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TATA HOME FINANCE LTD. (A Comprehensive Case Study on MIS)
• • • • • • • • • • • • • • • Enterprise approach to MIS. Organisation structuring principles. Life cycle model of system development. Modeling of different views of business. Business analysis and strategy. MIS goal supporting business goal. MIS strategy supporting business strategy. User driven information system. Shift to just-in-time information. Integration of business rules in the system. Use of business growth cycle. MIS focus on decision-making, access and availability of information. MIS focus on critical success factors and mission critical applications. Choice of technology and architecture to suit business operations and business management. Meeting needs of statutory information, decision support information and just-in-time information simultaneously. • Business knowledge, rules and policies, process knowledge readily available on database.
1. Introduction 2. Business Infrastructure 3. Business
* Information stated here is true at a point of time when collected for presenting as live case for analysis and understanding of a business scenario. The contents would undergo change as the time goes by. The purpose is to use the case as a learning medium and the author has no intention to commercial or give suggestion on the company’s business operations. Author is grateful to the management of Tata Home Finance (THF) for giving information to build this case.
Management Information Systems
4. THF organisation : THF Enterprise Model : THF Business Model 5. Current System and Technology 6. MIS Reports Currently in use 7. Guidelines for Customer 8. Key Features, Rules and Control Points 9. Processing a Loan Proposal 10. Moving THF to Information Driven Organisation 10.1 Business Analysis and Strategy 10.2 Effectiveness of Business Strategies 10.3 Information Management Strategy (IMS) 10.4 Information System Architecture Models • THF Business Function Architecture • Relation Model • Core Business Model 10.5 Technology Platform for IMS Strategy 10.6 Application Systems Architecture 11. Management Information System: A Model
Tata Home Finance Ltd. (THF) is located at Shivajinagar, Pune-411 004, India. THF was established in the year 1999 to serve the home market need of funds for buying a new house or to improve the existing house. In addition to head ofﬁce in Pune, THF has branches at Mumbai, New Delhi, Bangalore, Ahmedabad, Hyderabad and Chennai. THF’s well-trained personnel assist the customer in offering a Total Home Solution that is right from funding to helping the customer to build a dream home. The personnel are trained to answer all kinds of questions, doubts across the table. The total funds disbursed since inception are Rs.500 million against the total number of over 1000 accounts. Total Employee strength is a little over hundred today and is planned to grow to 200 in next two or three years. THF right now is in home ﬁnance products business but has plans to diversify into other products and services in Insurance, Deposits, Credit Cards, Mutual Funds, Customer Durables, and Property Advisory Services. It is estimated the total housing shortage in urban Indian is to the tune of 6.6 millions. The housing ﬁnance market is Rs. 250 million and is expected to grow at 10 to 12% per annum. Because of Government initiatives on a number of fronts such as modiﬁcation of rent control act, increase in the interest exemption to Rs. 150000, 40% tax depreciation on housing investments by corporate and many more; the market for housing is expected grow at the rate of 30% annually.
ICICI. Stability. The Mission Statement of THF is ‘To be the ﬁrst choice in fulﬁlling the needs for a home. THF therefore feels strongly that there is perceptible shift towards formal funding sources and THF could be an additional player in the Home Finance Market. BUSINESS INFRASTRUCTURE The business infrastructure is small today but is planned to grow rapidly in next one year. Group Housing. The Infrastructure Business Model is given in Fig. THF has its own infrastructure of alliances and partners working in building and construction industry to meet multi dimensional needs of the customers.1. besides offering initial services to build conﬁdence in the customer. Apartments. These organisation are already established and they enjoy brand image and loyalty from their existing customers. The structure is designed to reach anybody any where also caters to all kinds of customers. 1. The business in % by product is given in Table 1. therefore the competition is well placed in this market and THF has a challenge to become successful in a short duration. namely Corporates. The infrastructure scope is so determined that customer can get all services at single window for building a dream home.Tata Home Finance Ltd.1.1 Product and Percentage of Business Percentage of business 90 2 2 6 Product name Individual home loans Home improvements/Extension Loan against home LOC thru corporate loans Land ﬁnance (Plot) Project ﬁnance Loan take-over IHL undertaken by CO with DAS Step up/Down repayment plan Loan against lease rentals All products 100 2. and all banks. The present Home Finance Market is a buyer’s market. . by providing ﬁnancial and other value added services through personalised and world class service at competitive rates’. has several innovative products carefully built for all types and kinds of customers. The challenge is accepted on the strategy of leveraging on ‘TATA’ strong brand equity reﬂecting Trust. who wish to go for Housing Complex. Table 1. 3. BUSINESS THF. Flats.1. The products currently offered and their business in percentage is given in Table 1. LIC housing. The competitors of THF are HDFC. Family and Individuals. and Integrity. Plots and bungalows. spreads across the society. the values home owner respects most.
Next important business sourcing is through Builders and Real Estate Developers through Project Tie-ups. Processing and Disbursement. Requirement. Each branch deals with Walk-in customers and helps them to run through a process of request for loan. Facilitation.2. The personal approach to customers is through DSAs. The break up of business by channels is shown in Table 1. Interior Designers. segregation of competencies. starting from Assessment. Table 1. Sizing and Costing. Fig. built over ﬁve levels (Figs 1. DSA visits prospects and solicits business. etc. Furniture Makers.2 and 1. The formal communication channels are . Technical and Legal guidance. 1.1 Business Infrastructure The business is obtained through several channels. THE ORGANISATION THF Enterprise Model THF organisation structure is ﬂat. The corporate business is brought through Sales Manager who interacts with CEO and MD of the organisation.3).Management Information Systems Head Office Regional Offices Branch Offices Direct Sales Agency (DSA) Builder Franchisee Network of Organisation.2 Breakup of Business by Channels Channels Branch Builders DSAs Sales Mangers Total Percentage of business 80 – 5 15 100 4. The structuring principles are single window service concept. Application submitting. Dual approval. select jobs multi-skilled.
CURRENT SYSTEMS AND TECHNOLOGY The Current Uses • Business software Loan Management Solution (LMS) for Front End Loan Management operation . Finance and Accounting and Services. 1. THF Business Model is shown in Fig. namely Resourcing of Funds.3 A Typical Branch Model • Branch to Region to Head ofﬁce. 1. • Functional reporting as per levels within the branch and dual reporting to Regional and Head ofﬁce functionaries.4. Marketing and Sales. 5.2 THF Enterprise Model Board Legal Commercial Oficer Customer Relations Officer Tech Officer Tech Officer Sales Officer(S) A/Cs Officer Fixed Deposit Officer Collection Officer Fig. Legal and Commercials. VP CMO Marketing GM Control and Compliance GM Credit Collections GM Legal and CS GM HR NM A/C GM Resources Fig.Tata Home Finance Ltd. 1. Board Managing Director COO Ex. THF Business Model THF Business model is based on ﬁve business functions.
1.THF Business Functions Management Information Systems Resouring of Funds Accounting Services Marketing and Sales Credit Management Legal and Corporate Affairs Contracting and Documentation HR MIS Systems and IT Credit Appraisal Risk Assessment and Management Control and Compliance Capital market Relation Management Control and Compliance Bank Loans Value Added Services Administration Enquiring and processing Document Validations and Verifications Settlements Compliance Requirement Provisions Collection NHB Refinance Technical and Other Servises Finance Management Promotions and Advertising Fig.4 THF Business Model .
7. The 11 reports can be classiﬁed in the following category. • Loan Management System. The current list of MIS reports is shown in Table 1. assisting customers in proposal building. • Open separate set of books for each branch. • Accounting Software: Tally – for Financial Accounting • An Integrated Software for Loan Management and Accounting with interface to back end Financial Accounting Software THF has realised the need of a better system to overcome the problems faced due to current software application systems.3. Besides non availability of on-line real time information for operations and decision making. MIS REPORTS CURRENTLY IN USE Since THF has started operations very recently the management feels that MIS needs improvement for effective business operations achieve customer satisfaction. THF generates 11 reports through present MIS. As a step towards implementation of this strategy. 6. THF evaluated number of ERP packages most suited for Finance/management industry and have signed for ORACLE-Financials. • Consolidate manually the accounts for each branch and then at head ofﬁce. GUIDELINES FOR CUSTOEMR THF Offers Loan for Following Purposes • • • • • Buy a new house/Flat (Under construction or ready possession) Buy an existing well maintained house/ﬂat Construct a house on a plot of land Home improvement Loan Purchase of Plot . • For handling queries. proposal Application Processing and decision making. • ERP Systems. • For centralised accounting for branches and head ofﬁce. It is also working with a local software company to build integrated loan management system for front end interaction and back end integration with provision to go on web a year later. • Make accounting entries separately for each branch. It has components.Tata Home Finance Ltd. • Front End Customer Interaction System. To overcome these problems the information management strategy is evolved. following difﬁculties are encountered in the information management.
4. Vice Presidents Performance of the Company Sr. 7. Monthly Delinquency Report Every 11th Day On 5th day of month First Working day of month Details of disbursements made during a day Central Accounts Details of bank depositions at branch CMO Business of Branch for the day Central Resources Disbursement Dept. 10 Day Perfornance 10. Manag ement Reporting to the Board Deciding courses of action on delinquent cases THF gives general guidelines through a brochure to the prospect in Question-Answer form.Central Accounts Branch Manager 9.Management Information Systems Table 1. Section Report Every day Rolling Weekly Every Friday Branch Manager ‘Disbursement Weekly Corporate on DSA Weekly report on DSA 10 Day Performance Expenses Statement Every Monday Every Monday Every 10th 15 days Branch Manager 5. Monthly Financial 11. Branch Manager Branch Manager Branch Accounts Ofﬁcer AO. Report 1. Daily 3. A prospect interaction begins with this brochure and discussion an additional queries is handled on front desk. 6. • Maximum loan possible Rs. • Maximum loan amount is 85% of cost of property. • Applicant age should be greater than 21 years. forcast of next year CMO Status on delinquent cases CMP Perfornance of operations CMO Overall review of operations Central Accounts Expenses incurred by the branch in cash Sr.3 No. MIS Reports Frequency Daily Orgainator and Responsibility Branch Accounts Ofﬁcer Branch Accounts ofﬁcer Branch Manager Recipient Central Accounts Contents Purpose Accounting entry Accounting entiry Disbursement Details Pay-in-Slip 2. 8.10 million. Vice Presidents Financial Data for the month and YTD Central Collection Status on Department delinquent cases Assess performance Funding arrangements Deciding course of action on delinquent cases Assess performance Perfornnce Reporting to Board Accounting entry and cash imprest replenishment Reporting to the Sr. The few typical rules as illustration are as mentioned. The guidelines not only answer FAQs but state business rules and policies to be used in application processing. . Central Acounts AO.
10. Can I repay the loan ahead of schedule? Yes. the loan amount could go up to 100% of the cost of construction.000 up to a maximum of Rs. Following is the list of FAQs for variety of products offered by THF. HOME LOAN Can I apply a home loan from Tata Home Finance? Yes. 10 million. you can. which is even earlier. • Maximum repayment period is 15 years but not extending beyond age 65. What is the security for the loan? The primary security for the home loan shall be ﬁrst mortgage of the home being purchased/constructed. The checklists are part of the new proposed MIS. The maximum repayment period is 15 years and should not extend beyond your retirement age of 65 years if you are self employed. Further co-lateral security by way of providing guarantee of individual guarantor acceptable to Tata Home Finance and/or assignment of Life Insurance policy on a case to case basis. Depending on you convenience. marketable and free from encumbrances. How much loan can I get? The loan amount you are eligible for will be based on your repayment capacity. . You can apply for a home loan even before you have identiﬁed your home. Your loan amount will depend upon your repayment capacity. you can decide the number of years you want to take to repay your loan. as mutually determined by you and Tata Home Finance (subject to a maximum of 85% of the cost of property). you have the option of prepaying the loan either in part or in full. What will be the repayment period for my loan? We give you an option to select your term of loan. This can then help you decide the budget for your home. THF has prepared checklists to ensure. You can get a loan from Rs. For all categories of product offers. ascertain and conﬁrm number of key aspects fo the proposal. • And other. In case you wish to construct a house on a plot of land. • Loan against home is 50% of market value of the property. Can I have a co-applicant? You can include your spouse/parents/brother/sister as co-applicant. This ensures impersonal scrutiny. It is in your interest to ensure that the title of the house is clear. If you are at least 21 years of age and are employed or self employed with a regular income.Tata Home Finance Ltd. objective assessment. no processing error and no human error in viewing and decision making. We will be glad to include his/her income in enhancing your loan amount (provided the co-applicant meets certain conditions). You can even have your ﬁnance/ﬁnance as a co-applicant.
The loan amount will be disbursed in full or in installments depending on the progress of construction. How much loan I get? You can get a loan from Rs.000 up to a maximum of Rs. repayment of the loan and security for the loan are same as the Home Loan from Tata Homeﬁnance. You can use it for the following.10. • Submission of legal and property documents. • Submission of legal and property documents as acceptable to THF. In certain cases. • Investment of your own contribution The loan amount will be disbursed in full or in installments depending on the progress of the extension work. • Selection of the property. How will the home extension loan get disbursed? Once you accept the sanction letter. • Payments of your own contribution. we would ﬁnance even 100 per cent of the extension cost. as mutually determined by you and Tata Homeﬁnance (subject to a maximum of 85 per cent of the cost of extension). Your loan amount will depend on you repayment capacity. Other vital details for the Home Extension Loan like the co-applicant. What will be repayment period for my loan? The maximum repayment period is 15 years and should not extend beyond your retirement age or 65 years if you are self employed which ever is earlier. • Construct an extra room on the terrace. You can use if for: . 1 Crore. How does a home improvement loan from Tata Home Finance help me? A home improvement loan is just one of the means by which your dream of adding life and value to your existing home can come true. • Add a room. your home extension loan will be disbursed on meeting the following. • Have an additional or bigger bathroom/toilet.Management Information Systems How will my home loan get disbursed? Once you accept the sanction letter. HOME EXTENSION LOAN How does a home extension loan from Tata Home Finance help me? A home extension loan is just one of the means by which your dream of extending your existing home can come true. your home loan will be disbursed on the basis of the following.
You can use the loan amount for different purposes for instance. we could ﬁnance even 10% of the improvement cost. • • • • • • Internal and External repairs Tiling and ﬂooring Rooﬁng Grills and aluminium windows Bore-well Paving of compound wall…….Tata Home Finance Ltd. How will the home improvement loan get disbursed? Once you accept the sanction letter. The loan amount can be used for any purpose. Your loan amount will depend on your repayment capacity. your home extension loan will be disbursed on meeting the following. • Meet the wedding expenses of your daughter.000 up to a maximum of Rs. • Invest in business. What will be the repayment period for may loan? The maximum repayment period is 8 years and should not extend beyond your retirement age or 65 years if you are self employed. • Submission of legal and property documents • Investment of your own contribution The loan amount will be disbursed in full or in installments depending on the progress of the improvement work. • Even to buy a second home. 10.) In certain cases. LOAN AGAINST HOME How does a loan against home from Tata Home Finance help me? A loan against home is just one of the means by which you can encash your investment in your existing home without having to dispose it off. • • • • • Internal and external painting Water prooﬁng on terrace Plumbing Enclosing an open balcony Construction of water tank How much loan can I get? You can get a loan from Rs. other than speculative or illegal purpose. . repayment. which ever is earlier. to: • Finance higher studies of your children. pre-payment of the loan and security for the loan are same as the Home Loan from Tata Homeﬁnance. Other vital details for the Home Improvement Loan like the co-applicant. 20 Lakhs. as mutually determined by you and Tata Homeﬁnance (subject to a maximum of 70% of the cost of improvement.
For Home Improvement loan and home extension loan • Detailed cost estimate of the extension from your Architect Engineer/Interior Designer. Election ID. please refer to the enclosed rate card. • Memorandum/Articles of Association for companies/partnership deed for ﬁrms and a brief proﬁle or your company/ﬁrm. • Submission of legal and property documents. What documents will I require while applying for the loan? The following list of documents will be needed while applying for a loan. What will be the rate of interest? For the latest interest rates. • Investment of your own contribution. as mutually determined by you and Tata Homeﬁnance (subject to a maximum of 50% of the market value of property. Drivers License or Passport (any one). 10000 up to a maximum of Rs. Advance Tax challans (for both company/ﬁrm and personal account) for the last three years. What will be the repayment period for my loan? The maximum repayment period is 8 years and should not extend beyond you retirement age or 65 days if you are self-employed. For salaried individuals: • Latest salary slip • Form 16 from the employer For salaried individuals: • Certiﬁed copies of Balance Sheet and Proﬁt and Loss account. which can be established from the Ration Card. The loan amount will be disbursed in full or in installments depending on the progress of the extension work. How will the home extension loan get disbursed? Once you accept the sanction letter. Birth Certiﬁcate. pre-payment of he loan and security for the loan are same as the Home Loan from Tata Homeﬁnance. Other vital details for the Loan Against Home like the co-applicant. PAN Card. School Leaving Certiﬁcate.Management Information Systems How much loan can I get? You can get a loan from Rs. . • Residence and age proof. Your loan amount will depend on your repayment capacity. 1 crore. Income Tax Returns’ acknowledgements. as evaluated by our valuer). your loan against home will be disbursed on meeting the following. which ever is earlier. repayment.
How do I repay the loan? Repayment of your loan will be in equated monthly installments (EMIs) which will commence from the month following full and ﬁnal disbursement.000 Maximum 100% of cost of production . RULES AND CONTROL POINTS Home Loan • • • • Loan Application Eligibility Loan Amount limit Loan Amount (Flat) Loan Amount for plot of land for home construction • Security against loan 21 years 85% of cost of property Rs. 10. In case of part disbursal of the loan.Tata Home Finance Ltd.000 to Rs.000. 8. a pre-EMI interest is payable till the full and ﬁnal disbursal is made. 1000000 Maximum 100% of cost of construction Maximum 15 years not exceeding 65 yeas of age First mortgage against home with conditions or Individual guarantor or Assignment of Life Policy Selection and submission of legal and property documents and Initial payment of your own contribution Payment of processing fees Payment of administrative charges • Loan disbursement • • • • Home Extension Loan • • • • Loan application eligibility Loan amount possibility Loan amount (Flat) Loan amount for plot of land for home construction 21 years 85% of cost of property Rs. 10000 to Rs. KEY FEATURES. What are the fees applicable? For the applicable fees. The EMIs are payable every month and will be collected in the form of post dated cheques or directly deducted from your salary by your employer. 10. please refer to the enclosed rate card.
000 Maximum 15 years not exceeding of age 65 years First mortgage against home with conditions or Individual guarantor or Assignment of Life Policy Selection and submission of legal and property documents and Initial payment of your own contribution Payment of processing fees Payment of administrative charges • Loan disbursement • • • • Loan Against Home • • • • Loan application eligibility Loan amount possibility Loan amount (Flat) Loan amount for plot of land for home construction • Security against loan 21 years 85% of cost of property Rs. 10. 10.00.000 to Rs.000 to Rs. 2.00. 10.Management Information Systems • Security against loan • Security against loan • Loan disbursement • • • • Maximum 15 years not exceeding of age 65 years First mortgage against home with conditions or Individual guarantor or Assignment of Life Policy Selection and submission of legal and property documents and Initial payment of your own contribution Payment of processing fees Payment of administrative charges Home Improvement Loan • • • • • Loan application eligibility Loan amount possibility Loan amount (Flat) Security against loan Security against loan 21 years 70% of cost of improvement Rs.000 Maximum 100% of cost of production Maximum 15 years not exceeding 65 years of age .
IT returns and acknowledgement. Since. LIC Housing and some leading banks. Form 16 from the Employer. all players are attacking the same market segments. To build business strategy for rapid growth THF has focused on customer and customer services that would bring rapid growth and attain a position of strength in the Home ﬁnance market. The Strategy is to attract the prospects to THF by providing broad band of services at competitive rates. The strategy is built on the following four factors.Tata Home Finance Ltd. Memorandum and Articles of Association. 9. . THF is now riding the growth phase in Sigmoid or S curve after just coming out from the phase of Introduction. Latest Salary Slip. ICICI. THF approached the problem systematically using Life Cycle Model of system development and using the increment model of development. Repayment Choices • Post dated cheques • Deduction from salary 9. MOVING THF TO INFORMATION DRIVEN ORGANISATION The management of THF has taken a bold step to modernise the business processes in line with the mission statement and with the objective of cutting cost of business operations and maximising the gains to shareholders. the prospective customer can be win over only through creation of broad image of a trusted fund provider with the difference. Certiﬁed copies of Balance Sheet and P & L Account. Advance Tax Challans.1 Business Analysis and Strategy THF faces competition from established organisation such as HDFC. It would therefore need business strategies that will accelerate the pace of growth in next year or two. • Security against loan • Loan disbursement • • • • First mortgage against home with conditions or Individual guarantor or Assignment of Life Policy Selection and submission of legal and property documents and Initial payment of your own contribution Payment of processing fees Payment of administrative charges Support Documents to Loan Application • List of Documents Residence and Proof of Age. etc. • Detailed Cost Estimate from Architect/Engineer.
products. It has a four tier organisation infrastructure where customer can ﬁnd a service provider of his choice. While THF has good resource management skills. regional ofﬁces. funds and assistance at every stage of home building. • Service excellence through effective response. that is funds. THF has taken care for providing excellent service across all stages of home ﬁnance servicing. This is possible through continuous monitoring and mending of strategies and evaluating the business performance against these strategies. plots and bungalow. the funds can be sanctioned and disbursed in less than 48 hours. it is necessary to manage them cost effectively to achieve dual objective of performance excellence and highest customer satisfaction. It has a information rich web site giving information on products. This kind of support base creates conﬁdence and comfort in the mind of customer to come under the umbrella of THF. home improvements. THF product and service strategy is such. facilities and answers to frequently asked questions. Business partners. THF has now competed strategy build up and they are operative in most of the regions of the country. • Total solution assistance to build a dream home. when needed anywhere. technical and legal assistance to complete the home fast. THF recognises that this can be achieved through information support to customer as well as to THF personnel at any level.2 Effectiveness of Business Strategies All the four strategies and critical resource management. 9. THF has 11 different home ﬁnance products meeting the needs of individuals. direct sales agents (DSA). builder partners. that the beneﬁts the customer gets are signiﬁcant compared to cost of loan servicing. The products are so designed that they can be customised to speciﬁc requirements of the customer. THF therefore has gone into detail requirement study of information needs required to manage the following • Customer servicing • Customer performance monitoring • THF performance evaluation • Cost control. systems and solutions. beyond home construction and offer services through THF partners at attractive discounts to make a beautiful home. traders. groups and corporates for new home. The product design is such that if information is complete and correct. The service and interaction is possible through web site. franchisees and will snit network or reputed manufactures. empowered. All this support provides reach. Finance and operations • Credit appraisal • Risk assessment . people. The strategy is backed by wide range of techno-commercial information support for quick and better decision making. knowledge. specialists and consultants in home making industry. The fourth strategy is to provide total solution to the customer. branch ofﬁces.Management Information Systems • Products to meet most sought requirements of customer • Cost beneﬁt ratio attractive to the customer. through offer of funds at the least cost.
overheads defaulters and bad debts.Tata Home Finance Ltd.3 Information Management Strategy (IMS) • Provide access to information from anywhere any time. • Near ‘Paperless’ transaction processing to cut and control cost of customer servicing through reduction in processing time. Sales Managers and Marketing Managers. All such systems will be either integrated or interfaced with mainly the business system mentioned above through suitable system architecture. HR. • Customer Interaction • Customer Relations • Resource Management • Marketing and Sales • Product Design and evaluation • Credit appraisal and Risk Assessment • Proposal Processing • Building Support and dedicated database for designing innovative products • Accounting and Finance Management • Customer Servicing • Strategic Management • E-training and Learning . • Loan application processing system • Credit risk appraisal system • Customer relations management system • Funds management system All other functional systems such as Accounting. Purchase etc. 9. • Besides real time on line systems develop data mining application for strategic management of business. Objective Scope of New System The scope covers broad band of systems and applications with emphasis on the following. evaluation and monitoring • Proposal processing: entry to disbursement to collection and recovery THF has identiﬁed following business processes as mission critical applications. • Create a business management database/data warehouse that is useful to customer. resource. • Adherence to service standards. • Customer access to the proposal for status monitoring and tracking. DSAs. are important but do not have direct impact on the business of THF. • Do additional business to the tune of 30% within same manpower through quick decisions and better control on cost and performance.
Microsoft transaction server. The solution is designed for supporting the following.6. • Application Solution: Oracle 8 i. • Operating system platform: NT 4. IIS 4. This business functions is fundamental of THF business operation. • Front End: VB.5 Technology Platform for IMS Strategy Keeping in view the dynamic nature of business and need of satisfying the requirement of information at any time and anywhere. Oracle Financials. • Continuous Innovative Product Management. • Fastest Service delivery. web server • Security: Firewall servers and Proxy server 9. Relationship Model is shown in Fig.0 • Back End: Database server. Business Management and Strategic Management of Resource and Product. • The core business functions model is given in Fig. integrity and service are held in high esteem.6 Application System Architecture Four-pronged business strategy is supported by state of the art technology based information Management solution. THF has chosen following technology platform. . 1. Application server.Management Information Systems 9. THF considers home ﬁnancing as a ‘people to people’ business where trust.5. Web Enabled applications. the solution is designed for THF enterprise as a business solution supporting information needs for Operations management.4 Information System Architecture THF Business Function Systems Architecture The Business System Architecture required for business strategy implementation is given in Fig.0 Unix • Network: Internet/Internal/Extranet/LAN • Application Technology: Client/Server. 9.7. It has main functions namely • Customer Relations MGT • Disbursement Management • Loan Management System • Marketing and Sales • Resource Management • Training Relationship Model • The business model is executed through relations management between major partners in home ﬁnancing business. 1. 1. Oracle Applications-11 i.
The Business Function System Architecture Customer Relation Management Customer Interaction. Proposal Building Loan Application Process Property Appraisal Disbursement Management Loan Management System Emi Collection System Monitoring and Default Handling Loan Disbursement System Debt Management System Marketing and Sales Product Development Documentation Systems for Contract Document Verification and Validity Checking Business Rules Condition and Constraints Approvals and Recommendation Contract Implementation Sales and Advertisement Sales Force Management Business Partners Management Marketing Operations Credit and Risk Appraisal Decision.Tata Home Finance Ltd. Investments Communication E-learning Basics of Finance. Collection and Recovery Relation Management Investor Banker Tata Finance Funding Agencies Customer Partners Agencies. Banking. Bankers. Funds and Emi Recovery Through Legal System Training Relation Management Resources Management Investment Portfolio Management Fixed Deposits Management Forecasting of Disbursement.5 Business Functions System Architecture . Commerce Statutory Compliance THF Product Credit Appraisal Risk Appraisal Fig. 1.
1. • No data redundancy. • Layered approval systems with technology application of work group and work ﬂow.Management Information Systems Resource Managements Funds Management Bankers Investors Funding Agencies FD Holders Funds Disbursement Mnagement Front Officer DSA SM Dream Home Service Management Loan Translation Management Finance and Accounts Support Service Management Franchisee Builders Home Service Providing Consultant Individuals Corporates Groups Fig. Collection and Recovery Measures. .7 Business Function Model • Cost control. Figure 1. The solution is made of 17 different applications systems. Groupware Applications. Legacy systems. and Resource Management. • Business policy. rules and guidelines embedded in the application. • World class services provider at competitive rates. comprising ERP system. 1.6 Relationship Model The MKT and Sales Proposal Decision Funds Management Solicit Business to Business Customer Submits Proposal Disburse Funds Resources Funds Repays Funds Repays Funds THF Finance Accounts Credit Fig. The solution is expected to build THF towards • First choice of customer for all home ﬁnance requirements and offer value added services. CRM and data warehousing systems.9 shows application systems architecture Each applications is designed with following characteristic.
1. present MIS will be undergoing a sea change.0 Iis Database Server Unix Oracle 8i Corporate Application Server Oracle 8i Financials Legacy Systems Server HR Payrolls Firewall Server Internet The Intranet Lan Local ISP 1 Mbps Leased Line Proxy Server Clients Regions Clients Branches Clients Builders Clients Business Partners Clients Dsa Fig. Web Server Nt 4.8 Technology Solution Architecture • Access to information processing to meet just in time need of decision making.Tata Home Finance Ltd. 1. Management Information System (MIS) With full implementation of this application system architecture. Besides normal status reporting it will provide following additional reports for managers operating at various levels. • Capable of information processing analysis and decision making as a support for all personnel across the organisation. Rejected Loan Applications . 10. Project Status Report 2.
Market.Management Information Systems Customer Relations Management System Credit Approval System Loan Proposal Processing and Approval System Techno-commercial Evaluation Legal Verification System Debt Management System Risk Assessment System Collection System Disbursement System Marketing Sales Product Management System Resource Management System Finance and Accounts System DBMS HR Payroll Procurement Builders Architects & Home Interior Providers Data Warehouse / Data Mart / Data Mining Applications for Strategic Management of Resource Products. Customers Past/present Fig. Demographic Details Report 5. Reﬁnance Claim Report 6. 1. .9 Application System Architecture 3. Repayment Reports New MIS will strengthen decision making and is expected to improve management of the following. Rural Housing Loans Disbursed 7. Turn Around Time Report 4.
if any. Identify DWH information entities and sources from where they will be pulled in DWH. Examine whether new MIS will succeed in giving the following to THF: (a) Competitive advantage (b) Better customer relations (c) Control on ﬁnancial resource 2. standard features and modular structure. Questions 1. Critical Information Systems which have strategic importance and offers competitive advantage to THF. stability and integrity in Tata Home Finance. Suggest ten standard queries in following areas of business function: .Tata Home Finance Ltd. Study Business Function Systems Architecture (Fig. Explain why the systems are critical? 5. Identify from Business Functions Systems Architecture.3.day performance report (b) Monthly delinquency report (c) Expense statement 3. • Resource • Risk • Recovery This will also enable effective control on the following • Cost • Credit • Customer choice All this will result into a truly world class service company offering a basket of products through single window creating a THF brand loyalty conﬁrming trust. Suggest a conceptual model of CRM for THF. You have learnt about CRM package and know its scope. Explain the use of ﬁrewall and proxy servers in THF information system solution? What security threats THF is perceiving and from which sources? 10. 7. (a) 10. Which are the DSSs in the THF system suite? Which decisions these systems are empowered to take? 6. 9.5) and Technology Solution Architecture (Fig 1. 1. THF Data Warehouse (DWH) is an information repository. Compare THF Customer Relation Management Scope with this identify the gaps.8) and explain to what extent following objectives will be achieved and why? (a) Faster service delivery (b) Better control on collection & recovery 4. What is e-learning solution catering to HR of THF? What is the advantage of e-learning process? 8. Prepare a reporting format for following reports stated in Table – 1.
THF has a website ‘tata home ﬁnance’ with standard website features. THF wants to improve the utility of this site by offering information support on various aspects of home before and after the construction. Members of the THF board and News. (f) Customers Demographics and Segments. (d) Customer by THF Products. 11. Suggest which new web pages and links should be added so that customer ﬁnds THF website a single window source of information.Management Information Systems (a) Loan Proposals. highlights about ﬁnancial status of THF. (b) Recovery Status. products. (c) Default Customers. ready reconers for EMI computations for varying loan amount and period. services. (e) Customers by Loan Amount Disbursed. . like home page.