Software Project Management and Quality Assurance - Essay Example

Part Project Integration Management Introduction The advent of new expertise and the pace of change of the existing technology have found a great application in changing the face of the business world thus playing a major role in instigating transformations in the commercial sector and other places encompassing all walks of life. Such an application of the project integration management technology is the use of remote deposit capture (RDC) by banks. It is so amazing the way banks are embracing the changes in technology across the globe. This is as opposed to the past when banks used distributed capture system as one technique of electronically clearing bills and checks in bank branches, at the ATM points and cash vaults. RDC wins the business more successfully given the fact that it eliminates the geographic constraints that check deposits have faced historically. (Killifer, V. 10 Oct 2006- Remote deposit capture hits industry fast track; Research Journal) Scope Statement The paradigm shift in embracing technological changes that take place has changed the face of banking system leading to the introduction of various features in the banking industry through an intermarriage of market factors like competition and customer loyalty. It is through this that banks have had to go along technological track by introducing features like Remote Deposit Capture, Check 21 and many other efficiency-oriented technology-based attributes. Blue Bank Ltd does not want to be left behind the trail but to compete effectively with others in the industry. Mode of Operation of RDC, Users its Implications and significance Remote deposit capture systems operate in a more or less patent-like mode. In general, instead of customers going physically to the banking halls, the RDC system, in its most simple terms, allows the customer to scan the relevant documents e.g. checks and transmit the scanned images or records to the provided portals. They obtain portal accounts from the bank and use the account for transactions and transmitting the scanned data whenever need arises. In this case, the banks took advantage of the proliferation of business method patents in the late 90s; a fact they claim eliminated any element of risk and uncertainty in the banking industry and allowed them to fully dedicate valuable resources to focusing upon their core business. One question one would quickly ask is then who is the user or beneficiary to this technology The banks of course use it to improve their own efficiency while customers benefit from improved customer service. Implications of Blue Bank adopting RDC system The adoption and use of RDC system by banks and other banking institutions resulted from the threats that were posed by the previous systems like check-over-the-counter and cash deposit culture. In order for the banks and the institutions to avoid being thrown out of business out of competition, they had to embrace the culture which would give them a better competitive edge over the other competitors in the industry. (RDC Articles, June 2007, RDC Fraud Threats in RDC Error) There was a serious threat of likelihood of fraud which could be as a result of human mistake or racket made willingly. The RDC system does not reduce part of this threat either. Inn the case of cash deposit system, the check would be presented to the party giving payment, but when the check is in the very hands of the public or businesses that should be receiving them it poses a danger of duplication by being scanned in and or redeposit into the bank especially if the original check numbers and figures or amounts are changed. Another case would be where criminals take advantage of the new RDC environment thus taking checks away from the original payee, or presentment of the scanned checks through other banks which may lead to omission or change of vital information. When millions of checks are in the hands of the public, it is easier for criminals to create fraudulent checks, by scanning and editing the original ones. Implementation For the threats to be addressed, implementation has to be done in three key areas. The first key area is that which employs the use of a profile of daily movement for each account, and evaluates the current activity against it. The second key part entails a series of data tests of the incoming items and deposits. The last part draws the customer's involvement through automatic email messaging to customers giving them each day's short summary of account activity. Strengths of RDC Application This application is more efficient in customer service delivery since very many clients can be served concurrently. It is also more convenient and both customer and employee friendly. In order to achieve maximum flexibility arising from the above highlighted implementation tests, the first two key parts are executed as Rules. These rules may be employed globally, generally to a specific account or even classes of accounts By having white lists it is easier to exclude specific accounts from a rule. Through the use of automatic email messaging, Blue Bank management will be able to put the customer on the fraud detection track. Such email messages also provide. It also provides an outstanding means for putting advertisement communications in areas they can easily be seen. The messages can be mailed to all authorized parties. Activity statistical analysis rule permits the number of days to be set after or before the current day, thus attempting to fit the period of History Check which creates and maintains the statistics of day to day activities. In short, Blue Bank will be a leap ahead in terms of efficient and effective management of its activities. Other testing rules are: Duplicates rule which finds duplicate check numbers Rule on check number out of range which reveals suspect checks and duplicate image submittals Repetitive amounts or duplicate presentments are tracked by application of repetitive amounts rule to safeguard against depositing of articles or items by means of RDC as images and at the same time as physical items duplicate deposited items rule is used. Here, the entire bank database is searched without limiting the rule to articles from any single file. NPV Discount rate 6.50% total Year 0 1 2 3 Costs 300,000 400,000 550,000 500,000 Discount factor 1 0.935 0.88 0.835 Discounted costs 300,000 374,000 484,000 417,500 1,575,500 Benefits 0 2,000,000 3,000,000 4,000,000 Discount factor 1.00 0.93 0.87 0.82 Disounted benefits 0 1869158.879 2620316.185 3265191.508 7754666.571 If Where t - The time of the cash flow N - The total time of the project r - The discount rate (the rate of return that could be earned on an investment in the financial markets with similar risk.) Ct - the net cash flow (the amount of cash) at time t (for educational purposes, C0 is commonly placed to the left of the sum to emphasize its role as the initial The formula can be broken down as follows: C0 + C1 + C2 + C3 = NPV (1+r)0 (1+r)1 (1+r)2 (1+r)3 Inserting my figures; 300,000/(1+0.065)0 + 400,000/(1+0.065)1 + 550,000/(1+0.065)2 + 500,000/(1+0.065)3 This gives me the NPV to be 6,179,167 ROI From the data above this can be calculated as: Total Discounted Benefits - Total Discounted Costs Total Discounted Costs This in figures gives us: 7,754,667 - 1,575,500 = 39% 1,575,500 PAYBACK YEAR Payback Period = A + (B / C) where A = Years before final payback year B = Total to be paid back - Total Paid back at start of final payback year C = Total Paid back at the end of final payback year - Total Paid back at the start of the final payback year From my data above the Payback period = 3 + (300,000 - 100,000)/(550,000 - 100,000) = 3 + (200,000/450,000) = 3 + 0.4 = 3.4 Therefore the payback period was 3.4 years. References: Schwalbe, K. 2007 5th edn. Information Technology project management. (Australia: Thomson Course Technology. Marchewka, J. 2006. Information technology project management: Providing measurable Galin, D. (2004). Software quality assurance: From theory to implementation. Harlow, England: Pearson Addison Wesley. [ISBN: 0-201-70945-7] Leekley, J 2005 Blue Mountain Enterprises, LLC.. http://www.RemoteDepositCapture.com http://www.google.co.ke/searchhl=en&q=PROJECT+INTEGRATION+MANAGEMENT+&btnG=Google+Search http://search.yahoo.com/search;_ylt=A0geu.JyUv5Hnx8BuudXNyoA;_ylu=X3oDMTBzNjFwZ2M5BHNlYwNzYwRjb2xvA2FjMgR2dGlkA0gxMDJfNzc-p=users+remote+deposit+capture&fr2=sc-sb http://www.fiservcbs.com/files/Remote_Deposit_Capture_whos_in_charge_here_0.pdf Read More