Importance of ERP in the Banking Sector

Importance of ERP in the Banking Sector Banking industry has progressed greatly and still growing exponentially covering entire range of transactions and products under widespread umbrella. When all such activities are carried out by a bank, it is known as Core banking. Other main reasons apart from financial drivers, for opting for core banking system are Globalization, booming IT industry and consolidation of industries. Today banking sector is feeling limited of their present systems due to consolidation of industries and continuous increasing demand from customers as well as data management pressure. Therefore most of the banks are focussing on growth rather than cost reduction. Benefits and Prospects of ERP for Banking Industry Banking Sector has huge potential for applications of ERP due to its vast data oriented nature. ERP offers extensive integration among various modules. It integrates information, users and various processes for better productivity. It helps in decision making which includes decision for strategic, tactical and operational planning and uses various technologies which help in saving time, reducing cost, and effective communication. It provides solution for various things which include cash accounting, payment processing, security of cash and cash management. ERP systems also help in analysing financial condition of an enterprise, account management and preparation of financial reports and statements. All the back office systems and financial system can be integrated using ERP systems. Helps in effective cash flow by simplifying processing of outgoing and incoming payments. It also offers facility for sharing various processes of banks with customers, vendors and partners. Reporting, planning and analysis of bank assets are combined in one process, and everything is available on single platform. Provides tools which monitor every transaction in real time and other important range of services. An ERP system is also responsible for strengthening the logistical capability which includes handling of non-banking goods and services and handling of bank notes. MEETING TODAYS CHALLENGES Banking sector is facing tougher competition and demands rapid change. Moreover regulatory and legal requirements want information to be accurate and most important of all, it should be timely. Transparency is also a common requirement. Successful banks are more flexible and effective in this aspect. They have boosted the profitability of their banks and controlled their costs even in such environment. In order to achieve the goals banks should evaluate an IT investment so that they can provide fast return and also reduce the heavy operating costs. At present banks have following needs: IT structures should be flexible and allow speedy adjustments in the business procedures. Efficient business procedures and IT structures that are comparatively less complex Employees should be in a position to access tools, solutions and personalized data at any time and from anywhere Core technology should not be harmed while integrating new processes and functions. Integration should be easy and simple. In order to meet all the demands and increase the transparency level, ERP should increase the efficiency and moreover it should improve the Integrations between the existing technology and various business processes. ERP solutions should also provide a secure access and definitely it should be readily available to all the people from organizations and also to the partner, customer and the vendor. Cash Management Teller Operations Position Management Technical architecture Open source software CASE STUDY-IDBI BANK IDBI Bank was established in 1964 by the Government of India. IDBI became commercial bank in 2004 with a network of more than 700 branches and approximately 1200 ATMs IDBI AND CORE BANKING After the drastic change in top management in January 2001, the bank felt a need to improve the technology platform so that bank can transform itself in order to fulfil the challenges in the future. Inadequate network forced IDBI to adopt a technology platform which enabled IDBI to communicate with its customers with the help of many delivery channels. Scalability Complete integrated solution was the need of the hour. IDBI initially used centrally system from Kindle but it was proving to be inefficient to meet new objectives, so it was changed. Pre-requisite of IDBI- Agility of the Business and Time to market IDBI required a system that would provide bank the flexibility apart from quick and easy solution to launch various products easily. They required the solution that gave them a time to market and which can provide faster core banking solution. Key driver for the bank was to achieve business agility which was technology driven. Choosing a Vendor-Solution Overview (Deployment Architecture- Appendix fig 2) Finacle by Infosys was finally deployed after a detailed evolution of different solutions. It was deployed for corporate and retail banking, e-business and consumer operations. Another important point in IDBIs successful implementation was the time taken for implementation. It was done across entire bank in a record time of five and half months. This gave IDBI critical time to market advantage which they badly needed and moreover they were in a position to roll out products at a much faster rate than before. Like for e.g. Welcome Kit was introduced-concept consisting of the deliverables that customers generally expect on day 1 which includes cheque book and phone banking and e-banking details. This reduced the time taken to open an account which initially took at least 6-7 days. Advantages of Finacle (Functional Architecture- Appendix fig. 3) Main differentiator was latest technology. Various types including straight through processing, 24*7 banking, E-Xtensibility tool kit were deployed by Finacle. With the help of Finacle which proved to be a right choice IDBI brought down their End of Day processing time by more than 79%. After Implementation of Finacle Capabilty of handling 3 lakhs transactions in a day from 8 lakhs customer accounts IDBI became 3rd largest pvt.bank in terms of distribution of branch networks. Retail banking sector of IDBI has grown to many folds after deployment of Finacle. It also helped in rolling out of new products and services quickly. New products include the debit cards, gift cards and family accounts. Finacle offers customers a unified view of their relationship with bank which helps in achieving customer satisfaction. Helped in process centralisation. Challenges faced by the Vendor To cope up with the dynamic and ever-changing business processes and consumer needs To be in-line with the regulatory guidelines To assist the banking service with regular up gradation. Integration with Legacy Systems Integration of ERP Modules of different vendors or versions and E-Business Applications. IDBI decided for restructuring in 2008 for various business units which were customer focussed. Restructuring was done to streamline the business processes and improve the quality of customer service. Robust system was required so that all the managers can easily monitor earnings from each branch and also from each of its products which will help in increasing the profitability of the firm and also to maintain the growth. Problems before ERP IDBI was not in a condition to evaluate profitability of each segment of business at different level like customer and branch level. It was important for IDBIs future growth to assess the performance of their business units products which was not possible. IDBI Bank goes with Oracle Apps Implementation Process was basically carried out in 2 phases:- Performance Management System was deployed in 2008 which included modules of Oracle like Transfer Pricing Profitability Manager Financial Services Profitability Analytics All these systems helped the bank to better analyse the performance of individual business unit and take necessary action if in case it was not achieving the desired profits. Oracle Consulting was engaged in 2009 to deploy Oracle Risk Manager Oracle Hyperion Planning Integrated Approach Delivers Greater Control Oracle Transfer Pricing NII contribution can be measured from assets liabilities with the help of oracle transfer pricing. It also allowed the staff to dissect NII contributions assets and liabilities. Oracle Profitability Manager For allocation of costs which is related to banks line of business and other branches, Oracle profitability manager was used. Effect:- Since the data is coming from the single source, Earning reports which used to take two to three days, can now be produced within one or two hours. Oracle Financial Services and Oracle Profitability Analytics (Appendix figure 4) Information regarding profitability was delivered over internet using Oracle Financial Services Profitability Analytics. Now staff was in a position to analyse different trends, variances and the rankings across lines of business and products. With the help of the system there was a better access to important information which allowed Senior managers and other decision makers to accurately measure the performance of their portfolios and also their responsibility areas on a continuous basis It helped in improving decision making quality which eventually increased the overall profits of the bank Capability to Evaluate Performance of Employees Performance assessments can also be done on individual members of staff by the Oracle solution. Moreover it can be done at the group level also which enables IDBI to develop an appropriate reward system. It also helps in evaluating the contributions which are made at different levels. Automated Liquidity and Rate Risk Measurements Oracle Risk Manager To assess the liquidity and interest rate risks which are calculated on day to day basis, IDBI Bank used Oracle Risk Manager. It helped IDBI to select the best place to allocate their funds. It also helped various analysts and other bank managers to measure the effect of interest and also the impact on NII or economic value. Effect:- Advance analysis of assets and liabilities Helped in generating key info such as the avg.cost and financial return across various products, which ultimately helped in making better decisions. With the help of Oracle Risk Manager, IDBI became the 1st PSU bank which generated reports on asset liability management on daily basis. Streamlined Budgeting and Planning Oracle Hyperion Planning (Appendix- Figure 6,7,8) To create budgets and for rolling forecasts Oracle Hyperion Planning was used, which were basically linked to the profit and loss models and with the balance sheet as well. Sales targets can be fixed for individual branch and for individual product. Managers can then measure branch performances after analysing variances across every area. Effect:- To assess all areas, there was a common language Business targets were set with the help of same metrics which was used to measure performance and budget can be planned accordingly. Resources were better allocated in line with their objectives since managers were in a position to easily determine what exactly is happening at particular branch. Why Oracle? Functionality provided by Oracles solution and Oracles previous experience in applying ERP in other top banks. Solutions offered by Oracles different modules were appropriate from their business point of view Expertise of the implementation team of Oracle, previous experience, Flexibility of the Oracle system, Cost allocation principles of the bank convinced IDBI that based on their knowledge and skills they should engage Oracle again. Major Achievements of Oracle Due to dedicated resources and efficient coordination among the implementation team of Oracle, the aggressive project deadlines were met and implementation was successfully completed. Past Experience also helped Oracle team in implementation due to which testing, integration and data extraction went well. CONCLUSION Over the years, implementation of ERP has helped banking sector in a huge way. Integration of data has helped banks to analyze financial condition, account management and also helped in preparation of financial reports and statements. It has also provided solution for many things including cash management, cash security, cash accounting and payment processing. The need of the hour is to perform core banking activities and increase the quality of customer service by integrating its various components and avoid data redundancy. Industries look for ERP solution that can provide a common technology platform with capabilities of analyzing business data. They expect to meet the global business requirements, with simultaneously adhering to the country specific necessities. Thus there is a significant improvement in IDBI after new solutions and restructuring. The bank can now handle almost 3lakhs transactions. It also helped IDBI to launch various new products and services. Rate of customer satisfaction also increased. There was a remarkable change in the revenue and the overall profit of the organization.

Major Earthquakes are Inevitable in Indiana’s Future Essays -- Earthqu

Major Earthquakes are Inevitable in Indiana’s Future An earthquake felt throughout the Midwest on June 18 was a shaky reminder that earthquakes can occur anywhere. The earthquake, whose epicenter was located north of Evansville, was felt through most of Indiana and surrounding states, as reported by the Indianapolis Star. The quake was not the largest in Midwestern history, only registering a 5.0 on the Richter scale, nor did it do much damage. However, it was a wake-up call reminding those who haven’t paid attention to past warnings about the possibility of larger, more destructive earthquakes. Earthquakes, by Webster’s dictionary definition, are, â€Å"a shaking or trembling of the earth that is volcanic or tectonic in origin.† World Book Encyclopedia reports scientists believe that more than 8,000 earthquakes occur each day without causing damage. A little more than 1,000 each year are strong enough to be felt. Earthquakes occur in the general sense, anywhere on land. Other earthquakes go by different names, such as volcanic eruptions and tsunamis, large tidal wave storms that occur underwater, primarily in the Pacific Ocean. Earthquakes are a natural part of the Earth’s evolution. Scientific evidence leads many geologists to believe that all of the land on Earth was at one point in time connected. Because of plate tectonic movements or earthquakes, continental drift occurred separating the one massive piece of land in to the seven major continents today. Further evidence supports this theory, starting with the Mid-Atlantic ridge, a large mass of plate tectonics, which are increasing the size of the Atlantic Ocean while shrinking the Pacific. Some scientists believe that the major plate moveme... ...nd others for injuries, look for and extinguish small fires, inspect your home for damage, listen to the radio for instructions, and expect aftershocks. Tectonic plate movement can occur as close as two and up to 450 miles below the Earth’s surface. According to the Indiana Geological Survey, Indiana’s fault lines are further underground than those in California and Alaska, causing more minor quakes in the Midwest. However, Hoosiers should heed the recent earthquake as a warning for future quakes. Earthquakes can and do happen in Indiana, and almost anywhere else in the world. This is the one natural disaster that people cannot avoid no matter their location on Earth. And, being unprepared can have devastating results. Samuelson said, â€Å"Another earthquake or series of them the size of the New Madrid earthquakes is inevitable in Indiana’s future.†

Dreams Aspirations and Goals Essay

I just want to start off by saying that I am truly blessed to be able to have the opportunity that so many don’t have: getting an education. I dreamed I would always be able to learn to be able to do a little of everything no matter what it was: either it was learning culinary, mechanics, science, mathematics, history, etc. I’ve just wanted to be that one person who knows a little of everything; no matter what the skill was I could do it. It may sound impossible but â€Å"nothings impossible.† As I enter the college life, this is where I will be determining my dream and where I truly will belong for the rest of my life it may take a while but that’s what college is for to really test the waters and become comfortable with the one that occupation that really fits me well. I think what I really want to achieve in college is to be a role model; to be the role model that I want to be responsible by being able to balance my school, work, and social life, but mo st importantly I want to be able to make my family proud and support them like they did for me. I think my biggest dream was to become someone who can aspire and motivate people with their creativity or to just be a role model – hopefully that this experience in college will truly help me accomplish that. I know that knowledge is key to pretty much everything we have to know – practically every and anything about whatever occupation we want to have. But what’s wrong with using our creative side – isn’t it fun too just maybe once show up to class and have to draw for an assignment but no one says it has to be perfect no one expects you to be Picasso. We are being required to draw and use our creative side express our artistic side whether it be through words, drawing just to be able to just your true potential with creativity. In my experience of high school I had an amazing literature teacher who would sometimes just be fun and creative and just have us draw for one of our journals but it wasn’t stupid it was creative. Being creative is one of my biggest passions in life. I hope that I can truly show people there is nothing wrong with being creative. Responsible the one thing some people are afraid to be. When you hear the words independent it descri bes everything about being responsible. It’s when you start to do things on your own – a simple definition. In depth you have your own apartment maybe, pay your own car, bills, and you have a stable good paying job. It shows true responsibility when you can balance your school, work, and social life because you’ve shown how mature and  independent you can be – there is nothing more accomplishing to prove that you pushed yourself through all those nights of tears and sweat to finish that assignment. High School was a sort of breaking point for me with AP literature to give me a taste of the college life – all the nights I stood up to complete my papers. I can tell you this it was honestly worth it even though it stressed me out as I stared hours at a blank page at how to start my paper but then once you get going it all just flows out. One thing I know is that all that dedication of my time and effort will help me to be coming successful in my future. I wouldn’t be able to have done it without the support of my family and friends. So my goal in college is to graduate and figure out what I want to be. When I do graduate I want to be able to support and be there for everyone who did the same for me. Most of all I want to spoil my parents and spoil and treasure then like they did to me and my siblings. I honestly couldn’t have done it without their words of wisdom, kindness and experiences that showed me this opportunity I have to take advantage of so on behalf of my parents, family and friends my journey to success is my gift to you and may I make you prouder than you are when you saw me with my first cap and gown.

The Concept of Bundle of Rights in England and Wales Free Essay Example, 2500 words

A collective right is held not by the occupier but by the public at large, in respect of a range of interests in the land. Development rights also in England and Wales, as in New Zealand, are held mainly not by the occupier nor by the public, but by the state, through the medium of the local planning authority. In relation to land as environmental and cultural capital, conceptualizations of rights have been more fully grounded in social processes, often being characterized as rights of England and Wales include: The statutory collective rights in perpetuity for: the rights of way system, open country, common land, state land purchase for recreation, and rights for navigation. The voluntary collective rights in perpetuity for: dedications under CroW Act, 2000, planning agreements and public path orders. The state economic collective rights for a fixed time period for leases to the state, agri-environment agreements, and other written agreements. Citizenship rights in perpetuity for m illennium greens, town, and village greens, and community forests. State economic exclusionary rights for a fixed time period for licenses and permits from the state, user charges to state facilities. We will write a custom essay sample on The Concept of Bundle of Rights in England and Wales or any topic specifically for you Only $17.96 $11.86/page Central to contemporary environmental law is the proposition that the estate owner s bundle of rights is intrinsically demilited by social or community-oriented obligations of a positive nature.