The impact of FinnOne Essay


This essay discusses a computer-based Information system ( CBIS ) , FinnOne which was implemented in Intercontinental bank Plc, a fiscal establishment in Nigeria, in 2009 with the purpose of bettering its recognition installations ( loan ) to the clients by cut downing turn-around clip while besides recognizing betterment in service bringing to clients ( EFYgroup 2009 ) . The purpose of this essay is to measure whether this system has really been a success or a failure in heightening organizational procedures, decision would be drawn after many considerations. I worked with the bank for about 2 old ages during which FinnOne was implemented, i believe this gives me a strong analytical advantage in the appraisal of the system though did non utilize it straight, other agencies of information assemblage such as electronic mail and phone calls have been used to heighten my cognition of this system and besides to reflect the current state of affairs in this essay. The bank intended to to the full automatize the procedures involved in its Credit installations to clients, this would be explained subsequently in the essay. It is deserving observing that most of the bank ‘s operations were already electronic.

Description of FinnOne

The focal point of this essay as mentioned earlier would be on the impact of FinnOne, being the IS in inquiry, on loan inception and direction every bit indicated in figure 1.1. The system will be described utilizing the IS classification strategies to sort it into the undermentioned classs: engineering type, Organisational map, Organisational degree, Reach and Mobility ( Heeks & A ; Morgan 2009d ) .

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FinnOne is a computer-based information system, Stair and Reynolds ( 2009 ) specify this type of IS as a set of interrelated constituents e.g. hardware, package, databases etc that aid to garner, manage, shop and distribute informations and information and supply feedback in order to run into an aim. It is a service bringing IS introduced to accomplish efficiencies in loan engagement processes so it is purely used in sections concerned. FinnOne is applicable largely at the operational degree of the bank but it ‘s processs in finishing a loan petition specifically, includes an mandate procedure that is from a low degree of authorization to a higher 1. It is a departmental IS chiefly accessed by the sections in charge of loan engagement and recovery which are the selling and loan recovery sections of the bank, this is because sellers set up and keep client relationships for the bank and loan recovery ensures that non-performing loans are recovered, other operation sections of the bank do non profit from this system since it is purely a loan engagement and direction system and the categorization by mobility for this IS is ‘fixed ‘ since all of its constituents are in a fixed location ( Folasade 2010 ) . FinnOne, like any Information system consists of engineering and people, doing it susceptible to influence from other external factors such as the broader organizational and environmental factors, a impression which distinguishes it from IT ( Boddy et al 2005 ) . This is apparent in Heeks ( 2009a ) ‘s Onion-ring theoretical account ( figure 1.2 ) demoing a broader position of an information system. In Stair and Reynolds ( 2008 ) ‘s position, people can be the most of import facet of any CBIS and they determine the success and failure for administrations.

FinnOne banking package resides within the information system of this bank and in the system, are the staff of the bank and the undertakings they are assigned to. Within this bank, there are schemes used to ease alteration, constructions which determine the manner it operates, civilization which determines their corporate values and beliefs, direction systems made up of those saddled with determination doing duties to guarantee the success of the bank and Resources such as clip and Money. Outside an administration such as this bank are the environmental factors act uponing the administration in footings of policies and patterns. FinnOne, as mentioned earlier, involves different degrees of direction in achievement of loan processing, one of its chief maps.

Apart from the engagement of senior and in-between directors in the blessing processes and the support it gives at the operational degree, this system has study bring forthing capablenesss which provide support for determination devising at these degrees of direction. From FinnOne, the overall status of the bank ‘s Risk assets ( loan ) can be determined which serves as the footing on which each subdivision of the bank is managed and guided in order to guarantee a good balance in the hazard assets and the sedimentation base of the bank. Middle directors use these studies in determination devising on how the loans attached to their subdivisions can be good managed in order non to jeopardize the profitableness of the subdivision and the bank as a whole. The studies could assist senior directors in strategic determinations when it is perceived that the bank is in a critical province so disciplinary steps can be taken such as embargo arrangement on Risk assets.

Procedure support

FinnOne banking package has been designed to assist the bank maintain path of ongoing loans with refund agendas. The package has been integrated to the bank ‘s bequest systems once being used for this intent which makes it possible to see loan clients ‘ information to observe acting and non-performing loans. Not merely this map of FinnOne has been designed by the seller or is expected of this new system by the stockholders but besides to assist automatize the blessing processes involved in booking loans which is the ultimate end ( Nucleus Software n.d ) . This map of blessing mechanization is the most important alteration since the monitoring of bing loans and the after-approval engagement were being done electronically before utilizing another system. With the execution of FinnOne, all of these three operations are now carried out through it hence doing the system entirely in charge of loan. A complete procedure of booking loan is foremost, supply client ‘s informations along with back uping paperss, secondly, get blessings based on those and in conclusion loan engagement and expense.

The FinnOne package has nevertheless fulfilled one of its intents in footings of maintaining path of loans booked when paper-based blessing method was still in topographic point as a consequence of its integrating with the bequest systems, a simple construction of this system is shown in figure 1.4. For illustration, if loan history of a client consisting the inside informations in figure 1.4 is needed, an authorized staff logs into the system, so inputs necessary inside informations of the client as the demand requires. The system has besides been programmed to automatically command the debiting of client ‘s histories as at when due for refund in order to maintain the loan acting. The full description of how this is done is non within the range of this essay but to concentrate on where the system has brought a important alteration. The chief ground for puting in FinnOne which is mechanization of loan blessing processes is fundamentally where important betterments can be noticed. The procedures involved utilizing FinnOne for this intent will be explained utilizing CIPSODAR theoretical account ( Heeks 2009b ) and as shown in figure 1.5.

A relationship officer ( staff ) , normally a seller, who needs to book loan for his/her client initiates the procedure by logging into FinnOne, inputs the necessary informations about the client such as name, reference, business, loan sum, intent, brief description of the client ‘s business/occupation in order to warrant the client ‘s ability to refund the loan and back uping paperss are besides uploaded for consideration to give blessings. The instigator so sends the petition for treating from one degree to another. Here, there are many treating phases involved in the sense that most times non less than 4 people apart from the instigator needs to measure the same informations and paperss in order to give different blessings to back up the loan engagement. The figure of people involved and their degrees depends entirely on the loan sum involved which means small sum requires less blessings while big sum requires more. The results are stored in a sort of database for future usage and end product is provided to see all the blessings given or whether it has been declined, which can be viewed by the instigator since he/she has to reason it. Feedback is important to the successful operation of a system as pointed out by Stair and Reynolds ( 2008 ) . Based on the end product, a determination is made on whether the engagement can continue or non, if successful, the instigator sends this end product to the section in charge of pay outing the loan to recognition the client ‘s history but if unsuccessful, decides on what other measures to take in order to do the application acceptable. An action takes topographic point on this which so consequences into crediting the client.

This computerised attack has proved to be more effectual in the turn-around clip because bulk of the senior officers saddled with the blessing duties are non based in same location with the loan instigators. There used to be need to go with a Credit Request Summary ( CRS ) , a written papers about the client and other back uping paperss, on which blessings would be given. This attack suffered holds and affected turn-around clip which could hold inauspicious consequence on client ‘s concern relationship and committedness to the bank particularly top clients sing how competitory the banking industry is and coupled with the general belief that Bankss should be ready to back up their client ‘s concern.

The treatment above has merely pointed out the impacts this system has or should hold on the organizational procedures pretermiting the inside informations of its defects in how it is being used in world, the following subdivision would measure how successful/unsuccessful the system has been in order to reason its success or failure.

Evaluation of FinnOne

The success or failure of an information system is connected with the extent to which it is perceived to hold met ends expected by the stakeholders ( Heeks 2002 ; Laudon & A ; Laudon 2006 ; Bocij et Al 2006 ) . Stairs and Reynolds ( 2008:8 ) assert that ‘the value of information is straight linked to how it helps determination shapers achieve their administration ‘s ends ‘ . The impact of an information system in guaranting valuable information is hence one of the key factors which could assist in finding if the system is good or non ( Curtis & A ; Cobham 2008 ) . This would be evaluated utilizing the CARTA theoretical account introduced by Heeks and Morgan ( 2009e ) in footings of Completeness, Accuracy, Relevance, Timeliness and Appropriateness of presentation. This theoretical account represents what is normally found in the literature about the value of Information ( Bocij et al 2006 ) .

The information system being considered is complete in that it holds all the information necessary to do determinations and does non in any manner provide lesser information than the former attack. Its content is rather accurate due to the fact that the system has been good programmed but an issue with this system is that one time a client defaults as at when refund is due, the manner in which it does the tax write-off subsequently could turn out hard to calculate out, this becomes an issue when such a client needs elucidations. In this instance, it is normally advised that clients do non default to avoid such happenings.

It produces relevant information which is important to determination devising, for case, studies of executing and non-performing loans can be generated. While information produced by this system is seasonably, it has besides been able to do blessings faster compared to the demand to go with the paperss. Although it suffers some drawbacks, for illustration, the system being computerised, eliminates the demand for physical interaction to acquire blessings from higher governments, the former used to accelerate such petitions due to the loan instigator ‘s presence but a senior/middle director can merely be cognizant of any petition if he/she has logged into this system, of which, many of them do non retrieve so in pressing blessing demands, they are still notified by phone calls. This gives a concern here because result of this phase in the processing determines the actions to be taken. Some other factors such as user ‘s feeling about the system is perceived to impact its effectual usage, this would be talked about subsequently. In malice of this, the timeframe utilizing the new system still proves to be better than the old as pointed out by Strassmann ( 1990 ) that assortment, velocity and complexness make computerized procedures more productive than manual. The system is rather appropriate in the manner information is presented which AIDSs better apprehension and support for determinations.

At this point, it is apparent that this system itself reveals more successful outcomes than failures though this is true merely if the system users are ignored but decision on the rating will non be drawn yet. The people factors mentioned earlier will be examined in more inside informations utilizing Delone and Mclean ( 1992 ) ‘s theoretical account in figure 1.6 to see the user ‘s positions owing to the fact that users ‘ satisfaction with a system determines its success and non merely the system design ( Eindor & A ; Segev 1978 ; Hamilton and Chervany 1981 ; Pinto & A ; Mantel 1990 ; Tafti 1995 ; Dvir et Al 2003 ) . It is deserving observing that this theoretical account has been adopted by others in the literature to reason factors for IS success ( Doherty et al 2003 ; Hussein et al 2005 ; Rezaei et Al 2009 ; Garrity & A ; Sanders 1998 ) .

From this theoretical account, it is clearly shown that system quality and information quality impacts on usage and user satisfaction which so impacts on the person and the administration. The System quality and Information quality have been earlier discussed with CARTA theoretical account so the focal point here will be largely on users. The frequent usage of the information provided by this system is rather impressive as it helps to maintain path of the hazard assets at the operational and tactical degree and studies can be generated to back up strategic determination devising in guaranting the profitableness of the bank. For illustration, on a monthly footing, the subdivision directors peculiarly require such studies to cognize the province of the loans under their supervising so as non to impact the profit-making of the subdivision but a challenge being faced with utilizing FinnOne itself is that users, particularly senior/middle directors find it hard to set to the alteration in the blessing petition method, they complain it ties them to their desk. As earlier mentioned, this facet has non been every bit effectual as expected since they end up being called to be notified. In this respect, they claim to prefer the paper-based manner and the physical interaction for the advantages it presents in that respect ( Ishola 2010 ; Folasade 2010 ) .

User satisfaction will be considered on two bases. Delone and Mclean ( 1992 ) suggest satisfaction with studies or information from the system and secondly, perceived easiness of usage of this system ( Davis 1989 ) . There is a high degree of satisfaction with the information provided by this system due to the information quality discussed earlier utilizing CARTA theoretical account but as respects the IS satisfaction, some users peculiarly the directors have expressed some degree of dissatisfaction with the system usage and there is likeliness that the system is non user-friendly due to several ailments despite the fact that it works, this confirms how immune people could be to a alteration no affair how good it seems. Davis ( 1989 ) ‘s engineering credence theoretical account suggests that perceived easiness of usage and utility of a engineering influences its acceptance. If examined from a underdeveloped state point of position, people are normally more dogged towards usage of engineering possibly because of the cognition spread and some other factors compared to developed states ( Heeks 2002 ) , a ground why more attending is needed in IS execution in Developing Countries. The degree of its single impact is moderate based on the fact that it has brought some sort of positive alteration in how an single achieves the undertaking at manus particularly in the instance of the loan instigator though if other users ‘ positions are ignored. The system, in this manner, improves the officer and his section ‘s public presentation and has impacted on the administration through the resulting desired machine-controlled procedures.

Therefore, FinnOne is concluded to be a partial failure due to the system users ‘ positions despite the fact that the aims have been met to a big extent as discussed earlier.

System Evaluation Justification

The rating concluded above as a partial failure has exposed in some ways what gaps might be between design demands and world, an issue which has been considered and resulted into Heeks ( 2003 ) ‘s Design-Reality Gaps theoretical account ( figure 1.7 ) which will be used in the justification. It is clear from this instance that the execution of this system was successful though non without troubles as confirmed in the statement made by one of the bank ‘s executive managers, Adebiyi Olayinka that ‘Implementation at the initial phases [ was n’t ] easy but… the pick of the package… outweighs the challenges, the bank can now treat recognition online… ‘ ( EFYgroup 2009:2 ) but small did the direction know that the usage of this system at the long tally would non be every bit impressive as expected.

The seven dimensions ITPOSMO will be used to calculate out where the success and failure factors for this system lie which consequences into its partial failure and each of the dimensions ‘ spread will be rated on a graduated table from 0-10 where 0 agencies there is no difference while 10 indicates a complete difference ( Heeks 2003 ; Heeks & A ; Morgan 2009c ) .

Information: FinnOne was designed in a manner that all information required to back up mandates of loan petitions are made available through it merely as the bank ‘s policies and demands for loan demand and which has eliminated the travel needs for blessings and has fulfilled the machine-controlled processing in world merely the manner the aims of the system were stated. Besides, FinnOne has been designed to supply studies utile for determination devising at all degrees every bit much as at that place used to be prior to its execution ( Ishola 2010 ) . The evaluation here is 2.

Technology: The system was designed to trust on the bing engineering and was even integrated to the bequest systems used for this intent which reduced the hazard of losing information contained in the old system and in order to derive faster entree to information about both old and new recognition installations ( Nucleus Software n.d ) . On this footing, the evaluation is 2.

Procedure: The system design, with the nature of its machine-controlled blessing petitions, has assumed a good organized construction or work procedures with the nature of the design in topographic point for blessing petitions without farther presentment capablenesss such as text message, for illustration, every bit presently being used by the bank and many other Bankss such as BankPHB and GTB in Nigeria to advise clients about any account dealing instantly ( Debola 2010 ) . As mentioned earlier, this facet has been faced with challenges in consciousness about petitions pending on FinnOne for most of the directors, of which without this phase of processing, loan engagement can non be done. In world, work procedures are non so organized and top directors are even less monitored in the manner their responsibilities are discharged than the junior employees. It is hence apparent in the procedure dimension that there is a broad spread and based on this, the evaluation is 7.

Aims and Valuess: FinnOne has been designed to run into the aims set out by the direction of the bank: to the full automated recognition inception with the purpose of accomplishing objectiveness in processing and blessing thereby bettering the quality of hazard assets and besides cut downing the turn-around clip so as to better the bank ‘s service bringing to clients ( EFYgroup 2009 ) . On the contrary and in world, the terminal users particularly the directors ‘ hapless attitude towards the system usage still has an influence on the high outlooks of this system which could be that it has non matched good with their aims ( Folasade 2010 ) . Therefore, the evaluation is 5.

Staffing and Skills: The system design assumed a high degree of engineering acceptance in this context and proficiency in utilizing computerized systems which resulted into unequal preparations for the users. In world, most of the users particularly the directors are non so familiar with the usage of such systems and there is a possibility that FinnOne is non user friendly. The evaluation is 5.5.

Management systems and Structures: FinnOne was designed to suit into the bing direction systems of the bank sing recognition installations but assumed a good organized construction which is rather different from the world. The evaluation is 4.5.

Other Resources: The system design and execution had the necessary fiscal support from the bank particularly because of its chances. The design besides assumed adequate clip handiness to successfully finish the undertaking which seems to fit good with world in that there was a system being used pending the execution of FinnOne. The evaluation for this dimension is 2.

The overall evaluation, 28, compared against Heeks ( 2003 ) ‘s consequence analysis confirms that the IS might be a partial failure unless disciplinary steps are taken to shut the spread. Furthermore and once and for all, figure 1.8 has been used to sum up the restraints with some of the drive forces back uping the alteration.


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