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INDIVIDUAL ASSIGNMENT

REPORT ON ICT ENVIRONMENT & RELATED ISSUES
Of
SRL LANKA INSURANCE CORPORATION LTD.

Information Systems for Managers CIS5001
SRL LANKA INSURANCE CORPORATION LTD.

BY
REPORT ON ICT ENVIRONMENT & RELATED ISSUES

R.P.Gayan Rajapaksha

(E-Mail- gayanr@srilankainsurance.com)
BY

Course Coordinator
R.P.Gayan Rajapaksha
Dr.wui Gee Tan

Student Number

0050082407
Presented to

Date of Submission
General Manager (CEO)
11 October 2010
Sri Lanka Insurance Corporation Ltd.

MBA PROGRAMME
11 October 2010
UNIVERSITY OF SOUTHERN QUEENSLAND

1

TABLE OF CONTENTS 2 .

Corporate structure iii. Managerial efficiency & effective decision making.2 Statement of the problem 1. The Organization ii. ii. Ecosystem & Availability of resources 2. vi.1 Green computing & its Evolution. i.1 Organization’s IT infrastructure.2 Benefits & costs of Green computing. PART 5: CONCLUITION & RECOMMENDATIONS 5. PART 3: GREEN IT AND ITS BUSINESS BENEFITS & COSTS 3. v. PART I: TITTLE & INTRODUCTION 1.2 Recommendations i. iv. Deploying resources. 5.2 Issues & Challenges of Corporate mission. 3. Green IT issues of SLIC and Environmental impact. 6. PART 2: IT INFRASTRUCTURE: ISSUES & CHALLENGES 2. Issues in deploying resources. 1. Disposal of hardware. Deficiency of service level workers & programmers. EXECUTIVE SUMMARY 2. Evolution ii. Managerial issues & decision making problems.3 Hindrances & Limitations 4. The major business processes 1. System maintenance & reduce response time for trouble shooting.1 Conclusion. iii. iii. 3 . System break downs & High response time for trouble shooting.1 Introduction i. ii. PART 4: RECOMMENDATIONS OF GREEN IT MEASURES 7. i. 5.

APPENDICES Appendix 1 – The Journal EXECUTIVE SUMMARY The purpose of this report is to submit in the form of an assignment for the MBA (finance special) program conducted by the University of Southern Queensland.iv. This report is 4 . 9. Meetings and interview references. LIST OF REFERENCES i. v. In – text references. Disposal of hardware. 8. Internet sites. ii. iii. Recruitment of service level workers & programmers.

The specific problem addressed in this study is to identify the ICT issues and miss management of ICT resources in the organization to and ascertain what extent the management had involved in applying Green Computing principles and practices within the organization and the recommendations to over come the issues identified. (SLIC) is a leading insurance company in Sri Lanka founded in 1962. The role taken is in the form of an internal employee and the report is to be presented to the CEO. lack of knowledge workers. Therefore the organization is offering a valued service to its customers and a multi functioned ICT system should be maintained island wide. The organization would face many issues in disposing hardware and to maintain an eco-friendly ICT environment. personal interviews and direct observations.to be submitted to Dr.Wui Gee Tan course coordinator – Information Systems for Managers (CIS5001). issues in deploying resources. Since then. it provides all kinds of insurances solutions to its customers. The report also highlights a clear idea of the organizational and societal benefits of adopting green computing principles within the organization. decision making problems. The organization which analyzed was the Sri Lanka Insurance Corporation Ltd. The official website is accessible for the outsider’s world wide. SRI LANKA INSURANCE CORPORATION LIMITED THE ICT ENVIRONMENT & RELATED ISSUES 5 . Therefore recommendations were made to create and apply green computing principles and practices to the existing structure of practice. Research was conducted by means of telephone. SLIC has some of the barriers to maintain successful ICT system within the organization under the current environment such as management issues.

information technology department and other service departments such as internal audit department. ii. the insurance field was liberalized ending the virtual monopoly enjoyed by the corporation and consequently was subjected to operate in a competitive environment. they declare their decisions over the organization by the flow of managing director. the company has nearly 50 years experience in fulfilling the insurance needs of the Sri Lankan people. managers and executives. deputy general managers. human resources department.rating for Insurance Financial Strength from the global rating agency Fitch Rating London. The official web site is <http://www. Subsequently when the competitors came in to market SLIC began to loose its market share rapidly and there was an essential requirement of changes in Information systems.71. Sri Lanka Insurance was incorporated by a special Act of Parliament in 1961by late Minister Mr. over half a million policies in force and an average claims settlement of Rs. The organization is ruled by the chairman and board of directors. All the departments and the network of branches including foreign branches (Maldives) are governed by unique operational and administrative policy under the government of Sri Lanka. senior managers. The structure of the organization complied with marketing department.000 field staff working in 175 branches island wide with the head office located in Colombo. In 1993 with the objective of providing greater autonomy to operate in this environment the corporation was converted to a fully Government owned limited liability corporate entity and subsequently sold to the “Distilleries-Spence Consortium” under the Government Privatization Plan in April 2003. There fore the ownership of the SLIC shifted again to the Government of Sri Lanka as a 100% government owned corporation. Ilangaratne under the guidance of her Excellency late Prime Minister Sirimavo Bandaranayake.15 million a day. insurance underwriting departments and claims departments. general manager. T.B. The integrated system is maintained and serviced by the ICT department. The Organization Sri Lanka Insurance is the largest and strongest composite insurance provider in Sri Lanka. 6 . Related IT systems are implemented to each and every department for their operational requirement and linked with each other.com/>.8 billion in assets. assistant general managers. It is the first and only insurance company in the country to be assigned a prime AA.1 INTRODUCTION i. In 1988. with Rs. With strong re-insurance arrangements. a highly experienced technical knowledge base and the widest network across the country.srilankainsurance.1. advance Marketing and Operational strategies which should be upgraded to meet the market challenges. Corporate structure Presently the SLIC is operating with a work force of nearly 1800 permanent employees and nearly 12. finance department.in june 2009 the supreme court however held that the processes of privatization was illegal and void the contract with the “Distilleries-Spence Consortium”. Sri Lanka.

Therefore some of the information obtained was not quite accurate. i. was inaugurated as the sole transactor of Insurance business in Sri Lanka. IT INFRASTRUCTRE: ISSUES &CHALLENGES 2.3 Hindrances & Limitations As confidentiality was an area that had to be maintained. investments bring rate of income for the profit annually.2 Statement of the problem The study has been taken place to identify the issues and challenges of the IT infrastructure of the SLIC and to identify the short comings of inefficient decision making of Key IT personalities. 2. xx Collator and yy Sorter which had the input produced through IBM Card Punch xx and the Verifier 26. the organization gives the all kinds of the insurance solutions to its customers over island wide and overseas. Also some critical issues could not be get disclosed by the main characters. the staff working at the lower levels was quite reluctant to give out information as they were more worried about technology taking over human power. and environmental impact on disposals and to suggest an effective green IT solution for the organization. then known as the Insurance Corporation of Ceylon (ICC). The noteworthy milestones in the long journey towards the present Mainframe are. The reinsurance department handles all the reinsurance activities with the foreign markets.1 Organization’s IT infrastructure. Non motor and Marine. Union Place which was the Head Office of ICC. Data Processing started in what was called the IBM Machine Room in the ground floor of the 3 storied building at 288. Even though the major business activity is insurance. 7 . mismanagement of resources. The major business processes The major business process is insurance. Life division totally handles the life business and the general division is with Motor insurance. and mostly me submitting this report to the management. the organization gradually invest large amount of money in treasury bonds and share market. The process basically divided in to two main divisions as Life and General insurance. Evolution The history of the ICT Division dates back to the early 60s when Sri Lanka Insurance Corporation Ltd. 1. iii. 1. The machines used were the series of IBM Unit Record Machines consisting of the 143x Tabulator.

This used Virtual Telecommunication Access Method (VTAM) for communicating with x terminals consisting of Dumb Terminals and Printers both in the IT Division and User Departments.while facilitating this IT infrastructure 8 . IBM Value Point PCs were used both as terminals and for local processing of the users.fax machines. telephones etc. 2003: Link-up of Negombo. 1997: Multiprise 2003 with the first ever AS/400 (as a sub-system for data transfer from diskettes). Ecosystem & Availability of resources Sri Lanka Insurance Corporation continues the business operations with an integrated IT system linked with all local and foreign branches. The first Branch to be linked up was Kandy and this too occurred with the 4331 Machine in 1983. Another AS/400 for Lotus Notes another AS/400 for IFS. Input was through punched cards and magnetic tape. Generally all users have been facilitated with PCs and the departments have been facilitated with other resources such as printers. i. Presently SLIC is operating with the largest intranet linked with the branch network in the insurance industry of Sri Lanka. 1967: Installation of the 1st Mainframe Machine – IBM System/360 -20 with 4 MB Memory and Tape Operating System. The system also service enhanced with Wi-Fi and wireless network facilities. 1983: Installation of the IBM 4331 with x MB memory and the VSE/ESA (Virtual Storage Extended / Extended System Architecture) Operating System. scanners digital cameras .1962: Data Processing activities started with IBM Unit Record Machines as the 1st customer of IBM Sri Lanka. another AS/400 Machine (Model 9406/170) was obtained. memory upgrade (from 128 MB to 256 MB) and other enhancements ( Hard Disk Capacity expanded to 9 GB x 4) to the Mainframe (Multiprise 2003) were done. Towards the end of the year more branches were linked to the WAN. The first micro computer (IBM PC with Micro Channel Architecture) was also introduced to the IT Division during this time. Also. 2000: Under the Y2K Assistance Program. Instead of Dumb Terminals. Gampaha and Union Place.2004: Memory Upgrade of Mainframe from 256 MB to 512 MB to accommodate more branch link-ups.

i. cannon). Source: Laudon & Loudon 11th edition It could be seen all the major seven platforms illustrated in above have been effectively installed within the organization. 9 . even some times two or more days had taken to reinstall a mouse for a broken mouse.it is advisable to study about the IT infrastructure Ecosystem of the organization . It could be identified Billions of rupees had been invested on the IT infrastructure and for the maintenances of Computer hardware includes PCs (Dell. SLIC was unable to utilize its resources in a higher capacity to meet the market challenges due to following reasons. The IT department currently practices a poor distribution. 2. installation and restoration process due to lack of technical specialists and poor communication between the channels and the IT department. Even though the organization had invested in billions of rupees on assets to facilitate the IT infrastructure and maintenance. It has been reported users some times waited for several days to get their broken computers mended.theoretically the ecosystem could be illustrated as follows. Issues in deploying resources.2 Issues & Challenges of Corporate mission. Printers (Lexmark. IBM and HP).

The process of recruiting employees for vacant positions has become very slow and irregular process within the organization. Each PC in use like this may generates about a ton of carbon dioxide every year to the environment and releases thousands of kilojoules as heat. monitors. It could be identified 25% of the daily energy usage wastes on vacant work stations with turned on computers. Very often the organization falls in to difficulties as the correct decisions have not been taken at the right time. During working hours the main system some times goes down for few hours and the server delays have become very critical . Customer care officers also become very inconvenient among customers. It could be clearly identified the organization had not taken steps to recruit sufficient knowledge workers and programmers for vacant positions. The concepts of energy saving could not be seen and no action had been taken to reduce the level of power consuming. printers and other equipments had been stocked in a vacant floor for couple of years. managers often leaving their work stations without shutting down their computers and other accessories. this happens as a habit for four or five days per month. monitors. iv. SLIC on the other hand had not taken adequate steps on managing disposal of computers. Managerial issues & decision making problems. It seems the organization directly contributes for global warming and adverse climate changes. Correct and effective policy has not been implemented on disposals. vi. v. Therefore the environment become untidy and also required additional storage area for disposing items . Hundreds of old computers. System break downs & High response time for trouble shooting. This failure brings unnecessary delays for customers and loss of confidence.as some disposals have been kept for more than one or two years. Users like operators. programmers. Green IT issues of SLIC and Environmental impact. printers and other network and electronic items. Entering in to service or purchase agreements without having a proper negotiation with buyers some times cause for after sale service and maintenance problems. Disposal of hardware. 10 . iii. Due to this issue unnecessary could be seen in system and hardware maintenance and as well as in system modifications. Deficiency of service level workers & programmers. Studying about the IT environment of SLIC it could be clearly identified some Sevier environmental issues practicing within the organization. ii.

Unnecessary storage requires additional office apace which could be useful for another activity in a limited office premises. The rapid development of innovative technologies may cause for damage or deplete natural resources and in every moment releasing toxic gases. These items contain toxic chemicals. All the key words generally speak about study and practice about designing. GREEN IT AND ITS BUSINESS BENEFITS & COSTS 3. storage devices and networking and communication systems. With these endless activities of humans. Most of these items could be repaired and reusable. Because ICT and its’ subsystems have become the key part of the problems it has been regarded as a social responsibility to find out smart and innovative solutions for the issues With the scope of finding solutions for minimize environmental issues of information technology. wastes and harmful by products to the environment all around the world. As computer users each and every person and organizations have a duty to minimize or eliminate the environmental impact on IT and should be contributed to create a more sustainable environment. Green IT. 3. by affecting heavy burden on electric grids and contributing to green house gas emissions. sustainable IT etc. Green IT management. 11 . To meet the demand of technical and computer infrastructure most manufacturing industries started to double their output all around the world. Exposure these items have been ended up with land fills and polluting water and air. manufacturing. communication and networking technology the key words like Green computing. But the adverse impact is the decisions have not been taken to remove or reuse. Those concepts were based to minimize or make no impact on the environment. in an environmental friendly way.1 Green computing & its Evolution. Not only production and consuming but also disposals of IT creates a significant influence to the environment it self. energy has become the outpacing production of most renewable and non-renewable resources. monitors. It has to be realized that computers and other IT infrastructure consume more electricity power. On the other hand the volume of raw materials and production of chemicals has to be doubled to meet the requirements of industries with the enhancement of industrial processes and innovative technologies caused by the Earth’s growing population. printers. Green information systems. handling and disposing of IT and communication resources such as computers. servers. With the rapid development of technologies most activities all around the world have become very efficient and computer managed. have been taken in to study by IT professionals’ researches.

While developing an eco . Developing green IT will be benefited to improve energy efficiency. reduce green house emissions and imposed to reuse and recycling. applications and products. On the other hand organizations can reduce their operational costs by implementing eco – sustainability IT infrastructure and procedures.2 Benefits & costs of Green computing. 4.3. • Green disposal – Properly recycle the unwanted IT and communication and network equipments and refurbish 12 . Effective disposal strategies may benefit organizations in saving costs of purchasing new resources and earn some additional income by reselling the scraps. It is advisable to study about the green IT policies deeply before implementing green IT system within the organization. save resources. But it has been proven that most organizations have been able to gain a considerable rate of energy and cost saving by greening their organizations’ hardware and. To address the environmental impact of IT comprehensively and effectively the important approaches defined by many specialists. use less harmful raw materials. It has still been required to create a positive public perception on air and land pollution and climate changes rather than engaging in practices that will be having significant impact on energy saving. This practices also help to increase operational efficiencies while enjoying green benefits at the same time logistic companies can leverage the recent M2M technology for more efficient fleet management which resulting by time saving. As humans all users of it have been legally. communication and network infrastructure. as an example looking to reduce energy consumption some businesses invested in ways to lower cooling costs. ethically and socially bound to green our services.sustainability green IT inside the business in world wide it has been recorded a noticeable increase in interests. On the other hand business owners not likely to invest heavily on eco – sustainability factor without getting a significant return on investments. RECOMMENDATION OF GREEN IT MEASURES. a holistic approach could be illustrated by considering the following complementary instruments. lower energy and fuel consumptions. practices. Holistic approach to Green IT • Green use – Reduce the energy consumption of IT resources and information systems and to be used in an environmental friendly way.

environment sustainability and minimizes the total cost of ownership which includes the cost of recycling & disposal. electrical components and other related subsystems with minima or no impact on the environment. computers. The green IT includes benefits for environment and organization such as energy efficiency. and reuse the old computers and other devices. 5. Disposals could be done in two ways. CONCLUSION & RECOMMENDATIONS 13 . Refurbish and Recycle) which describe greening unwanted computers. • Green manufacturing . printers. one way is resale of unusable items for scrap value may bring some additional income for the organization and other way is disposing properly environmentally friendly was. Reusing or refurbishing of unnecessary monitors.Design energy saving and eco friendly IT and Communication components and cooling devices. Recommending solutions for disposal of unwanted computers and other IT and communication resources.Manufacture computers. This could be deeply understood by studding the three Rs (Reuse. Appling the green IT principle on identified green IT issues of SLIC it is also advisable to study the green computer’s entire life cycle illustrated bellow in the diagram. Recommending the solutions for the identified green IT issues of the SLIC it could be recommended to implement green IT principles in an environment sound manner and the management should try to minimize the energy wastes and efficient the cooling systems. both ways save the office space reserved for the storage of junk IT equipments. (Source: January/February 2008 IT PRO) • Green design . storage devices and communication and networking systems may help organizations to minimize their financing on replacing new IT equipments mentioned in above.

Managerial efficiency & effective decision making. System maintenance & reduce response time for trouble shooting.1 Conclusion As far as Green IT is concerned. 14 . it is relatively new in Sri Lanka. Deploying resources. while considering about the issues identified an the recommendations given to issues the SLIC must look into restructure the IT department and should seek benefits. The initial investment in implementing on green IT will be benefited In future environment in Sri Lanka. iv.2 Recommendations During this study many important details could be pointed out about the IT issues of Sri Lanka Insurance Corporation Ltd. ii. Companies are still to look at this option and to explore. This also allows the business to build brand image among the market players and to improve customer loyalty. Recruitment of service level workers & programmers. the top management should immediately analyze the employee requirements and immediate actions should be taken to refill the vacancies. 5. v. Green IT implementations should be formulated within the IT department of SLIC and the green IT principles should be applied on hardware disposals. Board of directors should put much weight on top and middle managers of the IT department and the IT professional should be influenced to be efficient and effective e in decision making. Disposal of hardware. reap the benefits of green IT implementation. Special task force should be appointed to hunt the system break downs within minimum time lap and management should formulate strategies to minimize the system failures. ii. i. More efficient strategy should be implemented with using adequate employees in installation and restoration processes and should improve the efficiency of the help desk to communicate the user department requirements quickly. the system could be upgraded without incurring much expenditure on recommendation given bellow. Clearly identified a short of employees engaged in IT department in several levels. 5.

Guidelines for citing references and electronic sources of information n.) 2. 8..srilankainsurance. Laudon & Laudon.com/> 2. Article “Harnessing Green IT: Principles and Practices” – (IT PRO January/February 2008).html> 15 . Internet Sites 1. In-text References 1.com/articles/1003/green-computing. ii. Guidelines for citing references and electronic sources of information n.d. Management Information Systems – Managing the Digital Firm (11th edn. viewed 6th September 2010 <http://thefutureofthings. viewed 17th August 2010 <http://www..d. LIST OF REFERENCES i.

Guidelines for citing references and electronic sources of information n. viewed th 12 September 2010 < http://blog. 5th September 2010 <mailto:mahendras@srilankainsurance.html > 4. I discussed about the basic details of the IT environment of SLIC and also discussed about the trends and short comings of the present environment.d. 18th August 2010. interview.srilankainsurance.com/next-generation- communications/2010/01/the_eco- benefits_of_green_it_for_the_dynamic_enterprise..com/> 6..com> 2.sustainableitarchitecture.d. interview. 30th August 2010 <mailto:gihang@srilankainsurance. viewed th 15 September 2010< http://www.45am) 16 .(SLIC) the place which I have been presently working (2.d. <mailto:chandimah@srilankainsurance. interview 18th August 2010 .html> 7.com/).. viewed th 10 September 2010 <http://www.com> 5.15 pm)..greenit.com/> 5. Sugath L.net/whygreenit. viewed th 10 September 2010 <http://greenpowermgt.com> 4. Silva M. 3. 18th August 2010 Visited to SLIC’s IT department and met Mr. interview.com> 3. interview. Gihan G.com> Appendix 1 ACTIVITY A: The Journal 17th August 2010: I visited official web site of the Sri Lanka insurance corporation ltd. Dinesh Kodikara Assistant Manager ICT (mailto:dineshk@srilankainsurance. <mailto:dineshk@srilankainsurance.d. Guidelines for citing references and electronic sources of information n.tmcnet.com/> Meetings and Interview References 1.com) and explained my requirement. 28th August 2010 <mailto:sugathl@srilankainsurance.d. Guidelines for citing references and electronic sources of information n.I studied about the history of the SLIC and studied about the IT background by referring the data available in their official web site (http://www.Chandima H. Dinesh.. K. Guidelines for citing references and electronic sources of information n. (8.sitr. viewed th 12 September 2010 <http://www. Guidelines for citing references and electronic sources of information n.

3pm) 10th September 2010 17 . I interviewed Mr.com>And introduced my self and explained about my requirement also told him that I’m presently working in the same organizations’ finance department as an Accountant. Mahendra Silva <mailto:mahendras@srilankainsurance. (7. Sugath Liyanage <mailto:sugathl@srilankainsurance. Liyanage to realize the help desk operations and the ways of handling internal customer requests.30pm) 28th August 2010 I referred the text references of the pages 210-11 of the Laudon & Laudon (11 th edn) and the literature on computer infrastructure.IT Executive >. explained the requirements and the scope of my study. interview. 15th September 2010 <mailto:chandimah@srilankainsurance.45am) 6th September 2010 I browsed www. (9. Chandima Hemachandra the Additional General Manager . Senior Manager – HR and interviewed him. (2.00pm) 5th September 2010 I visited to Mr. (8. There I gathered adequate facts to cover full part 2 of my study. Gihan Ganage IT technician <mailto:gihang@srilankainsurance.Head of IT (Silva M. (3.00pm) 30th August 2010 I met Mr.html and abstracted information about green computing and referred articles published in the site about green computing. (9.30pm) 28th August 2010 I visited to meet Mr. I was able to gather facts to cover 2/3 of the part 2 of my study.com. (3.30pm) 6th September 2010 I referred the article “Harnessing Green IT: Principle and Practices” published in the USQ web site which gives a deep understanding about green computing.com> and interviewed and Also visited with him to a junk yard that maintained by IT department for store unused computer equipments. verified the ability for recruiting new employees to fill the departmental requirements.com>.thefutureofthings.com/articles/1003/green-computing. I discussed about the existing practice of maintenance and trouble shooting.18th August2010 I went to meet Mr.

com/ to study the green power management principled and referred the articles published in the web site. (9. Refurbish. and Recycle. Necessary literature had have been Downloaded which could be helpful to prepare the report. (9.tmcnet.00pm) 12th September 2010 I visited to http://www.html and downloaded information on green IT.sustainableitarchitecture. Relevant findings were downloaded and studied further.sitr. This information is an important material to formalize the part 4 of the study. (9.net/whygreenit.00pm) 18 .10pm) 15th September 2010 I visited the web site http://www.greenit.com/ this web site contains much details about disposals of computer hardware and more details o Reuse. Also visited the web site http://greenpowermgt.com/ and red more about green computing and also logged to http://blog.html by logging on to these two web sites I realized the principles and policies about the sustainable IT environment and eco benefits of green computing.com/next-generation- communications/2010/01/the_eco-benefits_of_green_it_for_the_dynamic_enterprise. I logged on to http://www.