Contents
1. Introduction
2. Main Body of the Report
2.1.1. HSBC
2.1.2. The computer-based systems that provides a business solution relating to the knowledge management and e- business
3. Conclusion
4. References
Introduction
For all sized organizations, change will be a constant in the next millennium. Technological advances, including non-technical ones, are coming more quickly than ever before, thereby affecting all aspects of a typical company. As network computing technology progresses, there are increasing pressures to create a new type of workplace. The current workplace will experience a transition that will fragment it into myriad on-site and off-site offices. Not only will the work environment change dramatically in the 21st century, but there will also be a need for business systems to support the new work environments (Thierauf 1999).
More specifically, there will be a need for new types of systems that focus on discovering knowledge that responds to the changing environment. Although past and current information systems have served the needs of management and operating personnel, newer types of business systems will be at the forefront of these newer types of systems found in a typical company. An important goal of knowledge management systems is to provide competitive advantage by giving decision makers the necessary insight into patterns and trends that affect their domain (Thierauf 1999).
A knowledge management system is capable of making comparisons, analyzing trends, and presenting historical and current knowledge. But more importantly, such a system enables decision makers to analyze and understand the patterns quickly and identify the most significant trends. As such, it is an accurate predictive method for decision makers. In addition, a knowledge management system can track and evaluate key critical success factors for decision makers, which is valuable in assessing whether or not the organization is meeting its corporate objectives and goals. Overall, a knowledge management system can assist decision makers in making better informed decisions that affect all aspects of a company’s operations (Thierauf 1999).
E-commerce or E-business is the exchange of goods and services by means of the Internet or other computer networks. E-commerce follows the same basic principles as traditional commerce that is, buyers and sellers come together to exchange goods for money. But rather than conducting business in the traditional way in stores and other brick and mortar buildings or through mail order catalogs and telephone operators in e-commerce buyers and sellers transact business over networked computers. E-commerce offers buyers convenience. They can visit the World Wide Web sites of multiple vendors 24 hours a day and seven days a week to compare prices and make purchases, without having to leave their homes or offices (Epstein 2004).
In some cases, consumers can immediately obtain a product or service, such as an electronic book, a music file, or computer software, by downloading it over the Internet. For sellers, e-commerce offers a way to cut costs and expand their markets. They do not need to build, staff, or maintain a store or print and distribute mail order catalogs. Automated order tracking and billing systems cut additional labor costs, and if the product or service can be downloaded, e-commerce firms have no distribution costs. Because they sell over the global Internet, sellers have the potential to market their products or services globally and are not limited by the physical location of a store. Internet technologies also permit sellers to track the interests and preferences of their customers with the customer’s permission and then use this information to build an ongoing relationship with the customer by customizing products and services to meet the customer’s needs.
E-commerce also has some disadvantages, however. Consumers are reluctant to buy some products online. Online furniture businesses, for example, have failed for the most part because customers want to test the comfort of an expensive item such as a sofa before they purchase it. Many people also consider shopping a social experience. For instance, they may enjoy going to a store or a shopping mall with friends or family, an experience that they cannot duplicate online. Consumers also need to be reassured that credit card transactions are secure and that their privacy is respected (Welsch 2003). This paper intends to discuss about HSBC and some information about it. The paper also intends to evaluate computer-based systems that provide a business solution relating to e-commerce and knowledge management. The paper will also give the benefits of the system to the company. Through this information a proper conclusion will be made
Hong Kong Shanghai Banking Corporation Holdings
HSBC Holdings, a British financial holding company with origins in Hong Kong and Shanghai, where offices were opened in 1865 under a special charter which allowed Hong Kong rather than London as a headquarter location. The bank remained an eastern force until the 1950s, when overexposure to the crown colony and its textile industry pointed to a need for geographical diversification. A worldwide scan was made with rather disappointing results. Australia and Canada were protectionistic and so was the Continent, in addition to being over-regulated and well served by its own talent. Central West Africa was saturated by British banks and, after independence; the new countries gave priority to domestic banks. Only the USA was attractive because it offered dollar assets in a dollar-hungry world (Laulajainen, 2003).
But before anything could be done about it, events elsewhere called attention. HSBC was in intense competition all over Asia with Chase Manhattan which showed interest in a small bank in India and Malaysia. HSBC pre-empted by purchasing the bank in 1959. In the same year another defensive acquisition became necessary, when an investor group tried to buy the British Bank of the Middle East, strip its assets and sell the branches to HSBC, which did the bulk of its Middle East business through the bank. For example, Kuwaiti authorities kept half of their money there. With the purchase came a chain of retail branches in Cyprus. A few years later a banking crisis erupted in Hong Kong. HSBC was not seriously affected but Hang Seng Bank, the colony's second largest, was about to flounder in a run. Chase offered help but Hang Seng preferred HSBC, because of its local roots, and sold it a majority stake in 1965. These three deals illuminate the difference between corporate strategy and the realities of the marketplace (King, 1991).
Diversification had taken a beating although it was only in 2000 when acquisitions in Asia became topical again, in a small way. Two of them were part of the private banking drive, PCIB Savings Bank in the Manila area and Taiwan's leading asset manager China Securities Investment Trust Corp. in 2001, to be followed by an 8 per cent stake in the Bank of Shanghai. HSBC had returned to its roots. Afterwards many more events unfolded including the turnover of Hong Kong to china this prompted HSBC to transfer headquarters to United Kingdom (Laulajainen, 2003).
HSBC sees the Internet as one of several exciting new media, to be incorporated as an integral part of its working. The bank has concluded that e-commerce will change the fabric of the financial services sector and sees it as a way of finding new customers all over the world and improving its services to existing customers. It intends to use e-commerce to reorganize the business so as to provide higher-quality customer services more efficiently. HSBC will be able to link its customers to the full range of international services and manage their processing wherever it chooses, which the bank sees as a considerable competitive advantage(Tansey 2002). HSBC has adopted a clicks and mortar strategy. This requires that customer Internet offerings must meet three criteria: customer needs and preferences come first; they must fit HSBC’s existing distribution channels; and they must be multinational in scope. Recently the group has been reorganizing its work for the e-age and putting in place some major components of such a strategy. In 2000, over US$2 billion was spent on technology, including a significant proportion on dot.com initiatives. HSBC aspires to be one of the first to provide customers with facilities through the Internet on a multi-geographical and multi-product, basis (Tansey 2002).
Employees and Financial facts
HSBC has over 253,000 employees at present. The company employs and manages diverse kinds of people all around the world. Such is done by the company because they believe that these people can give them a balanced and well rounded organization. This also makes the company adaptable to different kinds of situation. The company wants to reach out to all parts of employment for maximum productivity and value. The company believes that a company’s difference with its competitors can be seen in the way it serves it consumers and the way they treat their employees (Hong Kong Shanghai Banking Corporation, 2000).
The first figure will show some of the financial figures of the company from December 2002 to December 2004 in millions of US Dollars. This will evaluate the company’s performance. This is taken from hoovers.com.
As the figures show the company’s revenue did well in 3 years. The revenue increased as the years progressed. The revenue of the company greatly increased during the 3 years as it was on the 40,000 mark in 2002 and eventually reached the 70,000 mark in 2004. The company’s operating income also increased during the three years. Unlike the company’s revenue the operating income did not gave a huge rise in figures, although it increased from 2002 to 2004 it did not raise high like the revenue. The Total net income of the company also rose during the 3 years but just like the operating income it did not rise as high as the revenue did. The financial performance of the company means it is achieving its goal. This also means it has better products and services than its competitors. This also means that the company should improve more or maintain the performance of its finances.
Competitors
Competitors are one of the things the company should look out for. They are one of the reasons companies do not reach their goal. The second figure will compare some facts about the company against its competitors. This is also taken from hoovers.com.
As the second figure shows Citigroup has an advantage against its competitors. It has acquired bigger annual sales. It also has more employees it uses for different purposes. Among the competitors it has the biggest market capital. HSBC follows Citigroup with regards to annual sales, employees and market capital. Barclays and Lloyds TSB follow the two. This shows the companies HSBC should be wary of. This also shows which company should HSBC have an equal performance or exceed the said company’s performance.
The computer-based system used
HSBC uses a system that provides business solution relating to knowledge management and E-business. According to the M2 Presswire (25 January 2000), HSBC chose Unicenter TNG for its ease of implementation and its ability to integrate with existing Computer Associates International, Inc. (CA) systems management products the bank uses. In today's fast-paced business environment, it's more crucial than ever those companies exploit technology to the fullest extent. HSBC has always been committed to providing the most cost-effective services to its customers and they are continually developing applications that support new business initiatives that encompass Internet, mobile phone banking and data warehousing. It is therefore important that they deploy a comprehensive solution that can manage their vast IT infrastructure in the data center. HSBC's data center is one of the largest in Asia, handling hundreds of transactions per second. As the bank implements new hardware platforms, AIX and Windows NT, for instance, and pursues new business initiatives such as Internet banking, it needs a solution that offers rich and robust system management functionality. The company believes the Unicenter TNG is the system that can do it (M2 Presswire 2000).
The computer system used by HSBC provides different benefits to the company. These benefits include competitive advantage against competitors, achievement of the company’s goal, better service given to the customers, and increase profits for the company. The computer system gives the company competitive advantage against its competitors. Through the system the company can make an effective knowledge management system and an appropriate e-business technology can be used to transact with online customers. The computer based system helps the company achieve its goal. Through the system the company does well in its field thus the goal it has can be closer to being reached. The computer based system helped the company in giving better service to the clients. The system improved how service was given to the clients; it created measures that changed the meaning of serving the clients. Through these benefits of the system the company’s profitability and income increase and the problems were given appropriate action.
Conclusion
Technological advances, including non-technical ones, are coming more quickly than ever before, thereby affecting all aspects of a typical company. These advances can be seen in the knowledge management systems and E-business systems. HSBC is one of the companies that sees the Internet as one of several exciting new media, to be incorporated as an integral part of its working. HSBC uses a system that provides business solution relating to knowledge management and E-business namely the Unicenter TNG. This system gives benefits that include competitive advantage against competitors, achievement of the company’s goal, better service given to the customers, and increase profits for the company.
The advanced technologies prove to be vital to a company. It creates so many changes to a company. These advanced technology come in different forms and characteristics. One of these forms is the computer-based system. The use of the system changes all practices and techniques implemented by the company. The system is very important for the company because it will be the one forming the company’s future. The system helped in reconfiguring the company and giving it a brighter future. With proper use of the system anything desired by the company can be reached.
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