IT & SYSTEMS MID SEMESTER

ASSIGNMENT
By

Wimal Karunaarachchi

Enrolment number-9LB 104

Course: Management Control & Information Systems – IT 231

Lecturer: Mr. Tesman A.J. Maloney

Institute of Charted Financial Accountants of India (ICFAI)

Terms of Reference

Carry out a critical analysis of an organization of your choice preferably the organization
in which you are employed covering the following areas;

- What IT initiatives have been taken with regard to Personal Productivity

Improvement and Enterprise Collaboration
- The standing of the firm in relation to its competitors with regard to usage of IT
in the areas mentioned above
- The potential drawbacks/threats faced by the firm due to the initiatives
- The potential for improvement in the usage of IT in the above areas
Factors that will make the firm either successful or a failure in improving the usage of IT
Table of Content

1. DFCC Vardhana Bank Profil

2. Introduction

3.IT Initiatives with Regard to Personal Productivity Improvement at DVB

4. IT Initiatives with Regard to Enterprise Collaboration Improvement at

DVB

5. Standing of the Firm in Relation to the Competitors

6. Potential Drawbacks/Threats Faced by DVB due to the Initiatives

7. Potential for Improvement

8. Successfulness or Failure in Improving the Usage of IT

9. References
1.DFCC Vardhana Bank (DVB)
DFCC Bank incorporated by an act of parliament in 1955 (Development Finance
Corporation of Ceylon Act No 35 of 1955), today rank as one of Sri Lanka’s top financial
services groups in the country. The main objectives of setting up of DFCC as stated in the
Act is to “assist setting up, expansion and modernization of private sector industrial,
agricultural and commercial enterprises”. DFCC is rated as AA (lka) by Fitch Rating Sri
Lanka defining a level of security and stability that is hard to match.

DFCC Bank, a licensed specialized Bank is a pre-eminent provider of project financing,

specialized investments, advisory and financial services for Sri Lanka’s growing business
sector. As a result of the limitations imposed by the Act relating to setting up of DFCC
Bank it is unable to engage in some of the commercial banking activities. The Board of
Directors of DFCC decided to venture in to commercial banking activities through the
acquisition of an existing commercial bank whilst retaining the development banking
identity with the parent company, DFCC Bank.

Incorporated as a public company in 1995 titled National Enterprise Bank Ltd and
subsequently renamed National Mercantile Bank Limited was thus acquired by the DFCC
Bank in 2003 in order to provide commercial banking facilities with the highest possible
efficiency. The bank that was acquired by DFCC was re-branded as DFCC Vardhana
Bank in September 2003. DFCC Bank now owns 96% of DVB after recapitalizing to
reach a level exceeding Rs 2.5 Billion minimum capital, specified by the Central Bank of
Sri Lanka.

DVB is the fastest growing retail bank and provides a full range of corporate and
personal banking services. These include Current Accounts, Savings Accounts, Fixed
Deposit Products, Normal/Special Savings Products, Foreign Currency (NRFC, RFC)
Accounts, (Savings and Fixed Deposits), Standing Orders/Instructions, Fixed Deposit for
Senior Citizens, Children Savings Accounts, issuance and encashment of Travelers’
Cheques, granting of Foreign and Local Currency Loans, Pawning, Issuance of
Guarantees and Bonds, Money Market Loans, Commercial Paper and Trade Services
Facilities (International Banking Services). In addition, DVB also provides value added
services such as facilitating Western Union money transfers and issuance of Insurance
products.

DVB has established 42 branches and 30 extension offices with Sri Lanka Postal
Department within a space of 6 years and has become the fastest growing bank in the
country.
2. Introduction
DFCC Vardhana Bank operates as a fully automated bank to be in line with the
competition with many IT applications in all arrears of business. This includes personal
productivity packages and enterprise collaboration packages.

3.IT Initiatives with Regard to Personal Productivity

Improvement at DVB
Software’s in place

• E- Learning
• Word processing
• Spread sheet software
• Presentation software

3.1 E-Learning

The E-Learning system was implemented at DVB in 2009 January as an additional

training and development tool for staff members. Employees need to be registered under
E-Learning module and certain lessons will be accessible to all staff while selected
lessons will be accessible to with regard to grade, job requirement, identified
development needs and other relevant criteria.

3.2 Internet

The access is given to all branch Managers and selected employees depending on job
criteria. Which enable them to browse web to gather knowledge about day to day
activities and current trends in the market. Hence the market trends and environment is
changing rapidly.

3.3 Word Processing Software

Word processing software is used to write, edit, format save and print documents.
Typewriters have been in use for a long time now they can be eliminated. With the type
writer if there are errors the document will have to be retyped. But using word processing
software the document can be typed, edited, spell checked, formatted and saved before
printing.
Word processing software also provide its users with features like hyperlink; drawing /
inserting tables, charts, pictures; formulas; mail merge; online collaborations; document
presentation.

3.4 Spreadsheet Software

Spreadsheet software is an application in which data is represented in a tabular form ie. In

the form of rows and columns. Spreadsheets allow users to create tables of information
which can be manipulated and represent in the form of graphs and charts. Numeric
information used in tables can be used to perform operations such as addition,
multiplication and use formulas for complex calculations. A cell is the intersection of a
row and column. When a formula is applied to a cell, the result gets displayed in the cell.
The user can only see the final result. The formula is hidden and the changes are reflected
instantly. This makes spreadsheets useful for what-if analysis and other complex
calculations.

3.5 Presentation Software

Presentation Software like other top selling productivity programs such as word
processing and spreadsheet software, uses a visual metaphor, ie a simulation of the
medium (a slide or a transparency) that is used in making presentation is called a slide.
MS PowerPoint is used for all the presentations.

4.IT Initiatives with Regard to Enterprise Collaboration

Improvement at DVB

• Intranet
• Extranet
• Groupware

4.1 Intranet

Intranet at DVB is named as HR Portal where all the employees can share information
only within the organization. This will enable employees to access current accurate
information which will reduce the cost of acquiring, printing, and distribution of
information. Streamlining of information and to use common documents will give way to
maintain uniformity across the bank. Example all the legal documents are attached to the
portal where any employee can use it for proper documentation without doing it ad-hoc.

Further this enables employees to apply for leave, loans, suggestions, to see information
about the company, information on staff members, educational qualifications of
individual etc.

4.2 Extranet
This will enable exchange of information to outside parties to develop strategic
relationships and to collaborate with other organizations for business activities.
Following are extranets which DVB is in collaboration.

4.2.1 Western Union- for international money transfers

4.2.2 CRIB- Credit investigation bureau enables to check on the customer’s credibility
and the credit worthiness.

4.2.3 SWIFT-Society for Worldwide Inter Bank Financial Transaction enables to do

financial transactions with all the banks in the world example letter of credit, telegraphic
transfers.

4.2.4 Central Bank Reporting- this link is use for all the information to be shared with
the Central Bank and DVB.

4.3 Groupware
There are three types of groupware.

4.3.1 Enterprise Communication Tools.

4.3.1.1 E-Mail

All the employees are given the access to e-mail to expedite the communication process.
This will eliminate the hardcopy memos which were used earlier. Today it’s a matter of
one click of a button to send information to all the staff members for any activity which
has given convenience and prompt feedback in day to day activities.

4.3.2Enterprise Conferencing Tools

4.3.2.1 Teleconferencing
This is manly use due to geographical reasons in getting people together for meeting
hence the DVB branches are spread across the entire country. Example the sales call
report meeting which is held fortnightly is done by using not only outstation branches
even for Colombo branches (Maharagama, Nugegoda) which will save time and money.
These meeting have been productive and the time saved could be use for other activities.

4.3.3 Collaborative Work Management Tools

4.3.3.1 Document Sharing

Due to geographical difficulties people who work in the same filed could share their
documents without coming for formal meetings. The documents are attached in a relevant
public folder where the team member can view and comment.

5. Standing of the Firm in Relation to the Competitors

DVB in its short history has been in the forefront with the banking giants like HNB,
Sampath Bank, Commercial Bank, HSBC to name a few when it comes to latest
technology.

As been adjudged as the fasters growing bank in the country DVB gives importances to
development of its IT infrastructure by giving prominence to personal productivity
development and enterprise collaboration. A good example of this is the implementation
of E-Learning system to employees in 2009.

The company shows some control measures in the systems with authorized access
mechanisms, restrictions for unwanted site access, controls laced on unwanted messaging
and collaborative features like outside internet mail access, chatting, etc. where most of
the other organizations may allow.

6. Potential Drawbacks/Threats Faced by DVB due to

the Initiatives
6.1Threats

With the new implementation of personal banking system where staff members visit the
customer to do transactions for customer conveniences there is always a threat that
loosing the instrument or someone else using the instrument where he/she will have the
access to the core banking system which needs to be looked at very seriously.
6.2Drawbacks
6.2.1 Cost- the cost of IT implementation and upgrades are huge.

6.2.2 Employee Knowledge- Due to the development of IT today the employee’s

knowledge is questionable since the information is readily available. In the past
employees need to do research to find out on subject matters today it is available at a
click of a button. (Cut and paste method)

6.2.3 Redundancy-The bank need to have a separate disaster recovery IT unit which may
not be used for a very long time unless there is a disaster.

7. Potential for Improvement

7.1 Internet Banking- Implantation of internet banking for customer convenience and to
be inline with competitors.

7.2 Video Conferencing- Interactive meetings.

7.3 Mail Migration-Improve enterprise collaboration and personal productivity (online

calendar, office live meetings,)

7.4 ERP System- Highly integrated system for all users.

8. Successfulness or Failure in Improving the Usage of

IT
8.1 Cost Benefit Analysis-It is always advised when implementing an IT system to an
organization to do a cost benefit analysis due to the fact that the huge cost involved.
Hence the long term compatibility with the environment has to be taken into
consideration and system should have the capability for new upgrades.

8.2 Product Requirement- The required functions should be there in an IT system based
on the users

8.3 Accuracy- System should be accurate at all times specially for a bank hence the
accuracy has to be maintained at all times.

9. References
1. Information Technology & Systems – 2nd Edition, ICFAI center for management
research.
2. www.epinions.com/review/G7
3. www.wethechange.com
4. http://en.wikipedia.org
5.www.dfccbank.com