hence, with the help of this approach it is possible to maintain security of the database that contains sensitive information (Martinsons et al. 2017, p.328).
AIS solution offers
In order to increase the efficiency level AIS solution process provides various kind of facility and that are data warehousing, data convention, web application development, database design and maintenance, oracle middleware, EAI or Enterprise application integration. All these approaches help any kind of organization specially banking sector because all the support that is provided by the AIS actually helps the information system in various ways. In case of transferring the information properly this AIS solution is also used (Skjølsvik et al. 2017, p.220).
Examine potential risk
In case of banking sector there is huge possibility of potential risk. Main two factors that can be highlighted specifically in the potential risk are the technology risk and technical issue risk.
Some time it happens that all the outcomes that are extracted from the IT infrastructure is not similar to the expected result. Some time it can also be happens that all the new technology that are introduced in the system fail to maintain or reach the expectation of the customer, then some time it create negative impact over the customer mind.
In other word it can also be stated that any kind of information structure related risk can be consider as the technology risk (Kavanagh and Johnson, 2017, p.45). That means all the risks that are related with the IT framework is can be considered as the technology risk. In case of banking sector various kinds of hardware and software is used and if any kind of hardware related fault and network related problem can be considered as the technology risk.
Technical issue risk
Some time all the major application that plays a major role in the information technology creates potential risk. The major technical issue that can be considered as the risk factor is the technical error and system failure. As a result it creates lack of network connectivity. This kind of risk factor can compromise the security of the database that consist huge amount of major information. If the network security is not implemented or lack of network security is configured by any organization especially in case of banking sector. It increases the chances of vulnerabilities (D et al. 2014, p.393). This kind of network related problems hamper the performance of the router and switches that are used in the system. Apart from that chances of data file hacking and network traffic is also increased.
Another risk factor that can also be happen is the data breaches and if this kind of situation is happen then there is huge possibility of leakage of information and at the same time data leakage. If the minimum security policy for maintaining the database secure is not maintained then it can be considered as data breaches. The most crucial factor in case of data breaches is that it breaks the total confidentiality of the data base.
Provide guideline to mitigate the risk
In order to mitigate this kind of risk factor any organization can imply various kind of security policy that can help the organization to mitigate the problem. In case of banking some security policy and standard must need to maintain and that are availability , confidentiality and integrity
It is very important for any organization where online transaction plays an important role. In case of banking sector, Online transaction is one of the major approaches therefore in case this kind situation there is huge possibility of information hacking. Therefore to mitigate this kind of condition banking sector can use private cloud computing technology. According to the concept there is availability that only the authorized used can access the web site. Hence, the unauthorized user will unable to access the website. If this kind of security approaches is configured then it can be considered as the availability (Khodakarami and Chan, 2014, p.36). Availability is one of the major approaches of information system
It can be considered as other major approaches that are connected with the information security system. In order to mitigate the information related risk any organization can imply the data integrity. Some time it happens that any data or information is uploaded in the web server but at the time of downloading entire are is not available in the server or some part of the data is misplaced. It happens due to the various kind of network or server hacking. Some time unauthorized user creates network jamming, therefore the data or information is not transmitted to the authorized user and then this kind of situation is happened. If this kind of situation is happened then it will compromise the total security of the information. Therefore in order to avoid this kind of situation authorized user now sent the data in the encrypted format. With the help of this approach the data get encrypted and only the authorized user will read the data after implying proper source code or key. That is called decryption.
It is another approach that is connected with the information security system. According to the concept of confidentiality the data need to be secure and accurate. If the confidentiality of the data base and particularly of some information breaches then the security of the total system get compromised (Kwon et al. 2014, p.392). One of the major approaches by which it is possible to maintain the confidentiality is the data or information authentication and other approaches is data encryption. With the help of data encryption it is possible to avoid lack of data confidentiality and at the same time with the help of data authentication it is also possible to avoid to avoid the breaches of data or information confidentiality.
From the above discussion it can be consider that information system is one of the most major factor that help any organization to distribute the relevant information from one system to another system . Apart from that from the discussion it can also be considered that there is a huge possibility of thefts and vulnerability. From the above mentioned discussion it can also be considered that with the help of proper security policy it is possible to handle the information that is stored in the database. From the discussion it can also be discussed in which way it is possible to maintain the security of the information’s system.