(2804 words)
QUESTION ONE
Identify and describe as many distinct sub-systems of Cash Mountain as you can. For ANY TWO of your identified sub-systems, describe the following system components:
Banking is one of the most important foundations in business or personal financial development. Technology has been evolving rapidly from physical traditional banking (Cayazzo, 2006). There before, customer were availing themselves to the bank for any transactions or inquiries. Then banks began the operation of automated teller machine (ATM) making it easier for bank customers to access cash at their convenience. ATMs have evolved to a point where a customer can withdraw from different geographical locations all over the world and even deposit money in the form of cash. Other developments include; paperless banking, cell phone, and internet banking. Cash Mountain on its unique way introduces other much needed services which makes banking easier and more convenient to its customers. This study focuses on two of its most innovative inventions to ease banking shortcomings; that is; the' Cash @ Home' services and the ‘service 24'.
The goals/ objectives of the system
Sometimes people are limited by various reasons from leaving their homes, and they may need bank services urgently. A mother with an infant normally would be inconvenienced with a crying baby in a banking hall with a crying baby. Other customers may be uncomfortable with the same situation. The Aged who are ailing and those in complex situations that do not permit them to avail themselves to a bank often get uncomfortable (Schaek, Čihák and Wolfe, 2006). The main reason for ‘Cash @Home’ is to provide secure banking services at the doorstep. By a simple telephone call, text message, email or secure social media direct message to the bank a customer can receive and deposit money at the comfort of their house. It is safer to receive your cash at home rather than drive or walk with the money. Customer service crisis has made this service popular by solving a constant displeasure in a banking hall.
24/7 is a popular system in many banks whereby one can access bank service and support virtually 24 hours 7 days a week. ‘Service 24' does it better. Visit any Cash Mountain any time of the day and access all banking service with teller support. ‘Service 24' aims at covering a larger customer base including customers working at night or those who have no time to visit the bank during the day. Doctors, firemen, security personnel among other professionals work around the clock in support of the 24 hours economy. The bank maximizes on all transactions while providing bank services to those requiring it and also giving a solution in cases of an emergency. Major surveys show that muggings, medical emergencies or accidental losses occur mostly at night. With an assured banking service, you only have to walk into any Cash Mountain banking hall and solve your problem.
The stakeholders of the system
Customers, suppliers, creditors, the government, and the community are some of the stakeholders of the ‘Cash @ Home' and ‘Service 24' both service systems provided by Cash Mountain. Stakeholders are explained as having direct interests in the banks activities, and they are affected or affect the banks and services actions, objectives and policies (Chorafas, 2007). Customers are directly affected by the ease of acquiring cash from the bank. In case of an emergency situation, customers can still enjoy banking services without any trouble in both systems. In this case, the courier services ensure safe delivery of the money using ‘Cash @ Home’ improving the relationship between the customer and the bank. Creditors cushion the bank against losses. The government regulates banks activities according to its monetary policies. The community provides both clients and employees of the bank. The bank is directly affected, and a smooth running between stakeholders keeps the bank profitable.
The inputs/ output of the system
In any business model, there are inputs and outputs. For ‘Cash @Home' and ‘Service 24' services to successes the bank need to add investment for the success of their services. Significant flow capital is required to facilitate physical and information technology for the success of the system. People with the technical know-how are needed to monitor systems to ensure no fraud or cases of stolen identity taint the impressive ‘cash @ Home.' Input concerning more employees is required too at the bank to work both the day and night shift for ‘service 24' without compromising work quality and the environment. Enough security should be employed to ensure cash reaches the customer safely and the bank employees escorting the money are safe too. More security guards manning the bank are required to ensure its safe enough for customers to go in at any time of the night and also ensure the employees are safe working too. A large number of courier vans are required to reduce time customers wait for cash in cases where more people require the service (Ellinger et al., 2006). The bank should consider a mobile bank closer to neighborhoods that the services are often requested. In return from the inputs Faster, a convenient and safer cash delivery service is achieved (Neave, 2009). Excellent service delivery is the largest output. Customer service, creating job opportunities for employees working directly or indirectly with Cash Mountain, ensuring security to areas near Cash Mountain, saving people who need cash urgently are among outputs of the system.
The associated feedback
Positive feedback is expected mostly from the improved services differentiating Cash Mountain to other banks. Most customers are impressed with the idea of home delivery banking services working. Unlike where customers were always required to be in a banking hall for any transaction, but everything is easier with the new system. Cash Mountain has totally changed 24/7 banking to a new level with ‘Service 24' which has received a lot of positive feedback. Some complaints are received in concern to the delivery staff conduct and attentiveness during the night shifts. Some staff members are rude to customers, and others act suspiciously in the customers' home. Sometimes customers are worried welcoming a stranger into their homes (Lucey, 2005). A suggestion is often made that a staff member should frequent the same client to cancel out the feeling of allowing a stranger into their homes. Also, customers think it would be a good idea to have the same services extended to other countries so that they can still enjoy the same service if they are on vacation or business trips.
The transformation involved
Cash Mountain is constantly on the lookout for ways to achieve customer satisfaction and bridge a gap between services required and services provided. That is why systems like ‘Cash @ Home' and ‘Service 24' exists and run making Cash Mountain a profitable and convenient choice to a customer. From a general traditional banking abiding institution, Mountain Cash has transformed immensely to achieve the best banking system in the UK. Its transformation involved monitoring and evaluation to come up with the most cost-effective way to launch a working system that not only saves time but also saves the bank from unnecessary use of its capital (Lamberti and Büger, 2008). After monitoring and the evaluation the planning phase commenced, this involved carefully examining the needed inputs, as explained, and the best environment for the system to work. Planning tests how a working idea would play out in a typical environment. All the needed material and information is made available at this stage in readiness of the implementation phase. At the implementation stage is where the idea transforms to reality. Implementation involves putting the structures into place that is equipment, facilities, employees and the service providers. ‘Cash @ Home' and ‘Service 24' systems have evolved from serving a small percentage of Cash Mountain Customers to providing banking services to almost every individual in need. More customers are coming in the process. Cash Mountain encourages feedback and suggestion on ways to improve its systems.
The system boundary of the system
System boundary gives a guideline of what to do and what not to do. Coming to this decision is difficult with conflicting views between different stakeholders in the mater. While the bank sees the system as a problem solver, the government sees it as a source of evil (Liébana-Cabanillas et al., 2015). It is very difficult for the two entities to come to a consensus about the key working of the system. The bank has to work within the limit whereby the system does not pose any security harm to the customer or other people. The bank has an obligation to ensure no criminal activity is facilitated by the system and the government too. Mostly in banking relationship, there is a teller, user, and an auditor (Machiraju, 2008). The teller manages and restricts a user on withdrawals and deposits while the auditor oversees the transactions of a user and the teller on behalf of the bank.
The environment of the system
The environment of the system should ensure sustainability and working of the system. A sustainable environment has to embrace the ideas of the system. A system can hardly work if forces are working against it. Both the community receiving the services and the employees responsible for providing the same service need to embrace the systems and work towards a working dynamic (Bessis, 2010). Security is a crucial factor all systems require a secure environment. Customers need to know and feel their money and the systems involved are safe enough. Tellers working at night need to feel they are in no harm’s way working (Lin, Wu and Tran, 2014).
The hierarchy of the sub-systems within the systems
There is a hierarchy in the subsystems. ‘Cash @Home' is a system comprising of other systems providing the same services at different urgencies. Under the ‘Cash @ Home' system other services are provided. The highest ranked system is ‘@ Disaster' this service covers delivery of cash at home in high alert cases. In case of kidnapping and ransom situations, a fire outbreak, other natural disaster cases. A customer is required to provide a high alert reason, and the bank provides money faster to the requested location. ‘@ Supreme' offers cash in a differentiated way, high-end cars, and exclusive couriers among other services(Bongini, Chiarlone and Ferri, 2009). This service is mainly provided to celebrities and important personnel. The ‘@Home minor' system allows a customer to send a money delivery to kids at home or in cases of an emergency. ‘Service 24' provides ‘App 24' application that alerts a customer where to reach the nearest outlet.
Draw a large, easy-to-read and well-annotated diagram that clearly shows a visual equivalent to the above discussion. Be sure to show all identified subsystems, boundaries and inputs/outputs.
Figure 1: Visual Equivalents for the banking system (Bongini, Chiarlone and Ferri, 2009).
QUESTION TWO
Explain the meaning of the terms CATWOE and Root Definition. Apply such concepts to ONE of your identified sub-systems.
CATWOE, according to Peter Checkland is a part of his soft systems methodology (SSM) it is a checklist of thoughts, it is a system used by business forecasters to establish the goals, the drawbacks areas and how solving them is going to affect businesses and individuals involved while root definition is explained as a structure description of a system, a clear report of actions which will or might go on in the system being studied (C1 Payment Systems, 2012).
C- Clients.
Clients are mainly the users of the system. Clients benefit directly with the service and likewise, suffer in case of any changes. In the case of ‘Service 24,’ individuals working at night or working all day are some of the clients. Unfortunately, in mugging, one is left with no cash but as Cash Mountain client can easily walk into any outlet and access cash. Clients may face transportation issues; it's hard to find a mode of transportation at night. Other times insecurity is an issue. Clients have reacted in a positive manner commending the service as a way of bridging a gap. Clients are the ultimate winners, but employees have to contend with long working hours and sometimes security threats (Laudon and Laudon, 2000).
A- Actors.
Actors are the people tasked with implementation of the system and changes. Cash Mountain employees are the actors in the implementation of ‘Service 24'. They are tasked with working all through the night to provide banking services to the morning. Their lives are impacted with the changing schedule and extra cash in the salaries earned. The reactions are mixed because of the conflicting schedule between personal life and work.
T- Transformation.
Transformations are that changes a system brings. ‘Service 24' transforms the system from 8am-5pm banking to 24 hours’ full support and outlet access banking. Inputs are efforts directly from Cash Mountain and output is basically through the service. The steps in between involve the implementation process.
W- Worldview.
It shows the wider effect of the transformed system. Worldview explains the constructive and the unconstructive impacts on the on the whole business (Bessis, 2010). The bigger picture, how the system will be of benefits Cash Mountain, the community and the country at large by solving the limitations of normal banking and providing a much better solution.
O- Owner.
The owner in this case is the Cash Mountain management. They are the ultimate decision makers; they make changes, stop the system or decide how to move forward with the changes. They are majorly involved in helping the implementation and smooth running of ‘service 24’.
E- ENVIRONMENTAL CONSTRAINTS.
These are the external factors limiting the success of the system. Some of the constraints are government regulation through security agents. There could be obvious security concerns on the working mode of the system. Working during night hours is considered insecure as compared to day operations. Financial constraints may arise as the number of working personal increase proportionately to the increase of working hours.
QUESTION 3
The design and analysis of systems and their sub-systems have many models to use. Explain the following terms, supported by suitable example diagrams – which should be based on the above case study:
Activity Sequence diagram.
Is a graphical representation of the workflow which shows how a process operate.
Figure 2.Sequence Diagram for Cash Mountain banking system (Liébana-Cabanillas et al., 2015).
System maps
The system map is a visual representation of the technical service organization, that is, the actors involved, the links between them and the flow through the system.
Figure 3. Systems Map for Cash Mountain and its departments (Bessis, 2010).
MIND MAPS
This is a diagram formed around a singular notion and visually organizes information. All the systems revolve around Cash Mountain as the service provider.
Figure 4. Cash Mountain Mind Maps (Neave, 2009).
RICH PICTURES.
Rich pictures provide a method for education about complex or ill explained problem through a simple picture. The illustration shows the relationship between the bank and account holder and services the bank is providing; ‘Service 24' and ‘Cash @Home.'
Figure 5.Cash Mountain Rich Picture representation (Bessis, 2010).
QUESTION FOUR
Explain the terms hard and soft systems. On the above case study, critically evaluate where each could be suitably applied, supporting your discussion with specific examples and diagrams.
Hard and soft systems are part of a variety of techniques used in systems thinking. A hard system involves simulations, mostly by the use of computers and the technique is used in operational research. Hard systems give the best way to achieve and test selected options of analysis and development. This system methodology is useful in problems that are quantifiable. Example how efficiently can the ‘Cash @ Home’ system reduces the number of people in a bank line hence cutting back on time wastage and maximizing on resources for much profitable output (Bessis, 2010). Another example is the curbing of the number of incidences that result from mugging, using ‘Service 24' you can access money anytime reducing the need to carry cash. Hard systems can as well take into account unquantifiable variables for example customers opinions on what system is of help to them and what changes could be useful. The hard system can also treat people without complex motivation. The objective is mainly determined by fixed rules, and it is statistically based on probability and inputs are fixed while the outputs are known.
On the other hand, soft systems are crucial in tackling systems that are hard to quantify, especially ones that people and their interactions with other people and with systems. The soft system is important in understanding viewpoints, motivations, and interactions but no quantified answers are availed.
Conclusion
In conclusion, it is clear that hard systems help in identifying the cost of the system and what savings could be made, come up with ways of improving the system and finally develop user requirements. Soft systems are tasked with promoting learning, giving insight on complexity, pinpointing weaknesses and understanding relationships.
References
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