QUESTION 1

Consider the Data to Wisdom paradigm shown in the figure and described in class:

How Data is applied in Republic Bank Grenada Limited using the ATM

There are many businesses which uses the DIKW paradigm; however, we will focus on

Republic Bank Grenada Limited and how the DIKW paradigm is used to provide better service to

customers. The banking system has grown tremendously technologically as we have seen the

evolution from numerous manual transactions converted to system generated transactions. Many

of these systems are controlled using ITIL (Information Technology Infrastructure Library), which

is a framework that consists of a set of books ‘documents’ that stipulate the best advantage of

computer resources. The benefit in using the ITIL system will assist Republic Bank Grenada

Limited to improve its performance and effectiveness through the process of data

collection. Additionally, it will allow Republic Bank to record millions of business transaction on

a day-to-day basis and the volume of data generated is not just large but also real-time in

nature. For example, collection of personal transactions like client data, address, money transfer,

deposit security information ‘ATM pin access’, etc. With so many transactions, big data analytics

will help Republic Bank by providing them with a platform where these transactions can be

recorded systematically, e.g., ATM transactions. Some areas that are considered data collection

are risk management, analysis of customer spending and investment pattern, financial reporting,

compliance, security and fraud detection, product customization and market segmentation,

namely. https://analyticstraining.com/big-data-analytics-banking-industry/

Take for example, the data collected using the ATM verses the physical/human interaction

conducted inside the bank. An ATM is considered a data terminal with two inputs and four output
devices which connects to and communicate through a host processor. The host processor is

connected to an Internet Service Provider (ISP), providing a gateway through all various ATM

networks become available to the user ‘cardholder’. When a customer decides to use their ATM

card at the taller machine instead of going directly inside the bank, all this information is recorded

as data. As the cardholder insert their card into the card reader, it captures the account information

stored on the magnetic stripe on the back of the debit/credit card. Once this is done the host

processor uses this information to route the transaction to the cardholder’s bank. Thus, the

information collected by the bank will be stored for further processing. Another way to look at

data collection is through the process of your personal identification number (PIN), which is

encrypted using software like Triple DES (Data Encryption Standard). All these activities and

transactions are tracked in order to generate a more comprehensive report.

How Information is applied in Republic Bank Grenada Limited using the ATM

As it relates to information, it is the process of data being analyzed, or interpreted in to

meaning, as it adds context to what has been collected. Decision makers such as CFOs and bank

managers will use the information to streamline their operations, improve customer experience

and achieve better financial performance. Take for example, the collection of data through the use

of the ATM machines. Information could also come in the form of the Strengths, Weaknesses,

Opportunities, and Threats in what is known as a SWOT Analysis based on the data collected from

the ATM. Republic Bank Grenada Limited will be able to refine the data into information that

they can utilize to improve its operational processes and management processes island wide.

Another way Republic Bank can refine the data into information is to generate/determine:

 How many ATMs have insufficient cash and has rejected consumers request for cash.

 How many people uses a particular ATM within a given vicinity.

  Systems functionality and failures over time.

 Customer perceptions on the benefits and problems of the ATM services.

 Strategies the customers prefer the bank management adopts in order to improve upon

ATM services at the branch.

 The average value of response for speed when using the ATM compared to personal

banking speed, especially in the peak seasons, e.g., Christmas, Easter, etc.

 Analyzing usability of operating the ATMs service as compared to personal service of

banks.

Using this information will help manager make strategic decision as this is will be a benchmark

for adding value.