Strategic Information Systems For Business And Enterprise: Assignment On Anz Bank, Australia
Introduction
Strategic information system is said to be a set of guidelines that help the companies in order to set plans and strategies according to the existing norms. It implies the main objectives of the companies to incorporate the system. It can also enable the entrepreneurs for accessing the environmental changes and utilizing the beneficial aspects. Mainly, SIS can be categorized into three basic types such as financial, operational, and strategic. The types are dependent on the business that interrelates with the employment. It is proven that, SIS helps the organizations in digging the latest information in term of market, production, and promotion of the products and services. It is helpful to innovate the association with the business strategies. Zhou et al. (2018), mentioned that SIS is seen helpful for the organization in data-mining enables database that can save information and provide the best ways in order to enhance business procedures. The system allows the users to underline the data collection procedures by erasing out the marketing opportunities. The report will show the information system of ANZ Bank Australia that has become more open, modular, and capable. It increases the scale and speed of the finances and budgets with leveraging data, analytics, and communication. It helps in making the system richer, targeted, value proposition and specific micro segments for the individuals. Moreover, it applies the same strategies for the current and potential competitors. It is the better place to take advantages of the most lucrative new opportunities and inserting them the relationship between banks and the customers. It will propose new information system while finding the weakness in the existing system of the bank. The proposed system will be helpful for the bank to take its business at the next level. It will help the bank to provide additional services for revenue and profit for compensate the diminishing returns in traditional lines of business.
Organization Overview
ANZ bank was first established in London in the year 1835. Now, it spreads the huge companies all over Australia and New Zealand as well. It provides international banking and financial services to all over the country and other countries of the world include China, Japan, Korea, etc. As a part of international organization industry, it follows the corporate principles and practices to accept internationally. The technological staffs are operating the model of technology in creating the universal, professional services-based capacity. It provides customer perspectives that are regionally aligned, globally organized for execution and service provision.
Evaluation of Objectives
Profit is considered as the main objective for the business companies. Apart from other related tasks; the companies are assigned to achieve minimum objectives. It is considered as the successful operation for the organization that depends on the planning system and its adoption. The planning for the projects is one of the most important devices that can get success for the period. It is playing the main role in effective formulating and implementing the strategic planning in the companies. It is important for the manufacturing industries and the banks as well. In ANZ bank, the planning is used to protect the expectations of the shareholder that require the effective coordination between various functions budget. The bank works to generate the profit by mobilizing the deposits and provide short term and long-term loans. It also gains profit by the process of investigation of productive resources mutilation. The bank is imposing the cost benefit analysis that impact on regulatory changes. It is important to analyse the account of protections that embedded in the existing policy and economic framework to be operated in Australia.
Mission Statement
ANZ Bank aims to build the position in core Australian and New Zealand markets. It wants to grow the business with super regional strategy. The company is using the strength of Australian and New Zealand businesses and connectivity all across the world in order to meet the needs of the customers. It helps in capturing the banking opportunities linked with regional capital, trade, and wealth flows. ANZ believes to develop financial systems and reforms to deliver the benefits to the society. It improves legal and governance structures, political freedoms and pursuing the economic reforms. In Australia, ANZ Bank believes on the impact of regulations for international competitiveness of financial institutions and the customers to receive insufficient considerations in Basel III policies. The company concerns to adopt more stringent policy in order to reduce the relative competitiveness of Australian banks that can affect the economic outcomes and the cost of the services of customers.
Information System of ANZ Bank
ANZ Bank Australia has started its new mainframe system with having 20 new application programming interfaces (APIs). It taps directly to its main core banking applications. The bank has migrated its system to IBM’s latest z-13 mainframe and Power 8 infrastructure for its private cloud environment. It follows $450 million agreement that is signed with the software giant in the last year. The mainframe system includes the software z/OS Connect tool that help the APIs to directly limited the Customer Information Control System middleware. The net impact of the system of future Basel III liquidity changes the costs of funds and it is precisely as largely depend on the extent of the market pricing. It allows the bank in avoiding the replacements of the core system of record and provide directly into the core platform running on the mainframe.
Weaknesses in System
The factors of adopting new information systems are reducing the company’s ability in order to achieve the objectives. It includes the unreliable suppliers, outdated equipment and machinery, insufficient marketing efforts, lack of finances, management weaknesses, gaps in expertise, and more. The company needs to identify the weaknesses that are not efficient in making decisions in order to strengthen the company. ANZ‘s global exposure is limited as compared to other banks in the world. The bank faces strong competition from existing players and makes it difficult in order to increase market share. The company faces deteriorating economic conditions in the countries like Australia and New Zealand. It provides major chances for the country to change the fluctuation of the banking and information system in all over Australia. ANZ does not understand the use of new implemented software and arguments to conform the financial regulations. The regulations are not allowing the bank for national discretion and maintaining current strong position in the industry. According to Chatterjee, Moody and Lowry (2015), the higher level of loss absorbency is currently contemplated internationally and can come at the material costs while diminishing the stability benefits. It is limited to further reductions in the probability of the breaching non-viability association with the measures. ANZ supports the assisting ADIs that are not attaining the accreditation to remove the impediments and subject to maintain integrity and credibility of the process. It includes stage process of accreditation, prioritizing mortgage rather to require the whole of bank accreditations. The net impact of the system of future Basel III liquidity changes the costs of funds and it is precisely as largely depend on the extent of the market pricing. The average of the cost of the funds of Australian mortgage has increased by 150 on comparing it with the pre crisis
Proposing New System
It is important for ANZ Bank Australia to provide significant ways in order to contribute towards the communities and operate the business through the long-term investment in the financial education program. It assists people on lower-incomes with low level of financial literacy and builds the money with management skills and savings. By proposing new system in its strategic information system, the company can raise the level of financial literacy and inclusion in order to greater the economic participation and social benefits for the individual and the community. It will bring a big change with the significant benefits of the business. It increases financial capabilities and leading to the greater individual wellbeing and provide greater respond to the diverse financial needs of the customers. The ANZ Bank Australia must provide Tier-1 and Tier-2 compliant capital securities in its system. The securities are not Basel III complaints that do not include Point of Non Viability conversion in the contractual terms. The company can implement Basel III transitional treatment by APRA over many years in phasing out period. The system of APRA is the security system that reduces every year and phased out till the year 2021. The company should replace the Basel II complaint system with Basel III securities that can include PONV contractual term. Other jurisdictions are used for different approach to be employees in Australia. The requirements for Basel III PONV are covered with the changes of local statuses and demand for the fully complaints. It is the main method by which the complaints with the Basel III transitions securities are omitted.
Relevance of Technologies
The bank ANZ has notices that the differences in the APRA implementation of Basel III in order to impact on major ADIs in the material sense. The differences are seen in the capital of interest in its rate risks and not recognizing the allowances for investments. It is concerned with the association of the financial institutions. The Australia is in the crisis and the validity of the international comparisons is to be questioned. The ANZ bank Australia believes in prudential settings that can determine the structure, performance, and risk association within the banking industry. The technologies of Basel III are in comparison with the international jurisdiction that is useful and making specific circumstances of Australia.
The ANZ must strongly support the measures to increase the comparability of the capital ratios all across jurisdictions. The new implemented technologies are critically important for the market that includes debt and equity investors in order to understand the bank’s capital position under prudential standards. The future of financial advices is established to provide the best interest duty and regulate the conflicted advice. It aims to ensure the customer to receive the independent advice for their needs and circumstances. Weigel et al. (2014), argued that the opportunities are providing more affordable, quality, and scaled advices within the framework by using digital technology and other channels. The technologies are relevant in observing the affordable and financial benefits for the consumers. It seeks the views in order to improve the adviser competence, meeting demand for lower-cost scaled advice and ensure to get independent advices.
Description of Technologies
The technologies of Basel III PONV will be useful for the company in building the consumer confidence as affordable, quality, financial advices for functioning properly in the investment market. The provision of financial advices can improve the better accreditation, training, and continuous education. It is helpful in enhancing the public register of advisors, and reviewing the regulations in order to provide the appropriate digital provision of advice. It raises the consumer understanding of the risks and return towards the association with investment products. It focuses on regulators and industry. The credibility of the technologies are used to enhance the agreed standardized templates in order to make the disclosures mandatory rather than optional. It explicit the regulation endorsement and support the disclosures. The company can get well progress system by developing new technologies of Basel III. The ANZ can get the regulatory and taxation obstacles in order to adopt more efficient structure for its information system. The members contribute to the superannuation trusts. It can issue through different policies given by the banking industry. The more efficient approach given by the technology is a direct investing structure. It discourages the change because of capital gains liabilities. Moreover, the funds are provided in order to merge the taxation reliefs and promote greater efficiency. The technology of APRA is relatively robust in its legal powers and enables to respond the effective financial distress. New legislative provisions are broadened the grounds on which APRA system provides statutory managements. APRA is the developing proposal system that addresses remaining gaps in the crisis resolution powers.
Financial and Non-financial Data Attributes
ANZ bank shares the understanding of the values and describes the things with compromising in any situation with the customers, shareholders, and community. The values shared by ANZ are helpful in achieving the better business outcomes. It provides code of conduct, value guides and behaviour that helps in taking and working on decision. The result can be seen in the IMF (International Monetary Fund) and the Australian Prudential Regulation Authority (APRA) system that stresses the test, prior to full implementation of the measures in the banking system. The IMF has reported to confirm the Australian system that can remain the capital minimum (Tier-1) and under severe stress. ANZ acknowledges that the countries are significantly taxpayers support and providing the bank at considerable costs the economy and taxpayers. There is no doubt that underpinned TBTF perceptions and international steps that can reduce the risks of taxpayers. For its non-financial attributes, the ANZ Bank Australia is featuring automatic stabilisers like floating exchange rates and variable interest rates. It is the traditional banking model that has strong regulator and supervisory regime of independent agencies. The banks are demonstrating their ability to take actions in order to support the individual institutions. They are having ability to raise the capital directly with the dividend re-investment plans. There are relatively small numbers of participants and traditional nature of the Australian banking system that allows the actions to be taken quickly with dealing no failure in it. The government is providing fiscal strength and monetary flexibility in order to reduce the pressures on the economy.
Users views for Management Report
Deferred Tax
Deferred tax is used for comprehensive tax balance sheet method. It is generated by the emerging of temporary differences in between the carrying amounts of assets and liabilities. In the financial reporting of the ANZ Bank Australia it is based on the taxes. It affects the taxes in the financial statements. These taxes are measured with the tax rates and expected to apply on the liabilities.
Net Loans Advances
Net loans advances are considered as non-derivative financial assets. They are determined by the payments that are quoted in the market. in ANZ Bank, it is seen to arise within banking group in order to provide the money to the debtor with no intention of trading the loans and advances. It is measures at amortized cost using the effective method system by recognizing the value of profit and loss.
Segment Reporting
It is viewed by non-accounting user by different operating segment and components of banking group. It provides products and services that are subject to risks and rewards to different operating segments. The banking group is responsible to operate the predominantly in the banking industry of Australia. The ANZ Bank Australia is exposing the limits of risk that are associated with operating different economic environment and political conditions. The geographic information is provided on the basis of this segment operation or reporting method.
Financial Contracts
It is also viewed by the users that guarantee the contracts in order to provide the issue and make specific payments when due. The financial contracts are specific debtor that fails in making the payments consisting of the letters of credit, guarantees, and acceptance. In the initial recognition, the liabilities are guarantee to measure the higher amortized amount and the best estimate of the expenditure require for settling the financial obligation. For ANZ Bank Australia, the estimates are based on the experience with similar transactions and history of the past losses.
Potential Security Risk for Controlling New System
In order to support the strategic priority in the ANZ Bank Australia, the management must drive a purpose and value-led transformation of the bank. It can refresh the values and input from more than 1000 employees. The values are implementing to get strong focus on speaking up and respectfully disagreeing the support by the code of conduct. It is the requirement of the employees to comply with the codes that contains the basic guideline principles and set off standards in order to avoid the potential risks in the system. The risk may arrive by the initiated program that work with number of large Australian businesses and aiming to encourage the greater level of uptakes in the Australian listed companies. The potential risk may arise with conduct and culture in the Australian banking industry, financial advices, and treatment of the customers in financial difficulty. It is the competition with different bank’s prices and products decisions. It includes financial advices and consumer credit lending responsibilities. The public policy development also gets issues in the programs related to the financial well beings and capabilities in Australia. The financial crime risk management must be developed efficiency in order to avoid the basic risks.
Conclusion
It has concluded that the strategic information system is helpful for the companies while digging the newest and unique information within the market. It provides the production and promotion of the products and services given by the company. It helps to integrate the association with the business strategies. For ANZ Bank Australia, the SIS is seen helpful for the organization in data-mining enables database that saved the information and provided the best ways in order to enhance business procedures. The report has proposed new information system while finding the weakness in the existing system of the bank. The proposed system has seen helpful for the bank to take its business at the next level. In ANZ bank, the planning is seen to be used in protecting the expectations of the shareholder that are required by the effective coordination between various functions budget. The bank is described to work in order to generate the profit by mobilizing the deposits and provide short term and long-term loans.
The system of Basel III found weaknesses and needs to change it accordingly. New system of Basel III POVNV introduced and proposed to the bank in order to enhance the public register of advisors, and reviewing the regulations in order to provide the appropriate digital provision of advice. In the financial reporting of the ANZ Bank Australia is described to be based on the taxes. It has seen to affect the taxes in the financial statements. The company is suggested to identify the weaknesses that are not efficient in making decisions in order to strengthen the company in the banking industry of Australia and in all over the world. As it is proven that the global exposure of ANZ Bank is limited as compared to other banks in the world.
