Business Problems Facing ANZ Bank

Discuss about the State of Business Intelligence in Academia.

The problem identified in the business management of Australia and New Zealand Banking Group Limited (ANZ) banks is in terms of business and technology perspective. The concerned bank is one of the oldest and leading financial institutes in Australia. However, the bank faces the problems of ineffective negotiations with the customers to meet their needs for financial resources. In technological terms, the organization is currently working on the outdated computing platform that lacks high accuracy in operations and data security. This is the main reason that the ANZ bank had suffered from many scams by the internal people as it is easy to break the security system of the organization (anz.com 2018).  

The recommendations suggested by the previous assignment for overcoming these problems are adopting required strategies to negotiate with the customers and incorporate advanced secured system in the computers. Thus, this business report will highlight the detailed analysis of tools, models and theories related to the business and technology problems. An in-depth analysis of the literature based on the same aspects will be carried out in order to support the relevance of the suggested solutions. In addition to that, the strengths and weaknesses of the tools, models and theories will also be illustrated.

Australia and New Zealand Banking Group Limited (ANZ Bank) have served quality financial solution to their customers but there are problem related to their business operation when compared with the performance of the other banks. There are major two types of problem that the considered bank is facing- proper negotiation with the customers and successful implementation of the modern technology for accomplishing the banking operations. As emphasized by Laudon and Laudon (2016) the problem of negotiating with customers is a business perspective issues due to which the ANZ Bank are losing their customer base as the officials are not able to understand the customer’s requirement. Moreover, the problem of incorporating the digital platform and modern technology is a technology related issues which occurred due to continuous use of the outdated computer platform with not secured software. This increased the probability of scams and scandals within the organization. 

Thus, the occurrence if these two problems lead to competitor threat from the other financial performance of other banks, loss of more customer, controversies and bankruptcy.

Burke (2017) highlight that according to the system theory, managers have to understand how different systems affect a worker and their performance to obtain the organizational objectives. The system theory allows the managers to examine the pattern and event for accomplishing the designated job roles. Thus, it can be said that system theory allows illustrating the organization as a single system that can be either closed or open. Olson and Wu (2017) stated that an open system allow all the members and stakeholders of the organization to participate in the workplace environment. On the other hand, the closed system does not allow the transparency in the business environment. There are certain application of the system theory that can be implemented in the banking organization for getting the maximum benefit in productivity and profitability.

Technology Problems Facing ANZ Bank

Feedback loops- Goodwin and Wright (2014) stated that an organization have to take feedback from the employees and in service providing companies, these feedback loop should also include customers. This will help the official to understand the demands and need of the customers and they can provide a customized solution. This approach will not only raise the sense of being valued from the organization but also help the company to list down the demand for strengthening their customer base. Bessis (2015) stated in banking organizations, feedback allows the customers to share their concern regarding the thing in which they need financial services and the bank can also offer them the accurate solution that is appropriate for them. In such case, the banking officials also have the better understanding to negotiate properly.

Critical Analysis- Peng, Peng and Chen (2014) stated in service company, the procedure for the critical analysis plays an important in analyzing the positive and negative aspects of the services an organization is providing to their customers. This criticism can be obtained from the employees, customers or other business experts. This will encourage the business owners to seek constant growth and plan for the best use of the organizational resources (When et al. 2015). In terms of banking institutes, critic regarding their business operations, way of handling the customers, availability of the financial services and response to the customer’s feedback should be considered.

Management meeting- Laudon and Laudon (2015) opined that highlight the point that the management of the organization are liable for analyzing the market demands and the upcoming scenario of the business requirement. The meeting of the managers should present the agenda of the future plan about what to include in the current business blueprint so that the performance of the business can be improved (Wieder and Ossimitz 2015).

Sharma, Mithas and Kankanhalli (2014) stated that it is necessary for an organization to identify the risk factors relayed with their business functions in order to avoid the adversity. Moro, Cortez and Rita (2015) furthermore stated that if an organization does not consider risk while defining the business objectives, the probability for losing the business direction is high. In banking sector, it is important to assess the risk involved in the financial operations like- market risk, credit risk, operational risk and performance risk.  The main component of the business risk management that should be considered by the management of the organization comprises of the following sections:

Solutions to the Problems

Kasemsap (2015) opined that risk management cycle is constituted with several steps including confirm strategy, identify ad assess risks, challenge and evaluate controls, take actions and monitor reports. In order to control the risk management factors organization should follow this cycle. In order to overcome issues business experts have to confirm a particular strategy so that risk can be controlled. In order to control the entire operation process of business in a banking industry the organizational manager should render an innovation on the customer service system. As a result, customers and service providers would get an effective interaction with each other.

While implementing strategy on customer service system the business experts may have to face risks and uncertainties. Therefore, after selecting the strategy, organizational executives can identify the probable risk factors to avoid sudden crisis. Based on the risk factors the managers have to evaluate probable consequences due to any kind of uncertainties. Based on the expected challenges the business experts take some initiatives for monitoring and controlling the risk factors. As stated by Wixom et al. (2014) risk management system is highly effective in overcoming challenges and controlling the business operation process within rhythm.

In recent time, all the organizations have taken initiatives for incorporating digital platform for accomplishing their business operation in an accurate way. Brooks, El-Gayar and Sarnikar (2015) highlight that retail organizations, manufacturing companies, e-commerce business have included the online platform and modern technology to customize the business functions. Customers also provided the opportunity for giving payments and tracking their products through modern technology. Thus, organization should consider the following aspects of technology management for the betterment of their current business system.

Fan, Lau and Zhao (2015) stated that with the rise of m-banking transaction in the banking industry large numbers of service providers are there who are unable to adopt this technology. By using mobile banking application customers would be able to make effective transaction of their finance and services by sitting at their own place. Some of the most effective reasons for which organizations do not wish to adopt mobile banking include lack of adoption mobile as a channel for banking, limitation of service on mobile banking, lack of implementation in varied languages used in this application. Therefore, development should render on this specific area. Organizations should take effective initiatives of providing effective services on mobile banking. On the other hand, the application should get a compatible platform with the help of which every user having different platforms should get equal facilities and benefits. Goleman (2017) only Apple iphone users should not be the only one who can get accessibility of using mobile banking facilities. Android users should receive equal opportunity and scope to download this application and making banking transaction by sitting at their own workplace.

Critical Analysis of Relevant Tools, Models, and Theories

Goleman (2017) stated that electronic payment is the systematic method of making financial transaction by using electronic goods. It has been observed that large number of customers belonging to medium ages is not very well accustomed with the advancement of technology. People belonging to various geographical backgrounds and attitudes may not be familiar with in operating advanced technology. Apart from mobile banking system, large number of mobile applications is there with the help of which users can make online transaction without visiting the bank physically. It has been observed that users can utilize two methods of e-permanent system equally that includes credit payment system and cash payment system.

For last five years the global scenario implies that consumers’ buying perspective is gradually changing with the rapid progress of globalization. Chang (2014) opined that the consumers’ purchasing behavior has entire dependent on the advancement of technology. In order to receive effective financial services from the service providers the customers do not have to visit the bank physically. Application of various technologies has rendered innumerable challenges within the business process of various banking industries. The service providers are not very much advanced with the emergence of technology. As a result, customers while using mobile banking may have to face immense difficulties in getting effective services due to server error. The business experts do not update their server regularly. As a result, customers tend to show their level of dissatisfaction in using the services. 

On the other hand, business intelligence is the technology driven method with the help of which an individual can analyze data and information by using data mining, process mining and complex event processing business performance management and so on. In order to increase the number of target customers the business experts have focused to advanced technology. Sharma, Mithas and Kankanhalli (2014) opined that financial institutions by using business intelligence tools should keep database about the overall financial transaction with the customers. As a result, the employees can give chronological data record to the managers. Based on that data finance manager can get approximate view about the profit and loss balance. On the other hand, operation managers can make an in-depth analysis about the performance level of the organization as well as their way of improvement. Employees of numerous financial institutions are not very accustomed with the changing process of technology. As a result, both the customers and the service providers have to face immense challenges in maintaining effective customer service system.

Risk Management in ANZ Bank

After evaluating an in-depth analysis about the challenges on business management perspective and technology, some of the major ways are identified for resolving the issues faced by financial institution. Implementation of business management theory helps an individual business manager to control the entire process of business. Moro, Cortez and Rita (2015) stated that the success of a financial institution is highly dependent on customer services. The managers of Australia and New Zealand Banking Group Limited (ANZ Bank) by taking effective customers’ feedback can reform business strategies and policies. An effective management system helps organizational managers in resolving customers’ issues. Australia and New Zealand Banking Group Limited (ANZ Bank) by using participative form of leadership style can focus on maintaining effective rapport with the employees for motivating them towards performances. On the other hand, after the enhancement of technologies such as mobile banking, electronic payment and business intelligence and customer management Australia and New Zealand Banking Group Limited (ANZ Bank) would be able to make their customer service very faster. As per the opinion of Chang (2014), customers do not have to follow a long banking procedure for transacting money. They can access the application from their own place. Employees can be provided effective training and development session based on which they can easily operate the advancement of technology.

However, in order to evaluate issues occurred in financial institutions like Australia and New Zealand Banking Group Limited (ANZ Bank), some of the most important theories, models and tools are used to analyze its business issues. The major strength of system management theory is that this particular theory has critically analyzed on how to maintain a systematic flow within the management of an organization. As argued by Bessis (2015) this particular theory has not provided clear overview on how organizational managers by enhancing their professional skill and competency can maintain chronological database about customers’ financial transaction. Burke (2017) opined that the model of risk management cycle is compatible enough on how to overcome strategic business issues or risk factors. With the help of five major steps the business experts would be able to identify the risk factors and overcome the issues with the help of several initiatives. At the same time, this model is not devoid of some of the major drawbacks. With the help of this model, the business experts do not focus on implementing alternative strategies of business organization based on which they would be able to overcome any sudden crisis.

Implementation of Digital Platform for ANZ Bank

Laudon and Laudon (2016) stated that business intelligence is considered as one of the most effective tools for enhancing the performance level of finance institution such as Australia and New Zealand Banking Group Limited (ANZ Bank). The major strength of business intelligence is to maintain systematic and chronological data record of the organization. The managers do not have to face any challenges in evaluating the progress level of the company. However, this particular tool is possessed with several limitations. In order to run the entire operation method using business intelligence, the employees have to be well accustomed with the advancement of technology. If the employees are not efficient enough in operation BI methods, the entire business process loses its rhythmic flow. Thus, training should be provided to the employees for making them aware of the technological functions. 

Conclusion

The study has provided detailed justification about the recommendations provided on the previous assignments. In one point of view, the organization like Australia and New Zealand Banking Group Limited (ANZ Bank) is currently working on the outdated computing platform that lacks high accuracy in operations and increase risk of data security. Literature review is conducted based on the implemented models and theories that Australia and New Zealand Banking Group Limited (ANZ Bank) should use in order to resolve the issues. Effective justification has also been provided why these tools and models are very much appropriate for the business flow of ANZ. The solution that is highlighted through this report to overcome the problem of the business function is by implementing the system theory and risk management theory in the business. Additionally the technology problem in the organization can be overcome through mobile banking, electronic payments and customer management and business intelligence.

Reference List

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