What are the core business processes

Session 2: B of A Case Study Questions

What are the core business processes1 (i.e. high level major business and financial services) performed at Bank of America as part of its product and service offerings?

Core Bank of America Business Process: Activities within the Core Process
people management


performance management

staff development


benefits administration

financial management

general ledger

accounts payable

accounts receivable

reporting and compliance

cash management

asset management

Cost management

cost setup and accumulation

cost recognition

working capital

revolving fund

Payment management

payment confirmation and follow-ups

Payee information maintenance

Payment execution

Product, design &amp development


Life insurance

Money market funds

College savings plans

Equity-based mutual funds

Account maintenance

Online banking


Sales force Management


Cold calling

In-person solicitations

Speaking at seminars

Attending trade conferences

Reporting Management

General reporting

External reporting

Internal reporting

Ad hoc query

List the sequential, descriptive steps required in a typical ATM transaction (your choice), such as drawing out cash or transferring funds from one account to another. Be sure to include those steps executed by local ATM system itself as well as thosedone by information systems housed within the Bank’s centralized data center. Use this table to organize your responses.

Steps by Customer Steps by ATM System Steps by other Banking Systems
Card insertion System startup System start up
Customer console Card reader Network to the bank
Pin insertion Network to bank Session
Cash dispenser/envelop acception Session Cash dispenser
Message Cash dispenser Message
Receipt message receipt

Why do the core processes at the Bank of America require centralized information systems?

. So as to serve its customers well



. To manage its numerous branches



. To help in solving of the clients’ discrepancies



. For easier access of database information.



To help in managing and consolidating bank information.



Collect accurate, timely complete, reliable and consistent information



Facilitate the preparation of financial statements and other financial reports.



Provide a complete audit trail to facilitate audits

What information is generated as part of ATM business processes. and how are they employed within the Bank to transact, to manage, and to innovate (i.e. contribute to the Bank’s competitive advantage)?


Transactional Uses of Information
information type: information use:

Identifies ATM cash reduction opportunities

Teller machine

Generates alert reports on possible cash level shortages

Front end service

Reduces courier and emergency order costs

Management and Control Uses of Information
information type: information use:
Ticket user

reduces ATM inventory level without impacting customers

Account system

Continuously monitors ATM activity&nbsp

Innovation and Corporate Learning Uses of Information
information type: information use:
Cash prospector

Sustains optimal cash inventory levels

Cash minor

Alert reports on possible cash level shortages

Lowertransportation and&nbspemergency&nbsporder costs

Can reduce cash in vaults and in transit

1core business process – All organization possess core business processes that allow the enterprise to operate, delivering products and services to its customers. A typical organization has no more than five or six core process, including: (1) financial management, (2) people management, (3) perhaps supply-chain management, (4) perhaps sales force management, (5) perhaps product design and development, and so forth, depending upon the nature of the business under study. Note that a not-for-profit, like a university or hospital, may have very different core processes from those of a commercial bank or an automobile manufacturer.

prepared by rmk 040714 Page 3