Experiment 1

MIS And Its Functional Subsystems

A management information system (MIS) provides information which is needed to manage organizations efficiently and effectively. Management information systems involve three primary resources: people, technology, and information. Management information systems are distinct from other information systems in that they are used to analyze operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. decision support systems, expert systems, and executive information systems.

Main characteristics of management information system (MIS) :

Integration In MIS, whole system is integrated with each movement of business. It will be supportive to produce more positive information.

Central Database It is also the characteristics of MIS that it has a central database. Only correct validation, anyone can access to information.

Software Based System MIS is software base system which is used in management accounting. It needs continually updates. Moreover, software will process data automatically.

Flexibility MIS is more flexible system than any other system of management. We can adjust input data and processing technique according to need of business and get information according to this. We can also divide MIS in sub systems for proper recording and process of data.

Importance Of MIS In Organizations:

In today's scenario MIS plays a pivotal role in Organizations. Organizations worldwide make extensive use of MIS.Its designed by the top management of an organization, is a tool to assembling & accumulating facts & figures of all the important business processes.

MIS is a very vast topic,it s very difficult to cover the whole in one article. Thus here are some of the major importance / advantages of MIS in organizations:

The organization that uses MIS is able to record, process, route & tabulate all important business transactions. As & when need arises the organization is able to incorporate the needed changes & improvements in the area of concern.

MIS facilitates informed DECISION MAKING. Itusually represents a number of options from which one can choose the best.

The top management ANALYSES whether its resources are being utilized optimally. A TWO WAY COMMUNICATION FLOW is greatly enhanced by the MIS. The management freely tells the job responsibilities to its employees. The employees in return discuss their doubts & grievances.

MIS supports the planning & controlling function of managers in the organization. Managers use past/historical data as well as the current data to analyses the performance & hence apply controlling measures.

MIS encourages DECENTRALISATION in the organization.Decentralizationis possible when there's a system to measure operations at the lower levels.

It brings COORDINATION. It facilitates integration of specialized activities by keeping each department aware of the problems & requirements of other departments.

Hence, in some way MIS keeps the organization binded.

Effective MIS Management:

A Management Information System whether a small system or a bigger one, is by no exception a system that also needs proper management. With the vast number of elements that are required to complement and work with one another, the need to effectively manage all these is necessary if not required. The purpose of managing it is to ensure that the MIS will continue to function and work as efficient as designed.

So, what are the effective ways towards managing any MIS? Are there really ways to do it better? Or are the means universally made?

Every company has its own sets of standards on how the management of MIS is being done and performed. Naturally, this is so because every company has its primary needs to attend to and because there is a unique MIS Manager that is hired to maintain and manage their own MIS. However, any MIS is bound by a common, universal means of management. Although each company has its own sets of standards, every MIS Manager is bound to follow sets of standards towards effective management of the MIS as anchored from several tests results and studies. As part of the management regimen that all MIS Managers must take into account are the following:

Plan ahead of time the amount of information that is required by the organization. One good way of efficiently managing the MIS is to determine the bulk of information that needs to be processed by the MIS to ensure that it does not burn out and is able to maintain its efficiency. Even computers drain at times. Organize your plans. There may processes that are involved on the plan that may result to repetitious result. A good management technique is to make a clear organization of what exactly needs to be produced and what sort of processes are needed to be undertaken to produce such results.

******Information Systems Manager Making a Mark in the Computing World

Seeing to it that technology works effectively and reliably in a certain workplace is not an easy task. It takes one to have an advanced technical knowledge and strong understanding of business practices to qualify. These are exactly the qualities required for the position of Information Systems Manager. As a person who is both business and technologically

inclined, everything can be done for as long as goals and objectives are attainable and detailed plans on how to accomplish them are well established. Truly, the Information Systems Manager plays a very important role in the effective implementation of technology within the organization to achieve expected business outcomes.

MIS Functional Subsystems:

MIS can be viewed as a federation of an information system one for each major organizational function here may be a common support system used by more than one subsystems, but each functional system may be unique in its procedures, programs, models etc .typical major functional subsystems are:

MIS for strategic and policy planning and decision make

MI for tactical planning And decision making

MI for operational planning, decision making and control

Transaction processing inquiry response

Major functional Subsystems

Some typical uses

1. Marketing

sales forecasting ,sales planning, customer and sales analysis production planning and scheduling, cost control analysis planning and control of purchasing, distribution financial analysis, cost analysis ,capital requirements planning income measurement information system planning cost effectiveness analysis strategic planning, resource allocation.

2. Manufacturing 3. Logistic 4. Finance and Accounting 5. Information Processing 6. Top Management

CASE Study on MIS for ICICI Bank

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial institution from nonJapan Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary market sales to institutional investors. With a change in the corporate structure and the budding competition in the Indian Banking industry, the management of both ICICI and ICICI Bank were of the opinion that a merger between the two entities would prove to be an essential step. It was in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. In the following year, the merger was approved by its shareholders, the High Court of Gujarat at Ahmadabad as well as the High Court of Judicature at Mumbai and the Reserve Bank of India.

Vision
To be the leading provider of financial services in India and a major global bank.

Mission
We will leverage our people, technology, speed and financial capital to: * Be the banker of first choice for our customers by delivering high quality, world-class product and services. * Expand the frontiers of our business globally. * Play a proactive role in the full realisation of India s potential. * Maintain a healthy financial profile and diversify our earnings across businesses and geographies. * Maintain high standards of governance and ethics. * Contribute positively to the various countries and markets in which we operate. * Create value for our stakeholders.

Present Scenario
ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited. Overseas, its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As of December 31, 2008, ICICI is India's second-largest bank, boasting an asset value of Rs. 3,744.10 billion and profit after tax Rs. 30.14 billion, for the nine months, that ended on December 31, 2008.

Branches & ATMS

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420 branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its presence felt in 18 countries - United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia and Canada out of which, the UK subsidiary has established branches in Belgium and Germany.

Products & Services

Personal Banking Deposits Loans Cards Investments Insurance Demat Services Wealth Management NRI Banking Money Transfer Bank Accounts Investments Property Solutions Insurance Loans Business Banking Corporate Net Banking Cash Management Trade Services FX Online

Management Overview
Organization Management Chart:

Branch Manager Regional Manager Branch Manager Zonal Manager Branch Manager Regional Manager Branch Manager

Literature Review
An information system is comprised of all the components that collect, manipulate, and disseminate data or information. It usually includes hardware, software, people, communications systems such as telephone lines, and the data itself. The activities involved include inputting data, processing of data into information, storage of data and information, and the production of outputs such as management reports. Creation Of Management Reports Incorporate all the relevant data from every part of organization s operation into a single management overview and then easily produce presentation quality reports Constant monitoring of banking operations MIS offers dynamic, real-time statistical reporting facilities across all channels, account managers, clients, products and branches/profit centers. While the standard reporting facilities includes comprehensive reports, the open design of the system allows to use industry-standard enquiry and reporting tools.

Compliance Reporting It offers complete compliance reporting modules, readily available for various countries. Since MIS is a fully integrated banking system, compliance reporting covers all banking operations and complies to Basle II regulations. User-defined Reports MIS workstations include an easy-to-use Report Writer that enables users to compile specific data from any number of sources and view it on screen or print-out in various formats. Data can be sorted or grouped, and values summarized or averaged. Customers Database MIS in a company keeps record of customers of the company. It helps to quickly classify the bank s customers in terms of institutional customers, High Value Customers and retail customers. This helps the bank to serve efficiently as each type of customer s needs will vary. Innovative Services MIS helps to serve the customers innovatively. It helps to deliver services innovatively such as mobile banking, rural banking. As MIS helps in segmenting the current and prospective customers. Knowledge Management Today the banks have repositories of various types of knowledge. It can be about their customers, markets, employees, critical incidents etc. But these knowledge have to be managed effectively to exploit them in the time of need. MIS supports the knowledge management of the bank through various software. Risk Management Risk management is a very crucial function of the bank. MIS helps the bank through various modules like DSS, EIS etc that help the management to take calculated risks. This helps the bank to take advantage of the opportunities but at the same time helps the banks to prepared to face any risk that arise in the course of pursuing its goal.

Experiment 2
Conceptual And Physical Structure Of MIS

Physical Structure Of MIS

Structure of MIS may be understood by looking at the physical components of the information system in an organization. The physical components of an organizational information system may be hardware, software, database, manual procedures and operating persons.

1. Hardware: Hardware refers to the physical data processing equipment and

peripheral devices. For example, CPU, monitor, keyboard, printer, tapes, communication devices etc.

2. Software:

Software is a broad term given to the instructions or programs that

direct the operation of the hardware. Software could be of two types i.e. system and application software.

3. Database: The database consists of all data utilized by application software. Data is
stored in files.

4. Procedures: Formal operating procedures, which are required to operate a system,

such as manuals, are also regarded as physical elements.

5. Operating

Personnel:

Personnel

like

computer

operators,

computer

programmers, system analysts, system managers etc., are the operating people of the information systems.

6. Input and Output: Various physical inputs and outputs from the information
system, existing in the forms like printout, reports etc.

Conceptual Structure
The conceptual structure of an MIS is defined as a federation of functional subsystem, each of which is divided into four information processing components:

y Identification
Management information systems represent classic concepts for gathering information from a variety of business processes for the purpose of management review. The structure and scope of this theory relates that some information or data exists that can improve business decisions.

y Features
Companies often attempt to design and implement an information gathering system that will encompass their organization's entire operations. While small business owners will not need such a system, owners and directors in large companies cannot be at the forefront of operations, giving rise to the need for an information system.

y Considerations
For maximum effectiveness, management information systems should not be static. Companies will often need a system that will expand or adjust to changes in operations. This allows business owners and managers access to the most up-to-date information when making business decisions.
y y y y

Operations Research MS Demand Management. Retail software and SAP Balanced Scorecard

CASE Study of ICICI Bank

1. Hardware: Personal Computers

Canon Document Scanner HP Printers Networking Cards Currency & Coin Counters Dell Mainframes

2. Software: FINNONE,
RisKompass, Wincor Nixdorf's ProView

3. Database: Oracle 10g and 11g,

Microsoft SQL Server, Sybase Adaptive Server Enterprise

4. Operating

Personnel:

Personnel

like

computer

operators,

computer

programmers, system analysts, system managers etc., are the operating people of the information systems.

5. Input and Output: Various physical inputs and outputs from the information
system, existing in the forms like printout, reports etc.

Experiment-3
Decision Support System and its Characteristics

A Decision Support System (DSS) is a collection of integrated software applications and hardware that form the backbone of an organization s decision making process. Companies across all industries rely on decision support tools, techniques, and models to help them assess and resolve everyday business questions. The decision support system is data-driven, as the entire process feeds off of the collection and availability of data to analyze. Business Intelligence (BI) reporting tools, processes, and methodologies are key components to any decision support system and provide end users with rich reporting, monitoring, and data analysis. High-level Decision Support System Requirements:
y

Data collection from multiple sources (sales data, inventory data, supplier data, market research data. etc.) Data formatting and collation A suitable database location and format built for decision support -based reporting and analysis Robust tools and applications to report, monitor, and analyze the data

y y

Decision support systems have become critical and ubiquitous across all types of business. In today s global marketplace, it is imperative that companies respond quickly to market changes. Companies with comprehensive decision support systems have a significant competitive advantage.

Characteristics:

The following seven points best describe typical characteristics of most decision support systems.

Facilitation

DSS facilitate and support specific decision-making activities and/or decision processes. That is, DSS simplify and make easier the process of decision making.

Interaction

DSS are computer-based systems designed for interactive use by decision makers or staff users who control the sequence of interaction and the operations performed. The participants use the DSS interactively - the DSS seeks data and requires guidance during its operation.
y

Ancillary

DSS are not intended to replace decision makers rather they are tools that assist decision makers. The information output from a DSS is used as evidence to help and direct decision makers rather than being the absolute solution
y

Repeated Use

DSS are intended for repeated use. A specific DSS may be used routinely or used as needed for ad hoc decision support tasks. The efforts and costs associated with the design and development of a DSS is substantial. Such costs are justifiable if the DSS can be reused.
y

Task-Oriented

DSS provide specific capabilities that support one or more tasks related to decision making. These tasks may include intelligence and data analysis, identification and design of alternatives, choice among alternatives and decision implementation.
y

Identifiable

DSS are information systems in their own right, they have a distinct and clear purpose. DSS may be independent systems that collect or replicate data from other information systems or they can be a subsystem within a larger integrated information system.

CASE Study on ICICI Bank w.r.t DSS

Improved debt collection with BI: An ICICI Bank story

In mid-2008, the credit control teams at ICICI Bank were confronted with a new set of challenges. Following the subprime mortgage crisis of 2007 in the United States, the world economy witnessed a slowdown. The effect of the subprime turmoil, that was once thought to be limited to the housing loans business, had started spreading to other sectors. As risk levels accentuated, credit terms needed to be tightened. As a result, the banks were also required to deal with a new challenge of reduced liquidity, which was threatening to become a powerful economic decelerator. Deterioration in the macro-economic environment and the rising interest rates further intensified the challenges faced by banks; ICICI Bank was no exception.

Ensuring customer loyalty

Amidst these challenges, ICICI Bank had to ensure that its customers remained satisfied with its services and did not switch to its competitors. Debt collection was identified as the key process where a friendlier approach could result in improved customer satisfaction and loyalty. One of the important steps in the debt collection process was choosing the appropriate customerapproach channel for each case. ICICI Bank decided to use business intelligence (BI) to achieve this goal. (See : A novel approach to debt recovery)

A novel approach to debt recovery

One of the most pertinent aspects that ICICI Bank had to pay attention to was debt recovery. Although the primary function of recovery agents is to ensure debt collection, the bank wanted to carry out the process delicately without losing its customers. Thus, the bank introduced customer-friendly practices, which, in addition to ensuring collection, were aimed at improving customer relationship and its own brand value. ICICI Bank s defaulter bucket comprised serious delinquencies (high risk) and early delinquencies (low risk). The bank employed a centralized debtors allocation model to allocate the right set of delinquent cases to the most appropriate collection channel. The bank uses multiple channels for debt collection. This includes non-intrusive channels such as SMS, e-mails, IVR, dunning letters, and reminder calls through the call centers, which are used to handle early delinquencies. The serious delinquents require a personal visit or may even need initiation of legal action.

India, with its varied demographics and diverse customer segments, posed a challenge when it came to servicing the heterogeneous customer-base. The vastness of the Indian market resulted in heavy dependence on the field agencies for debt collections, unlike the western world, where majority of the delinquent pool is serviced by the call centers. The bank management, with the aim to transform debt collection as a customer retention tool, decided to use technology to achieve the objective. It employed analytical models developed with SAS that factored in several parameters such as efficiency of collector, customer profile, risk behavior, and exposure. For instance, low risk and low outstanding debtors may just need a gentle reminder, whereas high risk and high outstanding debtors need to be directly contacted via field agencies or bank employees.

Technology used
Prior to the adoption of technology, over a thousand employees of the bank used to manually allocate around 30 lakh delinquent cases across more than 100 locations to around 2,500 channel partners based on subjective rules. However, the manual allocation proved inefficient, and the scale of the exercise called for an analytics-based solution. ICICI Bank selected SAS to develop a centralized debtors allocation model to allocate delinquent cases to the right channels till the last mile. Post the allocation, rules are run on SAS BI, which generates a reverse uploadable file that captures the details of each delinquent case and the channel and collector/collection agency to which it needs to be allocated. This data is made available to the collection work flow system (CAPS), which delivers the details of the case assigned to each individual. The vendor was not involved during the deployment owing to lack of experience in the Indian debt collection process. However, post implementation, the vendor optimized the code and ensured that the solution complied with the international standards.

Improved collection efficiency

Offering self-service and a multi-channel approach have improved efficiency in debt collection at ICICI Bank. Sridhar Ranganathan, DGM Debt Service Management Group (DSMG) at ICICI Bank, observes, The use of analytics has been a game changer for the DSMG at ICICI Bank. The BI unit (BIU) has played a vital role in important projects like centralized allocation and score cards. The project has resulted in a major shift in the DSMG strategy and improved collection efficiency. Projects like customer categorization have provided crucial insights for strategic decision making. (See Box: Key processes where BI has proved helpful)

Tangible benefits
y

Reduced credit loss: Debt collection performance improvement resulted in credit loss savings. In case of automobile loans, the bank achieved 50% increase in debt collection,

thus experiencing substantial reduction in credit loss. More reduction could have been achieved as the centralized allocation was linked to team performance. Improved manpower utilization: Optimized allocation aided better utilization of manpower. Automated and centralized allocation, in case of credit cards and personal loans, could be done by using 80% less manpower. Reduced turnaround time (TAT): The TAT for allocation reduced from five to six days to three to four hours, thereby providing more time to collectors on field to resolve cases.

Intangible benefits
y y

Transparency: Since the allocation rules are agreed upon and deployed by a central team in line with business objectives, the system has become highly transparent. Customer delight: The use of soft touch channels for first time defaulters and cases with low outstanding amounts and allocating the same employees for customers availing multiple loans have reduced escalations and resulted in customer delight. Direct collections: The debt collection by bank employees (rather than the traditional model of collecting through trained agents) has increased by 78% in one of the asset products. With BI, high ticket and strategic customers could be identified quickly and offered better customer service.

Key processes where BI has proved helpful

y

Payment propensity/recovery models: The recovery models were based on parameters such as a customer s payment history, risk exposure, cross-holdings, geographic location, and others. Customer behavior during the last 12 to 24 months was analyzed (depending upon the product and business objective) while building these models. These models help identify (and hence give differential treatment to) customers based on their payment propensity. The bank now has 10 payment propensity scorecards and 34 segmentation models across customer segments and products, built over two years. The models are updated on a monthly and quarterly basis factoring in the changing customer behavior and business dynamics. The scorecards are deployed using SAS. Pre-delinquency management: This is a critical strategy deployed for non-delinquent customers across products. It involves behavioral analysis of the potential defaulters to assess their credit orientation and worthiness. Traditional methods react to delinquency that has already occurred, whereas the pre-delinquency management gives an edge by raising an early alarm. Analytical models are developed to identify customers who have higher probability of going delinquent. Further, these customers are offered a wide range of services like soft reminders, SMS campaign, new payment schedule, and flexible credit limits. Loss forecasting: An important tool for risk management adopted by banks at a portfolio level.

Using analytics across the spectrum in DSMG has brought about a number of efficiencies in the process. As Vyom Upadhyay, DGM BIU at ICICI Bank points out, The highlight of the debt collection project was the ability to understand the allocation logic across the country, and put that in a consistent framework that got the best of local flavor and central models. This, along with extensive use of data and models to evaluate performance and prioritize or de-prioritize collections, has been widely recognized as the best-in-class use of analytics in collections. Vivek Narayanan Nair, AGM BIU at ICICI Bank adds, This project has enabled rapid deployment of cutting edge statistical models that have not only enhanced process efficiencies but also customer experience.

Experiment-4
Study of Information Systems and its Types

An information system (IS) - or application landscape- is any combination of information technology and people's activities using that technology to support operations, management, and decision-making. In a very broad sense, the term information system is frequently used to refer to the interaction between people, algorithmic processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) an organization uses, but also to the way in which people interact with this technology in support of business processes. It consists of computers, instructions, stored facts, people and procedures. ISs can be categorized in four parts: 1. Management Information System (MIS). 2. Decision Support System (DSS). 3. Executive Information System (EIS). 4. Transaction processing system (TPS).

Management Information System(MIS)

A management information system (MIS) is a system that provides information needed to manage organizations effectively. Management information systems involve three primary resources: technology, information, and people. It's important to recognize that while all three resources are key components when studying management information systems , the most important resource is people. Management information systems are regarded to be a subset of the overall internal controls procedures in a business, which cover the

application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a businesswide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.

Decision Support System (DSS)

A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions. Typical information that a decision support application might gather and present are:
y

inventories of information assets (including legacy and relational data sources, cubes, data warehouses, and data marts),

y y

comparative sales figures between one period and the next, projected revenue figures based on product sales assumptions.

Executive Information System (EIS)

An Executive Information System (EIS) is a type of management information system intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organization. It is commonly considered as a specialized form of a Decision Support System (DSS).

The emphasis of EIS is on graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace.

Transaction processing system (TPS)

A transaction processing system 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. To be considered a transaction processing system the computer must pass the ACID test. The essence of a transaction program is that it manages data that must be left in a consistent state. E.g. if an electronic payment is made, the amount must be both withdrawn from one account and added to the other; it cannot complete only one of those steps. Either both must occur, or neither. In case of a failure preventing transaction completion, the partially executed transaction must be 'rolled back' by the TPS. While this type of integrity must be provided also for batch transaction processing, it is particularly important for online processing: if e.g. an airline seat reservation system is accessed by multiple operators, after an empty seat inquiry, the seat reservation data must be locked until the reservation is made, otherwise another user may get the impression a seat is still free while it is actually being booked at the time. Without proper transaction monitoring, double bookings may occur.

CASE Study of ICICI Bank on Information Systems

Transaction Processing System: Key Business Drivers

ICICI Bank was set up when the process of deregulation and liberalization had just begun in India and the Reserve Bank of India (India s central bank) had paved the way for private players in the banking sector, which at that time was dominated by state-owned and foreign banks. Serving the majority of the country s populace, state owned banks had a large branch network, with minimal or no automation and little focus on service. Foreign banks, on the other hand, deployed high-end technology, had innovative product offerings, but had a very small branch network that serviced only corporate's and individuals with high net-worth. Sensing an untapped opportunity, ICICI Bank decided to target India s burgeoning middle class and corporate's by offering a high level of customer service and efficiency that rivaled the foreign banks, on a much larger scale, at a lower cost. A crucial aspect of this strategy was the emphasis on technology. ICICI Bank positioned itself as technology-savvy customer friendly bank. To support its technology focused strategy, ICICI Bank needed a robust technology platform that would help it achieve its business goals. After an intense evaluation of several global vendors, ICICI Bank identified Infosys as its technology partner and selected Finacle, the universal banking solution from Infosys, as its core banking platform. An open systems approach and low TCO (Total Cost of Ownership) were some of the key benefits Finacle offered the bank. Unlike most banks of that era, ICICI Bank was automated from day one, when its first branch opened in the city of Chennai. Some of the reasons cited by the bank for its decision to select Finacle include Finacle s future-proof technology, best-of-breed retail and corporate banking features, scalable architecture and proven implementation track record.

Solution Overview
One of the biggest challenges for Finacle was ensuring straight through processing (STP) of most of the financial transactions. With the ICICI group having several companies under its umbrella, Finacle needed to seamlessly integrate with multiple applications such as credit cards, mutual funds, brokerage, call center and data warehousing systems. Another key challenge was managing transaction volumes. ICICI Bank underwent a phase of organic and inorganic growth, first by acquiring Bank of Madura followed by a reverse merger of the bank with its parent organization, ICICI Limited. The scalable and open systems based architecture, enabled Finacle to successfully manage the resultant increase in transaction levels from 400,000 transactions a day in 2000 to nearly 2.1 million by 2005 with an associated growth in peak volumes by 5.5 times. With Finacle, the bank currently has the ability to process 0.27 million cheques per day and manage 7000 concurrent users.

Over the years, the strategic partnership between ICICI Bank and Infosys that started in 1994 has grown stronger and the close collaboration has resulted in many innovations. For instance, in 1997, it was the first bank in India to offer Internet banking with Finacle s e-banking solution and established itself as a leader in the Internet and eCommerce space. The bank followed it up with offering several e-Commerce services like Bill Payments, Funds Transfers and Corporate Banking over the net. The internet is a critical element of ICICI Bank s award winning multi-channel strategy that is one of the main engines of growth for the bank. Between 2000 and 2004, the bank has been able to successfully move over 70 percent of routine banking transactions from the branch to the other delivery channels, thus increasing overall efficiency. Currently, only 25 percent of all transactions take place through branches and 75 percent through other delivery channels. This reduction in routine transactions through the branch has enabled ICICI Bank to aggressively use its branch network as customer acquisition units. On an average, ICICI Bank adds 300,000 customers a month, which is among the highest in the world.

Decision Support System:

Business Intelligence Unit (BIU) The Business Intelligence Unit at ICICI Bank works with the objective of leveraging analytics to aid management s decision making . Using best-in-class technology and practices, the BIU at ICICI Bank has constantly provided decision-support systems to maximize revenue, minimize risks and optimally leverage spends.

The activities of the group range from developing technology-enabled alternative distribution channels to channel innovation and business enablement through automation, apart from providing analytics support to the business teams through effective data management.

Management Information System

The ICICI Bank Corporate System provides detailed information (MIS) which can help in controlling expenses. Provide Info. About Daily Cash Flows. It gives the management and its employees a complete expense tracking mechanism. Reduces working capital requirement. Report package provides o Both summaries and itemizations of charges and payments.

o Streamline expense control o Analyze spending patterns o Forecast future spending