MICRO FINANCING INSTITUTION: SYSTEM FAILURE

SYSTEM FAILURE

Backing up of transaction data is vital in financial sector. Therefore regular backup procedures are applied for Core-banking system as described below and system recovery times are kept to a minimum to avoid interruptions to operations.

Daily backups of transactional data are taken at branch offices, and every Friday weekly backups are taken. These weekly backups are accumulative for a period of one month, therefore the 4th week back up automatically becomes a monthly data backup and it is sent to headquarters for archiving purposes.

To keep all the aspects of the business functioning in midst of any disruptive event, a disaster recovery plan is now in progress as a part of business continuation plan. This will keep branch operations alive, even when those offices are hit by a natural disaster. This is a strategic step and establishing necessary infrastructure, such as laying down networks, is in progress at present.

Many project management weaknesses have resulted in poor implementation of systems at SEEDS. At first the formal path of the software acquisition was not followed, i.e., the requirement specification preparation was not carried out properly, so the real requirements of the systems has been overlooked and resulted in lack of necessary functionalities in the systems.

Then there are the communication gaps between the vendors and the organizational IT personnel. Both the systems were purchased from local vendors and their inability to provide timely response was a major hindrance in having timely implantations.

Further lack of necessary support in various aspects from vender side became a barrier in the systems implementation process. This is due to inherited weakness of poor project management of local vendors. Although they are very competent in software development and other technical aspects, their project management capabilities were not up to the standard. There fore lapses occurred in meeting requirements in terms of time, cost and scope.

Every information system needs continued support after the solution is implemented. But lack of legal framework support on resolving issues such as breach of service or maintenance contracts is another issue.

A change control board is a vital component in systems implementation process to cope with the changes that occurs in the process. If changes occur in beginning of the process the risk is low whereas if changes occur at a latter stage the risk is very high. Non availability of a change control board became a serious drawback in systems implementation.

Having all these problems the present systems of SEEDS were implemented successfully mainly based on the capabilities of certain individuals. But not having followed the proper strategic process is sometimes visible through the shortcomings of the systems.