Case Study – From a Dinosaur to Chameleon Transformation of a Korean Bank
The IT related decisions taken by the Kwangju Bank include the downsizing of the information systems and the reengineering of banking processes, headed by the then chairman of the board for the bank. These were impacted by the competition in the global market in that having employed the former information system, the bank was too was weak compete against the foreign banks in the US, Japan and Europe. The bank could not establish its individual business strategies to stand prominently in the global market for the reason that the information system employed. Hence, all these factors led to the important decisions in the area of information technology (Rainer & Watson, 2012).
The OLTP system is the most significant and critical system of a bank due to its direct linkage to the financial interests of the customers. Any trivial issues in the system may critically impinge on the credibility of the bank. For this reason, downsizing the OLTP system of a bank is a pioneering, yet exceedingly risky venture for any bank (Young, 2011).
* Catch the attention of customers by assisting them in managing their financial interests rather expediently; * Capable of providing banking services whenever and wherever the customers wish for; * Support electronic “wallets”, automatic teller machines, self-service terminals, home banking, and commercial banking; * Adequately flexible for helping the development of novel products and the making of more effectual banking decisions
The new system facilitates the customers in getting better service as in quality and timeliness. For instance, the transaction processing speed has been enhanced considerably from four to six seconds to 0.7-2.0 seconds for every transaction. The...