Question

QUESTION 4

a) Malaysian United Bank has implemented an ERP system. One of the features of the ERP system is to allow a new customer who wants to open a new bank account to insert their MyKad to a card reader. The card reader will then extract the customer’s information from the MyKad microchip and automatically update this information to the computer database system. Assumed that Azman wishes to open a new savings account. At the customer service counter, Azman inserted his MyKad into the card reader and his information such as his name, IC number, address, DOB, and gender was automatically updated to the computer database system. However, the bank officer asked Azman to fill up this information again on the hardcopy application form with the thumbprint and signature. According to the bank officer, this is a standard operational procedure (SOP) for opening a new account. What is value analysis? Based on the idea of value analysis, discuss the above scenario from the perspectives of both the customer and the bank officer.

b) What is Software as a Service (SaaS)? What are the advantages of SaaS when implementing an ERP system in a mid-size company?

Answer 1

Value Analysis:

Introduction: In simple terms, Value analysis is the concept analysing the possibilities to increase the value of the product or service.

Definition: Value analysis can be defined as the process of enhancing the value of the product or service by understanding the various components of the product or service and the cost involved, thereby enhancing the value by reducing cost and improving the components involved by eliminating the inefficiencies.

The Value Analysis procedural steps can include the below:

1. Information pooling: The first and foremost step for any kind of analysis is to gather the complete information regarding to that subject. While conducting value analysis, we should gather information regarding the product/ service components, purpose, the cost involved.

2. Analysis of each components involved

3. Creating of innovative ideas to eliminate redundancy or unnecessary steps and propose the ideas.

4. Evaluation of ideas proposed by carefully analysing the pros and cons associated with each idea.

5. Put into practice the best idea chosen during the evaluation process and constantly monitoring the results.

Value analysis from the perspectives of both the customer and the bank officer:

From customer perspective:

1. As a customer, the value analysis of the service like opening a new bank account for emergency/ future purpose will be based upon the experience which includes efficiency, how user friendly the process has been, timeline and responsiveness.

2. In the above scenario, as a customer I just need to insert my card to open a new account which saves lots of my time.

3. There is no need to wait for hours and hours in queue just to get the account opening form.

4. The process has been quite easy - just to insert the card and the system will automatically fill up the details without any error.

5. No need of waiting for the options or the timelines and it can be done in our free time.

6. There is a possibility of identity theft which concerns me as a customer. What if I lose my card somewhere and the fraudsters may open account in my name and use it for whatever purpose. Hence the as per the bank procedures, hardcopy application form with the thumbprint and signature.

Conclusion: As a customer, after conducting the value analysis, it does not add much value to the service because at the end, I need to fill up the physical form and other bank procedures. In fact I'm following the additional step of inserting my card to provide my own details again.

From Bank perspective:

1. The customer's information can be uploaded to the system automatically which reduces the the third party cost for the verification of documents.

2. As the system extracts only the basic information, remaining details should be taken from the customer through physical form.

3. As a bank personnel, the new customers should be informed with the policies and procedures and once the customer agrees to that and signs , then only we can open the account.

4. Customer's signature has to be taken physically inorder to ensure the security, elimate the identity theft and other obligations like check deposits, money withdrawal and all.

5. This automatic process of extracting the details helps the bank to estimate how many new accounts can be opened in a day and there by they can estimate the costs.

Conclusion: As a bank, it is creating value as it is reducing the verification cost and manage the customer needs effectively without any delays like short of account opening forms.

b) Software as a service (SAAS):

Introduction: As the name suggests, the third party which is the software developed by the engineers provides services to people/ customers.

Definition: SAAS can be defined as the system which provides the services like issuing of applications through internet by different websites.

Advantages of SaaS when implementing ERP system in a mid-size company:

1. Cost reduction : The SAAS ERP system, relatively cheaper and is less expensive when it comes to the installation and maintainance. It offers wide range of automated services which can help the operational needs of mid size companies.

2. Improved customer experience: The ERP model operation consumes less time and more over it the end user finds it less difficult to use the services. It is used friendly hence it can create improved customer experience and has the potential to create the new customers

3. Flexibility in creating reports: Te ERP model is designed in such a way that it meets the basic organizational needs effectively and accurately like report generation and provides the customized report generations as per the needs of mid sized companies.

4. Automatic updates: As discussed, the operational and maintainance cost is very less as it comes with the option of automatic updates/ upgrades inorder to meet the latest changes in technology and as well as the customer preferences.

5. Less time consuming: The manual operations take more time and can consists of human errors but the ERP models takes less amount of time in generating the complex reports with accuracy.