James Martin was among authors of information technology books that coined the term telecommunications and the computers in his crimson book. The notion soon evolves into the term information technology that we often hear these days. While the first terminology puts emphasis on the role of infrastructure or hardware in communications, the second suggests that in addition to hardware, contents also play significant part in advanced communications. This includes information technology roles in financial institutions and within the evolution of management practice at any industries as well.
The adoption of information technology in financial industry like banking is critically important as data accuracy, speed, and reliability counts to help a company becoming trusted providers.
In this situation, the information technology presents much opportunity for developers to provide system that is more advanced that deal with the improvement in the three aspects as mentioned above.
Concerning the information technology development in financial industry, this paper will elaborate IT management in the case of U.S. Bank that entrusts streamlined global wire-transfer system to HP NonStopPayments solution.
HP NonStopPayments
In the tagline of HP NonStopPayments, the company display that this service combines reliability, performance, and agility. This tagline asserts the company focuses in serving the multi-billion of fund transfer business that requires the three aspects. In terms of promotion, HP also take a right endorsement as in the first page of report, they excerpt a quote from Steven M. Soroka, Executive Vice President of U.S. Bank, that reveals HP solution in the wire transfer system really help the processing of payment at the right time. Soroka further reveals that in the fund transfer industry, the load usually mounts in the last two hours where half of that occurs in the last 30 minutes. This condition highlights the important to have reliable technology and system installed.
Based on the case study, we see that HP, as leading providers in computer industry, already done right in the preparation of IT project for global wire transfer. This is inline with the suggestion from several literatures regarding how to avoid failure in the information technology (IT) projects.
Make sure the IT project possess clear and measurable objectives
Employ suitable risk management tools and method
Stick to the determined constraints of cost, time and quality
In case of offshoring IT Project to another country like India, pay attention to cultural diversity issue in the country
Ensure to conduct planning before starting the implementation stage
Pay attention to critical tasks during the implementation
Obtain the support from the management
Always report the progress to find out whether there are overlook steps
Involve the users in design and implementation of the IT project
Ensure that we have enough resource in planning, communication, and technology skills
In the case of U.S. Bank that entrusts streamlined global wire-transfer system to HP NonStopPayments solution, we see that HP already sets the objectives, approach, IT improvement plan, and display the business benefits for those that employ the HP NonStopPayments solution.
One technical issue in the provision of wire transfer business that HP offer is as following
Streamlining of high-speed processing environment for customers domestic and international wires
Improvement in the transaction turnaround and quality
Better system security and payment routing
Faster processing with 24x7 availability
Competitiveness of HP NonStopPayments
Although in the report, HP has displayed several issues that highlight the advanced system that HP NonStopPayments provide, still, there is not exact explanation of costs of doing the wire transfer by using the HP solution. This is also important from customers point of view, as costs of transaction become key considerations for customer when deciding mode of fund transfer.
Below is one example of comparison of two fund-transfer method between Xoom and Western Union. This figure highlights that online payment services like Xoom, PayPal etc become a competitive offering for users.
According to a statistic, there is only 16 percent of IT development project that occurs within acceptable constraints of cost, time and quality (Ryan, 2000). This condition highlights the need to carefully plan any IT project. In addition, it suggests that in order to become successful IT-based services, costs of transaction should be taken into account when the service is planned to be commercialized publicly (Sommer, 2004).
Because customers only know that security issue, speed of transaction and reliability is mandatory. What they know is they can obtain in without costly charging. This complies with the reasons underlying the factors lead to IT projects failure as following
IT Project is launched without appropriate strategy
The IT project has unclear goals and objectives
Objectives change during the implementation of the project
The project has unrealistic time or resource estimation
The project has no enough support from executive
IT Project does not take into account input form users or customers
The project fails to set up communication among team members
Inappropriate technical consideration
The project does not employ planning and risk control across the project life cycle
The project is costly that beyond the budget
(Al Neima, 2010 CGI, 2001 Leitao, 2003)
Currently, to succeed in wire transfer business, HP NonStopPayments should also inform regarding the costs of transaction, features, availability in large number of countries etc since it becomes killing features when this is fulfilled. Among several providers of money transfer, below is a summary displaying the total costs of transaction. Therefore, HP NonStopPayments should also allow banking and payment intermediaries to provide low costs transactions to customers.
In conclusion, the money transfer mode that HP NonStopPayments offer is technically convincing. However, it is still lack of informing customers about the efficiency and effectiveness. They become key considerations for customers when deciding the mode of fund transfer they would use.
The adoption of information technology in financial industry like banking is critically important as data accuracy, speed, and reliability counts to help a company becoming trusted providers.
In this situation, the information technology presents much opportunity for developers to provide system that is more advanced that deal with the improvement in the three aspects as mentioned above.
Concerning the information technology development in financial industry, this paper will elaborate IT management in the case of U.S. Bank that entrusts streamlined global wire-transfer system to HP NonStopPayments solution.
HP NonStopPayments
In the tagline of HP NonStopPayments, the company display that this service combines reliability, performance, and agility. This tagline asserts the company focuses in serving the multi-billion of fund transfer business that requires the three aspects. In terms of promotion, HP also take a right endorsement as in the first page of report, they excerpt a quote from Steven M. Soroka, Executive Vice President of U.S. Bank, that reveals HP solution in the wire transfer system really help the processing of payment at the right time. Soroka further reveals that in the fund transfer industry, the load usually mounts in the last two hours where half of that occurs in the last 30 minutes. This condition highlights the important to have reliable technology and system installed.
Based on the case study, we see that HP, as leading providers in computer industry, already done right in the preparation of IT project for global wire transfer. This is inline with the suggestion from several literatures regarding how to avoid failure in the information technology (IT) projects.
Make sure the IT project possess clear and measurable objectives
Employ suitable risk management tools and method
Stick to the determined constraints of cost, time and quality
In case of offshoring IT Project to another country like India, pay attention to cultural diversity issue in the country
Ensure to conduct planning before starting the implementation stage
Pay attention to critical tasks during the implementation
Obtain the support from the management
Always report the progress to find out whether there are overlook steps
Involve the users in design and implementation of the IT project
Ensure that we have enough resource in planning, communication, and technology skills
In the case of U.S. Bank that entrusts streamlined global wire-transfer system to HP NonStopPayments solution, we see that HP already sets the objectives, approach, IT improvement plan, and display the business benefits for those that employ the HP NonStopPayments solution.
One technical issue in the provision of wire transfer business that HP offer is as following
Streamlining of high-speed processing environment for customers domestic and international wires
Improvement in the transaction turnaround and quality
Better system security and payment routing
Faster processing with 24x7 availability
Competitiveness of HP NonStopPayments
Although in the report, HP has displayed several issues that highlight the advanced system that HP NonStopPayments provide, still, there is not exact explanation of costs of doing the wire transfer by using the HP solution. This is also important from customers point of view, as costs of transaction become key considerations for customer when deciding mode of fund transfer.
Below is one example of comparison of two fund-transfer method between Xoom and Western Union. This figure highlights that online payment services like Xoom, PayPal etc become a competitive offering for users.
According to a statistic, there is only 16 percent of IT development project that occurs within acceptable constraints of cost, time and quality (Ryan, 2000). This condition highlights the need to carefully plan any IT project. In addition, it suggests that in order to become successful IT-based services, costs of transaction should be taken into account when the service is planned to be commercialized publicly (Sommer, 2004).
Because customers only know that security issue, speed of transaction and reliability is mandatory. What they know is they can obtain in without costly charging. This complies with the reasons underlying the factors lead to IT projects failure as following
IT Project is launched without appropriate strategy
The IT project has unclear goals and objectives
Objectives change during the implementation of the project
The project has unrealistic time or resource estimation
The project has no enough support from executive
IT Project does not take into account input form users or customers
The project fails to set up communication among team members
Inappropriate technical consideration
The project does not employ planning and risk control across the project life cycle
The project is costly that beyond the budget
(Al Neima, 2010 CGI, 2001 Leitao, 2003)
Currently, to succeed in wire transfer business, HP NonStopPayments should also inform regarding the costs of transaction, features, availability in large number of countries etc since it becomes killing features when this is fulfilled. Among several providers of money transfer, below is a summary displaying the total costs of transaction. Therefore, HP NonStopPayments should also allow banking and payment intermediaries to provide low costs transactions to customers.
In conclusion, the money transfer mode that HP NonStopPayments offer is technically convincing. However, it is still lack of informing customers about the efficiency and effectiveness. They become key considerations for customers when deciding the mode of fund transfer they would use.
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