Week 5&6 - Smart Banking (BI&PM); Business Intelligence Systems; Information System Development Flashcards
(13 cards)
what is smart banking? (3)
● Key Points:
- Connectivity
- Anywhere, time, device
- Self-service / customer-centered service
● A global project needs global partnership across teams
● How did they manage info (flow)? E.g., self-service instead of staff servicing customers →
benefit: Time & cost saving
5 features of banking
- Growth
● Investing in customer analytics
● Leveraging digital technologies to elevate the customer experience in both business and retail
banking
● Determining whether or not prudent underwriting standards are overlooked
● Learning from nonbank technology firms and establishing an exclusive partnership to create
innovation and a competitive edge
Examples of banks using digital technology → e-banking, chatbots, mobile app - Payments Transformation
service
● Look for new ways to be top of the wallet and differentiate the customer experience
Current payment methods in HK → Payme, SVFs, Credit Card, Alipay, Credit Card - Compliance and Risk Management
→ contactless payments. Bank may want to:
● Seek innovative ways to leverage customer spending data for specialized promotions and
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to:
→ Meeting regulatory expectations will require management to extend its focus from improving
specific processes to fully integrating risk management, compliance, and ethics. Bank may want
● Reinforce a strong “tone at the top”
● Encourage the board to challenge senior management’s activities
● Empower chief risk officers to pursue collaboration with business lines
● Incorporate risk management and compliance responsibilities into performance
management programs and employee training. - Data management
pressure. The bank should consider:
What kind of your personal data do you think your bank has access?
Spending habit → transaction history, education, age, address - Cybersecurity
→ institutions should be shifting toward a proactive stance to ward off further regulatory
● Creating a central regulatory management office to help drive greater efficiencies
● Relying on chief data officers to establish tighter connections with front-office functions
and derive greater value from data assets
→ banks will be forced to devote greater resources to enhance the security, vigilance, and
resilience of their cybersecurity model and should consider:
● Adopting new methods, such as war gaming, attracting specialized talent, and increasing
collaboration with other members
● Beefing up their intelligence apparatus to detect new threats in a timely manner
● Expanding the role of the CISO to include clear and prompt communications with the
board
smart e-payment
Type of payments for online purchases → Credit Card (CC), Direct debit from bank accounts (FPS),
Stored Value Facilities (SVFs) such as Octopus, Alipay, Paypal, and WeChat Pay
Direct Debit → the purchase amount is debited directly from a bank account and no need to apply for
credit (EPS, PPS, FPS)
how organizations use BI?
Business Intelligence (BI) refers to technologies, applications, and practices for the collection,
integration, analysis, and presentation of business information
→ Supporting decision making = BI = DDDSS = Data-Driven Decision Support Systems
Business Intelligence means:
- Timely
- Accurate
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- High-value
- Actionable
task: project management, problem solving, deciding, informing
necessary data of BI
4V Big Data
- Volume Scale of Data
- Velocity Analysis of Streaming Data
Variety of Different forms of Data
- Velocity Analysis of Streaming Data
- Veracity Uncertainty of Data
difference between data warehouse
and data mart
3 BI techniques
- multidimensional analysis
- cluster analysis
- association detection
Project Management - 5 types of domain knowledge
Initiating the project
- Perform project assessment
- Meeting with sponsors (internal/external)
- Conduct risk (and benefit) analysis
- Obtain project charter
Planning the project
- Assess and review detailed project requirements, constraints, and assumptions
- Define scope
- Develop a budget plan, project schedule, and HR management plan
Executing the project
- Acquiring resources outlined in the planning phase
- Execute tasks defined (by your company or others)
- Implement approved changes
E.g., Training, Knowledge sharing, meeting
Project Management - 5 phases of SDLC
- System Definition
- Requirement Analysis
- Component Design
- Implementation
- System Maintenance
Project Management - 5 main challenges to system development
- The difficulty of Requirement Determination
→ What specifically does the system do? How?
SDLC → Number 2 requirement analysis
Business analysts/project managers use diagrams to illustrate key features of new systems, supplements
with detailed specifications - Changing requirement
→ moving target
Business analysts/project managers determine what changes could be handled within resources constraints - Scheduling and Budgeting Difficulties
Business analysts/project managers calculate all of these and report the ROI (return on investment) to
management - Changing Technology
Business analysts/project managers carry out the impact analysis and determine if the new tech should be
incorporated - Diseconomies of Scale
Business analysts/project managers plan carefully for team sizes and timelines.
change management
a vital component of IS development and implementation projects to increase the chances of success of
a project
→ when managing change, special attention should be paid to
- Resistance to change
- Organizational culture
- Project participants (or stakeholders)
typical use of BI
- Identifying changes in purchasing patterns
→ important life events cause customers to change what they buy - Digging for gold (or golden insights)
→ example: Market Basket analysis: what products are likely to be purchased together? Always
or at certain times? Everywhere or certain stores? - BI for entertainment → Amazon, Netflix
- Predictive Policing
