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LETTER OF TRANSMITTAL 02nd April, 2011
Sir Jawad Bhatti
Course Instructor, Management Information System
Szabist University
Karachi.
Sir
We here with present our “Term Report” authorized by you as a requirement for this course.
In this report, we have tried to provide Management Information System of “Standard Chartered Bank”
We hope we have covered all that was required for the report.
If there be any clarification demanded, we would appreciate a call from you.
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Sincerely,
Mahwish M.Bashir Misbha M.Bashir Syed Ali Kamran Kashif Khawaja
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PREFACE
We student of BA/BS II (A) and this was the first time we have got a chance to explore our research knowledge and skills that we have learnt so far in our University. Although this was a practical and theoretical work, so we faced many difficulties and confusions at many stages of this report. We worked hard and we were Keen to make this project the best in term of material and quality. Although we not professionals but we have given our best efforts to present this project as much professional as we can. We have learnt a lot from this effort, we have got a chance to work on MS WORD and we have learnt a lot using MS WORD. We explored WORD deeply and got many new things to learn. Thanks to the Almighty Allah who enabled us to complete this project successfully.
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ACKNOWLEDGEMENT
“Life is a journey; it's not the years in your life that count. It's the life in your years.” But Life can’t be completed without the support of many people.
First and foremost, we would like to thank Almighty ALLAH for guiding us and helping us in every path of our life, even in the smaller material things like this report.
We also thankful to our parents for their unconditional love and support in whatever we do.
A special mention goes out to all those people who gave us a part of their valuable time to fill up the questionnaires hence enabling us to conduct the research survey.
And last, but not the least, we would like to convey our sincerest thanks to our respected Sir Jawad Bhatti, who approved our choice of topic and provided us with the necessary guidelines and requirements so as
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so help us with the progress and structure of our report. Working on this report has been a gratifying experience for all of us.
“It is good to have an end to journey toward; but it is the journey that matters, in the end.”
BACKGROUNG AND IN TRODUTION:
The Standard Chartered Group was formed in 1869 through a merger of two banks: The Standard Bank of South Africa founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853.
As its operations came under threat from nationalization programmes in the countries in which it was present in the 1970s, the bank sought expansion in developed countries, particularly the USA.
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A Standard Chartered Bank (HQ) in Singapore. In Pakistan Standard Chartered merged in Grindlays' operations, making Standard Chartered not only the largest foreign bank in the country, but the only one with branches in all four provinces. It is a uk base bank and group is Pakistan.
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OVERVIEW
Standard Chartered Bank (Pakistan) Limited is Pakistan's oldest and largest foreign bank with over 150 branches in the country. The history of Standard Chartered in Pakistan dates back to 1863, when the Chartered Bank of India, Australia and China first established its operations in Karachi.
In 2006 Standard Chartered Bank acquired Pakistan's Union Bank. On 30 December 2006, Standard Chartered merged Union Bank with its own subsidiary, Standard Chartered Bank (Pakistan), to create Pakistan's sixth largest bank.
MAIN SERVICES
Consumer banking:
Standard Chartered provide Mortgages, Credit Cards, Personal Loans, Auto Loans, Islamic Banking, and Wealth Management products. In order to maximize customer convenience, they offer 24-hour Phone Banking, statements, SMS Banking, ATM Cards and VISA Debit Cards, as well as Online Banking and state of the art branches.
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Wholesale Banking:
Wholesale banking provides Transactional banking, Debt Capital Markets, Corporate Finance, Derivatives & Fix Options, Commodity Finance and deposit products.
Islamic Banking:
Standard Chartered Saadiq's dedicated Islamic Banking team provides comprehensive international banking services and a wide range of Shariah compliant financial products that are based on Islamic values
VISION AND MISSION
Vision:
“To be the preferred provider of Islamic financial products in the market”
Mission:
“To create exceptional value for our clients, investors and staff; through market leadership in providing innovative Shariah compliant products and solutions, and by adopting and living our core values”
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AREAS OF BUSINESS
Standard Chartered have branches in all the main 25 cities of Pakistan. It has more then 150 branches in Pakistan.
TOTAL OFFICES AT NATIONAL
AND INTERNATIONAL LEVEL
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Standard chartered is operating more then 150 branches in about 25 Cities of Pakistan. Standard Chartered has a history of over 150 years in banking and operates in many of the world's fastest-growing markets with an extensive global network of over 1,400 branches (including subsidiaries, associates and joint ventures) in over 50 countries in the Asia Pacific Region, South Asia, the Middle East, Africa, the United Kingdom and the Americas.
As one of the world's most international banks, Standard Chartered employs 60,000 people, representing over 90 nationalities, worldwide. This diversity lies at the heart of the Bank's values and supports the Bank's growth as the world increasingly becomes one market.
MAIN OBJECTIVES
Standard Chartered Bank is an international bank, focused on the established and emerging markets of Asia, Africa, the Middle East and Latin America with an extensive global network of more than 600 offices in over 50 countries. The three principal business groups are Treasury, Consumer Banking and Corporate and Institutional Banking. Their main objective is to offer outstanding value to their customers by providing knowledgeable, efficient and reliable service in a personal, helpful and responsive manner. Central to this service philosophy is the professional consultative approach they take with each customer. By getting to know the customer better, they can identify the customer's needs and match them with quality products which suit their best.
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ORGANIZATION STRUCTURE
Standard Chartered Bank has a formal structure. It has intra link system means one link system. The organization is a flat organization.
MANGEMENT OVERVIEW
Management Chart:
Standard Chartered has a specific management hierarchy like “G series” in descending order. The hierarchy is below.
Managerial Ranks:
Descending order
G9: Officers of the bank. G8: Accounts managers. G7: Branch Manager G6: Regional Head G5: Branch Head G4: Dept head G3: Country head G2: Continent head G1: CEO
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ORGANIZATION CHART
G1
G2
G3
G4
G5
G6
G7
G8
G9
We can say the chart shows that first line employees come in G9 category and then it tends to G8……….till G1. So this is in descending order. G9 Officers up to G1 CEO.
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ORGANIZATION MANAGEMENT HIERARCHY
CEO
Executive Directors
Regional Regional Regional Managers Managers Managers
Branch Branch Branch Branch Branch Branch Manager Manager Manager Manager Manager Manager s s s s s s
BUSINESS PROCESS MODEL (PAKISTAN)
Administration and Management R & D System (Karachi)
HRM Workforce Planning System (Karachi, Lahore, Islamabad)
Secondary Technology Development (Karachi, Islamabad) Activities Computerized Ordering System MIS of Standard (In all branches of Pakistan) Sales Chartered Organization Value Chain Primary Inbound Outbound Operations Services Activities Logistics Logistics 18
INFORMATION SYSTEM IN STANDARD CHARTERED
As Standard Chartered started their business in Pakistan in 2006 so as such there is no Pre-IS era of standard chartered bank in Pakistan. They are using IT since the start of their business in Pakistan. IT creates an evolution in whole world in every business and so in banking system. Now in standard chartered with the help of IS the daily transactions are recorded in branch computers and these branch computers are then connected to the main head office server so in this way they keep their daily process update on daily basis.
As Time is money, and due to IS standard chartered bank make thousands of transactions per day. In fact, IS makes whole process much more quick, simple and reliable. Due to IS employees can easily connect with other branches, customer service gets improved, online banking emerged and lot of others benefits.
Standard Chartered Online is an innovative Online Banking service that you can tailor to suit your precise banking needs. It gives you convenient, round-the- clock banking services ranging from day-to-day account transfer transactions to real-time valuable financial information. Now you can manage your finances anytime, anywhere.
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Information Structure:
This is confidential knowledge that the bank is using people soft, virses, EBBS (electronic business banking software) software’s, HRS, HRIS to make their employees up to date with the time this people software and other IT equipment is taken from Kuwalalumpur Singapore. Through this people soft manager make contact with each other. Organization is fully digitalized SCB has WAN, LAN & V- LAN Networks. Having PTCL Services, and using Cisco technologies (latest3950- 3800 series routers). Having CAT6 cabling and for backup have rescue disaster recovery system.
ORGANIZATION COMPUTING RESOURCES
Software Resources:
Following software’s is used for the functioning of our information system and organization;
Application Software:
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Following application software’s are used in our organization and functioning of our information system.
• People Soft. • EBBS (SCB banking system). • Microsoft Office. • NOD32 Anti-Virus. • SQL based data base, SAP and ORACLE at backend. • Symantec security system. • Adobe Reader.
System Software:
Following application software’s are used in our organization and functioning of our information system; o Operating System (Windows XP and Linux) for PC’s. o Windows 2003 server for mainframes.
Hardware Resources:
Following hardware resources are required for the functionality of IS and organization:
• Personal Computers. • Canon Document Scanners. • HP Printers. • Networking Cards. • Currency Counter. • Coin Counters.
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• HP Digital Scanners. • IBM Mainframes. • Dell & HP PC’s.
COMPUTING TYPE
In Standard Chartered Bank, they are using client/server network because it is accessible and the employees easily share the data and this network is cheaper than others and this is easily maintainable and manageable. All the data save in main server or HUB and employees can easily access it. This type of computing system provides an easy access and efficient flow of data, which increase the functionality of organization.
Three Tier Architecture:
Most Web Applications which use database access do this through three layers of application logic. At the base is a Database Management System (DBMS) and a database. At the top is the client web browser used as an interface to the application. Between the two lies most of the application logic, usually developed with a web server-side scripting language that can interact with the DBMS, and can decode and product HTML used for presentation in the web browser.
The figure describes that at the base of an application of three-tier architecture is the database tier, consisting of the database management system that manages the database containing the data users create, delete, modify and query.
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Built on top of the database tier is the complex middle tier, which contains most of the application logic and communicates data between the other tiers. On the top is the client tier, usually web browser software that interacts with the application.
Three Tier Architecture Network:
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Technology:
For the proposed Web Application different type of language will be used. The page generation will use HTML, JavaScript and PHP language. PHP is also used fro database connection and data validation. Apache web server will be used for the functionality of the Web Application. In the proposed Web Application mysql database will be used.
Integration Framework:
The integration process of the proposed software lies in the three tier architecture. Three tier architecture is being used for the software because hides the reality that the applications must bring together different protocols and software.
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The Client Tier:
The client tier of the three tier architecture model is the web browser. Web browsing software processes and displays HTML resources, issues HTTP requests for resources and processes. The generated pages for this software (previously discussed) are in this tire. The previously created pages are mainly created in HTML but some of the pages are embedded with PHP and JavaScript. Cascading Style Sheets (CSS) are also used in different pages.
The Middle Tier:
In three tier Web Application systems, the majority of the application logic is in the middle tier. The client tier presents data to and collects data from the user; the database tier stores and receives the data. The middle tier serves most of the remaining roles that bring together the other tiers; it drives the structure and content of the data displayed to the user, it process user input from the user as it is formed into queries on the database to read or write data. This middle tier application logic integrates the Web with the database management system.
The components of the middle tier are web server, a web scripting language and the scripting language engine. A Web server processes HTTP requests and formulates responses by interacting with the database management system.
For the proposed software PHP is used for middle tier scripting language, PHP engine is used for scripting language engine and Apache Web server is as web server.
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The Database Tier:
The database tier is the base tier of the proposed software. Designing databases and building tier is the first step of this software. Based on the content analysis, Entity Relationship Diagram, database of the proposed software is created using mysql Database Management System.
Component Based Development:
The component technologies have evolved in large part because of the explosive growth of Web-based systems and applications. Three major infrastructure standards are available for web engineers: CORBA, COM/DCOM, PHP and JavaBeans.
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Entity Relation Diagram:
The entity relation diagram focuses solely on data, representing a data network that exists for a given system.
The entity relationship diagram of the proposed Web Application of Standard Chartered Bank i-banking is shown below.
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ORGANIZATION TPS SYSTEM
Transaction Processing System:
A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. From a technical perspective, a Transaction Processing System (or Transaction Processing Monitor) monitors transaction programs, a special kind of programs. The essence of a transaction program is that it manages data that must be left in a consistent state.
TPS in Standard chartered bank:
Effective transaction processing system is working in Standard chartered bank that offer enterprise the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise.
Payroll TPS
In Standard Chartered payroll TPS is designed to get information and record of the employ and then to calculate his/her annual earning.
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It get information about the employee from the employee’s department and from general ledger and send it to payroll TPS from where it links that information with the previous record and prepare a report which is forwarded to management. Management takes notice the “LN” record of the employee’s efficiency to work and may declare added bonus or other incentive. This report is checked and approved by the branch manager after which check is issued to the employee. And when that check is cashed, the record is updated in the general ledger as well as the master payroll (HUB).
Employe e Data Managemen Check Payroll TPS Passes People Soft t Reports by Manager
General Ledger
Check Payroll Issued to Master File Employee (HUB)
General Ledger
Customer Identification
In Standard Chartered Bank there is their own information management named software “Virses” is working which is connected to NADRA. So if any new client wants to open an account in the bank the system automatically send a request
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to NADRA to check and verify the customer ID number. Which helps the management to identify whether he/she is using his original ID card or not.
Input (ID #) Virses HUB
NADRA (Customer identification) Management
Employees Record
All employees are supposed to login when they enter the bank and logout on leaving, by tracing their thumb impressions on biometric device. This device is connected with the HUB which continuously makes record of their hours spent in the bank. Moreover, the bank has their own setup named “LN” which makes records of all the transactions made by an employee. This help management to monitor the working efficiency of an employee.
Employe e Job Biometric Device Login & LN HUB Employee Job Logout
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Real time Banking
In many circumstances the primary factor is speed. For example, when a customer withdraws a sum of money from his or her account the transactions are processed and the account balance updated as soon as possible, allowing both the bank and customer to keep track of funds. The new transaction is send to LN. The LN enters the HUB where the specified file is accessed. The updates are made entered there and finally the update is done.
New Transactions, Update Updates LN d
HUB
Online Complains
Standard Chartered Bank allows the customer the option of online complains. The customer submits the online complain which is then processed by Customer Service TPS which is linked by management (PeopleSoft Software) and after the problem identification it is send to the concerned department.
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Customer Identify Custome Service TPS Proble r Queries PeopleSoft m Software
Send to Concerne d Dept.
Advices
As all of the record of the customers are stored in main server (HUB) of Standard Chartered bank, so incase if someone account balance is getting near to zero the system automatically alert the management about that. Then manager take manual action and send him/her the advice (a letter, mail or phone call) to check the account balance.
Accoun (PeopleSoft t Software) Management Alert Customer Service TPS
Advices Send HUB to Customer
Account Opening
This TPS is designed for opening a new account in the bank. Input: Give bio data, NIC no., income, city name.
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Process: Information sends to the “virses”.
Virses
(PeopleSoft New Software) A/C Applicant Customer Identification Opened Service TPS
A/C HUB Dept. Output: new account opened in the bank.
Online Activity
Purpose: Transfer funds with the organization. Input: Concerned Branch code, city name, account title, amount & the transaction. Process: The information will send to organization server (HUB). Output: Transfer of fund to the concerned branch.
Custome Customer A/C r Service TPS Dept
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ATM Card
Purpose: Easy with draw of cash. Input: Give bio data, income summary, company name, NIC. Process: NIC no. and bio data send to virses which directly linked to NADRA. If information is correct then it is forward to customer service centre. Output: Issue of credit card.
Virses
Applicant Customer New A/C Identification Service TPS Opened (PeopleSoft Software)
A/C HUB ATM Dept. Issued
Car Financing:
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Purpose: Leasing a new car. Input: Account title, down payment amount. Process: The information is send to the HUB and verifies the account of customer and makes the Schedule: for leasing for the given period of time. Output: Customer can get a new car.
HUB
Applican Customer Issuanc t Identification Service e Managers
A/C, Financ e Dept. MANAGEMENT INFORMATION SYSTEM
Relationship of MIS with TPS:
MIS reports and summarizes the organization’s basic operations and these reports come from the basic transition processing systems. In case of our organization the TPS’s of ATM Cards, Payroll and Customer identification etc. provide the basic information about the organization’s activities. These activities are then summarized in the form of reports for the manager so that they can check whether the firm is working properly or not. If there are some flaws then they take control measures to fix those flaws.
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Transaction processing system Management Information system
MIS FILES Payroll Master Payroll TPS File Payroll Data C.I info Master Customer File Identification TPS Customer Data
Employees Info Master File Employee Record TPS Employee’s Data
Customer Real Time Account Master Banking TPS File Customer Data
Customer Customer Queries Master Service TPS Customer Complain Data File
Customer ATM ATM Cards Master Files TPS Customer Account Data
Customer Advice Advices TPS Master File Advices Data
Online Online Customer Master Files Activity TPS Customer Data
Car Financing Customer Finance TPS Customer Data Master Files
MIS (EBBS)
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Reports
MANAGERS ATM Transaction Process:
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Transaction Flow Chart:
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CONCLUSION & SUGGESTION
Conclusion :
A management information system is a system or process that provides the information necessary to manage an organization effectively. MIS and the Information it generates are generally considered essential components of Prudent and reasonable business decisions.
These report discuses all the activities that the Management Information System performs in our selected organization “Standard Chartered Bank (Pakistan)”.
The reports start with the background history of the bank such as when it establish in Pakistan, the branches, pre and post era etc. It explains all the TPS how the transactions are made by the bank, using of these TPS from the new events such as account opening, new allowances etc to the routine work including cash and payments record, updating of records, payroll and the processing of the complaints. These TPS holds all the activities from the manager and employees to the customers. The report discuses the inbound and the outbound logistics and relate all the processes of TPS used in the bank with the MIS, enabling the bank to provide the quality and satisfactory services to their customers. Also includes the inter relations, of all the entities in the database of the bank. ERD diagram represents all these relations.
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S uggestion:
The bank is using the IS very efficiently and increasing its profitability, but still there are many things that should be improved.
1. With the increase in the technology, the bank should made its IS up- to-date for providing best services to their customers and attracting more customers and increasing its productivity.
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REFERECES :
• www. standardchartered .com.pk • www.google.com •
THE END
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