CB2500 Information Management lecture 5&6 Checklist

What is Smart Banking?

Features
Connectivity / Any where, time, device / Self-service / customer-centered service
Global projects, needs global partnership across teams

 Self-service instead of staff servicing customers

 To save time and cost, customization; saved labor can do add-value job

Trends for banking

Growth
Payments  Seek innovative ways to leverage customer spending data
transformation for specialized promotions and services
 Look for new ways to be top of wallet and differentiate
the customer experience
Compliance  Reinforce a strong “tone at the top”
risk  Encourage boards to challenge senior management’s
management activities
 Empower chief risk officers to pursue collaboration with
business lines
 Incorporate risk management and compliance
responsibilities into performance management programs
and employee training
Data  Creating a central regulatory management office to help
management drive grater efficiencies
 Relying on chief data officers to establish tighter
connections with front-office functions and derive grater
value from data assets
Cybersecurity  Beefing up their intelligence apparatus to detect new
threats in a timely manner
 Expanding the role of Chief Information Security Officer
(CISO) to include clear and prompt communications with
the board
CB2500 Information Management lecture 5&6 Checklist

What is Smart e-Payment?

• How to pay for online purchases?
– Credit cards
– #Direct debits from bank accounts
– Stored value facilities (PayPal, Alipay, Jockey club betting account)
• # Direct debits
The purchase amount is debited directly from a bank account
No need to apply for credit
Examples: EPS /PPS

How would BI help in Smart Banking?

Date available from different interaction in a large quantity (Big Data)

Big Data (3 V)
high-volume – velocity and - variety information assets that demand cost-effective,
innovative forms of information processing for enhanced insight and decision making
High- volume: Large quantities
High- velocity: Speed fast
High- variety: Data coming from different channels(Sources)
E.g. Stock trading data, social media data, transaction data (online and offline)

How do organizations use Business Intelligence system?

CB2500 Information Management lecture 5&6 Checklist

Business Intelligence system (BI)

– Information systems that process operational and other data to analyze
past performance and to make predictions
– The patterns, relationships, and trends identified by BI systems are
called business intelligence

Business Intelligence system (BI)

To analyze an organization's past performance to make predictions.
Three Typical Uses for BI
1. Identifying changes in purchasing patterns
2. BI for entertainment
Netflix use data to determine what ppl actually want (e.g. viewing history)
3.Predictive policing
Analyze data on past crime to predict where crimes likely to occur
How DO organizations use Data warehouses and Data Marts to Acquire Data?
 Function of data warehouse, data acquisition
• Obtain or extract data from operational, internal and external databases
• Cleanse Data
• Organize, relate, store in a data warehouse
• Catalog data using metadata
CB2500 Information Management lecture 5&6 Checklist

Extraction, transformation and loading (ETL)

A process that
– extracts information from internal and external databases,
– transforms the information using a common set of enterprise
definitions
– loads the information into a data warehouse.
Enterprise definitions: Currency, data format, way of calculating quarterly sales

Data Warehouse VS Data Mart

Data Warehouse
A single data repository that contain clean data and it is a facility for managing an
organization's business intelligence data
Data Mart
Smaller collection in need of particular department or function
Problem of single database
One warehouse does not utilize usage and if it is used by one department, others
may have to wait
Solution
use more ETL to create smaller specific data mart for a particular department
CB2500 Information Management lecture 5&6 Checklist

Data warehouse Data mart

Distributor:
takes data from the data manufacturers,
cleans and processes the data, and
locates the data on the shelves of the
data warehouse, finally distributes the
data to data mart
The data analysts who work with a data
warehouse are experts at data
management, data cleaning, data
transformation, data relationships, and
the like
Retail store
a data collection, smaller than the data
warehouse, addresses the needs of a
particular department or functional area
of the business
Users in a data mart obtain data that
pertain to a particular business function
from a data warehouse. Such users do
not have the data management expertise
that data warehouse employees have,
but they are knowledgeable analysts for
a given business function.

Three common BI techniques

Multidimensional Analysis
• BI tools help creating multidimensional view of data
– Dimension is a particular attribute of information.
– Cube is a common term for the representation of multidimensional
information
Cluster Analysis (Unsupervised Learning)
 an unsupervised data mining technique in which statistical techniques identify
groups of entities that have similar characteristics
• A technique used to divide an information set into mutually exclusive groups
such that the members of each group are as close together as possible to
one another and the different groups are as far apart as possible.
• E.g. To segment customer information and identify behavioral traits.
• As we have no idea which kind
 Analyze data ‘s proximity to find out potential “group / clusters” ( market
segmentation
Business Application
CB2500 Information Management lecture 5&6 Checklist

• E.g. Understand the demographics, lifestyle behaviors, and buying patterns of

the most profitable segments of the population by segmenting customers
based on zip codes.

• 例子：世界杯欧洲杯期间在卖啤酒在酒吧聚在一起看球的球迷，晚上

看球，晚上大批量购买啤酒打折

• Our role/key words

→ set dimensions → analyze clusters → define actions

Association Detection
• Reveals the relationship between variables along with the nature and
frequency of the relationships.
• Determine likelihood of events occurring together at a particular time
– 55% of the time, event A and B occurred together
Business Application
Market Basket Analysis
– Analyze items such as checkout scanner information to detect
customers’ buying behavior and predict future behavior by identifying
affinities among customers’ choices of products and services.
– Used to develop marketing campaigns for cross-selling products and

services, inventory control, shelf-product placement. （key words）

Project Management Qualification

• Project Management Professional (PMP)
– Industry-recognized certificate for project managers
– 4-year degree + 3 or above years of project management
experiences + exam
• Project Management Institute
• Five Domain knowledge
– Initiating the project (Perform project assessment, meeting with
sponsors (internal / external) to find out their requirement, define
scope (Regional / Global)
– Planning the project (assess detailed project requirements,
constraints, assumption / develop budget plan , project schedule , HR
CB2500 Information Management lecture 5&6 Checklist

management plan)
 Plan the detailed parts of the project
– Executing the project (Execute tasks defined by your company or
others /Implement approved changes /Maximize team performance
 By training, knowledge sharing, meeting etc.
– Monitoring and controlling the project (during execution)
(Measure project performance /Ensure project deliverables conform
to quality standards /Communicate project status to stakeholders)
 e.g. Time spent, milestone  Make sure under-control
– Closing the project (Obtain final acceptance / Transfer ownership /
Obtain financial, legal, and administrative closure)

What are the five phases of the SDLC?

The SDLC approach is the classical process used to develop information systems
1.System Definition
Developers use management statement of the system needs on order to begin
developing a new IS
2.Requirments Analysis (Most important phase) (Easiest & cheapest time to alter IS)
Developers identify the particular features and functions of a new system
Primary Purpose:) To determine and document the specific features and functions of
the new system
3.Component Design
CB2500 Information Management lecture 5&6 Checklist

4.Implenmentation
Users are for testing in order to identify problem
5.System Maintenance

Why is Systems Development Difficult and Risky?

• Many projects are never finished.
• Those that finish are often 200-300% over budget.
• Some projects finish within budget and schedule, but don't
accomplish goals.
• Even with competent people following an accepted methodology, the risk of
failure is still high.
• Project managers’ key task: make sure the project could be completed
under the resources constraint (time, $, manpower, etc.) in achieving goals.

Five Challenges to System Development

1. Difficulty of Requirements Determination
2. Changing Requirements
 The bigger the system, the longer the project, the more requirement
change
 Business analyst/ project managers determine what changes could be
handled within resources constraints
3. Scheduling and Budgeting Difficulties
4. Changing Technology
5. Diseconomies of Scale
 Brooks' Law, adding more people to a late project) makes the project later
 consequence of adding more people to late projects
 The costs of training new people can overwhelm the benefits of their
contribution