Read the scenario below and answer the questions that follow:
ABC Bank has developed a new extranet that allows the bank to securely share information and
collaborate with its business partners, including other financial institutions, investment firms and
government agencies. By utilising this extranet, ABC Bank can reduce its internetworking costs by
eliminating the need for dedicated point-to-point connections between each of its partners.
Additionally, the extranet provides ABC Bank with a competitive advantage by enabling the bank
to conduct transactions more quickly and efficiently with its partners. This increased efficiency can
lead to increased profits for the bank.
Q.5.1
Q.5.1.1 Explain, with an example, how ABC Bank's new extranet improves
coordination among its business partners.
(3)
Q.5.1.2 Provide any two (2) benefits derived from the implementation of the
extranet .
(2)
Q.5.1.3 Conduct additional research and provide examples of any two
companies utilising extranets as an internetworking platform.
(2)
Q.5.1.4 Deduce any two challenges that ABC Bank might face in designing and
implementing a successful extranet.
(2)
Q.5.2 Implementation of an effective communication system offers many advantages
including cost savings;
Discuss any four advantages of Voice over Internet Protocol (VoIP), besides cost
savings, and how each advantage might benefit the bank's operations.
(8)
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© The Independent Institute of Education (Pty) Ltd 2023 Page 8 of 8
Q.5.3 Answer the questions below regarding social networks relating to the bank.
Q.5.3.1 Identify three social networking sites, other than Facebook, that can be
utilised by ABC bank.
(3)
Q.5.3.2 For each identified site in Q.5.3.1, discuss how ABC Bank might
potentially utilize the social networking site.
(6)
Q.5.3.3 Differentiate a podcast from a regular audio file. (2)
Q.5.3.4 Suggest how ABC Bank can utilise podcasts for their business. (2)
Q.5.1.1: ABC Bank's new extranet improves coordination among its business partners by providing a secure platform for sharing information and collaborating on projects. For example, ABC Bank can create a shared workspace on the extranet where all the relevant partners can access and contribute to important documents, such as loan agreements or investment proposals. This eliminates the need for lengthy email chains and ensures that everyone has access to the most up-to-date information.
Q.5.1.2: Two benefits derived from the implementation of the extranet are increased efficiency and reduced costs. With the extranet, ABC Bank can conduct transactions more quickly and efficiently with its partners, leading to improved productivity and customer satisfaction. Additionally, by eliminating the need for dedicated point-to-point connections, ABC Bank can reduce its internetworking costs, resulting in financial savings.
Q.5.1.3: Two companies that utilize extranets as an internetworking platform are:
1) IBM: IBM utilizes an extranet to collaborate with its business partners, allowing them to securely access and share information. For example, IBM's suppliers can access inventory and product information on the extranet, enabling them to streamline their operations and respond quickly to customer demands.
2) Amazon: Amazon uses an extranet to collaborate with its third-party sellers. Sellers can access Amazon's extranet to manage their product listings, monitor sales, and communicate with Amazon's customer service. This collaboration improves the efficiency of Amazon's marketplace and enhances the overall customer experience.
Q.5.1.4: Two challenges that ABC Bank might face in designing and implementing a successful extranet are:
1) Security: ABC Bank must ensure that the extranet is securely encrypted and protected from unauthorized access. They need to implement strong authentication measures and regularly monitor for any security breaches or vulnerabilities.
2) Integration: ABC Bank may face challenges in integrating the extranet with their existing systems and applications. They need to ensure smooth interoperability and seamless data exchange between the extranet and their internal databases or software platforms.
Q.5.2: Besides cost savings, four advantages of Voice over Internet Protocol (VoIP) and how each advantage might benefit the bank's operations are:
1) Flexibility: VoIP allows employees to make and receive calls from anywhere with an internet connection. This flexibility benefits the bank by enabling remote working, ensuring continuity during emergencies, and facilitating collaboration across different locations.
2) Scalability: VoIP systems can easily scale up or down to accommodate the bank's changing needs. They can add or remove phone lines without the need for additional physical infrastructure, making it cost-effective and efficient.
3) Advanced features: VoIP offers a range of advanced features such as call forwarding, voicemail-to-email transcription, and call analytics. These features enhance productivity, improve customer service, and provide valuable insights for the bank's operations.
4) Integration with other systems: VoIP can be seamlessly integrated with existing communication tools and systems, such as customer relationship management (CRM) software or call center applications. This integration improves workflow automation, data management, and customer interactions.
Q.5.3.1: Three social networking sites, other than Facebook, that can be utilized by ABC Bank are LinkedIn, Twitter, and Instagram.
Q.5.3.2:
- LinkedIn: ABC Bank can utilize LinkedIn to build professional connections, network with potential business partners or clients, and share industry insights or thought leadership content.
- Twitter: ABC Bank can use Twitter to engage with customers, share timely updates or news, and participate in industry conversations. They can also use it for customer support and addressing customer queries or concerns.
- Instagram: ABC Bank can utilize Instagram to showcase its corporate culture, community involvement, and employee activities. They can also use it to highlight success stories or promote their products and services in a visually appealing way.
Q.5.3.3: A podcast is a digital audio or video file that is available for download or streaming on the internet. It is typically a series of episodes on a specific topic or theme. A regular audio file, on the other hand, refers to any audio recording that is not part of a podcast series.
Q.5.3.4: ABC Bank can utilize podcasts for their business by creating their own podcast series on relevant financial topics such as investment strategies, financial planning, or industry updates. They can invite experts or industry leaders as guests to share their insights and provide valuable information to their customers. Podcasts can help ABC Bank establish thought leadership, build credibility, and reach a wider audience interested in financial topics. Additionally, they can use podcasts to promote their services, share success stories, or provide educational content to their customers.
Q.5.1.1: The new extranet improves coordination among ABC Bank's business partners by providing a secure platform for sharing information and collaborating. For example, instead of exchanging emails or making phone calls to communicate and share documents, the business partners can access the extranet to upload and retrieve information in real-time. This streamlines the coordination process and ensures that all partners have access to the latest information, promoting efficient decision-making and reducing delays.
Q.5.1.2: Two benefits derived from the implementation of the extranet include:
1. Cost reduction: ABC Bank can eliminate the need for dedicated point-to-point connections with each business partner, resulting in lower internetworking costs. This can lead to significant savings for the bank.
2. Increased efficiency: The extranet enables faster and more efficient transaction processing with business partners. This can lead to improved operational performance and customer service, ultimately driving increased profits for the bank.
Q.5.1.3: Two examples of companies utilizing extranets as an internetworking platform are:
1. Amazon: Amazon uses an extranet to collaborate with its suppliers and partners. Suppliers can access the extranet to manage inventory, monitor sales, and receive updated product information. This real-time collaboration helps Amazon streamline its supply chain and improve customer fulfillment.
2. Boeing: Boeing utilizes an extranet to collaborate with its global network of suppliers, contractors, and partners in the aerospace industry. The extranet allows secure access to engineering and production data, facilitating efficient collaboration and coordination in complex projects.
Q.5.1.4: Two challenges that ABC Bank might face in designing and implementing a successful extranet are:
1. Security: Ensuring the security of data transmitted and stored on the extranet is crucial. ABC Bank will need to implement robust security measures to protect against unauthorized access, data breaches, and cyber threats.
2. Integration: Integrating the extranet with existing systems and databases can be complex. ABC Bank will need to ensure seamless connectivity and compatibility between the extranet and its internal systems to avoid data discrepancies and technical issues.
Q.5.2: Advantages of Voice over Internet Protocol (VoIP) in addition to cost savings for ABC Bank's operations include:
1. Scalability: VoIP allows easy scalability, enabling the bank to expand or adjust its communication infrastructure as needed without significant investments. This flexibility ensures the bank can accommodate growth and changing communication requirements effectively.
2. Advanced features: VoIP offers advanced features like call forwarding, voicemail, call recording, and video conferencing. These features enhance communication capabilities within the bank and with external parties, improving collaboration and productivity.
3. Mobility: VoIP enables employees to access their work phone systems and make/receive calls from anywhere with an internet connection. This mobility increases flexibility in remote working, enhances customer service, and enables seamless communication across different locations.
4. Integration with other systems: VoIP can integrate with other business systems like customer relationship management (CRM) software or call center applications. This integration improves efficiency by automating processes, enabling click-to-dial functionality, and providing a holistic view of customer interactions.
Q.5.3.1: Three social networking sites other than Facebook that ABC Bank can utilize are:
1. LinkedIn: LinkedIn is a professional networking site where ABC Bank can connect with other industry professionals, potential partners, and customers. It can be used for recruitment, industry insights, and promoting the bank's services.
2. Twitter: Twitter allows ABC Bank to share updates, news, and insights in a concise format. It can be used to engage with customers, provide customer support, and promote the bank's brand.
3. Instagram: Instagram is a visual platform that ABC Bank can utilize to showcase its products, services, and company culture. It can be used to build brand awareness, engage with customers through visual storytelling, and attract a younger demographic.
Q.5.3.2:
- ABC Bank can potentially utilize LinkedIn to expand its professional network, connect with potential business partners, and establish industry thought leadership by sharing informative articles and insights.
- On Twitter, ABC Bank can potentially use it for customer support, promptly addressing customer queries or concerns, sharing updates on banking services, and engaging in conversations with customers, influencers, and industry professionals.
- Instagram can be used by ABC Bank to share visually appealing content that highlights the bank's services, values, and community involvement. It can create brand awareness, engage with customers through interactive stories and posts, and attract a younger audience by utilizing visually-driven storytelling.
Q.5.3.3: A podcast is a digital audio file series made available for streaming or downloading on the internet. It is typically in an episodic format, with new episodes being released regularly.
A regular audio file, on the other hand, refers to any audio recording, such as a song or a speech, that can be played back on various devices.
Q.5.3.4: ABC Bank can utilize podcasts for their business by creating informative and educational content related to banking, finance, and investment topics. They can interview industry experts, share insights on investment strategies, provide updates on financial trends, or explain complex financial concepts in a simplified manner. This can help establish ABC Bank as a trusted source of financial information, attract new customers, and engage with existing customers on a more personalized and interactive level. Additionally, podcasts can be a channel for promoting the bank's services, offering tips on personal finance management, and showcasing success stories of clients.