Bridging Information Systems in Business, Credit Exception Tracking System

Abstract

This report aims to identify the business value of information system in an organization. The organization that has been focused is HSBC Bangladesh.

The CRM department of HSBC Bangladesh had recently incorporated a new software, namely "Credit Exception Tracking System". This report primarily focuses on the situation of the bank prior to the incorporation of this information system in the CRM department, and it expands with a qualitative and quantitative analysis of benefits being received from the new IS . The major emphasis of these analysis has been the users of the IS, and both the analysis are subject to their response.

The report also contains a brief description of the technical aspects of the IS. The hardware setup and the software support that are needed to operate the IS are described briefly. The cost of implementing the project, including the purchase of additional hardware, software and training is also mentioned.

Although it is always critical to assess the amount of value addition that a particular IS brings into effect, CETS has had very lucid and prominent impact in improving the operation and efficiency of the organization. These impacts are pointed out clearly throughout this report.

Introduction

The pace of globalization has influenced all businesses to undergo sufficient changes in their operational procedures. Often businesses need to automate their existing operations in order to cope up with the rest of the business world. These automations or alterations can often be very complex to initiate and implement. Technology is dynamic and thus there is also a need to upgrade existing systems and incorporate new ones.

Traditionally an IS is a set of interrelated components that collect, process, store and distribute information to support decision making and control in an organization. This report aims to highlight the extent to which an IS is successful in bringing about the required change that is anticipated by the end users, and whether the installation of the new system is beneficial compared to the previous scenario and cost.

HSBC is one of the top multinational banks in Bangladesh and it essentially operates using numerous networks and information systems to its aid. However, until recently the CRM department of HSBC was using a semi automated information system to track the credit exceptions. The problems faced while using the old system had given rise to transform into a newer system that conforms with the end users requirement to a greater degree.

To understand the difference between the two different systems, namely the semi automated system and the newly installed CETS an analysis with both qualitative and quantitative approach was necessary. The operational hazard that HSBC had to face, prior to the installation of the system, is seen to reduce by a considerable degree.

Company Profile

The Hongkong and Shanghai Banking Corporation Ltd. came to Bangladesh in the year 1996 and it is currently operating with nine branches and a sub-branch in its network. The bank has its branches spread over in three major cities of the country, Dhaka, Chittagong and Sylhet. Today, with a staff of over 830 as of 31 December 2008, HSBC Bangladesh offers a comprehensive range of financial services including commercial banking, consumer banking, payments and cash management, trade services, treasury and custody and clearing.

Key Business Functions

Personal Financial Services

With 9 branches and 1 sub-branch and 27 ATM's, HSBC offers a full range of personal banking and related financial services including current and savings accounts, personal loans, time deposits, travelers cheques and inward and outward remittances.

Commercial Banking

Commercial banking is a traditional strength of the HSBC Group. In Bangladesh, HSBC is a popular choice for customers because of the Group's international reach and a wide range of financial services and products. HSBC has an offshore banking unit (OBU) license and can therefore also provide foreign currency financing to qualifying customers.

Commercial & Institutional Banking

Commercial banking is a traditional strengths of the HSBC Group .In Bangladesh, HSBC is a popular choice for customers because of the Group's

international reach and a wide range of financial services and products HSBC has an offshore banking unit (OBU) licence and can therefore also provide foreign currency financing to qualifying customers. In addition, there are 5 business development centres in the country's major 5 EPZ areas including Dhaka, Chittagong, Adamjee, Mongla and Comilla.

Corporate & Institutional Banking:

Corporate and institutional banking provides dedicated relationship management services to HSBC's clients in major corporate and financial institutions. The Bank's focus is on fostering long-term relationship based on its international connections and extensive knowledge of Asia and Asian business.

HSBCnet

HSBCnet provides a single point of entry to the online solutions offered by our corporate, investment banking and markets business. These solutions include HSBC's award-winning research, plus a range of cash management and treasury and capital markets products and services, presented in a format that can be personalized to meet the individual needs of our customers. HSBCnet, a proprietary computer-based software package, provides customer with an instant link into the HSBC Group's international computer network, allowing them to perform transactions and obtain a diverse range of up-to-date information 24 hours a day, 365 days a year.

Trade Services & Supply Chains

Trade finance and related services are a long-standing core business of HSBC based on the depth and spread of its corporate customer base, highly automated trade processing systems and extensive geographic reach.

Payment & Cash Management

HSBC is one of the leading providers of payments and related services to financial institutions, corporate and personal customers in Bangladesh. Underpinned by the Group's extensive network of offices and capabilities, payments and cash management assists companies in efficient cash management through