InformationSystem Case Study
Vancity is a credit union found in Canada that provides its clients with a wide array of banking products. They include loans, chequing and savings accounts, credit cards, mutual funds, loans as well as other financial and investment planning services (VanCity, 2013). The financial institution’s revenue primarily comes from fees from services rendered as well as interest on funds borrowed by depositors.
The firm is in the banking industry which is basically a collection of banks. In this industry the financial institutions accept deposits from clients and use the money for lending activities. The common products offered by financial institutions include anywhere banking capability, phone and internet banking, credit facilities, trade services and cheque service. Vancity is said to be the biggest credit union in Canada and the member clients are the owners(VanCity, 2013).
Porter’s five forces model is important in helping businesses assess their strength and power.
The threat of entry in the banking sector is low because of the stringent norms, regulations and high investment needed to start up.
The power of suppliers in the banking industry is high because of the rise in avenues of investment such as mutual funds, equity market and tax-free bonds.
The power of customers is high because clients have a wide variety of other institutions to choose from, if they do not like something about a bank they can join another bank.
The threat of substitutes is as well high because customers have a variety of borrowing and investment avenues.
Competitive rivalry is high given that banks have branches all over. Some banks even offer incentives to clients for opening accounts with them.
Competitive advantage is whereby a company is at a superior or favorable business position. Vancity’s competitive advantage is its commitment to be the best in service as well as corporate social responsibility. It has set itself apart by being creative and flexible in coming up with impeccable service standards. Vancity is committed to its clients and the local community (VanCity, 2013).
Vancity creates value by mainly focusing on customer relationship management. The value chain activities crucial for the success of Vancity’s strategy on ensuring impeccable customer relationship are service, human resource management and technological development
An information system assists in the collection, filtering, creation, processing and distribution of data. The information system created by Vancity keeps track of the customers various forms of businesses. With the records in the system, customer service representatives enter a customer’s card and the Customer Information File (CIF) shows a customer’s profile and banking history with Vancity (VanCity, 2013). Improving on technology is important for the institution given that majority of its clients do business from anywhere either online, through the phone or in an ATM. Today’s banking sector is characterized by online banking. Few customers have to go to the bank while they can do it on the phone, ATM or online. Introducing an information system is an advantage for the institution because customers will have personalized service. Personalized service no doubt makes people feel appreciated and the clients are bound to be loyal to the institution.
The information system is the perfect answer for Vancity’s quest for above reproach customer relations. Customer service agents with the help of the system will be able to exceed customer’s expectations. Being able to suggest available products based on customers preferences will also help clients learn of new products and services. Customer satisfaction is important in the banking sector given the cut throat competition the sector has globally.
Implementing a new information management system is indeed a daunting task. Proper planning needs to be done for it to work as expected. These steps are key in the successful implementation of an information system, they are commitment of the top management, education through participation and finally a final caveat. The first and important stage is the commitment and support of the management. When the management appreciates and embraces a new system or technology, they lead by example and therefore other personnel in the different levels of operation become interested. Secondly, the education phase should accommodate participation in order to ensure that people fully understand the system and also ensure queries are taken care of. Lastly, the final caveat stage involves skepticism. The organizational officials need to be skeptic about its implementation so as to be prepared for possible setbacks in the implementation.
The system is bound to consume a lot of money for it to be fully implemented but however, when the CIF is fully operational customers will anticipate visiting the institution for the exceptional service it will bring about. The Service Staff will be on their toes to ensure they adhere to the systems specifications. In terms of future flexibility the system will help agents to immediately know a customer by viewing their profile.
Based on my analysis, I would have fully supported the system given the benefits it brings about. It may be expensive but being able to serve customers in a similar high level and personalized manner is important in this very competitive and dynamic sector.
VanCity. (2013). VanCitycase study.Retrieved 27 July 2014, fromhttp://www.iisd.org/business/viewcasestudy.aspx?id=113