Assignment Part-1 Case Study JP Morgan Chase
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BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE Work Integrated Learning Programme Division M.S. Consultancy Management
Course:– ZC471 Management Information Systems Assignment No :- 1
Rajiv Manjul Karna
ID. No. :- 2013HZ58037 Date:- 31/08/2014
Q1. Explain types of business pressures experienced by JP Morgan Chase and what are the responses (in terms of new technologies) the organization found to be apt and successful? Business Pressure faced by JP Morgan Chase: JPMorgan Chase was formed by the merger of several financial institutions who utilized different computer databases, some of which were out of date. In order to allow the company to run smoothly and be able to harvest all of this information onto one system, a standalone network needed to be formed so that data was not lost and business moved along without a hitch Responses from JP Morgan Chase (on new technologies): JPMorgan Chase is not only on the cutting edge of the banking industry, but they ar e a leader in technology. They are spending $2 billion alone just to overhaul its network which is twice of what technology giant, Hewitt Packard, is spending in the same time period to overhaul their network. Not only is investing in technology important to bring t he network onto one system but it is a lso invaluable when it comes to introducing new products as well as reducing processing time. For instance, the introduction of the Blink Card which enables users to pay using their credit card just by holding it over a reader instead of having to swipe the card, enter a pin, sign for the purchase, or hand it to the store associate to process. Home equity loan processing also was reduced from two days to just two hours. Being on the forefr ont of technology allows JPMorgan Chase to introduce the newest, greatest products keeping customers enticed and bringing new customers on board. Source: Businessweek
Q2. Elaborate on the following points: (each 150 words) (each 1 Mark) a. Explain on innovations in the use of information technologies in JP Morgan Chase. What information systems are deployed in JP Morgan Chase?
JPMorgan Chase is innovative in the area of E- Commerce. They offer online and mobile banking. Online banking allows customers to access their account by a user name and password at www.chase.com. After entering their login infor mation, they can manage their checking or savings account, loans, lines of credit, credit cards, and any other account they have with JPMorgan Chase. One can check their account balances, due dates, schedule payments and/or transfers, and many other services. Mobile banking allows customers many of the same features as online banking but just on their cell phone through a downloadable application. JPMorgan Chase has also created an application for Apple’s iPhone which enables a customer to take deposit a check into their bank account without actually having to go to a branch or ATM machine. All one has to do is take a picture of his check and the funds are then deposited into your account. This feature will hopefully be available on other smartphones. In the meantime, one have account notifications sent to their phone in the form of a text message advising when a deposit is made, account reaches a certain balance, and so much more. JPMorgan Chase is taking advantage of the technology offered in today’s world.
b. What are the different types of networks (wired & wireless) used by the organization? How important are the networks for the organization? JPMorgan Chase utilizes several types of networks. There are different components used to build a business network. Some examples of these components include: network interfaces
in every computer, a network interface card or an Ethernet card, hubs or switches to connect computers together and pass messages by repeating all network transmissions, and routers to pass network traffic between smaller subnets or a larger network. Another type of network used by JPMorgan Chase is a local area network, which is a network that covers a building or buildings in close proximity. JPMorgan Chase is a global company with offices all over the world. They connect their networks using a router and a switch. It is the most resourceful way to network such a large company. The routers connect the subnetworks to the larger network. Since JPMorgan Chase is a global company with employees and customers all over the world needing to access the network, they utilize both local area networks (LAN) and wide area networks (WAN)
c. Discuss about the green initiatives undertaken by the organization. In addition to the various payment methods offered to their business and consumer clients, JPMorgan Chase has also teamed with several businesses to offer easy and manageable billing and payments options. Businesses are now able to receive payments and invoices electronically, which allows for easier tracking and management. Businesses no longer have to deal with sifting through large stacks of paper invoices and worry about paying something late and face a late payment fee. They are able to keep tighter track of expenses and analyze spending easier to cut costs. It also allows the company to go green and make less of an impact on the environment because there is less paper which means less trees being wasted Q3. Summarize the case under following headings: (600 words - excluding list of references - 4 Marks) 1. Introduction and case background 2. Importance of financial management information systems 3. Discuss about the attributes of well-designed financial management information systems 4. How networks & connectivity are used in collaboration activities of JP Morgan Chase (with inside entities and outside entities of the organization)?
In December 2002, JP Morgan Chase (Morgan), the second largest bank in the US in terms of net assets signed a 7-year $5 billion outsourcing contract with IBM. In July 2004, Morgan merged with the Chicagobased Bank One to create a financial behemoth with combined assets of $1.1 trillion. Bank One was also adept at managing technology in-house. It had developed con siderable expertise over the years in managing technology and integrating systems from acquired businesses. It added that technology was critical to the bank's future and hence, it had decided to exercise full control over it. Technology played a key role at JP Morgan. The entire gamut of financial services and banking business from creation of novel products/services, introduction of the p roducts in the market to ensuring client satisfaction was influenced by technology. Attributes of a well-designed financial management information systems are confidentiality, authenticity, integrity, and availability. JPMorgan Chase uses network communications media, which includes two options: wired communications media and wireless communications media. They also use several kinds of communications software. There are also wired and wireless versions of communication media. Wired communications media include twisted-pair cable, coaxial cable, and optical fiber. Wireless communications media include infrared, Bluetooth, microwave, and satellite. JPMorgan Chase utilizes wireless as well as wired communication software. Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a communications software employed by JPMorgan Chase. This software
operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions. SWIFT transports financial messages in a highly secure way, but does not hold accounts for its members and does not perform any form of clearing or settlement. The software does not facilitate funds transfer, rather, it sends payment orders, which must be settled via correspondent accounts that the institutions have with each other.
Source: ICMR, IBS center for management research