Role of Information Technology on Services of Aldermore Bank

Question-Write A report based on role of information technology of financial corporate sector company Aldermore bank? Executive summary The report is about role of information technology on services of the small financial corporate sector company ALDERMORE bank. There is a detailed discussion on the impact of the information technology on the financial services of the ALDERMORE bank. The report is stated in relevance to the role and impact of the information technology services into the business process of the company. The company has various important management strategies that it maintains in order to grow the business development of the company. The company has incorporated IT services that are mainly playing a huge success in the business process of the company. IT services followed by the company involve the process of e-business in order to increase the brand loyalty among international customers in international market. The primary activities of the company has been discussed in a more detailed manager that include the process inbound and the outbound logistics and the various financial services provided to th e customers. The online tools and the digital technology adopted by the company have been discussed in brief. Apart from that, relation between IT services and the business process has been discussed analytically. Table of Contents Introduction Understanding the role of information systems on the business of ALDERMORE BANK and relationship to globalization Impact of Information technology on Business of ALDERMORE BANK Relationship between IT and globalization Porters 5 Forces model of the organizational competitive environment Primary activities of Portes value chain Importance of IT in the successful business management of ALDERMORE BANK The important features of the information technology that the managers of ALDERMORE bank needs to know for the successful result Special protection required to protect the information technology from destruction and error Conclusion and recommendations Reference list Introduction The use of internet and information systems is extensively used by small and medium scale enterprises in the current competitive business world. Park (2009) opines that the use of information systems are used in the various departments such as operations, marketing, finance, human resources etc, that helps in managerial decision-making. In the current report, the use of information technology by a small retail bank named Aldermore Bank of UK has been critically analyzed. The bank makes use of Information technology and information systems to run its various processes and functions (Walle et al. 2010). The various financial services provided by the Aldermore Bank is that of the customers personal financial services, current and the savings account, mortgage, car financial insurance policy, and many other such attractive financial features and offers for the customers in the market. In order to grow the business, the company has initiated the process of the IT in the business strategy of the market proceedings. Understanding the role of information systems on the business of ALDERMORE BANK and relationship to globalization Information technology plays a major role in the growth and development of the business in ALDERMORE Bank. There is a close relationship between the information technology and the globalization. The business of bank is processed in such a manner as to keep a pace with the new and the innovative technology of the information technology. It plays a major role in the maintaining of s dynamic and flexible business through the help of the information technology (Asemi et al. 2011). The usage of the optimum use of the IT in the business development of ALDERMORE bank helps in the growth and the increase of the speed of the annual turnover in the revenue collection for the company. It helps in providing a slid guidance for the new and the already existing management structures. Figure 1: Role of IT in ALDERMORE bank The complete use of information technology helps the company to practice innovative activities in the business development for the ALDERMORE BANK. The application of the information technology helps the company to incorporate the basic activities in a fast and effective manner such as reduction in the operating cost, increases the organizational activity, expanding of the existing markets. The use of information technology helps the company to effectively manage their international clients through the helps of the online tools such as the social media website4s in the increase of the company brand loyalty among the customers of the company in the world wide (Brewster and Sen, 2010). The various activities that are being managed by the company of ALDERMORE bank in the company business dealings are such as maintaining the confidentiality, tax liability, prevention of fraud the monetary transactions. Impact of Information technology on Business of ALDERMORE BANK In todays era, the IT plays a major role in the business transaction of ALDERMORE Bank. The entire system of the operation of the bank has been transferred into the system of information technology. The information technology has become the production line of the todays online business. Because of this, if there is any failure in the information technology system, then it leads to the failure of the entire system of the business. It has become now clear that, the management of information technology is no longer a sole IT issue but has become a issue of the entire management issue (Citroen, 2011). The revenue and the business operation of the company has moved with a very fact pace in the market over the past few years. The information technology has moved into such increased dimensions that it has enable the growth of the company and has increased the brand loyalty of the company in the global aspect. Relationship between IT and globalization With the fast pace of the growth of the information technology in todays era, the market strategy of the entire company is now focused on the online marketing business. This enhances the grot hoof the international clients through the help of the online marketing strategy (Foote, 2014). The online system of the information technology has created a huge opportunity for the ALDERMORE bank to expand its multiple branches through the system of online marketing strategy including a strong base for the information technology. The relationship between the growth are in the global market of ALDERMORE bank in the export and the import development of the developed and the emerging trend are being shown in the following tabular chart. This shows the net growth in the developed import, developed export, emerging import and the export of the ALDERMORE bank services in the market (Fung, 2013). The report highlights in the development in the emerging market trade, that way creating a powerful network and helping the loss making companies to emerge in the market by taking the help of the trade with the developed world. Emerging market exports Growth rate in 2014 Developed import 30 % Developed export 30 % Emerging import 60 % Emerging export 55 % Table 1: Growth rate for the developed and the emerging market exports and imports The relationship of the growth of the information technology has led the company into a much newer height. The growth of the revenue has increased into a much greater height. The number of the export and import sale of the services of the financial assets of the company has been increased over the past few years. The company has introduces their system of the business processing not the online business. This has led to the increase in the growth of the company in terms of the brand loyalty in the global marker among the customers. Graph 1: Growth rate for emerging and developed market exports and imports ALDERMORE bank is making a huge amount of the profit with the help of the application of the online business process and application of the information system in the business dealings of the company. The system is much fast as compared to the previously adopted techniques in the company. Now the business competitors are expanding in a more rapid manner the global market. Therefore, the company is taking the help of the business strategies in the high resolution and the effective business strategies in the market (Luigi and Mihai, 2011). ALDERMORE bank has made huge profit of 85 % growth in the global business market with the help of the digital media and the application of the information technology such as online data processing, online marketing and online secure transaction. These activities are as a result into a maximum growth in the brand awareness and the increase of the brand loyalty among the global clients in the international market. Defining the business process and their relationship to information technology Figure 2: Link of business with IT There is strong relationship between the business process and the technology and a co-relationship to the organizational growth. It can be implied to the relation among the business process of ALDERMORE bank and the implementation of the technology on the business process and the organizational development. The IT sorts out the solution for the business challenges in the market. This ensures the implementation of the online marketing strategy such as the data processing that involves the process of the key business process and the system enhancement programme. The number of the activities adopted by the IT sector of the company that involve the online marketing tools in order to proceed for the online business marketing. Hence, it has been analyzed that there is huge co relations hip between the company business operation and the management of the information technology in the market. The advent of the information system management has created a huge advantage of the company into the market. This has created a huge opportunity into the global market in order to manage the clients of the global market condition. Porters 5 Forces model of the organizational competitive environment Figure 3: Porters 5 Forces model Potential entrants: The ALDERMORE bank has many threats from the renowned company such as the famous financial firms that making huge profit in the industry such as Airdrie Bank, Duncan Lawrie Bank, Raphaels bank etc. Bargaining power of the customers: To gain the customer loyalty, the company has managed their customers in the market. To gain control over the power of the customers, the company has followed the concept of the customer brand loyalty. Threats of substitution: There is a threat in the market for the company in terms of the new services and the products that is being constantly launched by the other potential companies in the market (Okpamen, 2013). There is always a threat in the market due to the substitution of the company by the major financial sectors giants in the global market. This has created a sense of competitive to bring the business operation of the company into a much higher pace of the height. Supplier bargaining power: The company, like ALDERMORE bank is the market strategy of charging marketers with a different set of the prices from the buyers according to the variation in the market price. When the supplier is taking the advantage from the other sectors of the leading companies in the market, as a result the company is losing the chance of the creation of and maintenance of the trust in the market. Threat of rivalry: The strategic plan adopted by the ALDERMORE bank in order to retain in the market as one leading company among the banking industries (Oyson, 2011). The other big giants in the leading market are taking advantage of the market condition. Therefore, to avoid such circumstance, the company is taking focus on technology. Primary activities of Portes value chain The primary activities of the Companys value chain activities include the following: Figure 4: Primary activities of Portes value chain Importance of IT in the successful business management of ALDERMORE BANK Product Revenue growth rate Credit 7 % Foreign exchange 8 % Capital financing 11 % Balance sheet management 13 % Debit valuation adjustment 9.5% Rates 12 % Equities 16 % Payments and cash management 11 % Principal investments 6 % Table 2: Percentage increase in the revenue growth rate of the financial assets Graph 2: Revenue growth rate of the financial assets The important features of the information technology that the managers of ALDERMORE bank needs to know for the successful result The various important components and features of the management of information technology, that the managers need to know is that of the customer satisfaction, customer relationship, providing an information technology management enterprise system ,managing the It business value, realizing the It solutions, delivering the operational services are being explained in the following. Customer relationship and satisfaction There are various management activities that the managers need to know for the maintenance of the best customer relationship and their satisfaction such as following the online feedback of the customers. IT enterprise management system The managers must be aware of the information technology issues in the faced in the business dealings such as that of the proper channel for the communication. Manage IT business value The IT business values are being managed by the information technology management system for the secure execution of the digital data in the online media (Sarhan, 2009). Realize solutions The IT issues are need to be sort out with the help of the expert guidance for the existing problems and need to be updated on a regular basis . Deliver operational service The IT service through the proper medium is executed for the successful interaction between the client and the servi9ce provider (Virgo, 2013). Support IT service and solution The mangers of the company must regularly renew and update the IT services and seek proper solutions for the current issues in the company regarding the online and digital business operation . Manage IT assets and infrastructure The IT assets and the infrastructure is needed to be secure on the part of the service providers for the sake of the service users so that any further loss in the IT resources can be overcome Table 3: IT management system The unique features of e-commerce, digital goods and the digital markets The key features of the e commerce that is included in the business models include the process of the internet business, model that involves the strategy of the e-trailer, transaction broker, market creator and the content provider. The other form of the digital goods and the digital market involves the community provider, portal creation and the service provider. The digital tools and the software are being implemented in order to proceed the business transaction in a more a secure and fast effective manner (Yushui and Jianjun, 2013). It involves the process of providing IT enterprise and the management system, managing the IT business values in the business strategy of the company, supporting the IT services and the solutions and finally the management of the IT assets and the infrastructure. E-tailer This is the process of the direct sale in the physical products to the individual customers of the individual business. Transaction broker This is the system of the online system of processing online sale transactions and generates a fee each of the time. Market creator It provides digital environment where the buyers and the sellers meet at a common platform. Content provider It includes the digital news, music photos, and the video images over then online media Community provider The community provides a common platform that provides common meeting place where the interested people can come and interact over the communication channel Portal It provides an initial point of entry into the websites and the other online services Service provider This provides a web 2.0 applications such as the photo sharing, video sharing and the user generated content as the services Advertising revenues This is the revenue generated by the selling of the information and services to the customers. Sales revenues The revenue collected with the online business strategy and the online marketing. Subscription revenues The websites offers a service and the subscription fee to be generate as a revenue made by the profit by the company in the market. Table 4: IT features Special protection required to protect the information technology from destruction and error The key protection in the information technology, security measures that include the process of confidentiality, integrity and availability includes the protective measures in the company. Information security Integrity The data integrity means maintaining and assuring the accuracy and consistency of the data over the entire life cycle. Availability The data that are being processing in the online data communication needs to be available at very instant of the time whenever there is the demand for the data or the information to be accessed. Authenticity The authenticity deals with the genuinely of the data that needs to be processed through the online media. Non-repudiation It implies ones intention to the other party obligation to a contract. One of the party cannot deny the transaction of the other party. Through the help of the electronic commerce that uses the IT security technology such as the digital signatures and the public key encryption. Table 5: Information security system Conclusion and recommendations: As far as the security of the information system is concerned, the key feature in the management of the information technology has been discussed in the above report. This included the key features in the above report in concern to the security of the information system in the preventive measures for the data encryption and security. The various online information management and the key features of the security features of the information technology has been analyzed in terms of the market growth over the past year. As far as the security of the information, technology for the online activities of the ALDERMORE bank is concerned. 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