A group assignment on Management Information System (MIS) practices in Bangladesh

A study on

Course: Management Information System (MIS) Submitted by: BBA 3rd year 2nd semester 2009, session 2006-2007 Department of Management Studies Jagannath University Date of Submission: 4th May, 2011

Page 1 of 34

Table of Contents

Abstract-------------------------------------------------------------------------3 Literature Review-------------------------------------------------------------4 Objective of the study--------------------------------------------------------7 Scope of study-----------------------------------------------------------------8 Methodology of the study---------------------------------------------------9 Company profile--------------------------------------------------------------10 MIS practices in Bangladesh-----------------------------------------------21 Practices of MIS systems of City bank-----------------------------------22 Problems to implement the MIS systems in City Bank---------------32 Recommendations of solving the problems to implement the MIS systems to achieve operational excellence in City Bank.---------------------------------33 Conclusions.-------------------------------------------------------------------34 References---------------------------------------------------------------------35 Appendix.

Page 2 of 34

Abstract
This report aims at providing an understanding of generating concept of Management information systems (MIS) practice in Bangladesh as well as in business. Generally, Management information systems (MIS) deals with behavioral issues as well as technical issues surrounding the development, use, and impact of information systems used by managers and employees in the firm. As such, MIS is defined as the study of information systems focusing on their use in business and management. Business firms invest heavily in information systems to achieve six strategic business objectives or six reasons why information systems are so important for business today include: operational excellence, new products, services, and business models, customer and supplier intimacy, improved decision making, competitive advantage, survival. The study of information systems deals with issues and insights contributed from technical and behavioral disciplines. The disciplines that contribute to the technical approach are computer science, management science, and operations research. The disciplines contributing to the behavioral approach are psychology, sociology, and economic. An organization can achieve Operational Excellence through ERP, SCM, CRM, and KMS. There is no available use of MIS practices in Bangladesh. But MIS practices in banking sector are comparatively sound. So to show the practice of MIS we have selected City Bank. City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a top bank among the oldest five Commercial Banks in the country which started their operations in 1983. The Bank started its journey on 27th March 1983 through opening its first branch at B. B. Avenue Branch in the capital, Dhaka city. City Bank operates its activities through information system. They manage payroll system, customer identification, employees records, real time banking, online complains, account opening, ATM card etc through MIS. The bank is using the MIS very efficiently and increasing its profitability, but still there are some problems like there is no sound interdependence the organization and information systems. The organizations information technology (IT) infrastructure is not well organized. So with the increase in the technology, the bank should made its IS up-to-date for providing best services to their customers and attracting more customers and increasing its productivity.

Page 3 of 34

Literature Review
An information system (IS) can be any organized combination of people, hardware, software, communications networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization. People rely on modern information systems to communicate with each other using a variety of physical devices (hardware), information processing instructions and procedures (software), communications channels (networks), and stored data (data resources). As an area of study it is commonly referred to as information technology management. The study of information systems is usually a commerce and business administration discipline, and frequently involves software development, but also distinguishes itself by concentrating on the integration of computer systems with the aims of the organization. The area of study should not be confused with Computer Science which is more theoretical and mathematical in nature or with Computer Engineering which is more engineering. When a firm goes digital, its not about just adding a computer system to the mix. Throwing a computer system at outdated business processes is exactly the wrong thing to do. A truly digital firm has several characteristics that distinguish it from most of the firms claiming to be digitized: Significant business relationships with customers, suppliers, and employees are digitally enabled and mediated. Core business processes are accomplished through digital networks and span the entire organization or link multiple organizations. Key corporate assets intellectual property, core competencies, and financial and human assets are managed through digital means. Internal and external environments are quickly recognized and dealt with Electronic means. They sense and respond to their environments far more rapidly than traditional firms. They offer extraordinary opportunities for more flexible global organization and management, practicing time-shifting and space-shifting.

Information systems automate manual business processes and make an organization more efficient. Data and information are available to a wider range of decision makers more quickly when information systems are used to change the flow of information. Tasks can be performed simultaneously rather than sequentially, speeding up the completion of business processes. Information systems can also drive new business models that perhaps wouldnt be possible without the technology. Information systems enhance business processes in two ways: Increasing the efficiency of existing processes by automating them. Enabling entirely new processes that are capable of transforming the business by changing the flow of information.

The study of information systems deals with issues and insights contributed from technical and behavioral disciplines. The disciplines that contribute to the technical approach are computer science, management science, and operations research. The Page 4 of 34

disciplines contributing to the behavioral approach are psychology, sociology, and economics. Dimensions of Information Systems Organizational dimension of information systems Hierarchy of authority, responsibility Senior management Middle management Operational management Knowledge workers Data workers Production or service workers

Management
Management dimension of information systems o Managers set organizational strategy for responding to business challenges o In addition, managers must act creatively:

Creation of new products and services Occasionally re-creating the organization Technology
Technology dimension of information systems o Computer hardware and software o Data management technology o Networking and telecommunications technology Networks, the Internet, intranets and extranets, World Wide Web o IT infrastructure: provides platform that system is built on

Systems That Span the Enterprise Its not unusual to find an organization with three or more different information systems that act as islands. The systems dont exchange information very well, if at all. Accounting and finance may have a system that serves their needs very well, but they cant collect information from the system used by manufacturing and production. Sales and marketing is doing its own thing with its system and losing valuable information from the other systems, which could help it do a better job. Enterprise Applications As networks of all kinds take hold, from the Internet to intranets to extranets, Web-based enterprise applications are increasingly widespread. An organization operates in an ever-increasing competitive and global environment. The successful organization focuses on the efficient execution of its processes, customer service, Page 5 of 34

and speed to market. Enterprise applications provide an organization with a consolidated view of its operations across different functions, levels, and business units. Enterprise applications allow an organization to efficiently exchange information among its functional areas, business units, suppliers, and customers. The following sections are an overview of four major enterprise applications: enterprise systems, supply chain management, customer relationship management, and knowledge management systems.

Achieving Operational Excellence: ERP, SCM, CRM, and KMS: Enterprise systems (also known as enterprise resource planning (ERP) systems) is used to bridge the communication gap between all departments and all users of information within a company.

Supply Chain Management Systems

In short, supply chain management systems help businesses better manage relationships with their suppliers. Objective of SCM: get the right amount of products from the companies source to their point of consumption with the least amount of time and with the lowest cost. SCM provide information to help suppliers, purchasing firms, distributors, and logistics companies share information about orders, production, inventory levels, and delivery of products and services so that they can source, produce, and deliver goods and services efficiently. SCM helps organizations achieve great efficiencies by automating parts of these processes or by helping organizations rethink and streamline these processes. SCM is important to a business because through its efficiency it can coordinate, schedule, and control the delivery of products and services to customers.

Customer Relationship Management Systems

Customer relationship management systems enable a business to better manage its relationships with existing and potential customers. With the growth of the Web, potential customers can easily comparison shop for retail and wholesale goods and even raw materials, so treating customers better has become very important.

Page 6 of 34

Objectives of the study

To know about the understanding of MIS as a field of study and as a field of business. To know about the of MIS practices in Bangladesh. To identify the practices of MIS systems of an enterprise in Bangladesh. To know about the MIS practices from global perspective. To investigate the problems of MIS in Bangladesh. To provide recommendations to solve the problems for excellence performance in MIS.

Page 7 of 34

Scope of the study

This report represents the Management Information System (MIS) practices in Bangladesh and will generate an idea of MIS practices in an organization. This report will help to: Businessmen Individual Management of a company Students Government Banker Financial institution etc.

Page 8 of 34

Methodology of the study

This report has been made possible through the direct and indirect cooperation guidance of various people whom we wish to express my sincere appreciation & gratitude. First with the limitless humility, we would like to thank "GOD", for bestowing us with all the favorable circumstances and keeping us in high spirits. With the deep sense of gratitude, we express my sincere thanks to Md. Shahidul Islam Fakir for giving us this practical report. Both primary data and secondary data have been used to prepare the report. Primary data collected through personal interview in the form of questionnaire. Secondary data collected from various journals, internet and book.

Page 9 of 34

City Bank Profile

City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a top bank among the oldest five Commercial Banks in the country which started their operations in 1983. The Bank started its journey on 27th March 1983 through opening its first branch at B. B. Avenue Branch in the capital, Dhaka city. It was the visionary entrepreneurship of around 13 local businessmen who braved the immense uncertainties and risks with courage and zeal that made the establishment & forward march of the bank possible. Those sponsor directors commenced the journey with only Taka 3.4 crore worth of Capital, which now is a respectable Taka 330.77 crore as capital & reserve. City Bank is among the very few local banks which do not follow the traditional, decentralized, geographically managed, branch based business or profit model. Instead the bank manages its business and operation vertically from the head office through 4 distinct business divisions namely I. II. III. IV. Corporate & Investment Banking; Retail Banking (including Cards); SME Banking; & Treasury & Market Risks.

Under a real-time online banking platform, these 4 business divisions are supported at the back by a robust service delivery or operations setup and also a smart IT Backbone. Such centralized business segment based business & operating model ensure specialized treatment and services to the bank's different customer segments. The bank currently has 88 online branches and 10 SME service centers and 1 SME Agro center spread across the length & breadth of the country that include a full fledged Islami Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 77 ATMs of its own; and ATM sharing arrangement with a partner bank that has more than 550 ATMs in place; SMS Banking; Interest Banking and so on. It already started its Customer Call Center operation. The bank has a plan to end the current year with 100 own ATMs. City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway. City Bank has launched American Express Credit Card and American Express Gold Credit card in November 2009. City Bank is the local caretaker of the brand and is responsible for all operations supporting the issuing of the new credit cards, including billing and accounting, customer service, credit management and charge authorizations, as well as marketing the cards in Bangladesh. Both cards are international cards and accepted by the millions of merchants operating on the American Express global merchant network in over 200 countries and territories including Bangladesh. City Bank also introduced exclusive privileges for the card members under the American Express Selects program in Bangladesh. This will entitled any American Express card members to enjoy fantastic savings on retail and dining at some of the finest establishment in Bangladesh. It also provides incredible privileges all over the globe with more than 13,000 offers at over 10,000 merchants in 75 countries. City Bank prides itself in offering a very personalized and friendly customer service. It has in Page 10 of 34

place a customized service excellence model called CRP that focuses on ensuring happy customers through setting benchmarks for the bank's employees' attitude, behavior, readiness level, accuracy and timelines of service quality. City Bank is one of the largest corporate banks in the country with a current business model that heavily encourages and supports the growth of the bank in Retail and SME Banking. The bank is very much on its way to opening many independent SME centers across the country within a short time. The bank is also very active in the workers' foreign remittance business. It has strong tie-ups with major exchange companies in the Middle East, Europe, Far East & USA, from where thousands of individual remittances come to the country every month for disbursements through the bank's large network of 99 online branches and SME service centers. MAIN SERVICES: Consumer Banking: City Bank provides Mortgages, Credit Cards, Personal Loans, Auto Loans, Islamic Banking, and Wealth Management products. In order to maximize customer convenience, they offer 24-hour Phone Banking, eStatements, SMS Banking, ATM Cards and VISA Debit Cards, as well as Online Banking and state of the art branches. Wholesale Banking: Wholesale banking provides Transactional banking, Debt Capital Markets, Corporate Finance, Derivatives & Fax Options, Commodity Finance and deposit products. City Bank is a major player in Bangladesh wholesale banking industry to offer the full scope of innovative, customized solutions and services. They offer service at the highest level. Their focus is not on short-term profit, but on building long-term relationships and standing by their clients whenever we need them. Islamic Banking: City Bank introduces City Manarah - Islamic Banking. City Manarah is here to guide us and manage our finances in a fully Islamic Shariah Compliant way. It offers a wide variety of deposit and investment products such as Manarah Savings, Manarah Current, Manarah Term Deposit and Manarah Monthly Deposit Schemes. Each account is designed to meet your financial needs with best value for our money. Overall performance City Bank achieved a significant growth in operating profit in 2009. Operating profit of the Bank for the year 2009 stood at BDT 2,256 million which is an increase by 29% over 2008. This strong performance is a testament to the strength of the Bank's core business, its management and the benefits derived from the centralized banking framework. Profit before tax (PBT) of the Bank stood at BDT 1,388 million in 2009 compared to BDT 1,014 million in 2008. The Bank's total provisions in 2009 was BDT 868 million against loans and advances, off-balance sheet items, gratuity and other provisions compared to BDT 741 million provisions kept in 2008. Despite the increased provision requirement of BDT 127 million over 2008, the Bank registered a healthy growth of BDT 374 million or 37% in PBT over 2008 results. Earnings per share grew to BDT 52.11 for the full year compared to BDT 25.34 in 2008. With a tight and controlled monetary policy regime now instituted, the balance sheet posted a significant growth in deposits and advances, of 39% and 26% respectively. The total deposits vested with the Bank reached BDT 62,384 million while loans and advances increased by BDT 9,065 million and reached to BDT 43,486 million. City Bank's capital adequacy ratio was 11.29% at the end of 2009 compared to the 10% required by the Central Bank and we are heading towards fulfilling the requirement of Basel II ensuring strict adherence to the Page 11 of 34

guideline of Bangladesh Bank. BDT 205 million of new capital was raised during the year through bonus declaration which improved the capital position of the bank. The Bank's results showed continued growth momentum across all the business lines as well as increased productivity which saw an improvement in EPS, net assets value per share, cost of funds, return on assets and net profit per employee. With regard to Loans and Advances, while the Bank was not able to escape the challenges cascading from the macro environment and our Non Performing Loans (NPL) which notched 4.87% at the end of 2009, what is positive in this area is that the Bank possesses adequate provision covers. This, I am sure, will provide a healthy and satisfying confidence to our stakeholders. Other remarkable aspect is, we aggressively hunted for collecting and retaining quality staff strength which came at around 2,424 employees. Our operating environment involves expansion, continuous technological advancement and modernization to retain the winning flavor. We have tried our best to do so last year. I am confident that with the help of our strong foundation, clearly defined objectives, strategic priorities and talented workforce, we will ensure continued growth and success for our Bank and all of our stakeholders in 2010. We have also delivered a number of growth initiatives that are core parts of our master strategy and these will surely well position us for the future. In 2009, we have:

Launched American Express Cards in Bangladesh. We are American Express's sole franchisee for Bangladesh and I do not think I need to reiterate that American Express is currently the no. 1 financial institution brand in the globe Opened 5 new branches, 5 SME service centers and 11 SME Business Centers Increased our number of ATMs from 24 to 47 - providing our customer with greater access to their money Launched Brokerage business Relocated Head office from Motijheel to Gulshan Avenue Upgraded our Core Banking Software Finacle from version 6 to 7

Appointed 290 additional talented staff to our bank during the year mainly to support the newly formed departments

Strategic priorities and progress We are confident about our growth and success, even as challenges remain. First, because we have a talented human capital that is committed to working together to provide our customers best advice and services; second, because we are building on a solid foundation of key strengths, including a strong capital base, and excellent risk and expense management skills; third, because of our diversified business lines, products and locations; and finally, because we have a clear understanding of and focus on our strategy we know where to direct our efforts. Our strategic priorities will guide our activities as we move forward over the next several Page 12 of 34

years. They will serve as a roadmap to help us navigate through the new landscape in which we are now operating. Our Objectives for 2010

Maintain capital base above regulatory requirement (new capital injection) Bring down cost to income ratio below 40% Maintain NPL ratio below 4% Achieve return on equity of above 20% Offer long-term shareholder value through increases in dividends and stock price appreciation Gain high levels of employee satisfaction and manage recruitment of talented staff from the industry Achieve high levels of customer satisfaction and loyalty Foster new customer acquisition and retain the existing customers by deepening relationships Employ strong practices in corporate governance and further develop compliance processes

Deliver on corporate social responsibility and ensure strong community involvement Focus for 2010 The signs for 2010 are not too difficult to read. We are contemplating another year of challenge. We however expect the Bank's progress to mirror its growth trends. We are looking forward to higher growth rates in total deposits, advances and total assets and expect to meet our projections. Under the current regulation of the Central Bank, the Bank is under pressure to reduce its lending rates. The Bank expects this downward trend to be passed on to borrowing rates as well; and we will be under pressure to source funds at appropriate rates to protect its margins. The contribution from commission and fee-based income too will be under pressure. To retain profitability, we are expecting improvements in cost to be delivered via productivity gains expected from the re-engineering of work processes, improved IT infrastructure, cash management system and focuses on non-funded business. The year 2010 will see the Bank forging ahead with all the measures our KPI based action plans, our value matrix approach to product evaluation and the enhancement of our products with features that differentiate themselves from the market and through introduction of new line of business. With the improvements contemplated in the business volumes and the productivity gains, the Bank is confident of maintaining a reasonable operating profit growth in 2010. Other aspect is our cost management initiative. Our recipe is not one of cost cutting but of cost management. We aggressively intend to pursue to rein our cost growth within optimum limits. We also expect to further improve the main KPIs: namely Return on Assets, Return on Equity and the Capital Adequacy ratios, from the levels recorded in 2009. Despite the severity of our current challenges, I remain undeterred. I believe that our combination of strong business, market positions, diverse earning power and talented work force will see us through, and that we will emerge as one of the strongest and best banks in the country. We have realized that to have an attractive value proposition on paper and to be able to Page 13 of 34

deliver that proposition effectively are two entirely different propositions. Thus building up and deploying our HR base to optimum effect is a key challenge. We are challenged to maintain a reasonable pace in growth of business volumes, which is very necessary for us in order to become a vibrant player in a market that is growing in a slow pace due to external factors. The Bank's contention is that unless the profits we refer to are in excess of economic costs, i.e. the cost of all the money working for us, we may actually be destroying our wealth. Thus our challenge will be to attain sustainable profitability. A sound and adequate capital base able to support our planned asset growth and render the Bank as a strong and stable entity is therefore of prime importance. Moving into 2010, we are positive about the times ahead. The challenges we faced in financial markets, environment and politics in 2009 have been significant, and will continue to have an impact on our operation in 2010, but governments, regulators, Central Bank are taking right steps to address the financial unrest. We remain confident that City Bank will successfully manage through this period of upheaval. With an ongoing focus on executing our strategies and priorities, controlling our risks and expenses, and growing our four business platforms with our strong foundation and a great team of people working together, we will continue to grow and succeed, for the benefit of all our stakeholders. I am pleased with the financial performance of the Bank in what has been a challenging period. We have also continued to make good progress in delivering on the strategic priorities which are key components in achieving our goal of becoming Bangladesh's leading financial organization through excelling in customer service. The headwinds which impacted our performance in 2009 have continued into the new financial year, although there are some signs that they may be moderating. However, the year 2010 will present its challenges (as well as opportunities) for the Bank and its customers and the outlook is by no means clear. In this environment, the Bank remains cautious and will continue to maintain its moderate approach to capital, funding, liquidity and provisioning. At the same time the Bank recognizes that it is well placed to continue to strengthen its service outlets and improve its financial performance and returns to shareholders. The ability to deliver the strong performance we have seen over the past financial year across the Bank would not have been possible without the goodwill and commitment of our people. I am very grateful for the high level of support I have received from across the organization and I continue to be enormously impressed with the quality and skills of our people. I would like to extend my appreciation to Bangladesh Bank and other regulatory authorities for their support throughout the year. My deep gratitude to the Chairman of the Bank and our Board of Directors for their encouragement, invaluable input and guidance. I would like to thank all shareholders, valued customers and stakeholders for their patience and continued confidence in our team and our Bank. It is a great privilege to lead this bank and I am confident that we can continue to deliver for our people, our customers, our shareholders and our community. We anticipate the economic uncertainty that we faced in 2009 to continue in 2010. However we remain confident that our strengths, our strategy and our keen focus on our key priorities will enable us to manage through these challenges and troubled times to grow and maintain our record of success over the long term.

Page 14 of 34

City Retail - add a little city to your life One of the most remarkable success stories of last 50 years banking industry globally has been the conceptualization and innovative execution of banking with individual customers, their friends & families. The industry has termed it as Retail Banking or Personal Banking or Consumer Banking; and it has now - at a very rapid pace become the major revenue line for most of the top banks in the world. City Bank, too, recently has started its journey in Retail Banking. City Retail - add a little city to your life is the new brand-mantra, the pay-off line for City Retail. Our aim is clear. We want City Bank to become the most preferred bank to all individual clientele of the country, at least of the cities and towns where we operate. We want to provide our customers the best-in-class services, innovative products and financial solutions from smart outlets - all with a big smile that conveys and generates happiness all the way ! CITY Visa Electron Debit Card - By your side, round the clock Now comes the Visa Debit Card from City Bank. Your life, therefore, becomes hassle-free and safe; and it is Visa Electron branded, which makes you the proud owner of a meaningful plastic. Features: Cash withdrawal @ Taka 10 per transaction at 110 Q-cash network ATMs Cash withdrawal @ Taka 12 per transaction at 583 DBBL ATMs Mini statement PIN Change Balance enquiry Shop and dine at hundreds of merchant Visa outlets all over the country Cash withdrawal from 500+ Visa ATMs 24/7/365 all over the country Eligibility: If you are an individual and have a savings, current or STD account in CBL, you are eligible avail this card. Just drop in any nearby CBL branch, collect an application form and submit duly filled up form. Within shortest time you will get the card delivered at your mailing address or at your designated branch. For Local call: 16234 (if you wish to call at our Call Center for any query from any part of Bangladesh) For Overseas call only: +88-02-9569553/4 (if you wish to call at our Call Center from abroad for any emergency) For E-mail: cards@thecitybank.com (if you wish to e-mail us for any query from any part of the world) Corporate banking City Bank is a major player in Bangladesh wholesale banking industry to offer the full scope of innovative, customized solutions and services. We offer service at the highest level. Our focus is not on short-term profit, but on building long-term relationships and standing by our clients whenever they need us. We have a unique business focus on enabling project financing, trade, investment and supply chain financing for clients. We aim to be a one-stop gateway for corporate and financial institutions looking to extend their business. And we are committed to using our country wide network to facilitate our clients growing trade and investment flows and supply chain financing needs across our business footprint.

Page 15 of 34

We focus exclusively on corporate and institutional clients domiciled or conducting business in our footprint, offering clients access to our extensive branch network and award-winning suite of state of the art services. City Bank fully understands the importance of time, convenience and efficiency to the success of your business. We make easy the complex financial world for you and help you maximize every opportunity.

For the first time in the history of CityBank, SME Banking business processes are going to be driven thru a centralized platform model. This is a fundamental move away from a 25 years legacy system of decentralized geography based branch banking model. SME Banking of City Bank is assuming a new and modern dimension. It is entering in to a wider horizon. The philosophy of extending banking services to SME's of the country is to meaningfully push every one of them up to the next level of respective business operations. The upward push would be meaningful as they would be business wise competitive for a sustainable future. It is therefore would be turning in to an abode of SME's to grow to the next level. Hence, the bank has named it City Business - for taking SME's to the next level. For your better understanding please take a closer look at all the Manarah deposit and investment products and also visit any of our Dhaka Branches and Agrabad, Bandar BazarSylhet, Comilla, Rajshahi and Khulna branches for Islamic Banking services and products. City Bank introduces City Manarah - Islamic Banking. City Manarah is here to guide you and manage your finances in a fully Islamic Shariah Compliant way. It offers a wide variety of deposit and investment products such as Manarah Savings, Manarah Current, Manarah Term Deposit and Manarah Monthly Deposit Schemes. Each account is designed to meet your financial needs with best value for your money.

Page 16 of 34

Management System
MANAGEMENT OVERVIEW: Organizational management chart: CEO

Executive Directors

Regional Managers

Regional Managers

Regional Managers

Managers Regional Managers Regional Managers

Branch manager

Branch manage r

Branch manage r

Branch manage r

Branch manage r

Branch manager

Board of Directors:
Mr. Aziz Al Kaiser Chairman Mr. Hossain Mehmood Vice Chairman Mr. Hossain Khaled Director Mr. Rubel Aziz Director

Ms. Evana Fahmida Mohammad Director Mr. Razib Samdani Director

Mr. Rajibul Huq Chowdhury Director

Mr. K Mahmood Sattar Managing Director & CEO Islam Mr. Rafiqul

Mrs. Tabassum Kaiser Director Mr. Mobarak Ali Director

Khan Director

Mrs. Meherun Hoque Director

Page 17 of 34

Management Committee
K Mahmood Sattar Managing Director & Chief Executive Officer Mashrur Arefin
Deputy Managing Director, Chief Operations Officer Sohail R. K. Hussain Additional Managing Director & Chief Business Officer

Md. Ehsan Khasru

Additional Managing Director & Chief Risk Officer

Sheikh Mohammad Maroof Head of Wholesale Banking& Chief Business Officer

B Choudhury Head of SME Banking & Chief Risk Officer

& Chief Kazi Azizur Rahman Communications Head of Information Office Officer Technology Officer

Nasim Ahmed Head of Internal Control & Compliance & Chief Business Officer

Md. Ehsan Khasru Additional Managing Director

Page 18 of 34

VISION AND MISSION

Vision To be the preferred provider of financial products in the market. Mission To create exceptional value for our clients, investors and staff; through market leadership in providing innovative Shariah compliant products and solutions, and by adopting and living our core values.

Page 19 of 34

MIS Practices in Bangladesh.

Bangladesh is a developing country. But her economy is poor because most of population of the country is poor. For poverty the developing economy of Bangladesh is impeding. Another reason is that Bangladesh is not enriched in IT. In developed countries, they are so developed because of using modern technology in every sector of their activities. Their businesses cover the world as a result of using IT. For example: Japan, USA, Britain, German, Australia, South Korea, China, Finland etc. However, in Bangladesh the use of IT is more now than the past. The use of IT in Bangladesh is described through the following sectors: Government: The People Republic of Bangladesh is now using to accelerate the functions of various sectors. Bangladesh government has targeted to make digital Bangladesh within 2021. The Bangladesh government is using IT in following sectors: In education sector, now primary and secondary books can be read and download from the internet. We can have results through internet. We can sit for admission test via mobile. Now subjects are distributed among the students in National University through online. We can sit for exam via online for foreign university in Bangladesh. In agriculture sector, Bangladesh government has increased the use of IT. In the research of agriculture agriculturists use technology for improving the agriculture sector. Few farmers use scientific method of cultivation. LGRD are using IT to connect all union parishad etc. Business: Information systems automate manual business processes and make an organization more efficient. Data and information are available to a wider range of decision makers more quickly when information systems are used to change the flow of information. Tasks can be performed simultaneously rather than sequentially, speeding up the completion of business processes. Information systems can also drive new business models that perhaps wouldnt be possible without the technology. But in Bangladesh there is no available use of IT in business. Only few organizations use IS/IT in their business. For example: Banking Sector Telecommunications sector Pharmaceuticals Renowned Hospitals Appolo Hospitals Multinational company Uniliver BD Ltd. Dhaka Stock Exchange & Chittagong Stock Exchange

Page 20 of 34

MIS Practices in City Bank Organization computing resources:

Software Resources: Following softwares is used for the functioning of our information system and organization; Application Software:Following application softwares are used in our organization and functioning of our information system;

Microsoft Office NOD32 Anti-Virus Adobe Reader System Software: Following application softwares are used in our organization and functioning of our information system; Operating System (Windows XP and Linux) for PCs. Windows 2003 server for mainframes. Hardware Resources: Following hardware resources are required for the functionality of IS an organization:

Personal computers Canon Document Scanners HP Printers Networking cards Currency counter Coin counters HP Digital Scanners Dell Mainframes

Computing Type: In City bank, they are using client/server network because it is accessible and the employees easily share the data and this network is cheaper than others and this is easily maintainable and manageable. All the data save in main server or HUB and employees can easily access it. This type of computing system provides an easy access and efficient flow of data, which increase the functionality of organization. Organization transaction processing system: Page 21 of 34

Transaction Processing System: A Transaction Processing System (TPS) is a type of information system. TPSs collect, store, modify, and retrieve the transactions of an organization. A transaction is an event that generates or modifies data that is eventually stored in an information system. From a technical perspective, a Transaction Processing System (or Transaction Processing Monitor) monitors transaction programs, a special kind of programs. The essence of a transaction program is that it manages data that must be left in a consistent state. TPS in City bank: Effective transaction processing system is working in City bank that offer enterprise the means to rapidly process transactions to ensure the smooth flow of data and the progression of processes throughout the enterprise. Payroll TPS In City payroll TPS is designed to get information and record of the employ and then to calculate his/her annual earning. It get information about the employee from the employees department and 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 the LN record of the employees efficiency to work and may declare added bonus or other incentive. This report is checked and approved by the branch manager after which check is issued to the employee. And when that check is cashed, the record is updated in the general ledger as well as the master payroll (HUB).

Page 22 of 34

Employee Data

Payroll TPS General Ledger L

Payroll Master File (HUB)

Manage ment Reports

Check Passes by Manager

Check Issued to Employee

General Ledger L

Customer Identification:
In City bank there is their own information management named software Virses is working which is connected to NADRA. So if any new client wants to open an account in the bank the system automatically send a request to NADRA to check and verify the customer ID number. Which helps the management to identify whether he/she is using his original ID card or not

Input (ID #)

Viruses

HUB

NADRA (customer identification)

Managemen t

Page 23 of 34

Employees Record:
All employees are supposed to login when they enter the bank and logout on leaving, by tracing their thumb impressions on biometric device. This device is connected with the HUB which continuously makes record

of their hours spent in the bank. Moreover, the bank has their own setup named LN which makes records of all the transactions made by an employee. This help management to monitor the working efficiency of an employee.

Employee Job Login

Employee Job Logout

Biometric Device & LN

HUB

Real time Banking:

In many circumstances the primary factor is speed. For example, 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. The new transaction is send to LN. The LN enters the HUB where the specified file is accessed. The updates are made entered there and finally the update is done.

New Transactions Updates

Updated LN

HUB

Online Complains:
City bank allows the customer the option of online complains. The customer submits the online complain which is then processed by Customer Service TPS which is linked by management and after the problem identification it is send to the concerned department

Page 24 of 34

Customer Queries

Customer Service TPS

Identify Problem

Send to Concerned Dept.

Advices: As all of the record of the customers are stored in main server (HUB) of City bank, so incase if someone account balance is getting near to zero the system automatically alert the management about that. Then manager take manual action and send him/her the advice (a letter, mail or phone call) to check the account balance.

Account alert

Customer service TPS

Managemen t

HUB Advices send to

Page 25 of 34

Account Opening
This TPS is designed for opening a new account in the bank. Input: Give bio data, NIC no., income, city name. Process: Information send to the viruses. Output: new account opened in the bank

Viruses

Applicant Identification

Customer services TPS

New A/C opened

A/C Dept.

HUB

Online Activity Purpose: Transfer funds with the organization. Input: Concerned Branch code, city name, account title, amount & the transaction. Process: The information will send to organization server (HUB). Output: Transfer of fund to the concerned branch

Customer

Customer service TPS

A/C Dept.

HUB

Transfer to the concerned branch

Page 26 of 34

ATM Card Purpose: Easy with draw of cash. Input: Give bio data, income summary, company name, NIC. Process: NIC no. and bio data send to virses which directly linked to NADRA. If information is correct then it is forward to customer service centre. Output: Issue of credit card

Viruses

Applicant

Identification

Customer services TPS

New account opened

HUB A/C Dept.

ATM issued

Car Financing Purpose: Leasing a new car. Input: Account title, down payment amount. Process: The information is send to the HUB and verify the account of customer and make the schedule for leasing for the given period of time. Output: Customer can get a new car

HUB

A/C finance Dept.

Page 27 of 34

Management information system:

Operations and these reports come from the basic transition processing systems. In case of our organization the TPSs of ATM Cards, Payroll and Customer identification etc. provide the basic information about the organizations activities. These activities are 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 Transactions Processing System Management Information System MIS files

Payroll master file

Payroll TPS

Payroll data of employee

C.I info. Master file

Custome r identifica tion TPS

Customer data

Employees info. Master file

Employe e record TPS

Employees data

Customer account master file

Real time banking TPS

Customer data

Customer queries master file

Custome r service TPS

Customer complains data

Customer master file

ATM cards TPS

Customer data

Page 28 of 34

Transactions Processing System

Management Information System MIS Files

Customer Master File

Advices TPS

Advice data

Customer info. Master file

Custome r TPS Customer data

Customer Master File

Online activity TPS

Customer data

Customer Master File

Car financin g TPS

Customer data

MIS

Reports

Managers

Page 29 of 34

MIS reports and summarizes the organizations basic operations and these reports come from the basic transition processing systems. In case of our organization the TPSs of ATM Cards, Payroll and Customer identification etc. provide the basic information about the organizations activities. These activities are 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.

Page 30 of 34

Problems of MIS systems in City Bank

The bank is using the MIS very efficiently and increasing its profitability, but still there are several problems which are pointed out below: People Resources: People are the essential ingredient for the successful operation of all information systems. But in City Bank people do not have sound skill to use information systems well. Hardware Resources includes all physical devices and materials used in information processing. But in City Bank there are old hardware resources. In City Bank there is lack of information systems up-to-date. Core business processes are not fully accomplished through digital networks and span the entire organization or link multiple organizations. They sometimes do not sense and respond to their environments far more rapidly than traditional firms. There is no sound interdependence the organization and information systems. The organizations information technology (IT) infrastructure is not well organized.

Page 31 of 34

Recommendations for solving the problems

The bank is using the IS very efficiently and increasing its profitability, but still there are many things that should be improved. With the increase in the technology, the bank should made its IS up-to-date for providing best services to their customers and attracting more customers and increasing its productivity. The security of this system should be made. Credit cards system should be improved providing the unique facilities to their customers which the other banks have not yet introduce. Highly skilled people resources should be employed. Modern hardware resources should be available.

Page 32 of 34

Conclusions
A management information system is a system or process that provides the information necessary to manage an organization effectively. MIS and the information it generates are generally considered essential components of prudent and reasonable business decisions. These report discuses all the activities that the Management Information System performs in our selected organization City Bank. The reports starts with the background history of the bank such as when it establish, pre and post era etc. It explains all the TPS how the transactions are made by the bank, using of these TPS from the new events such as account opening, new allowances etc to the routine work including cash and payments record, updating of records, payroll and the processing of the complaints. These TPS holds all the activities from the manager and employees to the customers. The report discuses the inbound and the outbound logistics and relate all the processes of TPS used in the bank with the MIS, enabling the bank to provide the quality and satisfactory services to their customers. Also includes the inter relations, of all the entities in the database of the bank. ERD diagram represents all these relations. Business firms invest heavily in information systems to achieve six strategic business objectives or six reasons why information systems are so important for business today include: Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival The study of information systems deals with issues and insights contributed from technical and behavioral disciplines. The disciplines that contribute to the technical approach are computer science, management science, and operations research. The disciplines contributing to the behavioral approach are psychology, sociology, and economic. An organization can achieve Operational Excellence through ERP, SCM, CRM, and KMS.

Page 33 of 34

References
1. Md. Junaet Al Habib Information Technology Officer City Bank 2. Book- Management Information Systems Managing the digital firm (11th edition) By K C Laudon & J Laudon 3. Brancheau, J. and Wetherbe J. (1987). Key Issues in Information System Management. MIS Quarterly 11 (1): 2345. 4. www.thecitybank.com 5. www.wikipedea.com 6. www.scribed.com 7. Byrne, B. M. (1989). A Premier of LISREL: Basic Application and Programming for Confirmatory Factor Analytic Models. New York: Springer-Verlag. 8. Cash, J. I., McFarlan, W. E., Mckenny, J. L. and Vital, M. R. (1988). Corporate Information Systems Management: Texts and Cases. Illinois: Irwin Homewood. 9. Caudle, S. L., Gorr, W. L. and Newcomer, K. E. (1991). Key Information Systems Management Issues for the Public Sector. MIS Quarterly 15 (2): 171188. 10. Conarth, D. W., Ang, J. K. and Mattay, S. (1992). Strategic Planning for Information SystemsA Survey of Canadian Organizations. INFOR 30 (4): 364378.

Page 34 of 34