System Analysis and Design

Muhammad Faisal Amin

Muhammad Mohsin
Adil Hassan

02
17
09

Management Information System,

Mam Amna Lodhi,
10th Feb, 2016
TABLE OF CONTENTS
CHAPTER

PAGE

Introduction................................................................................................................. i
1

System Analysis and Design

Methodology of Study................................................................................................. 5
Data Gathering Procedure and Output.......................................................................5
Old System................................................................................................................. 5
The existing System................................................................................................... 6
System Coding.......................................................................................................... 13
System Implementation Plan.................................................................................... 13
System Maintainance plan........................................................................................ 15
Resources................................................................................................................. 15
Screen Shots............................................................................................................. 16

1.0

Introduction
1.1 Background of the Study

Information systems used at ABL differ from department to department and complete
specifications of systems used in Customer Retail Banking Department will be mentioned in the
later part of the report however, the IS used in Allied bank serves the common purpose of faster
communication between all stake holders, updating of transactions process on daily basis,
provision of better customer service, faster execution of data, easier access and communication
to the central branch and other branches countrywide etc. However, Allied Bank used manual
systems before 2002. The reasons for making the shift to automated information systems are
2

System Analysis and Design

summarized below. manual data systems are less secure and tampering with data is possible via
their use and to minimize that risk Allied bank shifted to the use of automated Data systems in
2002.When Allied bank shifted to automated Information Systems in 2002, it started using
softwares such as UNIBANK .This software held answers to the management of all the chaos
created by the use of manual systems. Unibank was a branch centric cash management software
which held answers to the banking problems of the time thus it was called the core banking
solution. Unibank gave faster and safe electronic access to banking transactions and functions.
Unibank enabled Allied Bank to:

Evaluate the latest record of all account transactions taking place in the branch
Exchange information with other departments of the branch such as finance and
accounting
Monitoring and management of deposits and withdrawals simultaneously
Electronic transfer of data from one branch to another
Provision of e-statements for the employees making their jobs easier.
Secure data control and transfer.
Electronic monitoring and management of employee payrolls.
1.2 Statement of Objective
1.2.1 General Problem

The IS at Allied Bank, although effective to a great extent, has certain problems as we found out.
The security procedures inbuilt in the new software, Temenos, make processing slower. In the new IS,
cash transactions taking place go from a Temenos account head to a buffer account and then to the
customer's account. Previously, the cash transactions were directly debited/ credited to the customer
account. Buffer accounts created, although increase the overall security; make the processing of data
slower.

1.2.2 Specific Problem

From a branch centered approach, the bank has moved to a centralized system. Transactions at the
branches, previously used to be stored and processed at the branches only. It was only at the day end, that
all data and information was relayed to the head office. Now, however, this practice has changed.
Branches only facilitate interactions with customers, whereas the information is directly send to the head
office and is processed there in real time. The problem with this is the time lag that results subsequently.
Data flow from the point of transaction to the head office, back to the point of transaction is a longer and
hence a slower process.
Too much reliance on information systems also means that in the scenario when server crashes down, or
gets hanged, banking transactions will be completely disrupted.

1.2.3 General Objective

My general objective is to understand the role of information technology in the company. The kind of IT
programs ABL use may affect the decisions that they make in the structure and strategies of organization
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System Analysis and Design

and customer relationships. With background on key concepts on IS, they will be able to strategically use
control and implement modern information systems that include business software.
Information Systems involves the analysis and design of systems, including areas such as computer
networking, information security, database management, and decision support systems.
Information Management deals with the practical and theoretical problems of collecting and analyzing
information in a business function area.
Data Communications and Networking deals with the telecommunication technologies that are
increasingly important in todays world.

1.2.4 Specific Objective

To understand the applications of MIS in Allied Bank Limited.
To appreciate how technology can help to improve decision-making in organizations.
To appreciate how technology is used to integrate the business disciplines.
To introduce students to business cases, so they learn to solve business problems with information
technology.
To introduce the strategic applications of technology.
To introduce the issues and problems involved in building complex systems and organizing
information resources in abl.
To introduce the social implications of information technology in Abl.

1.3

Significance of the Study

The purpose of this research is to explore the extent to which management information systems are used
to make effective decisions of long and short term planning in the financial organization (Allied Bank
Limited). The study will examine difference in existing and old management information systems for
leadership decision makes in short and long term planning being used at the Bank.
This project aims to evaluate the impact of current MIS models being developed at Bank, and how far
they practice this concept in order to enhance their tactical and strategic planning.
1.4

2.0

Scope and Limitation

Methodology of the Study

The current study attempts to explain the relationship between various factors. Due to the nature of the
current study and its hypothesis, the primary research purpose of the current study is, thus, to analyze and
interpret the information system being used at the allied bank. To differ the current and old system of the
bank.
To achieve the purpose of the current study, research questions have been established.
To get answers of these questions, our group goes to the main branch of allied bank. And also used
internet to get more knowledge to analyze the system and design of ABL.
4

System Analysis and Design

3.0

Data Gathering Procedure and output

4.0

The Old System

We used two types of data gathering procedure in that project. These two types
are as follows:
Data Mining:
We extracted the data already present on internet. We
collected tailed material about the information system of Allied bank.
Interviewing:
We go to the main branch of Allied bank and interviews
many persons at allied bank, operating the system of the bank. We take
screen shots of the DSS of the aliied bank based on temenos T24.

When Allied bank shifted to automated Information Systems in 2002, it started using softwares such as
UNIBANK .This software held answers to the management of all the chaos created by the use of manual
systems. Unibank was a branch centric cash management software which held answers to the banking
problems of the time thus it was called the core banking solution. Unibank gave faster and safe electronic
access to banking transactions and functions. Unibank enabled Allied Bank to:
Evaluate the latest record of all account transactions taking place in the branch
Exchange information with other departments of the branch such as finance and accounting
Monitoring and management of deposits and withdrawals simultaneously
Electronic transfer of data from one branch to another.
Provision of e-statements for the employees making their jobs easier.
Secure data control and transfer.
Electronic monitoring and management of employee payrolls

5.0

The Existing System

5.1 Company Background

Allied Bank Limited was the first bank, established in Pakistan. Before independence, in 1942 it started
out in Lahore, the name of bank was Australasia Bank; in 1974 it was renamed to Allied Bank of Pakistan
Limited and later on Allied Bank Limited in 2005. In August 2004, the Banks ownership was transferred
to an Ibrahim Leasing Limited and Ibrahim Group because of capital reconstruction.
Today, with its existence of over 60 years, the Bank has built itself a foundation with a strong equity,
assets and deposit base. It offers universal banking services, while placing major emphasis on retail
banking. The Bank also has the largest network of over 800 online branches in Pakistan and offers various
technology based products and services to its diverse clientele.
Vision

System Analysis and Design

To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank
for the customers.
Mission

To provide value added services to our customers

To provide high tech innovative solutions to meet customers' requirements
To create sustainable value through growth, efficiency and diversity for all stakeholders
To provide a challenging work environment and reward dedicated team members according to
their abilities and performance
To play a proactive role in contributing towards the society

Core Values

Integrity
Excellence in Service
High Performance
Innovation and Growth

Company History:

Under the Chairmanship of Khawaja Bashir Bux bank was esblished in December 1942 as the Australasia
Bank at Lahore with a paid-up share capital of Paki Rs.0.12 million, and his business associates,
including Abdul Rahman Malik who was amongst the original Board of Directors, the bank had attracted
deposits, equivalent to PKR 0.431 million in its first eighteen months of business assets then amounted to
PKR 0.572 million. Today Allied Bank's paid up Capital & Reserves amount to Rs. 10.5 billion, deposit
exceeded Rs. 143 billion and total assets equal Rs. 170 billion.
Reason for selecting Allied Bank:

Reason of selecting Allied Bank is that, it is one of the leading bank in Pakistan with international
standards and which keeps on innovating and secondly because we have a reference in this organization
which help us in extracting the required information in this project more easily and without much
difficulty.
Personal
Banking Services

5.2

Description of the System

The MIS used at Allied bank Limited is Oracle Database 10g. Oracle Data base 10g has completely
transformed the outlook and operations of ABL. It has transformed the structure such that now ABL's IS
does not consist of fragmented machineries working individually to attain goals but they now function as
a fused collection of servers, storage devices, and systems to meet the changing processing needs of ABL.
This resulted in dramatic cost reduction, overall efficiency and enhancement in the quality of customer
service. It has also reduced hardware costs by efficient networking and amalgamating of functions
performed by various servers and systems. Cost reduction also took place because Oracle 10g eliminated
the need for the purchases and upgrading of management softwares and tools and third party interventions
as it was a complete management solution.

System Analysis and Design

Almost one year ago Allied Bank replaces UNI BANKING to TEMENOSE (T24). T24 is the latest
information system which is now a day mandatory from State Bank of Pakistan for every new bank.
With the help of new information technology Allied Bank Limited records the daily transactions, and that
took place from all over the Pakistan into a centralized database in real time and now there is no batch
processing is taking place in Allied Bank all over the Pakistan. Every bank branch is an online branch and
is directly connected to the centralized server to keep the data up to date to avoid any problems. Now
information system of Allied Bank makes thousands of transactions per day. And this information system
makes whole process more quick, reliable and simple. And employees can easily connect with other
branches; customer service gets improved, online banking emerged and lot of other benefits.
Now a day Allied Direct Internet Banking is an innovative online banking service. Allied Direct Internet
Banking offers you good policy to manage and control your banking and finances (when you want to,
where you want to. Now its Simple & Convenient, Secure and Faster. So, just get clicking.)
Information System:

The MIS used at Allied bank Limited is Oracle Database 10g. Oracle Data base 10g has completely
transformed the outlook and operations of ABL. It has transformed the structure such that now ABL's IS
does not consist of fragmented machineries working individually to attain goals but they now function as
a fused collection of servers, storage devices, and systems to meet the changing processing needs of ABL.
This resulted in dramatic cost reduction, overall efficiency and enhancement in the quality of customer
service. It has also reduced hardware costs by efficient networking and amalgamating of functions
performed by various servers and systems. Cost reduction also took place because Oracle 10g eliminated
the need for the purchases and upgrading of management softwares and tools and third party interventions
as it was a complete management solution in itself.
Through TPS all routine information are collected in Allied Bank. All details of TPSs HUBs go into
Management Information System. This information is then summarized in the form of reports for the
manager so that they can check whether the firm is working properly or not. If there are some flaws then
they take control measures to fix those flaws. In one branch all daily transactions are recorded and all
reports are prepared on daily basis. TEMINOS generate daily information report at the end of the day.
Organizational transaction processing system in T24:

TPS is a type of information system. It collects, store, modify, and save the transactions of organization.
One transaction is an event that generates and modifies data that is eventually stored in information
system. TPS monitors transaction programs. Basic purpose of TPS program is that must be left in a
consistent state. TPS that Allied Bank is using is effective, that systems process is fast and rapidly, to
ensure the smooth flow of data and the progression of processes.
Payroll Transaction Process System:

TPS in Allied Bank is for to get information and record of the employee payroll and calculate his/her
annual earning. It get information about the employee from the employees department and also from
general ledger and send it to payroll TPS. From where it links that information with the previous record
and prepare a report which is forwarded to management. Management takes notice of the record of the
employees efficiency to work and may declare bonus or incentive or demote him/her. This report is
checked and approved by the branch manager after which check is issued to the employee. And at the
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System Analysis and Design

time of salary or any incentive or benefits, when that check is cashed, the record is update in the general
ledger
as
well
as
the
master
payroll
(HUB).

New Customer Identification:

Allied bank is using TEMENOS banking system which is connected to NADRA. Banks information
system automatically verifies customers ID number, address, income, and city name. Which helps the
management to identify whether he/she is using his original ID card or not. Whenever new customer
come for open an account customer fill and form named KYC, abbreviation of KNOW YOUR
CUSTOMER. Operational manager enter all date of that form into system which contains actual worth
and expectations of deposit and after that manger enter his/her comment which he/she knows personally
about that customer. Customer due diligence named report related to that customer goes to Head office
and State bank also have access to that customer, through which State Bank knows the credit history of
that customer.

Employees Record:

All employees having their personal login IDs which allotted at the time of employment and they are
supposed to login when they enter the bank and logout on leaving. Their accounts are also connected with
8

System Analysis and Design

the HUB which continuously makes record of their hours spent in the bank. Moreover, the bank has their
own setup which makes records of all the transactions made by an employee. All these help management
to monitor the working efficiency of an employee. Through this information system management also
have record of, how many customers served by whom employee. And they also have information through
this system that how many customers convinced to open an account by whom.
Real time Banking:

When a customer withdraws a sum of money from his or her account the transactions are processed and
the account balance updated as soon as possible, allowing both the bank and customer to keep track of
funds. When a customer goes to bank for withdraw or deposit the cash through cheque or cash then there
are certain steps. We will just describe withdraw transaction. First step on the time of withdraw through
cheque is, first cashier made entry of that cheque into information system (put cheque number, name of
a/c holder) and then cheque is scanned into FLATBED PRINTER. And after that information system
configure instrument number, amount in words & digits, and signature etc. If entered and scanned
information will be same then system will proceed to next step. If transaction is of less than Rs.25, 000
then it needs the verification of just one person. And if cheque is of more than Rs.25, 000 then it needs the
supervision of two supervisors. In case of more than twenty five thousand rupees transaction, system of
Allied Bank generates one supervision code. One person made transaction and second supervises. And
after configuration transaction is done. TEMENOS system of Allied Bank shows option of debit and
credit at the time of transaction. And when transaction is made then the new transaction is send to Lane.
Date and time of transaction automatically entered whenever transaction made. The Lane enters the HUB
where the specified file is accessed. Automated Teller Machine Card (ATM Card):
Through ATM card customer can withdraw of cash easily. At the time of apply he/she give bio data,
income summary, company name, NIC. That data (NIC no. and bio data) send to system TEMINOS
which directly linked to NADRA. If information correct then it is forward to customer service center and
the
issue
of
credit
card.

System Analysis and Design

Management Information System after TPS:

Through TPS all routine information are collected in Allied Bank. All details of TPSs HUBs go into
Management Information System. This information is then summarized in the form of reports for the
manager so that they can check whether the firm is working properly or not. If there are some flaws then
they take control measures to fix those flaws. In one branch all daily transactions are recorded and all
reports are prepared on daily basis. TEMINOS generate daily information report at the end of the day.

10

System Analysis and Design

Diagram

11

of

TPS

and

MIS

System Analysis and Design

12

System Analysis and Design

T24 Information System in Allied Bank:

New management information system, of Allied bank is TEMINOS (T24). In banking language it is
called T24. This information system is recommended by State Bank Pakistan, it is easy to use and
operate. Trainings of Allied Bank are also held on computers. ABL has one training institute in Lahore.
The bank provides on the job training facilities to employees through job rotation to in different
department as per requirement training more emphasis is in practical.
Benefits of TEMINOS Information System:

User friendly: It is easy to use. This Information System run on windows operating system and graphics
of this system also works like windows. As compare to UNI Banking System, UNI banking has just black
graphics and contains on command system.
Web page: Through registered ID, employee of the bank work online that is easily accessible for
manager, immediate boss and head office.
Security: Data of bank is secure in this information system.
Easy to install: This information system is easy to install as compare to UNI Banking system.
Bank install this IS through web. And if there is any problem in system then it can resolve through web.
Centralized: This information is centralized so transactions are recorded on daily basis. And head office
has record of each branch.

5.3

Data Dictionary

The data dictionary comprises a set of tables and views that map the structure of the database.
Oracle databases store information here about the logical and physical structure of the database. The data
dictionary contains information such as:

user information, such as user privileges

integrity constraints defined for tables in the database

names and datatypes of all columns in database tables

information on space allocated and used for schema objects

The Oracle instance frequently accesses the data dictionary to parse SQL statements. Oracle operation
depends on ready access to the data dictionaryperformance bottlenecks in the data dictionary affect all
Oracle users. Because of this, database administrators must make sure that the data dictionary cache has
sufficient capacity to cache this data. Without enough memory for the data-dictionary cache, users see a

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System Analysis and Design

severe performance degradation. Allocating sufficient memory to the shared pool where the data
dictionary cache resides precludes this particular performance problem

5.4

Problem Areas

To function effectively as an interacting, interrelated, and interdependent fee Database Administrator tool
for management and staff, MIS must be "useable." The five elements of a useable MIS system are:
timeliness, accuracy, consistency, completeness, and relevance. The usefulness of MIS is hindered
whenever one or more of these elements are compromised.
The IS at Allied Bank, although effective to a great extent, has certain weaknesses as we found out:
From a branch centered approach, the bank has moved to a centralized system. Transactions at the
branches, previously used to be stored and processed at the branches only. It was only at the day end, that
all data and information was relayed to the head office. Now, however, this practice has changed.
Branches only facilitate interactions with customers, whereas the information is directly send to the head
office and is processed there in real time. The problem with this is the time lag that results subsequently.
Data flow from the point of transaction to the head office, back to the point of transaction is a longer and
hence a slower process.
Also the security procedures inbuilt in the new software, Temenos, make processing slower. In the new
IS, cash transactions taking place go from a Temenos account head to a buffer account and then to the
customer's account. Previously, the cash transactions were directly debited/ credited to the customer
account. Buffer accounts created, although increase the overall security; make the processing of data
slower.
Too much reliance on information systems also means that in the scenario when server crashes down, or
gets hanged, banking transactions will be completely disrupted.
One of the major concerns of organizations using information technology to carry out their business
processes is how to secure the data against internal and external threats. With modern advancements,
mitigating information security threats has become an ongoing battle. Viruses, worms, hacker attacks,
spam, phishing, and instant messaging attacks are just some of the problems. Data bank faces risk of
security breaches not only at the hands of customers and outsiders, but also from the employees working
within the organization. Therefore it is highly crucial to build security parameters to detect whatsoever
threats there might be and also to ensure data safety.

6.0

System Coding (ProtoType)

6.1 Programming Language

The Oracle DBMS can store and execute stored procedures and functions within itself. PL/SQL (Oracle
Corporation's proprietary procedural extension to SQL), or the object-oriented language Java can invoke
such code objects and/or provide the programming structures for writing them.
7.0

6.2 Special Purpose Language Tools

System Implementation Plan

7.1
14

Resource Requirements

System Analysis and Design

7.1.1 Hardware Requirements
Desktop PC's Specs: Intel Pentium 4 2.5ghz, 512MB RAM, 80 GB hard-disk
Laptop PC's Specifications: Intel Dual Core2 2Ghz, 2gb RAM, 160GB Hard-disk
IBM P5 Mainframe Server
Specifications:
Four 1.65GHz 64-bit POWER5 processors
L2 cache: 1.9MB (2-way); 3.8MB (4-way)
L3 cache: 36MB (2-way); 72MB (4-way)
32GB of 266MHz DDR1 memory
Two 10/100/1000 Ethernet ports
Optional 2 Gigabit Fibre Channel, 10 Gigabit Ethernet and 4x InfiniBand adapters
Two USB, two HMC and two system ports

7.1.2 Software Requirements

The department's computers were found to be using the following system software.
Operating System: Windows XP for Desk-top PC's
Windows Vista for the Laptops. Windows NT server for mainframe server.
7.1.3 Human Resources Requirements

In this era of cut-throat competition and diminishing profit margins Banks are becoming more
lean, service oriented and efficient. As mentioned before Banks in order to keep this trend of
efficiency going upward are adopting new information systems and updating the existing ones
however one barrier to this are the employees, there is already a shortage of computer literate
people in Pakistan and for this reason when new software's or In our case a new CORE
BANKNG SOLUTION is introduced it requires rigorous training session to train the employees
so that they are able to use the software.
The effectiveness of core banking systems is directly related to the skills and knowledge of those
operating them; therefore training is an essential investment and not an expense. The training
session have been divided into three stages
When we talk of the end user it's the employees themselves here, they use the information
available and make different queries accordingly as mentioned before currently the Core
Banking Solution (CBS) namely Unibank is being change to Temenos and this requires that the
support and operations staff be trained to use this CBS. For this reason different training sessions
have been organized by the Bank and the Temenos technical team itself.

15

System Analysis and Design

Apart from this Temenos, to support the contracted BANKS, also provides the following courses
to their employees:
Open Training Courses
Bespoke Training courses
End User Training (EUT)
Training consultancy for design and development of EUT courses
E-Learning and Computer Based Training (CBT)
The "Train the Trainer" approach
The benefits of attending these training programs include dedicated premises and training
equipment, and the added advantage of minimizing interruptions for the duration of training
courses.
8.0

System Maintenance Plan

Allied bank is planning to replace the current Core Business Solution 'Uni Bank' with 'Temenos'.
This transformation is in its phase I. The software is being tested in one branch near the Head Office in
Lahore. This testing phase will end on June 30th.
Training of employees is being conducted and further more sessions are in the pipeline
Allied bank plans to introduce Temenos in 107 branches out of the whole network of 800 braches within
six months.
Implementation in further branches is still unplanned.
Allied Bank has opened its branch in Kashmir and plans to extend its network and reach in the remote
areas of the country

Resources:

The Allied Bank of Lodhran (Main Branch).

www.abl.com.pk
Annual report of Allied bank 2014
Resource Person:
Malik Muhammad Akram (branch Manager)

16

System Analysis and Design

Screen Shots

17

System Analysis and Design

18