Service Operations Management: Commerce Bank Case - Research Paper Example

? Service Operations Management-Commerce Bank Case Executive Summary Commerce bank case study is one of the studies that should be taken into consideration since banking system is the core of the countries economic values. Security is one of the vital issues as far as commerce bank case is concerned since it is the backbone of proper management towards banking system. The issue of e-commerce relies on the computer security and Data security components for its operational service. The issue of Cyber crime has been the main indicator of insecurity among the e-commerce service operation. Privacy is a core subject in electronic commerce. Secure infrastructure for financial transaction over wireless network can be possible only if the commerce bank initiates security measures through the enrollment of one-time password system and making engagement with gateway Internet service provider by establishing proper service level agreements. Moreover, the commerce banks should adhere with the international regulations and standards companies as well as governments such as Internet Retailers Association. The commerce bank case is therefore going to analyze the core problem facing banking system and better suggestive ways to curb this issue for better managerial perception in banking service operations. Introduction Service operations management is one of the exercises delivered in a management system of a given company as a supply chain that intersect business operation towards the customer and the actual sales. Through optimizing service-intensive supply, high performance service is realized. In line of business service operations management must accommodate any prevailing inconsistent and arising uncertain demand to eliminate flaws in business supply chain. For an effective service operation management to incur, the management should establish customer satisfaction by reducing obsolescence costs, enhancing inventory levels and minimizing technician visits through proper planning. However, balancing and optimizing service levels as well as costs delivers extensive and sustainable gain over the competitors (Clark & Johnston, 2008). Objective The objective of this case assignment is to establish the main problem facing the proper operation of commerce bank at large. However, the case study will analyze possible problems encountered during Service Operations Management within this commerce bank cases study. The level of service operations within the commerce bank has drastically been affected, leading to the need of security aspect to be taken into consideration since; the business works hand in hand with money matters and therefore the need of high profile security is needed. The issue of e-commerce relies on the computer security and Data security components for its operational service due to Privacy issue in the banking system. This translates to security issue specifically to oversee how the security affects banking system and the need for restraining this facet at large. Problem Statement The main problem facing the commerce bank in general is the issue of security incurred in its operational management. For these subsidiary branches to communicate well and do its financial transactions, security issue plays a bigger role. Communication channels become one of the vital components in this operation as far commerce bank issue if availed. The main issue in this commerce bank case study is to establish the core problem facing commerce banking system and suggest or make a clear recommendation on how this problem can be eliminated for effectiveness to prevail within the banking system strategies. Security The problems facing the commerce bank is therefore the availability of resources, the services provided by the banking system and the security on regards to online transaction processes. According to the report from the American banking system, 60 percent of the problems facing banking system has been indicated to represent security concerns while 30 percent for quality service and the remaining 10 percent towards the availability of resources. The main problem facing the commerce bank in general is the issue of security incurred in its operational management. For these subsidiary branches to communicate well and do its financial transactions, security issue plays a bigger role. For these subsidiary branches to communicate well and do its financial transactions, security issue plays a bigger role. Communication channels become one of the vital components in this operation. Mobile communication and Internet platforms have been the main means of communication within the operations of commerce banks and in all its management service. However, a lot of challenges have been administered by IT technicians as well as application developer over the rising concern of insecurity between network providers and the commerce banks IT departments. Wireless network so far has been considered as one of the problem that leads to insecurity as far as the financial transaction issue is concerned. Many people nowadays prefer to use Automated Teller Machine in their financial transaction since the service is easier to use and efficient as far time management is concerned. This has forced the commerce bank to deploy ATM machines globally to enhance better service for transaction process. Meanwhile, this service has hard one of its hardest times due to emerging issues in security matters and this has been triggered by the availed wireless network providers, who have failed to enhance proper authentication processes needed before initiating a transaction. For any transaction to be released via an Automated Teller Machine, authentication process should be determined before initiating any transaction (Pratt, 2000). However, a customer using ATM is supposed to provide user identity termed as password authentication, which undergoes encryption process for clarification purposes from the main database domain before the customer initiate any transaction. In the current technology, many financial commerce banks use one-time password techniques, which fight back an essence of Cyber fraud. But the level of technology initiated by the service providers have led to insecurity through an aspect of Cyber fraud since; the service network providers have laid down insecure infrastructure for financial transaction that relies of the wireless network (The Nua Internet Survey, 2001). Commerce bank works under e-commerce platform that initiates on-line payment transaction between their customers termed as consumers as well as businesses. The issue of e-commerce relies on the computer security and Data security components for its operational service. The issue of Cyber crime has been the main indicator of insecurity among the e-commerce service operation. Privacy is a core subject in electronic commerce. According to the report availed by the commerce bank, some developers as well as hackers have created spy-ware and malicious software programs, targeting on-line banking sites, a service well known as e-commerce (Gallup Consulting, 2008). Malicious programs well known as Trojan, is a program that attach itself to the computer application especially a web browser and without the knowledge of the user, the program gains the personal information from your sites being visited. The commerce bank availed this information to its customers terming a Trojan program as one of the intelligent malicious software that even the bank cannot guarantee its customers on how to eliminate this problem (Williamson, 2006). Research Analysis According to the availed research, we realised that there are three distinct problems that commerce banking faces. This are the availabilty of resources, security and quality of services which are triggered by the service operation and responsibilty act. The graph below indicates the denomination of security, quality provision and services acquisition in terms of percentage as per the United States of America research analysis. However, the graph shows that quality problem facing the commerce bank has been ranked as the second problem that service operation is still experincing in line of business. The quality of services has been limited to various commerce banking system with a percentage of 30%. Nevertheless, the least problem in commerce banking is the availability of resources with10% overall. Moreover, security has been the main and core problem facing commerce banking system with over 60% overall as seen from the research that was availed by the United States of America. Service Operations Management in commerce bank has to lay down the proper strategies in eliminating insecurity issue to their customers, especially those who are using e-commerce system in their financial transaction processes. From the above analysis we find that all operational services within commerce banking rely on the Internet. For a transaction to be done through an Automated Teller Machine, authentication process should be initiated first for the purposes of security. However, secure infrastructure for financial transaction over wireless network can be possible only if the commerce bank initiates security measures through the enrollment of one-time password system and making engagement with gateway Internet service provider by establishing proper service level agreements. Moreover, the commerce banks should adhere with the international regulations and standards companies as well as governments such as Internet Retailers Association. These bodies ensures that information security is of more concerned and that their standards level in regards to security purpose focuses on the interest of e-commerce. The credit card data being used by the customer should be secured from the hackers and any malicious programs through encryption technology so that the aspect of consumer’s economic interest becomes the core business of commerce bank. Recommendations The issue of security in the commerce banking is one of the main and core aspects service operation management. For any commerce bank to retain its reputation level, proper installation of security measures should be availed for smooth running of the business. The industry of commerce deals with money transaction and when they install modern technology by the support of high profile technicians, the issue of insecurity diminishes. Dealing with security problem involves proper installation of authentication programs and deliver prompt feedback to their customers in time. Conclusion In conclusion, Service operations management consists of a supply chain that intersects business operation on actual sales and customers expectations. The main problem facing the commerce bank in general is the issue of security. Wireless network so far has been considered as one of the problem that leads to insecurity as far as the financial transaction issue is concerned. Many people nowadays prefer to use Automated Teller Machine in their financial transaction since the service is easier to use and efficient as far time management is concerned. This has forced the commerce. Commerce bank works under e-commerce platform that initiates on-line payment transaction between their customers termed as consumers as well as businesses. The issue of e-commerce relies on the computer security and Data security components for its operational service. The issue of Cyber crime has been the main indicator of insecurity among the e-commerce service operation. Privacy is a core subject in electronic commerce. According to the report availed by the commerce bank, some developers as well as hackers have created spy-ware and malicious software programs, targeting on-line banking sites, a service well known as e-commerce. Malicious programs well known as Trojan, is a program that attach itself to the computer application especially a web browser and without the knowledge of the user, the program gains the personal information from your sites being visited. In this case, we find that all operational services within commerce banking rely on the Internet. For a transaction to be done through an Automated Teller Machine, authentication process should be initiated first for the purposes of security. However, secure infrastructure for financial transaction over wireless network can be possible only if the commerce bank initiates security measures through the enrollment of one-time password system and making engagement with gateway Internet service provider by establishing proper service level agreements. Moreover, the commerce banks should adhere with the international regulations and standards companies as well as governments such as Internet Retailers Association References Clark, G & Johnston, R. (2008).Service Operations Management (3rd Edition) [Paperback]. USA: Prentice Hall. Gallup Consulting, (2008). Using Technology to Engage Retail Banking Customer, on-line source: http://www.adope.com/engagement/ Pratt, J. (2000).But Also Good Business: Texas Commerce Banks and the Financing of Houston and Texas, 1886-1986 [Paperback]. USA: Texas A&M University Press. The Nua Internet Survey (2001). [http://www.firstmonday.org/issues/issue9_2/hao/index.html] Williamson, G (2006). Enhanced Authentication In Online Banking, Journal of Economic Crime Management, Vol. 4, Issue 2, 2006 Appendix A bar graph representation of a survey carried by the United States of America on the problems facing Service operation in the commerce banking A line graph representation of a survey carried by the United States of America on the problems facing Service operation in the commerce banking Read More