The Seventeenth National Bank

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SECTION I: CASE OVERVIEW
Seventeenth National Bank is competitive bank, located in the Dallas-Fort Worth metroplex, which employs 600-700 people. Its data processing department acts a small service bureau and is currently doing computer processing for four banks other than Seventeenth National. Even though, one of the four banks has notified Seventeenth National that it intends not to renew their contract because they feel is it less costly for them to handle it in-house, the three remaining banks generate enough revenue to offset costs of doing its own computer processing. Additionally, one of the remaining three banks is very small, but is well known, so Seventeenth National uses its name to attract new business. The bank president expects the department to aggressively pursue outside business and is willing not only to grant the department head as much authority needed to accomplish this mission, she has mentioned that she will grant reasonable budget increases if they can be justified.

The bank is currently experiencing moderate growth (10 - 15%) and forecasts growth to exceed this moderate growth rate in the future. The objectives of management are to maintain a competitive edge with the largest banks in the area and would like to expand the data processing department so that it will be able to accommodate the computer processing functions of other banks and financial institutions in addition to their own. Eventually, management would like the processing department to be a major revenue source and possibly a subsidiary to the parent bank.

Currently, the data processing department is composed of three major departments: keypunch (15); computer operations (10); and programming (10). This department has one manager and a private secretary. Although keypunch and computer operations are highly specialized departments, programming is quite the opposite. Programmers are not only involved in writing new programs, correcting problems with existing...
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