Essay: Implementation Success Principles Process For Commonwealth Bank Of Australia." (70 Characters)

Discuss About The Implementation Success Principles Process.

Enterprise resource planning (ERP) is important software that currently assists businesses to organize, manage and planed its operational processes. Many businesses currently have adopted and implemented the software that automates various customers support processes. One of the areas where ERP has been implemented is banking industry where the software is used to manage the operational process, customer relationship management, monitoring and management of risk and compliance, human resources management and financial service management. One of the banks that have highly adopted the software into its business operation is Commonwealth Bank of Australia. Commonwealth Bank of Australia needs to adopt the ERP software commonly referred as Pega BPM. Pega BPM is used within the business to manage business processes such as new business acquisition and onboarding, intelligent automation, customer relationship management, and, risk, fraud, and compliance. In addition, the software has enables the bank to achieve some business benefits and efficiency in operation. Studies show that there are some potential risks associated with the implementation of ERP software in the banking. The following paper explores the strategic management and information system with a focus on ERP implementation on business such as Commonwealth Bank of Australia.

Commonwealth Bank of Australia is a multinational banking organization that has spread its operations to New Zealand, United States of America, United Kingdom and Asia. The bank was formed in 1911 making the bank one of the oldest financial institution in the world. The bank is based at the darling harbor, Sydney Australia (Bronwyn & Hock 2011). The company has evolved to offer various services that include financial services, funds management, institutional banking and insurance services, investment and booking services. The company also takes part in securities exchange within Australia stock exchange. Commonwealth Bank of Australia is listed as the largest bank in the southern hemisphere and this is attributed to its institutional and online banking services (Commonwealth Bank of Australia 2008). The bank has more than 1100 branches and more than 4300 ATMs worldwide. The bank has various divisions such as retail banking, institutional banking, wealth management, business and private banking, international financial service management. The company needs to integrate its divisions, operational processes, and services through adoption and implementation of the enterprise resource planning (ERP) (Smith 2016).

ERP help in banking industry through integration of various processes that aim to provide good services to customers. In the context of the ERP, there are various banking processes that have been enabled through the use of ERP (Sidorova, Torres & Al Beayeyz 2014, pp. 421–444). Some of the examples of these processes as offered at the commonwealth bank of Australia includes new business acquisition and onboarding, intelligent automation, customer relationship management, and, risk, fraud, and compliance. Firstly, the Commonwealth Bank of Australia within the scope of business process management can apply the software which is the ERP used to roll out a promotion or enter the new business market. The software also enables the bank to evaluate and optimize financial campaigns for more effective or efficient non-boarding processes (Shaul & Tauber 2012, pp 360–384). Secondly, the bank uses ERP to integrate or organizes intelligence automation process that performs quick banking automatic processes with ease and limited cost. Thirdly, customer relationship management is another business process within the bank where the bank can use ERP to deliver high-quality customer level services with high per customer profit. In addition, the software increase point of interaction process that is used for decision-making process by the bank management since the software gives real-time data of customers point of contact. Lastly, risk, fraud and compliance process are other areas where the bank can vastly use the ERP to perform. Within these areas the bank can use the software to mitigate risk, complies with the regulation and analyses signs of frauds in banking finances (Palmer 2015, pp. 349–361).

Define business processes

Banking business requires ERP that can integrate business processes, resources planning, and customer service management. Firstly, the banking sector has evolved and currently, there is an increasing demand for automated digital banking operations with integrated financial processes, risk and compliance system with the capability of reducing cost and increasing profitability. This implies that current banking business requires ERP that is able to digitalize banking operation at the minimal cost and time spent. Secondly, the ERP should carry out risk and compliance analysis to determine the likelihood of risk or frauds in the system (Lapalme 2010, pp. 37–43). This involves monitor and analysis of data about risk, compliance, and fraud to determines the fraud before it occurs. Thirdly, another banking business requirement is an analysis of accounting record, performance management, and financial data. Lastly, customer relations management is another area that an ERP need to fulfill and this relies on the optimized processing of customer services with excellence applications. Customer relationship management is an important banking process that also gives data used to analyze the customer service operation perfumed by the ERP system over a specific period of time (Malakooti 2013).

ERP software requires a certain system that is mainly server for the company to use the system in the banking services. For instance, commonwealth bank of Australia can use the Pega BPM that also has specific system requirements. The main system requirement is basically Pegasystems Pega 7 Platform. The Pega system combines various application systems that enable articulation of various business-related application such as data integration. The system allows accesses of resources that are hosted within the cloud. The company hosts the data for various customer organizations (Rosing, Foldager & Hove 2015, pp. 265–341). The system has an adaptable interface that fits with the various application or operating systems such as android, apple and other operating systems commonly in use. This allows the software to be used in smartphones that are in the market since currently, many businesses need to mobile applications to ease the work. Some other server requirements include Web Logic server, which is placed on Web Logic will place them in the $WEBLOGIC_HOME/application directory. Moreover, the users can also install the designer studio that articulates business systems (Pegasystems 2018).

Firstly, ERP software is currently used in business for various business processes management operations. Some of the banking business processes management includes customer relationship management, financial management and order processes management. Secondly, There are many different vendors that develop or sell software for the banking industry. These software vendors market their software that is mainly based on the business requirement. Suppliers of ERP sell software that ranges from different size, shape, and categories serving different business requirements (Vedabrata & Lederer 2011). When selecting ERP software vendor there are some factors that need to be considered. Firstly, the category of the software can be used to select the software since there are many different types and categories of ERP software. Some of the common ERP software categories include customer relationship management, business process management, human resource management and financial management ERP. Secondly, the size of the business is another factor that is used to select the software since the software application cut across different business size. Lastly, the structure of the ERP is another factor that is used to select the software and vendor since some design of software is not acceptable by some other business and used by other businesses (Arif 2018).

Develop business requirements

Thirdly, ERP software vendor is many in the current banking industry and some common software vendors include Microsoft Dynamics, Oracle E-Business Suite, SAGE, SAP Business One and Pegasystems.  The Commonwealth Bank of Australia needs to adopt the Pega BPM software that is mainly supplied by the Pegasystems Inc. Pegasystems provides the bank with Pega BPM that mainly consist of business process management enabling the bank to carry out business processes integrations and customer service management.

There are many different ways in which companies and organizations utilize ERP to improve business efficiency. Three such ways are customer service, integrated information management and streamline processes and efficiency.

The banking sector has experienced widespread adoption of ERP system, especially on the customer's service management due to its efficient ability to serve customers with fast and flexible. The software enables customer and banking personal interact in a more flexible since the system allows the company to effects transaction from any location globally. In addition, current banking application of the ERP has enabled customers service over the internet fastening transaction anywhere. This implies that customer can be served through automatic customer self-service is made easy through the ERP system. Pega BPM will enable the Commonwealth Bank of Australia to serve customers throughout the world making a high number of customers served at any time. This data on customer transaction and demographic data are used by the company for planning and decision-making process of the company. Therefore, the software will help in faster or real-time customer service with more efficient enabling forecast and planning (Coelho 2015).  

The ERP software work to integrate information and various type of customers data throughout the business services. For instance, in the banking sector, the software integrates data such as orders and inventory in a unique, consistent and accurate. The information is stored in one location that facilitates faster access and use of the information. Banking transaction details are stored and are used to forecast sales and marketing of various company services to customers. Moreover, the integration benefit of the ERP enables the combination of data from online and offline for more efficient storage. The integrated benefit of the software is also based on the integration of various company departments such as financial, human resource management, customer service, risk and compliance, and operation department (Kirchmer 2017, pp. 1–28). These departments are integrated in a more flexible manner that enables operation and transactions. Human resources being one of the departments within the organization require safekeeping of employee data for faster payment. This is also integrated with accounts department enabling faster transfer of funds in the event of paying staffs (WorkWise 2017).

Determine the systems requirements

The ERP streamline various complex processes that include customer relationship management, integration processes, acquisition and onboarding, intelligent automation and risk, fraud and compliance. Commonwealth Bank of Australia will be in the forefront to implement ERP through its Pega BPM software making various business operation processes efficient without redundant data. In addition, the software enables the company to streamline these processes for faster business service delivery. This implies that the company has software that works far ahead in business process integration. The software enables the company to organize and store real-time data on these banking processes at any time of the operation. The harmonious operational process is linked to faster customer service especially on the online banking platform that totally depends on software. Commonwealth Bank of Australia being a bank with international operation has a high volume of operations that are conducted at any particular time and this has been enabled through high efficient operation processes management (Shaul & Tauber 2010).

Application of the ERP within the banking sector has fastened the business reporting operation with high scalability. Firstly, The ERP enables users to extract data that is essential for reporting within the management. The software stores a huge amount of data on transactions, customers and staff information and data on various financial services of the business such as mortgage and compliance. The data gives the accurate on the state of the business at a particular time that enables the business to give a report to stakeholders. Secondly, the software enables scalability through the growth of the business since the business relies mostly on the software for the organization of the data, processes and operational activities. Commonwealth Bank of Australia, for example, will realize growth with the adoption and implementation of the software within the organization. Moreover, the application of the software in managing various resources within the organization has enabled growth in terms of the volume of the customers served at a single time (Weske 2012, pp. 25–72).

The ERP software gives the business flexibility that is required in operation and service delivery. The flexibility of the business is enablsing through robust, flexible, and configurable services. The software makes the organization of resources in the business flexible and with the capability of handling a high amount of data at a particular time. Secondly, the business is able to reduce the cost of transaction and maintenance of various operational processes. The software reduces the administrative cost through its operation management in the course of application. The software enables the business to save the time of the operation and ease the decision-making process. Moreover, the business is also to reduce the operational cost of the management leading to low cost of the business (Shaul & Tauber 2013, pp 4).

Software and vendor selection

The efficiency of the ERP is evaluated based on the various application of the software in the banking industry. Firstly, faster communication and problem-solving is one area that shows the efficiency of the software as used in the bank. The efficiency enables the bank to fasten the communication between management and other staffs within the organization (Rubina, Paula & Alta 2011, p. 229 – 238). In addition, the ERP software offers an opportunity for the company to solve the problem of slow communication that always characterizes the high business situation present within the bank. Secondly, analysis of performance with greater ease since the software has made an analysis of real-time data possible within a short period of time. Moreover, the Commonwealth Bank of Australia will be on the forefront to implement high-end ERP software that offers analysis with ease for better reporting. This enables the management and various bank stakeholders to understand the performance of the bank at any time of its operation. Thirdly, another area of evaluating the efficiencies of the software is based on its ability to monitor the progress of employees within the organization. The software helps the bank to manage and monitor performance and progress of employees within the bank and its international subsidiaries. Lastly, the bank efficiency can also be based on synchronizing business processes. The organization uses the software to synchronize the business process such as customer service process that makes the process easy and uniform throughout the organization. This can be described as the management that allows all employee to be on the same page within a specific time (O'Brien 2011, p. 324).

Despite the widespread application of ERP within the business today, the software is associated with some potential risks. Some of these risks include security risks and data breaches. Firstly, the software is vulnerable to data from any attack since most of the current data are stored or hosted within the cloud (Walsh 2009). The commonwealth bank of Australia, for example, can use the Pega BPM software that is cloud-based software and the software service providers host the system within their server. This is associated with the high-security risk that can lead to attack leaving the banking operations paralyzed. In addition, the software can be attacked since most operations are done online and through the company’s data network (Chen 2012, pp. 187–212). The data on various transactions has been on the risk of attack from hackers who target the banking sector owing to their reach financial resources. Integration of company and its online platforms has a potential risk from attacks mostly originating for the potential hackers that follow the company website (Vilpola 2008, pp 47–76).   

Secondly, the cloud hosting has been known to pose data breaches risk since the third party can easily reach the data. The data breaches risk is always derived from the fact that data being hosted in another organization is liable to the government policies and laws that operate in the country of the host (Ross 2013). This is risky with the ability of a third party reaching the data or accessing the data for their own use. In addition, most businesses fear data being accessed with various data mining software that can access the data through the hosting company. For instance, some companies such as Cambridge analytical have been accused of accessing various company data for their own use. This is based on the software with ability to illegally accessed and mine business data for specific uses. This practice poses potential risks given the current interconnectivity of various businesses throughout the world (Eckartz, Roel & Hillegersberg 2009).

There are many steps that the business has developed to mitigate the potential risk that affects the business. Firstly, there are different security software that protects the business from any attack. This security software has a firewall that prevents any unauthorized access to the business from any point. In addition, the business has devised many software protections that are sued to prevent the business from any potential risk. This can be described as security layers that are developed mainly by the software vendor. Moreover, the software itself also has its security layer that makes the business safer for business operation. Secondly, at the hosting security level, many ERP hosting companies has their security terms of services that highlights the security requirement (Swenson & von Rosing 2015, pp. 79–88). Through this security check, for instance, the vendor of the Pega BPM has security details that prevent data breaches.

Pega BPM is selected since the software has been used by many companies in the banking sector to manage their robust operation processes. In addition, the software offers security advantage over other software that is currently in the market. The Pega BPM software has been known to offers solution to international business integration through its flexibility and expandable nature with the capability to handle the vast amount of data at a single moment. Firstly, the complexity of the software data system enables the company to host data with minimal security breaches. For instance, the system requirement for the ERP has been rated as very complex an not easy to accesses from the unauthorized system. Secondly, accessibility of the banking services at the time of operation is easy and compatible with local information system used in the bank. Moreover, with the online banking system, clients are able to access the services at any place using the device of their choice whether Smartphone or computers (Pegasystems 2018).

Conclusion

In conclusion, enterprise resource planning (ERP) software has been in high demand due to the requirement in the business management process. The banking industry requires ERP software to help manage the various operational business process, service integration and analysis of business data. Commonwealth Bank of Australia is a banking company that offers various business and financial services. There are many different software vendors that supply ERP software of different size, shape, and categories. In addition, the company needs to implement software that has robust, scalability and flexible nature. This characteristic is offered through the Pega BPM that manage various business resources and factors.

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