Information Intense Product:
Puledi Q. Lekota, Joel Dzumba, Lucas Kotsoane, Phineas R. Moloto
Personal Financial Services of Standard Bank of South Africa.
1.Introduction.
As a typical outstanding international bank, Standard Bank(SB) offers the variety of services to its clients.However,given the scope of the task given,the group will mainly concentrate on the Oline Shopping, as among others the relevant information system that the bank uses.
Online Shopping is one of the most comprehensive, user-friendly and advanced business electronic banking product on the market.
2)How the System works
First and foremost, SB On-Line Shopping is strictly dedicated for Standard Bank Internet Bankers only. The Partner Groups will have their Website on SB 's . The client will firstly have to visit SB website and then will get access to the Partner Groups'. From here the cleint will click onto the Website of the Partner Group of choice motivated by the product in demand. There are some directives on the Ordering Software System of the selected shop and fill up the necessary details such as :
Names
Account No
Address, e.t.c
The shop in question will then consult the Bank for payment purposes and most importantly to verify the legibility of the client concerned.
From here, Bank makes payments on behalf of the client and charges interest on both parties depending on the agreement entered into.
Then the shipment of the product will be made.
However, the client will be notified about the status of the order indicating whether the order is been processed or not.
Clients range from individual buyers(Net florists) to companies buyers (Kalahari net).
The system is easily accessible to SB internet bankers only,as a link to the website of the bank:
www.StandardBank.co.za. You will then have to fill in a simple pin number which is only know by you and which have your details.
The users of the IS are the bank's internet bankers, partner shops like Woolworths.
Woolworths, as a retail shop offers an online gift voucher service. Complete the order form and Woolies will deliver the gift vouchers requested to any recipient in South Africa.The gift vouchers may be used to purchase any merchandise (including foods) at any Woolworths store. The gift vouchers may not be exchanged for cash and have no expiry date. The thing is it's very much unlikely that a client would not want to get merchandise for free. This is made to be friendly-buying so that clients don't feel compelled to use their vouchers when there is no product of their need or choice in the store.
But what must be remembered is that every Partner Group has to develop its own On-line Shopping system which is compatible with SB's to operate its business activities.
3)How strategic the information system is?
**Financial Reasons.
Implicitly,by forming a partnership with shops and their websites, SB gain some commision from shops,now that the shops directly get their customers through the bank.
The agency role (payments to shops)played by SB makes it very easy for the bank to demand the sole interest charge from clients. This will of course,bring extra income on the bank's side.
**Attraction of new customers.
Now that only SB internet bankers have access to Online Shopping,more clients even from other banks will like to open accounts particularly given the benefits of customer satisfaction.
These new customers will normally be in a permanent basis since they have to subcribe to use the system.Consequently, the Old and even the new clients will very soon find it so unwise to og for other suppliers now that they have form close tights with suppliers from SB.
**Cost Efficiency
With the new subscribers to the system, the Bank doesn't incur any marginal cost and instead there is now greater marginal revenue to the SB,since interst will be charged from clients.
Greater Market Share
The Online Shopping which brings new clients to the bank,SB has now even greater share in the market. As the system has been going on for some time now,SB has yet a very strong competitive advantage towards it competitors. The growth in system acknowledgement the Bank has even opened branches in other African states like Lesotho,Namibia and Kenya to name a few.
4 (a) Benefits to clients.
-Time saving;
-Ordering costs;
-Multiple shopping at controlled level;
-Easy payments
-Flexible accountability from the agent(SB)
(b) Value to Partners
4 New Customers = Standard Bank's clients
§ Less Credit Risks = user's credit habits can be monitored
§ Reduced Administrative costs = personne + paper costs
§ Good Business Reputation = Standard Bank brand name
§ Increased Market share = New clients thus increases sales and profits
§ Increased Financial Backing = Special capital borrowing rights
5. Risk Analysis
There is no information system without a probability for failure or problem. And so is Standard Bank ' On-line Shopping System.
§ Personal Privacy
Providing payment-ability information on-line poses serious questions about the protection of personal privacy.
Therefore Security Systems must be developed to counteract invasion of privacy.
It must be mentioned though that such systems don't guarantee confidentiality, but better that they are better than the conventional paper filing system.
System Failure
A system failure can be attributed to twofold factors:Technical and human factors
As a result, it must be designed in such a way that it's convinient and easier and understandable for both clients and personnel.
§ Lack of computer literacy
This can put the image of the system and the partner members in tatters due to the criticisms that may arise from clients who may want to use the on-line shopping system.
The system must therefore be developed to target a certain group in the market who can meet the application requirements of the system.
To avoid unnecessary costs resulting from clients complaints, the data contained in the system must be accurate and consistent
For example, all information required as specified by the procedures of the system
must be met or complied with before any order can be successfully processed.
This can be achieved by using such systems as which contain a clearly programmed
principle like the "If, Then" statement, and "Access Accepted, Denied" Responses.
§ Different Systems for Different Partner Members
Every partner must develop its unique system which will meet (also responsive to) its clients and business needs.
For intsance, Net Florist has a transport system and Woolworths has not. It's obvious that although they share customers, their IS system vis-a-vis online shopping must definetely differ.
On the cost side, the systems must be developed at a reasonable costs (no overbudgets) and that it must not be too costly to operate and compete.
Credit Management Software
Each every Partner Group has to develop its own credit management for the purpose of processing orders to avoid dependency on SB and to also use it for reconciliation of Payment Accounts when there is a discrepancy between the parties concerned.
Conclusion
By integrating their systems properly and by making their websites more attractive and convinient for the clients will they be able to reap the benefits from their alliance.
References
Selected website www.standardbank.co.za
Msc European Logistics, Transport and Distribution. Msc Dissertation Leif Aandahl:
Logistical Implications of E-Commerce. Molde College 1999.
Prescribed Textbook for In32o