46105916 Impact of Technology on the Service Sector

7/23/2019 46105916 Impact of Technology on the Service Sector

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Impact Of Technology

In Service Sector


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Sectors Of Services

News media

Consulting

Information Technology (IT) Health care like hospitals

Banking Services

Retail Banking Legal practice like lawyers

Disposal of waste


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Topics To Discuss

Communications And Conectivity

Cost Reduction

Risk Management Security

Impact Of Technology In Retail Banking


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Communications And Connectivity


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Various sectors of communicationsand connectivity

Aerospace Travel Railways Waterways Internet News Media Telephones Mobiles Core Banking Internet Banking Etc,


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Advantages of communications

and connectivity(1) Goods and people are transported with

more easiness and speed

free trade between countries increases global mass media connects all the

people in the world

as the cultural barriers reduce, the

global village dream becomes morerealistic


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Advantages of communicationsand connectivity(2)

As the liquidity of capital increases,developed countries can invest in

developing ones the communication between the

individuals and corporations in the worldincreases


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Cost Reduction


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Reasons for cost reduction

To create additional cash reserves

To reduce price of product or service

To bring expenses in line with revenues

To eliminate unnecessary expenses orwasteful spending

To increase company value

To increase competitive advantage To move costs between departments


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Purposes of expense reduction

Create cash for reinvest in research anddevelopment

Reduce manufacturing costs to staycompetitive

Reduce costs as a nonprofit so able to servemore people

Lower costs of service in order to provideadditional services

To become more efficient To prevent employee lay-offs To prevent reduction in employee benefits


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Ways of reducing expenses

Across the board reductions

Prioritized reductions

Departmental reductions

Reductions based on professionalassessment

Budget reductions


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Risk Management


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Four stages of risk management

Risk Identification

Risks Quantification

Risk Response Risk Monitoring and Control


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Risk Identification

identify and name the risks

The best approach is a workshop withbusiness and IT people to carry out the

identification Use a combination of brainstorming and

reviewing of standard risk lists.


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Risks Quantification

Risk need to be quantified in two

dimensions. The probability of the risk occurring needs

to be assessed

if probability is high, and impact is low, itis a Medium risk. On the other hand ifimpact is high, and probability low, it isHigh priority


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Risk Response

There are four things you can do about arisk. The strategies are:

(i) Avoid the risk. Do something to remove it

(ii) Transfer the risk. Make someone elseresponsible

(iii) Mitigate the risk. Take actions to lessen theimpact or chance of the risk occurring

(iv) Accept the risk. The risk might be so smallthe effort to do anything is not worth while


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Risk Control

The final step is to continually monitorrisks to identify any change in the status,or if they turn into an issue.

It is best to hold regular risk reviews toidentify actions outstanding, riskprobability and impact, remove risks thathave passed, and identify new risks.


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Security


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Security Arenas

Access Control Systems Telecommunications & Networks Security Management

Application & System Development Architecture & Models Operations Security Law, Investigation, & Ethics

Business Continuity & Disaster Recovery Physical Security


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Arsenal of Tools

Tools that assist in providing security:

Firewalls

AntiVirus

Network Topology


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Impact Of Technology On TheRetail Banking


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Evolution in Retail banking(1)

As a central bank in a developing country,the Reserve Bank of India (RBI) hasadopted development of the banking and

financial market as one of its primeobjectives. "Institutional development" was the

hallmark of this approach from 1950s to

1970s. In the 1980s, the Reserve Bankfocused on "improvements in theproductivity" of the banking sector.


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Evolution in Retail banking(2)

Being convinced that technology is thekey for improving in productivity, theReserve Bank took several initiatives to

popularize usage of technology by banksin India. Retail banking in India is maturing with

time, several products, which further

could be customized. Most happeningsector is housing loan, which is witnessinga cut-throat competition.


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Impact Of Technology(1)

PLASTIC MONEYPlastic money was a delicious gift toIndian market. Giving respite from

carrying too much cash CREDIT CARD

Credit card is a financial instrument,which can be used more than once toborrow money or buy products andservices on credit.


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MOBILE BANKINGTaking advantages of the booming market formobile phones and cellular services, severalbanks have introduced mobile banking.

RURAL BANKINGOne of the innovative scheme to be launchedin rural banking was the KISAN CREDITCARD (KCC) SCHMME started in fiscal 1998-

1999 by NABARD. KCC mode it easier forframers to purchase important agriculturalinputs.


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NRI SERVICESWith a substantial number of Indians havingrelatives abroad, banks have begun to offerservice that allows expatriate Indians to send

money more conveniently to relatives Indiawhich is one of the major improvements inmoney transfer.

E-BANKINGE-Banking is becoming increasingly popular

among retail banking customers. E-Bankinghelps in cutting costs by providing cheaper andfaster ways of delivering products to customers.


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Thanks!

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46105916 Impact of Technology on the Service Sector