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State bank of travancore reverse Information technology usage in banks

The Importance of Information Technology

The  importance  of  Information  Technology
 Improve the maintainability of
In the world of globalization, Informationthe  new  systems;
system is such where data are collected,
classified and put into process interpreting Reuse staff and skills on other
the result thereon in order to provide anprojects;
integrated series of information for further
communicating and analyzing. In a Protect investment in analysis
progressively more spirited worldwideand design, and to allow freedom in
atmosphere, Information System plays the roleimplementation  techniques.
as 'enabler and facilitator', which endows
with tactical values to the officialdom and3.3  SSADM consists of three main components:
considerable step up to the excellence of
administration. 'An Information System is a The structure or framework of
particular type of work system that usesan  SSADM  project
information technology to detain, put on the
air, store, retrieve, manipulate or display A set of standard analysis and
information, thereby partisan one or moredesign  techniques
other work structure'. In totting up to
taking sides assessment making, co-ordination  The products of each technique
and control, information systems may also
help managers and workers investigate3.4 The structure of SSADM might appear a
problems, envisage complex subjects andlittle complex at first, but will make more
generate  new  merchandise  or  services.sense as we began to look at the method in
more detail. Following diagram illustrates
Work systems and the information systems thatthe breakdown of the life cycle into a
support typically undergo at least fourhierarchy of modules, stages, steps and
phases: a) initiation, the process oftasks.
defining the need to change an existing work
system b) development, the process ofFigure  1-  SSADM  Structure  Breakdown
acquiring and configuring/installing the
necessary hardware, software and otherEach module represents a SSADM phase, and is
resources c) implementation, the process ofmade up of one or two stages. Where a module
making new system operational in thecontains two stages, one will be an analysis
organisation, and d) Operation andor design and the other will be a project
maintenance, the process concerned with thedecision stage. Each stages is made up of
operation of the system, correcting anybetween two to seven steps, which provide the
problems that may arise and ensuring that theframework for applying and controlling the
system is delivering the anticipatingdevelopment techniques. The tasks to be
benefits. The management of these processescarried out within each step define how the
can be achieved and controlled using a seriestechniques should be used, and specify the
of techniques and management tools which,required standard of the products output from
collectively, tend to be known as Structuredthe step. Following diagram shows the
Methodologies. Two important methodologies:breakdown  of  SSADM's  modules  and  stages.
 PRINCE (Projects IN a Controlled
Environment), and  SSADMFigure  2  -  The  Stages  of  SSADM
(Structured Systems Analysis and Design
Methodology), developed by the Central3.5 The major analysis techniques mainly used
Computing and Telecommunications Agencyare  as  follows:
(CCTA), are used widely in the UK public
sector and in some Developing Countries, like Business Activity Modelling
Bangladesh, Pakistan, Nepal etc. Prior to(BAM) - explicitly describes what goes on
comment on the application of these methodsthat part of the business under
in the Developing Countries, it would beinvestigation. The activities are defined
pertinent to describe brief outlines of thesefrom purely a business rather than on IS
methodologies.perspective. Recommended approach to be used
in the construction of a BAM may be Soft
PRINCE is a project management method; notSystem Methodology (SSM), Functional
system development, which covers theDecomposition  or  Resource  Flow  Diagrams.
organisation, management and control of
projects. Since its introduction in 1989, Logical Data Modelling (LDM),
PRINCE has become widely used in both therepresenting system data, is applied
public and private sectors and is now thethroughout the life cycle to provide the
UK's de facto standard for projectfoundation  of  the  new  system;
management. Although PRINCE was originally
developed for the needs of IT projects, the Work Practice Model (WPM) maps
method has also been used on many non-ITbusiness activities onto the organisation
projects. PRINCE requires a dedicated teamstructure defining user roles to the
to be established to manage and carry outunderlying  business  activities.
each project. It therefore aims to provide a
supporting framework between the current3.6 The key important thing is the
state of affairs and the planned futureend-product. Each step has number of tasks
state. PRINCE focuses attention onassociated with it, most of which lead to the
end-products rather than activities, ensuringcreation or enhancement of standard SSADM
that the organisation actually gets what itproducts. At the end of an SSADM project the
wants out of the project. Quality is seen asnew system will be described by the sum of
a necessary and integral part of the projectthese products. Products can be divided into
and the focus on end-products enables thethree basic groups: Processing, Data and
criteria by which quality is to be judged toSystem-User  (or  Human-Computer)  Interface.
be specified at the outset of the project. It
requires the development of a viable4.0 Application of PRINCE AND SSADM in
"business case" for the project at its outsetDeveloping  Countries-  A  few  Comments
and that the business case needs to be
periodically  reviewed.4.1 Implementing Information System in
developing countries is a complicated
In PRINCE a project is regarded as having theexercise, particularly in the public sector.
following  characteristics:With the growing needs in the information
age, and by the pressure from the
 defined and unique set ofinternational donors , big and ambitious
technical products to meet the business needsprojects has been undertaken by the public
sector in developing countries . But due to
 corresponding set of activitiesthe lack of standard procedures and
to  construct  those  productsmethodologies for IS development caused many
projects to combat problems in the
  certain  amount  of  resourcesimplementation stage. Many projects failed to
attain their business needs, as they were too
  finite  lifespanlarge and highly ambitious. Basic reasons for
the project failure in the developing
 organisational structure withcountries can be characterised as the
defined  responsibilitiesfollowing:
Key elements of PRINCE is shown in the  Solving  wrong  problem;
following  Diagram:
  Technology  led,  not business;
Diagram  -  Key  Elements  of  PRINCE
 Lack of major stakeholder
In PRINCE, an approach to planning based oninvolvement;
products rather than activities and the use
of this approach for the benefits. It also Experts lead, rather than
emphasises that projects needs to define thefacilitate;
' shape' or manageable phases of a project to
promote sound business control. Stages are Lack of commitment and hidden
characterised by the production of specificagenda;
products.
 Benefits not identified and
The PRINCE model for projects is based on twoquantified  at  outset.
main  principles:
Nowadays, the developing countries are
ï(R) The project is a jointapplying both PRINCE AND SSADM methodologies,
responsibility between users, the developersthe project management development
and the organisation for whose benefit thetechniques, specially designed for IT
end-product  is  being  developedprojects, that are funded by the UK
Department for International development
ï(R) In order for projects to succeed,(DFID).
a special structure is demanded to manage the
project throughout its life - from conception4.2 In Bangladesh , private sectors are
through build to handover. This structure isadvancing with IS development , but it is not
distinct  from  normal  line  management.the identical situation in the public
sector. The reasons behind this may be the
Using these principles, the model definespoor salary structure in the public service,
three  levels  of  activity:which never give confidence to the
prospective talents and system designers to
ï(R) Overall project management andjoin the public services. Most of the IT
major  decision  makingprojects are donor funded; domestically
financed IT projects rarely experience
ï(R)  Day-to-day  managementsuccess  like  the  donor  projects.
ï(R)  Production  of  end-products4.3 However, RIBEC (Reforms in Budgeting and
Expenditure Control) project, funded by DFID,
These three levels of activity are assignedhas been considered as the most successful
respectively to the Project Board, to theproject  in  Bangladesh.
Project and Stage Managers, and to the
Technical  Teams.At the early stage of RIBEC project (Phase
2), it was observed that, the project was
2.2 The latest version of the method, PRINCEdesign to develop and modernise the budgeting
2, is a process-based approach for projectand accounting system of the government of
management providing an easily tailored, andBangladesh. The experts mainly dominated that
scaleable method for the management of allphase, including lots of things to cover.
types of projects. Each process is definedThere was lack of stakeholders' involvement;
with its key inputs and outputs together withproblems were not recognised at the initial
the specific objectives to be achieved andstage. Only a range of high-grade staff in
activities to be carried out. In thethe relevant field was given a general IT
following diagram, the process-based approachtraining. There was no follow up; no visible
is  shown:product was seen. Benefits were not
identified. No system was developed to
Diagram  -  PRINCE  2  Process  Modelautomate the budgeting and accounting system.
So this phase 2 had experienced a massive
2.3 PRINCE 2 provides benefits to thefailure.
organisation, as well as the managers and
directors of the project, through theHaving awful experience, the following phase
controllable use of resources and the ability(2A and 2B), a downsized project with
to manage business and project risk morespecific output targets came up with
effectively. PRINCE enables projects to have:analysing user requirements. This phase
focused on sustainability and proved
 a controlled and organisedsuccessful with sustainable solutions
start,  middle  and  end;especially in the software development for
budgeting and accounting Substantive training
 regular reviews of progresshad been offered to the users of the systems.
against  plan  and  against  Business  Case;Stakeholders have been involved in the
software development process and the local
  flexible  decision  points;vendors who will be easily available in the
future,  developed  the  systems.
 automatic management control of
any  deviations  from  the  plan;Following PRINCE and SSADM as methods for
project management and system development,
 the involvement of managementRIBEC project is now considered as a model
and stakeholders at the right time and placefor other projects which implies the
during  the  project;potential scope for applying these
methodologies.
 good communication channels
between the project, project management, and4.4 Financial Management Project for HMG
the  rest  of  the  organisation.Nepal has been designed to establish a
reliable database to ensure user friendly and
3.0 OVERVIEW  OF  SSADMreliable financial information and to
computerise budgetary system. CCTA guidelines
3.1 SSADM is a highly structured and rigorousfor IS strategy including PRINCE and SSADM
method of systems development ,was originallywere  followed  in  developing  the  system.
developed by Learmonth and Burchett
Management System (LBMS) following an4.5 In Pakistan, Lahore WASA project
investigation by the CCTA into adopting aexperienced badly as the original proposal
standard Information System (IS) developmentwas too big and not phased project; no
method for use in UK government projects. Itanalysis of business needs, solution was
was launched in 1981 and by 1983 becametechnology led, benefits were not identified
mandatory for all the government ISat outset, high risk strategy, questionable
developments. This gave SSADM a large toeholdlong-term sustainability, lack of training
in  the  IS  structured  methods  market.facilities and computing skill within
organisation etc. So, 2 years' costs and
It is a prerequisite for SSADM that usereffort  were  wasted.
commitment and involvement are agreed right
from the start. It provides a top-downFollowing the DFID approach of project
approach, where a high level picture is drawnmanagement, Lahore WASA turn out to be
up and subsequently refined into lower levelssuccessful and benefits are realised
of detail. One extremely important concept inespecially in the billing from bimonthly
SSADM is the distinction between logical andbilling to daily billing and reduction in
physical  views  of  system  components.bill production cycle. The main project
management approach in the new proposal
3.2  Following  are  the  aims  of  SSADM:includes: redefinition of purpose, identify
business benefits, prioritise outputs,
 Provide a sound platform forinvolvement of stakeholders, DIFID played the
communications between analysts, designersrole as the facilitator not doer, ownership
and  users;of solution by stakeholders, use of local
consultant etc, phased development,
 Reduce errors and gaps in thedistributed  system.
specification  produced
5.0  CONCLUSION
 Improve the quality of software
documentation and the productivity of'Information technology and Information
analysts;systems for what they really are - powerful
and valuable tools, but not magic. When
 Reduce potential risks byapplied thoughtfully, these tools can bring
presenting analysts with a structuralimportant benefits for individuals,
framework for the use of techniques, and aorganisations, and customers. When
standard  for  documentation  end-products;misapplied, they can waste tremendous amounts
of time, effort, and money' (Alter 1999,
 Provide techniques for checkingp.23).
completeness  and  accuracy;



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