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Project of Management Information System Supervisor: M. Amir Ghafoor
By: Malik Saad Noman 2649-FMS/BBA/F09 Umar Farooq 2671-FMS/BBA/F09
Introduction of Management Information System For decision making, every organization needs information. Regular and relevant information are necessary for the efficiency of an organization. For that it is essential that an effective and efficient reporting system be developed as part of accounting system. Management information system collects and obtains regularly required information about the operating results of an organization in order to use them for future planning and control. Now a day, all old techniques (e.g) intuition and rule of thumb etc are useless. Now modern management is constantly look out for such information which can help in analyzing the proposed alternative actions. There for modern management functions are information oriented which is known as management by information and that system through which information is communicated is “Management Information System”.
Introduction of Bank
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 Bank’s 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 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. Total
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.
Information System in Allied Bank Limited Allied Bank Limited is using information system since 2005-2006. Previously they was using core banking solution UNION BANKING SYSTEM (UNI), and almost about one year ago bank starts another banking solution named TEMENOS (T24). Old Management Information System in Allied Bank Previously management information system which allied bank used was UNI BANKING SYSTEM. Language of that information system was UNIX, and in banking terminology this language was called COBAL. This information system was MS DOS biased. With the help of this information technology allied bank record the daily transactions that was of only one branch. It was decentralized database. Decentralized means all transactions and processes are record in one place. All daily transactions were recorded and saved into one server; every branch of allied bank had its own server which was not linked to any other branch of allied bank. This information system was only being operated on LINUX OPERATING SYSTEM. Benefits of UNI Banking System:
Easy to use: It was easy to use because people are expert they were using this operating system from many years. It was most familiar to operators because it was user friendly and also not complicated.
Safety: This operating system was safe because its programming (coding) was very difficult, that’s why hackers can’t hack information from this operating system. This information system was can only used on LINUX operating system for that it was free of virus, so data was very safe.
Low cost: This system was low cost, because LINUX operating system was almost free of cost and easily available.
Draw backs of UNI Banking System:
Problem in system: It was logical error, means missing numeric values; this operating system was full of problem in online system. Sometimes during online working it was missing transactions and banker had no knowledge of that missing transaction.
Decentralized: It was decentralized database system not centralized; mean had not relation with other branches.
Difficult installation: This information system was difficult to install, because it can only operated on LINUX.
Difficult in troubleshoot: When ever there was a problem in “line code”, then it cannot be resolved by any one. For solution of that problem, bank always called to special application developer from head office.
DOS biased: DOS is only biased on commands, and this operating system was DOS biased. So it was difficult to operate.
Present Information System in Allied bank: 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.
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 system’s 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 employee’s 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 employee’s 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
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. Bank’s information system automatically verifies customer’s 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
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.
Drawbacks of T24:
Cost: T24 is expensive as compare to UNI banking. Centralized: If performance of one branch is not good then it has effect on other all performance. Security: Security of T24 is less then UNI Banking, because it is easy to hack. So data is unsecure
in T24 Transaction missing Chances: After migrating on TEMINOS T24, Allied bank is still using
manual system because there are some problems (regarding missing Transactions). Communication: Communication between employee and boss through this Information System is
possible just within the branch. That is E-mail service. Messenger service is not available in this system.
Conclusion:
A management information system is a system or a process that provides the information necessary to manage an organization effectively. This report discus, all the activities that the Management Information System performs in our selected organization “Allied Bank limited”. The report starts with the background history of the bank such as when it establishes in Pakistan, the branches, pre and post era etc. Our conclusion is that, how the transactions of TPS are made by the Allied Bank Limited, using
of these TPS from the new events such as account opening, new allowances etc and routine work
including cash and payments record, updating of records, and payroll. 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