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Work Integrated Learning Programme Division

M.S. Consultancy Management

Course: ZC471 Management Information Systems
Assignment No :- 1

Submitted by:- Rajiv Manjul Karna
ID. No. :- 2013HZ58037
Date:- 31/08/2014

Q1. Explain types of business pressures experienced by JP Morgan Chase and
what are the responses (in terms of new technologies) the organization found to
be apt and successful?

Business Pressure faced by JP Morgan Chase: JPMorgan Chase was formed by the
merger of several financial institutions who utilized different computer databases, some of
which were out of date. In order to allow the company to run smoothly and be able to
harvest all of this information onto one system, a standalone network needed to be formed
so that data was not lost and business moved along without a hitch

Responses from JP Morgan Chase (on new technologies): JPMorgan Chase is not only
on the cutting edge of the banking industry, but they are a leader in technology. They are
spending $2 billion alone just to overhaul its network which is twice of what technology
giant, Hewitt Packard, is spending in the same time period to overhaul their network. Not
only is investing in technology important to bring the network onto one system but it is also
invaluable when it comes to introducing new products as well as reducing processing time.
For instance, the introduction of the Blink Card which enables users to pay using their credit
card just by holding it over a reader instead of having to swipe the card, enter a pin, sign
for the purchase, or hand it to the store associate to process. Home equity loan processing
also was reduced from two days to just two hours. Being on the forefront of technology
allows JPMorgan Chase to introduce the newest, greatest products keeping customers
enticed and bringing new customers on board.

Source: Businessweek

Q2. Elaborate on the following points: (each 150 words) (each 1 Mark)
a. Explain on innovations in the use of information technologies in JP Morgan
Chase. What information systems are deployed in JP Morgan Chase?

JPMorgan Chase is innovative in the area of E- Commerce. They offer online and mobile
banking. Online banking allows customers to access their account by a user name and
password at www.chase.com. After entering their login information, they can manage their
checking or savings account, loans, lines of credit, credit cards, and any other account they
have with JPMorgan Chase. One can check their account balances, due dates, schedule
payments and/or transfers, and many other services. Mobile banking allows customers
many of the same features as online banking but just on their cell phone through a
downloadable application.
JPMorgan Chase has also created an application for Apples iPhone which enables a
customer to take deposit a check into their bank account without actually having to go to a
branch or ATM machine. All one has to do is take a picture of his check and the funds are
then deposited into your account. This feature will hopefully be available on other
smartphones. In the meantime, one have account notifications sent to their phone in the
form of a text message advising when a deposit is made, account reaches a certain balance,
and so much more. JPMorgan Chase is taking advantage of the technology offered in todays

b. What are the different types of networks (wired & wireless) used by the
organization? How important are the networks for the organization?

JPMorgan Chase utilizes several types of networks. There are different components used to
build a business network. Some examples of these components include: network interfaces
in every computer, a network interface card or an Ethernet card, hubs or switches to
connect computers together and pass messages by repeating all network transmissions, and
routers to pass network traffic between smaller subnets or a larger network. Another type of
network used by JPMorgan Chase is a local area network, which is a network that covers a
building or buildings in close proximity.

JPMorgan Chase is a global company with offices all over the world. They connect their
networks using a router and a switch. It is the most resourceful way to network such a large
company. The routers connect the subnetworks to the larger network. Since JPMorgan
Chase is a global company with employees and customers all over the world needing to
access the network, they utilize both local area networks (LAN) and wide area networks

c. Discuss about the green initiatives undertaken by the organization.

In addition to the various payment methods offered to their business and consumer clients,
JPMorgan Chase has also teamed with several businesses to offer easy and manageable
billing and payments options. Businesses are now able to receive payments and invoices
electronically, which allows for easier tracking and management. Businesses no longer have
to deal with sifting through large stacks of paper invoices and worry about paying
something late and face a late payment fee. They are able to keep tighter track of expenses
and analyze spending easier to cut costs. It also allows the company to go green and make
less of an impact on the environment because there is less paper which means less trees
being wasted

Q3. Summarize the case under following headings: (600 words - excluding list of
references - 4 Marks)
1. Introduction and case background
2. Importance of financial management information systems
3. Discuss about the attributes of well-designed financial management information
4. How networks & connectivity are used in collaboration activities of JP Morgan
Chase (with inside entities and outside entities of the organization)?

In December 2002, JP Morgan Chase (Morgan), the second largest bank in the US in terms of net assets
signed a 7-year $5 billion outsourcing contract with IBM. In July 2004, Morgan merged with the Chicago-
based Bank One to create a financial behemoth with combined assets of $1.1 trillion.
Bank One was also adept at managing technology in-house. It had developed considerable expertise
over the years in managing technology and integrating systems from acquired businesses.
It added that technology was critical to the bank's future and hence, it had decided to exercise full control
over it.

Technology played a key role at JP Morgan. The entire gamut of financial services and banking business
from creation of novel products/services, introduction of the products in the market to ensuring client
satisfaction was influenced by technology.

Attributes of a well-designed financial management information systems are confidentiality, authenticity,
integrity, and availability.

JPMorgan Chase uses network communications media, which includes two options: wired
communications media and wireless communications media. They also use several kinds of
communications software. There are also wired and wireless versions of communication media. Wired
communications media include twisted-pair cable, coaxial cable, and optical fiber. Wireless
communications media include infrared, Bluetooth, microwave, and satellite. JPMorgan Chase utilizes
wireless as well as wired communication software. Society for Worldwide Interbank Financial
Telecommunication (SWIFT) is a communications software employed by JPMorgan Chase. This software
operates a worldwide financial messaging network which exchanges messages between banks and other
financial institutions. SWIFT transports financial messages in a highly secure way, but does not hold
accounts for its members and does not perform any form of clearing or settlement. The software does not
facilitate funds transfer, rather, it sends payment orders, which must be settled via correspondent
accounts that the institutions have with each other.

Source: ICMR, IBS center for management research