Role Of Information System In Data And Product Essay

Question:

Discuss about the Role of Information System in Data and Product.

Answer:

Introduction

Information system can be defined as a management of several networks of software and hardware which is very important for any organization for collecting, processing, filtering, distributing and creating data (Dandago and Rufai 2014). It helps in disseminating of Information throughout the organization. Having an efficient Information system helps organization in turning information into organizational Knowledge.

The report presented here discusses Information System of a medium sized organization namely Fidelity Bank. This reports throughout focuses all the aspect of Information system being followed in the selected organization. The report has been divided into several parts for a better understanding.

Fidelity Bank located in Nigeria is a capitalized Commercial bank. It provides financial services. The bank serves its customer through its several branches across the Nigerian country. At first the bank came into the market as a merchant bank later it was licensed as a commercial bank in 1999. The bank has spread its interconnected network all over the states of Nigeria and its major cities (Fidelity Bank, 2017). The bank works well along its vision of becoming the Number one bank in the market it serves and the products and services it offer. The organization has a mission to provide feasible and accessible financial services to all. Its services include retail banking, private banking, Instant services, loans and SMEs.

Importance of Information system in an organization

The Information system with passing years has become backbone for any organization. The advancement in technology has supported this system and has helped develop it further for the best of its use. The major role played by Information System is collection of data, processing into information and then finally storing it as an organizational knowledge. Information system for any organization ensures its regulatory compliance while supporting a better management for the process like decision making, minimizing litigation risk and assimilation of technological management of records (Dandago and Rufai 2014).

Fidelity bank finds information system to be very important any organizations prosperity. Fidelity bank does promote Information system in its management. Fidelity bank being a medium sized organization is in its nurturing state of information system. It is in a way to implementing internet based cloud computing technology and other information system for storage and maintaining the competitiveness in the market.

An information system for any organization comprises of basically three components which are data, software and hardware. Howsoever the other two important components that play a very important role in Information system is majorly ignored which are process and people (Muhammad, Gatawa and Kebbi 2013.). These two components can be said to complete the whole Information system. The three mentioned earlier comes under technology while the later decides how the former will be managed. All the components work as a unit to provide a organization a complete value.

Present Information System in Fidelity bank

In this era, there are various information systems being used. Banking sector has analyzed the importance of having a n information system in their respective organization Fidelity bank presently follows the multiple legacy system which mainly operates on single mainframe computers (Ozuru and John 2016.). This happened with object oriented programming used for multiple servers so as to reduce the stress on a single PC. The advancement of internet and such based system did gave an added advantage to Fidelity bank to function it’s all processing and recording in a much feasible fashion. The bank used its available data and information for both administrative and managerial level. This has made its functioning more attractive for their customer. Some information system tools being used by the organization are Electronic data interchange, MICR, Telephone banking, Electronic fund transfer, Electronic office and home banking (Agboola 2015).

All the possible information system being provide makes the customer satisfied as they can now easily get information about their banking details and related FAQs for their chequebooks, debit or credit cards. The people feel comfortable as they check on all details relaxing at home with help of automated payment and delivery channels (Makinde 2014).

Competitive advantage in adopting Information System

The company under consideration that is Fidelity bank has adapted well with the Information system. It has created a great impact on its revenue flow. The company now is able to get more clear idea of how to serve their people and what services should be catered an in which fashion (Tarhini 2015). It has definitely served as a competitive advantage for the Fidelity bank in prospering and giving competition in the market. Some of the aspects in the areas of Organizational, managerial and technical where it served as an advantage are:

Public satisfaction: This is the most important point to be taken care of well. The banking being a service provider industry they have to look and work for the benefits and satisfaction of the customers. With the popularity and great customer attraction it can be deduced that the bank is working well to provide its customer great services (Selamat and Babatunde 2014). The customers give positive responses to the convenient business hours, faster statement generation, balance inquiry, fair attention being provided with the computerized information system.

Improved Revenue: The time effective measures and public satisfaction jointly resulted in good revenues. How so ever implementation of such resources did cost a bit more than the previous procedures (Adeusi 2014). Yet it has been considered because it enhances the speed of working of the employees and results in better functioning which leads to public and customers to turn towards the banking facility of Fidelity. For better profits Fidelity banks should look for much cost-effective procedures which would not only benefit the organization but also save some of its resources. Such cost-effective measures were found missing in the working of Fidelity bank.


Device error reduction: The previous working of the management required utter dedication and became time consuming too as the employees had to work avoiding any chances of mistake. With involvement of Information System the employees can work much faster and also it reduces the chances of mistake (Muhammad, Gatawa and Kebbi 2013.). The error rate has reduced to almost 10% which signifies how the system is playing well for the organizations competitive advantage.

Management Decisions: With such processes being effectively implemented the managerial strata finds it utter convenient to manage their decisions. The system provide them with much accurate and precise data with which they can work to take better decision and move ahead of their competitors (Ozuru and John 2016.). The Fidelity bank misses those aggressive, critical and analytic decision makings which could have taken the organization much ahead. It is crucial for the management team to frame out methods and to heap on the investment in Information System to gain more speed, accurate services and convenience or they may in near future lose to their competitor.

Time saving: The system and the process applied with the implementation of the Information system has effectively reduced the time consumption in many of the steps like maintaining records, transaction procedures, clearance and settlements. The time efficiency has led to better and faster working of the bank (John and Roitimi 2014.). Nevertheless, the Fidelity bank yet misses the most modernized way of banking. This will surely block its way of prosperity sooner or later.

Speed of transaction: The processes being automated with the Information System does provide much more speed to the functioning of banks. The process of transactions and settlements are dealt at much faster rate with help of all time accessible databases having least possibility of errors. Yet there are further possibilities of developing the present process. The Banking system here does not have accessing anywhere facility (Singh and Srivastava 2017). Such facilities provide a complete and successful dissemination of information which results in better working and productivity.

Conclusion

Analyzing the current functioning and scenario of the Fidelity bank it has been found that the Bank is prospering well yet it is in much lower stage of development of Information System. The organization has changed much of its manual procedures into an automated one. It has surely leveraged the quality and content of the banking operations. Yet there are greater potentials of Information System which have not been explored. There can be improvements and modernization which can help in reengineering the process and working of Nigerian bank- Fidelity Bank. Conclusively, the present working though have made the customers happy yet it could be improved with certain recommendations made.

Recommendations

Connectivity: The working infrastructure of the bank shows that there is no proper communication infrastructure present. The environment of the bank requires a new network design which will promise better segmentation and redundancy. The Virtual Local Area Network could be implemented through logical bus topology which reduces the wastage of bandwidth (Dandago and Rufai 2014).

  • Virtual database: The bank can opt for virtual database that is Cloud can be used for better accumulation of data and information (Tarhini 2015). This will not only provide the employees with capability of accessing information from anywhere but also will it provide better dissemination of Information making it Organizational Knowledge.
  • Information System Team: An efficient and well skilled team could be deployed for maintaining and keeping up with working of the organization’s Information system (Alabar and Agema 2014). The team could plan and keep up with the present technology and could provide a map to develop the system in future.
  • Mobile banking: The organization can adopt mobile banking and e-commerce technologies. These technologies will faster up the rate of working while adversely improving the productivity if the bank (Cudjoe 2015).

References

Dandago, K.I. and Rufai, A.S., 2014. Information technology and accounting information system in the nigerian banking industry. Asian Economic and Financial Review, 4(5), pp.655-670.

Muhammad, A., Gatawa, N.M. and Kebbi, H.S.B., 2013. Impact of information and communication technology on bank performance: a study of selected commercial banks in Nigeria (2001–2011). European Scientific Journal, ESJ, 9(7).

Ozuru, H.N. and John, E.C., 2016. INFORMATION SYSTEMS AND ELECTRONIC CONSUMER PROTECTION IN NIGERIAN BANKING INDUSTRY. TechnoScience Review, 5(1 & 2).

Tarhini, A., Mgbemena, C., Trab, M.S.A. and Masa’deh, R., 2015. User adoption of online banking in Nigeria: A qualitative study. The Journal of Internet Banking and Commerce, 2015.

Makinde, O.O., 2014. Housing delivery system, need and demand. Environment, development and sustainability, 16(1), pp.49-69.

Alabar, T.T. and Agema, R.J., 2014. Information and Communication Technology and Customer Satisfaction in the Nigerian Banking Industry. Journal of Advanced Management Science Vol, 2(4).

John, O.J. and Roitimi, O., 2014. Analysis of electronic banking and customer satisfaction in Nigeria. Eurpoean Journal of Business and Social Sciences, 3(3), pp.14-27.

Cudjoe, A.G., Anim, P.A. and Nyanyofio, J.G.N.T., 2015. Determinants of mobile banking adoption in the Ghanaian banking industry: a case of access bank Ghana limited. Journal of Computer and Communications, 3(02), p.1

Singh, S.L. and Srivastava, K., 2017. The Role of Information System in Data/Product/Warning Dissemination and Future Improvements. (pp. 73-86). Springer International Publishing.

Agboola, A., 2015. Electronic payment systems and tele-banking services in Nigeria. The Journal of Internet Banking and Commerce, 2006.

Adeusi, S.O., Akeke, N.I., Adebisi, O.S. and Oladunjoye, O., 2014. Risk management and financial performance of banks in Nigeria. Risk Management, 6(31).

Selamat, M.H. and Babatunde, D.A., 2014. Mediating Effect of Information Security Culture on the Relationship between Information Security Activities and Organizational Performance in the Nigerian Banking Setting. International Journal of Business and Management, 9(7), p.33.

Fidelity Bank. (2017). Home. [online] Available at: [Accessed 9 Apr. 2017].

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