BK Solution Planning 14

8/10/2019 BK Solution Planning 14

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Solution Planning

Dr. Gita A. Kumta

Dr. Gita A. Kumta 1


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Business Model

It is a conceptual framework that specifies

What products / services should be offered to

the customer To which customers?

At what price?

How will the business be organised andoperated to deliver value to the customer?

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PLANNING & RISK MANAGEMENT

TREASURY

FOREX

CALL MONEY

INVESTMENTS

EXTRACTION

BRANCH OPERATIONS

FUNDS POSITION

Trial Balance

PersonnelInformation

LARGECREDIT

DETAILS

RESOURCE MANAGEMENT

CORE DATABASE

BusinessModel for a Bank

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Planning Resource Credit Risk Cash Inspection

Monitoring Mobilisation Management Management Management Follow-up

Reporting

Mis

StatutoryAd Hoc

House Keeping

Scrolls, Ledgers

RegistersDay Book, Gl, P & L

General Admin

Human Resources

Premises

Stationery

Technology

Liabilities (Deposits)

Term Deposits Savings Current

Assets (Loans & Advances)

O.D. CASH CREDIT

BILLS

C

L

E

A

R

I

N

G

Remittances Depository Services

Customer

Functions at a Bank Branch levelBranch Management

Dr. Gita A. Kumta

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Strategic planning for information systems:

How do we manage Information? What Application is required

to deliver the Business Model?

Technology planning:What opportunities does new technology provide? Do we

invest in process / office automation or make a radical change

in our business model?

Management of data communication:Networks

Establishing standards and Policies

End-user supportManaging IT Systems

Evolving an IT Strategy

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Enterprise Architecture

EA is fundamentally concerned with

identifying common or shared assets whether

they are strategies, business processes,

investments, data, systems or technologies.

EA is driven by strategy, it helps a business

identify whether its resources are properly

aligned to the organisational mission andstrategic goals and objectives.

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Purpose of Creating an Enterprise

Architecture

To ensure that business strategy and ITinvestments are aligned.

Allows traceability from the business strategy

down to the underlying technology. Relates more broadly to the practice of

business optimization and addresses business

architecture, performance management,organizational structure and processarchitecture.

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Key Components of an Architecture-enabled

Environment

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Systems Development Life Cycle

DEFINITION PHASE:

Feasibility analysis

Requirement definition

CONSTRUCTION PHASE: System design

System building

System testing

IMPLEMENTATION PHASE:

Installation

Operations

MaintenanceDr. Gita A. Kumta 9


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Determining Project Feasibility

Preliminary investigations to examineproject feasibility

- Operational Feasibility- Technical Feasibility

- Economic Feasibility

- Organisational Feasibility

- Environmental Feasibility

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Operational Feasibility

How well does the proposed system

support the business priorities of the

organisation. To what extent will the proposed system

solve the identified problem.

How well can it be positioned in theexisting organisational structure.



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Economic Feasibility

What is the cost saving?

Will there be increased revenue / Profit?

Will there be productivity improvement?

What will be the intangible benefits?

Cot-Benefit Analysis



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Technical Feasibility

What are the Hardware, Software &

Network capabilities required? How reliable will the system be?

Will it be available at all times / as and

when required?



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Feasibility Study Scope

Study the current system

Build the current logical model

Analyse the objectives of the new system Derive a new logical model

Draft alternative approaches giving

- Scope ( Requirements, design approach )

- Acquisition option with resources requirement,

tentative schedule, total cost and risk factors.Dr. Gita A. Kumta 14


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Organisational Feasibility

Is there a stakeholder acceptance?

Top Management support.

Do we have the skill sets required interms of support functions and new /

revised roles?

Does the existing organisational structure

require a change?



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Environmental Feasibility

Patent, copyright, licensing issues.

Are there any Government restrictions?

Who are the affected stakeholders and

how are they handled?

Is Statutory requirements taken care?



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Contents of a Feasibility study Report

Business Model Current Scenario

- Organisational Structure

- Work flow & bottlenecks

- Information requirements Proposed solution indicating the Objective, Design option,

H/W-S/W requirements, human resources and otherrequirements

Budgetary estimate of cost and time

Tentative Schedule

Quality Assurance plan- Testing & Reviews

Implementation Plan



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What applications will bring about the highest return?

What applications will support the strategic goals of the

organization?

Should we move toward a centralised data-driven

application environment?

Should software packages be used?

What Platform should be used?

IT StrategyApplication Development Issues



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Alternative Options

Processing Modes

- Batch processing

- On-line processing (either batch overnight

update or on-line immediate update).

Design Architectures

- Centralised processing

- Decentralised processing.

Acquisition of Information systems

- Build your own:In-house software development

- Outsource development to a 3rd

party: Tailor-made system from softwarehouses

- Buy a prepackaged solution:Ready software packages

- End user development for specific uses.



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System Construction Process

Identify the Business Model, problems andthe information requirements

Break the Business Model into several

smaller, more manageable sub processes Translate each into computer programs /

modules

Piece together each program into an overallcomprehensive IS that addresses problems &provides information



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Definition of a Software

RequirementA software requirement is:

A condition or capability needed by a stakeholder to solve a

problem or achieve an objective.

A condition or capability that must be met or possessed by asystem or system component to satisfy a contract, standard,

specification, or other formally imposed documents.

A documented representation of a condition or capability as in

(1) or (2).

Requirements serve as the foundation of systems or system

components



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Types of Requirements

Business Requirements

User Requirements

Functional Requirements Quality of Service Requirements

Assumptions and constraints KA.

Implementation requirements



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Dr. Gita A. Kumta

Requirements Traceability

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Conceptual Models For Planning Of

Information Systems

Business Strategy Frameworks -Michael

Porters McFarlans Strategic Grid

Critical Success Factor Method

Gartners Hype Cycles

Gartners Magic Quadrant



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IT Strategy

-Direction of IT Investments

Low High

Low

High

Dependence

Impact

Turnaround Strategic

Support Factory

Warren MacFarlans Strategic Grid



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CSF Methodology

Identify what is now critical for success of the organization.

Identify how success may be measured- Key Performance Indicators

(KPIs).

The CSFs / KPIs are essentially the information required for more

effective control over the organization. Which application/systems/process could provide this information?

Audit each of the applications/systems/processes to find out if they are

functionally adequate and technically rugged.

Based on the assessment of each application/system/process identify the

gap between the information available vs. information required-this isthe information gap.

Make recommendations about how missing information may be

supplied-which systems may have to be developed, modified to achieve

this.Dr. Gita A. Kumta 27


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Hype Cycles

It is a graphic representation of the maturity, adoption

and social application of specific technologies.

Shows how and when technologies move beyond the

hype, offer practical benefits and become widelyaccepted.

Hype Curve gives a good view of the technology

horizon.

The organisation can therefore plan the choice of the

technology based on the the Hype curve.



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Phases of Hype Cycle

"Technology Trigger"The first phase of a hype cycle is the "technologytrigger" or breakthrough, product launch or other event that generates significantpress and interest.

"Peak of Inflated Expectations"In the next phase, a frenzy of publicitytypically generates over-enthusiasm and unrealistic expectations. There may besome successful applications of a technology, but there are typically more failures.

"Trough of Disillusionment"Technologies enter the "trough ofdisillusionment" because they fail to meet expectations and quickly becomeunfashionable. Consequently, the press usually abandons the topic and thetechnology.

"Slope of Enlightenment"Although the press may have stopped coveringthe technology, some businesses continue through the "slope of enlightenment" and

experiment to understand the benefits and practical application of the technology. "Plateau of Productivity"A technology reaches the "plateau of

productivity" as the benefits of it become widely demonstrated and accepted. Thefinal height of the plateau varies according to whether the technology is broadlyapplicable or benefits only a niche market.



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Hype Cycle



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Magic Quadrants

Gartner rates vendors upon two criteria: completeness of visionand abilityto execute.

Using different qualifiers per criteria for the varying industries, the MagicQuadrant then rates the participants along each of these parameters.

Using a methodology which Gartner does not disclose, these componentscores lead to a vendor position in one of four quadrants: Leadersscore higher on both criteria; the ability to execute and completeness

of vision.

Challengersscore higher on the ability to execute and lower on thecompleteness of vision.

Visionariesscore lower on the ability to execute and higher on thecompleteness of vision.

Niche playersscore lower on both criteria: the ability to execute andcompleteness of vision. Typically new additions to the Magic Quadrant.



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Business Process Modeling

Provides ways of expressing business

processes or strategies in terms of activitiesand collaborative behaviour to better

understand the process and the participants in

the process.



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What is Process mapping?

Process mapping is a tool that is used to

understand, analyse and document processes

and activities in an organisation and assist in

identifying opportunities for improvement

A process map displays the sequential steps

involved in converting a specific input into the

required output


Documents

BK Solution Planning 14