Impact Of It On The Organisation

Published Date: 02 Nov 2017

Heading

Assessment Criteria 2

Team Member particulars: 4

Abstract: 5

Malayan Banking Berhad(PNG) Ltd (Maybank) 6

The Scenario 7

The Functionality 7

ATM�s 8

Advantages/ Disadvantages 8

ATM 8

Individual Reports: 11

Flowchart Showing Relationship Between Elements: 11

Mobile Computing 12

The ATM of the Future 13

Mobile Technology Revolving Around the ATM 14

Security Issues Related To ATMs 16

ATM security risks 16

ATM physical risks:- 17

ATM Cable problems 17

Software and Hardware Problems 18

Conclusion 19

References: 20

Assessment Criteria

(100%) Marks Allocated Marks

Given

GROUP

(70%) a) Documentation

Materials are presented professionally using correct grammar, punctuation spelling and length. Addressed report guidelines. 10

b) Coursework structuring

� Introduction

� Main body

� Conclusion/ Recommendation 10

c) Research & References

Supporting research clearly explained and presented. Thoroughly lists references that are relevant to the topic.

This includes proper use of citation and referencing; following the Harvard Referencing System for all facts and diagrams used and evidence of research and reading. 10

d) Argument Coherence

Paragraphs are in a logical sequence to the whole and flows logically into the next. 15

e) Group Analysis

Justifications and analysis

� Current scenario

� Functionality

� Advantages & disadvantages

� Impact of the technology 25

INDIVIDUAL

(30%)

f) Individual Analysis

The similarities and differences with the lectured covered in this module

15

S1 S2 S3

g) Original Ideas & Critical Thinking

Clear evidence of original ideas and critical thinking. 10

h) Research & References

Supporting research clearly explained and presented. Thoroughly lists references that are relevant to the topic 5

Total Group Mark 70

Total Individual Mark 30

TOTAL MARK 100

Student Name Topic Student ID Mark

S1 Muhammad Abdul Hadi

Mobile Computing TP029826

S2 Esam Eldeen Salah

Human Factors TP029947

S3 Alaa Aldeen Salah Security Issues

TP029974

Team Member particulars:

Student Allocation of Work Signatures

S1

Abstract, The Scenario, The Functionality, Impact of IT on the Organization, Mobile Computing, Conclusion

S2

Advantages and The Disadvantages of the ATM, Human Factors, Solutions to problems with the ATM, Conclusion

S3 Introduction to Maybank, Security Issues, Solutions to Problems with the ATM, Conclusion.

Abstract:

The whole focus of this report is on Maybank�s ATM system, of course Maybank has developed a lot more IT systems but the emphasis is to be laid on the common yet revolutionary ATM.

In this report we discuss how the humble ATM came to being, the reasons why it became so successful on a worldwide scale. The ATM was developed slowly and overtime it became the influential system we know of today.

The following report will shed led on how the ATM functions, both as a machine and as a tool. We also talk about the advantages and the simultaneously unavoidable disadvantages. I guess the reason it has been so popular is that the benefits overpower the drawbacks.

The ATM machine has proved to be successful. The highest point of impact has been towards banks and other financial co-operations, consumers and the employees working for their respective financial organisation. The discussion of this impact helps us better see the trend the ATM is taking us towards.

In this report you will find the ATM related to human interface, mobile computing and of course security issues. The reason we have chosen these topics is due to their significant importance, whenever a banking service is to be utilised.

There is no IT system yet, that can be said to be perfect. All systems have their flaws, and the ATM is no exception. We have managed to highlight the most pressing and persistent problems regarding the ATM. We have come across these through consistent research and questionnaires. After identifying the problems, we have tried to solve them, therefore a few proposals have been presented in this report.

Malayan Banking Berhad(PNG) Ltd (Maybank)

Maybank was founded on (May-31-1960) by Khoo Teck Puat, based in Kuala Lumpur, Malaysia

Today Maybank is one of the largest and a highly successful financial service group in Malaysia. This is because of their outstanding service delivery and high attention to customer interests.

Maybank is a financial service, which provides:

� Safeguarding monetary interests.

� Personal loans.

� Online banking.

� Insurance

� Stock Broking

� Money Transfers

� Monetary Services

� Banking services.

Currently Maybank is headed by two executives who include:

� Mr.Abdul Wahid Omar; president and chief executive officer group.

� Mohd Rafique Merican Mohd Wahiduddin Merican; group chief financial officer.

These two executives play a key role in Maybank�s successful progress and they have been putting in a lot of effort and using new technology to keep the company moving forward and maintaining a competitive edge over others.

The Scenario

Maybank currently employs 45000 employees serving around 22 million customers (Ref 1). Thousands of customers avail the facilities of the ATM (Automated Teller Machine) everyday, online banking has become an essential part in the daily lives of people. Simply put, banking has come a long way over the last few decades, mostly because of information technology.

It is very important to lay emphasis on the development and adaptation of this technology, the question that arises is why did the banks leave their orthodox methods and implement this change?

As an organisation with profit motive, updated more efficient technology proved to be very valuable to the company in order to maintain a competitive edge over their rivals. Without this technology it would be quite impossible for Maybank to serve its customers. Imagine hundreds of customers lined up, using cheque books or seeking information at help desks. With the development of technology, banks have become a very low contact service provider, a self-service in simpler terms. Customers are more part of the service then the employees themselves. The technology employed nowadays is very customer friendly which is the foremost reason for its success.

So we can easily say that IT has changed the banking system for the better, all banks nowadays have upgraded to the latest technology in order to provide the 21st century banking experience.

One of the major technologies Maybank relies on is the ATM, which will be discussed throughout the entire report

The Functionality (ref 2)

Maybank definitely makes use of more than a single IT system, but the most used and commonly understood system would be:-

ATM�s (Automated Teller Machines):

Generally referred to the ATM, the automated teller machine made banking revolutionary, it made banking service available almost anywhere at any time, all the user has to do is visit their nearest ATM, with the ATM available around every corner, at every mega store, finding an ATM is no hard chore. The ATM can be used to withdraw money (sometimes even deposit), payment of utilities, balance inquiry and some other features depending on your bank and location. A typical customer interaction with an ATM would probably go like this.

� Inserting ATM card into the specific card slot.

� Typing in the PIN(Personal Identification Number)

� Language selection has become a very important feature, due to increase in number of foreigners availing the service. English being the global medium is found in all ATMs.

� Select what you require, for example balance inquiry, withdrawal etc.

� The ATM then processes your transaction; you may choose to take a receipt in the end.

� This entire process will generally take 3-5 minutes.

Advantages/ Disadvantages

ATM (Automatic Teller Machine)

Advantages:

� Easy access to cash amounts almost anywhere.

� It is a good substitute for people who do not want to use credit cards.

� ATM is a good travelling companion, it enables you to withdraw at almost any country, it keeps safety at mind at all times.

� Can be used for balance inquiry.

� Can be used for depositing cash as well, not only withdrawing it.

� Cheaper where bank charges are incurred and often quicker than using normal cashier services.

Disadvantages:

� ATMs can only perform relatively basic transactions.

� This means that people who need to complete these longer transactions will be forced to visit their nearest branch, restricting use of the ATM for people who need to complete simple business.

� ATM is rather like the express line in a supermarket faster for some, but unavailable.

� There is no privacy at the ATM.

� No security guards when using an ATM.

� Unwanted spies, delicate information appears on the screen, without user being aware.

� The ATM also gives in-sufficient feedback.

� Risk of losing The ATM.

Impact of IT on the Organisation

�Information technology and business are becoming inextricably interwoven. I don�t think anybody can talk meaningfully about one without talking about the other. �Gates, B. (reference 3)

So extreme emphasis has been laid on the importance of IT, meaning IT definitely has a huge impact on the organisation, whether it is positive or negative.

Maybank is definitely using its IT systems successfully, the main reason for this being, simplicity.

Through this incredibly efficient banking system the world has adopted, banks like Maybank have managed to increase productivity and quality, both at the same time with no compromise.

The easiest way to discuss the impact of technology on Maybank is by looking at the banking industry in the past and comparing it with what we have now. It�s safe to say that most of these changes have been caused by improved technology

The organisation can be divided into several key areas, these may directly affect the organisation which is why it is important to analyse them all to conclude to the overall impact.

� Impact on Consumers:

It is of course very important to consider the consumer views and evaluate how they feel about changes. Higher class security, many options to choose from and privacy have all improved due to implementation of latest security software and hardware, Maybank is well equipped to handle threats. Technology has made almost every transaction hassle free, reduced time consumption is welcomed by consumers. As the service is a very low contact service, the customer role is very important.

Happy and co-operating customers mean increase in efficiency of the service, increase in brand loyalty and the image of Maybank. This of course has brought plenty of benefits.

� Impact on Employees and Organisational Culture:

With the development of technology, employees definitely have to be trained according to the new work procedure. X% of projects fail due to human factors. The reason for the success of this technology is that it�s simple, easy to understand. It Is a lot more motivating to learn something that is actually easier to use. So the technology adopted by the bank today has definitely help reduce the workload and stress of workers.

Apart from reducing workload, increasing motivation, IT has also laid a lot of Emphasis on Ergonomics, the study of making work environments safe, healthy and as comfortable as possible.

� Impact on Organisation Operations and Profits:

The ATM has been available as early as the 1980s and became popular throughout the 1990s, now it�s a universal technology. In the early days ATMs were only used for withdrawing money, therefore they were used as substitute for cheque withdrawals. Nowadays ATMs are used for so many other facilities. This reduced the need for employees to manage most of the frontline taskforce. Therefore with the development of technology Maybank has managed to reduce its operation cost by a huge margin, making a solid contribution to the higher profits.

It is true that the profits of Maybank have increased (ref4), but we cannot certainly say that it is because of the advancement in technology. Technology has definitely helped but not quite directly. The increase in population (ref5) is the major cause for a higher demand of banking service, the new technology has enabled Maybank to able to supply their service to higher number of customers than ever before.

Individual Reports:

� Human Aspects of Computing related to Maybank

� Mobile Computing, is portability really beneficial?

� Security Issues, the reasons to be cautious.

Flowchart Showing Relationship between Elements:

As we can clearly see from the flowchart above, the basic system of IT revolving around the ATM is shown and of course they are all related. The red circles/lines show area of human interaction, the blue square shows possible involvement of mobile computing and lastly the yellow rectangle and lines show the possibility of a security issue arising.

In the individual reports we talk about the listed three elements which could be most influential while using the ATM. The following reports show how these three factors relate and interact with one another while utilising the IT system in discussion.

So in a way we can say that they all arise form similar interests. I.e.

Withdrawing a sum from the nearest ATM:

� The human factors will definitely count, because the person in example has to interact with the machine physically and also give feedback.

� As the ATM is a publicly available service, there is always risk of intrusion, therefore a security issue always arises

� Lastly the person in question may decide to cross reference his transaction using mobile computing.

This relationship is always created and it will be considered a part of the entire system.

Mobile Computing

Through the term �Mobile Computing� we understand be able to use our personal computers and devices at a more flexibility ratio than ever before. When we talk about mobile computing in terms of banking we create a system that can be accessed with convenience.

The system that we have been talking about in this whole report has been the ATM system, and mobile computing can be applied to that as well.

Like we said before the process of the ATM is defined by the following flowchart:

The flexibility and mobility of the IT system depend on the stage of the process.

The main types of systems that would be used is:

Fixed and Wired

It is in the first stage when human interaction actually takes place. As the ATM is a heavy, power consuming machine, it is not that portable. It is fixed at specific locations over an area, the only reason that it can be considered mobile is due the quantity and easy accessibility of machines present but it cannot be moved.

The second stage of is where the processing of the transaction, in this stage the machine has to communicate with the bank servers, this means it requires a secure connection to the bank servers. Generally in the current world the ATM will use a telephone modem over a VPN( Virtual Private Network). The reasons for using a VPN is security and privacy for the transaction and it also helps to increase the transaction speed as it does not have to deal with any unnecessary traffic.

So I could simply say that the ATM can be included in mobile computing but not completely because of the reasons mentioned above. It may not be portable but due to the quantity of machines present it becomes mobile.

However there are certain factors that go in the favour of the IT system, if we overlook the idea that machine alone is the IT system. The ATM IT system will also include all related applications such as:

� Text Alerts

� E-mail Alerts

� ATM Transaction History

All of the above applications are complimentary or optional services one can have along with a ATM card. These applications will be categorized under Mobile and Wireless as they can be easily accessed over the internet and telecom services, for free or a very low cost.

The ATM of the Future

If we identify the major issues being faced by the ATM machine, they can be:

� Security Fraud

� Regulations and Legislations

� Online Banking as a substitute

However people prefer self-service, and instead of diminishing the idea of the ATM, it is better to improve it. Mobile Technology is likely to affect the ATM more than anything over the next five years. We can easily note that the current world is more digital and technology based than it was ever before, people have grown up with technology and mobile computing , �Digital Natives� as they are called. Therefore the idea to represent the ATM in the future is to integrate mobile computing with the self-service experience the IT system provides.

The Cash Barrel

Characteristics Devices Mobile Tech

Screen Free Finger Scanner 4G

ID through Card or Thumbprint

Only for Withdrawals

Withdrawal Time in seconds

Cylindrical design for Security

Cheap to Produce

The Tower

Characteristics Devices Mobile Tech

No Interface PDA�s NFC

Withdrawals Only Smart Phones

Small Slim Tower

Withdrawal Time in Seconds

Transaction is firstly configured on device and then referred to the tower through NFC

The Motion Sensor

Characteristics Devices Mobile Tech

Touch less Interface Motion Sensor Infrared

Pointing and Waving

Transaction Time: Minutes

In Depth ATM Functions

Characteristics Devices Mobile Tech

Single 19� Touch Screen Touch Screen Personalisation

Revolves 90 Degrees for Privacy

In Depth Functions

Transaction Time: Minutes

Mobile Technology Revolving Around the ATM

I have already mentioned that the ATM of the next generation will be simpler and much faster, due to the new technology incorporated within the design. One of the most important improvements will be how the machine communicates with the human user and of course the bank servers. When we look at mobile or wireless computing overall, the method it will follow will always be more or less the same. The main change in scenario will be caused by different kinds of devices used.

We mentioned mobile technologies such as 4G, NFC and Infrared. They all follow the same pattern as shown above, the only difference would become the hardware and duration of each individual process.

If we talk about NFC (Near Field Communication), it generally comprises of two devices communicating directly to one another. Therefore the process staged above happens in a short amount of time.

The Application Layer deals with the purpose itself, in NFC it will refer to the wireless device starting the communication, when the device is used to access the wireless network.

The Transport Layer is used to establish a connection.

The Network Layer is actually responsible for routing the connection to the correct receiver.

The Data Layer is the actual transaction of the information relevant.

And, finally the Physical Layer coverts the information received in to actual presentable data.

All this happens in a matter of seconds especially in a near field communication system. In a NFC system the main hardware will be the two devices used, in our case the ATM and the Smartphone. However in a 4G connection, the hardware involved would be Cell Towers, LTE devices .etc.

Security Issues Related To ATMs

Security issue is often represent threats and harms to a device, where threats are a possible, danger that might take an advantage from a weak area to breach the security of the device thus causing a possible harm, and here are some examples:

ATM security risks

Is an action that causes damage or loss to ATM system and there are many reasons for the damage of the ATM such as:

� Skimming:-

Skimming is one of the biggest problems to ATMs in the current technical age, the biggest threat to ATM security. A type of fraud which occurs when an ATM is compromised by a skimming device, e.g. a card reader which can be disguised to look like a part of the machine. The card reader saves the user card number and pin code, which is then replicated into a counterfeit copy for theft.

� Ghost ATM�s:-

A Ghost ATM is when the entire card reader is blocked off and the person can�t make a transaction, e.g. the person put his card and enters his pin and then the fake ATM says it can complete the transaction.

The main reason for this to be such a threat is because the user relies on the transaction to be original, meaning he believes that he has paid/transferred whatever amount he had wished. This could later cause huge time wasting problems and dis-agreements.

� PIN Hacking:-

The PIN is the individual user�s personal identification number. This is when criminal hackers break into a database, then they go to an online banking site with a hacking software that plugs in several well-known (people tend to use their birthdays as ATM PINs, so it is a huge probability that a pin such as 1990 or 1985 is being used by someone) PINs, and then when it finds the same PIN it gives the criminal access to your account, leading to total loss of money privacy.

� Malware Software:-

When we talk about Malware Software, it�s a kind of virus that lets the criminal to take control over the ATMs to steal data and PINs. Usually this can lead to loss of large amounts of money.

� Automated PIN Changes:-

This is when the criminal goes through the bank telephone banking system and change the customer PIN, and he also might change the person Automatic Number Identification (ANI) which is a system that identifies the Directory Number (DN) of a caller.

ATM physical risks:-

� Ram Raids:

This is when the criminal physically breaks out the ATM from the wall or wrap the ATM with chains and drag it with his truck, once he removes the chain he then destroys the machine and takes out the money.

� Other Physical Risks:-

Another attack method which the criminal surround all openings of the ATM with short tempered gas or put an explosive inside then once the vault is destroyed the criminal break in and take out the money. Another frequent happening is the basic method is when the person is about to make a transaction the criminal approach to person, attacks him and takes the money. There is also a rare method that the criminals dig a tunnel under the ATM and cut the base of the ATM to remove the money.

ATM Cable problems

The ATM cables are one of the essential elements of the ATM that makes the ATM work and do its job, and without the cables the ATM won�t be able to function, and there are many types of the ATM cables such as:

� Series speaker cable.

� Star quad cable.

� Microphone cable and many more.

Sometimes the cables have some problems but the main one is when some of the cables over heat the other cables cannot afford to stand the heat which probably leads to shut down or destroy the ATM.

Software and Hardware Problems

ATM viruses

A type of program that has the ability to spread through the ATMs to damage and ruin the files, the virus is created by unscrupulous programmers and then they use the internet to send the virus to the ATM once the virus connect the ATM starts to lose files and gives the error signal on the screen and the user won�t be able to make the transaction, there is also a virus that infects the ATM to steal the money from the users bank accounts.

System failure

Can be occurring because of electrical power distributions or software issues, usually a system failure will cause the ATM to freeze or stop functioning or perhaps the loss of the data, and there are also some reasons to the system failure of the ATM which are:

� Faulty hardware: due to the fail of hardware component and also the physical abuse like hard knocks and etc.

� Putting incorrect elements to the ATM recruitments: this condition happens due to the lack of the software developers, because they don�t put the right ATM recruitments,

Which eventually leads to the system failure of the ATM.

� Poor development training: primary caused because of the software developers because they don�t test the programs, poor user interface and they provide poor documentation.

� Poor fit between the system and the organization: this occurs when the software developers do not understand their tasks and do not know how to deal with the new systems.

Solutions to Various Problems

It is true that many of the things we have discussed before have a risk factor and thus are a problem to the company, here are some ways these problems are countered.

In the report previously we mentioned that there are many problems or issues about the ATM, and here are the solutions for these problems such as:

Skimming: The ADT device which stands for (abstract data type) is an anti-skimming solution that can help to protect the integrity of card holders personal financial information during ATM transactions, and it also trigger a silent alarm to inform the command center that there is a skimming activity, the ADT device is installed inside the card reader making it unseen from the people.

Pin ID: The bank must have a strong data base password and also the user must use a strong pin so the criminal cannot access.

Malware: The software developers can run antivirus software in the ATM so the criminal cannot steal the cash by using the ATM malware.

Ram raids: The bank should install a battery backed GPS in the ATM so they know where is the ATM. The bank should have an ATM sensors which should give instant alert of any criminal activity, any tampering with the ATM.

Cable problems: The software developers should make heat insulator cables so it doesn�t affect the other subject to heat cables.

ATM viruses: The bank must run a security software to see if their machines are at risk or not.

Faulty hardware and putting incorrect elements in the ATM, the bank should hire more active and more intelligent software developers so the bank doesn�t have any problems in hardware and etc. Poor fit between the system and the organization, the bank must provide the knowledge to the software developers on their tasks and on the new equipment that they have to use.

Conclusion

When we look at Maybank officially written down as Maybankard, it is definitely one of the largest banking systems in Malaysia if not the largest.

In our report we covered the basic and most discussed element of all banking companies, the ATM. We came to see that the ATM has many advantages and disadvantages, some of these disadvantages we overlook because most of us our lucky enough never to come across them. The ATM is definitely the most used facility a banking company can adopt. We know for sure that the introduction of the ATM made a revolutionary change in the banking industry. The overall impact on the industry has been towards a positive trend.

In our report we discussed and related ATM together with three elements, including Mobile Computing, Security Issues and Human Factors. These factors strongly influence Maybank especially the ATM machine.

Mobile Computing is slowly making its way to becoming a larger part of the banking system, the ATM machines of the future will not only have mobile accessibility but will also have mobility within the devices themselves, helping in the case of money privacy and different disabilities.

The Security risks are always high when we talk about financial commodities, and the ATM is no exception. Sometimes we see harsh attempts to rob ATMs and their users. This is the only the physical side to the matter. After research we found that there are numerous software threats to the ATM as well, such as hacking and viruses.

The Human Factors are obviously very important, well you can�t really use the ATM without the presence of the Human. When you normally got to the ATM you probably have no problem trying to get what you want. This is a lot different for many of the permanently and temporarily disabled among us. We found that there were efforts being done to solve these problems.

So when I come to conclude, I will be repeating myself by saying that the ATM is a really important part of the banking system. It has many advantages and many disadvantages too but I think it has always made a positive impact.