Transformation of a Korean Bank Essay

Published: 2020-04-22 08:06:56
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Question 4

The IT related decisions taken by the Kwangju Bank include the downsizing of the information systems and the reengineering of banking processes, headed by the then chairman of the board for the bank. These were impacted by the competition in the global market in that having employed the former information system, the bank was too was weak compete against the foreign banks in the US, Japan and Europe. The bank could not establish its individual business strategies to stand prominently in the global market for the reason that the information system employed. Hence, all these factors led to the important decisions in the area of information technology (Rainer & Watson, 2012).

Question 5

The OLTP system is the most significant and critical system of a bank due to its direct linkage to the financial interests of the customers. Any trivial issues in the system may critically impinge on the credibility of the bank. For this reason, downsizing the OLTP system of a bank is a pioneering, yet exceedingly risky venture for any bank (Young, 2011).


* Catch the attention of customers by assisting them in managing their financial interests rather expediently; * Capable of providing banking services whenever and wherever the customers wish for; * Support electronic wallets, automatic teller machines, self-service terminals, home banking, and commercial banking; * Adequately flexible for helping the development of novel products and the making of more effectual banking decisions

Question 6

The new system facilitates the customers in getting better service as in quality and timeliness. For instance, the transaction processing speed has been enhanced considerably from four to six seconds to 0.7-2.0 seconds for every transaction. The bank is now capable of serving customers 7 days a week and 24 hours a day, rather than the typical eight hours. Also, customers have a greater number of financial services to select from since development cycles of new product have been considerably trimmed down from months to weeks (Young, 2011). Additionally, having employed the new system, the bank was capable of reducing the operating costs with optimized performance and pursuing novel strategies of business, more effectively. The new open information system imparts enhanced freedom from the domination of vendors and flexibility, and permits more convenient espousal of new technology.

Question 7

The programs had been developed in a bit by bit manner without a general outline. As a consequence, it was very costly and difficult to modify or maintain the programs. Moreover, it was very difficult to efficiently develop novel programs responding to the swiftly modifying market environment.

Question 8

The vendors supplying the systems based on mainframes attempted to hinder the project for the order of protecting their potential as well as current markets. The superior personnel at the computer center of the Kwangju Bank were mocking regarding the project since they were uncomfortable with the novel technology. Moreover, academicians who were paid for evaluating the project inferred that undertaking involved a great risk because the technology was not adequately mature.

Question 9

Yes, the banking process reengineering had to accompany with the development of the new information system. This is because the banking operations were obstructed by its computer vendors and computer systems. The bank was unable to establish its distinctive business approaches since the existing information systems were incapable of supporting them. Conversely, the expenses on information systems were escalating at a greater rate compared to the rate of escalation of the banks returns (Rainer & Watson, 2012).


ICFAI Center for Management Research. Learning with cases. Retrieved from on Jan, 26th, 2012. Rainer, K. & Watson, H. (2012). Management information systems moving business forward. John Wiley & Sons, Inc. Young Moo Kang. (2011). International Case Study 3: From a dinosaur to a chameleon Transformation of a Korean Bank. Dong-A University, Korea. Retrieved from on Jan, 26th, 2013.

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