RBS Computer Failure

Outline of the case example Royal Bank of Scotland (RBS) hired an Indian junior technician. The bank's system failed and millions of customers were inaccessible to their account. During the periodic software upgrade process, it happened unexpectedly and eliminated the information. Stephen Hester, Chief Executive Officer of the Royal Bank of Scotland, thinks that outsourcing never caused problems, but the technical problem is wrong. They have to work hard to learn from problems arising from the Royal Bank of Scotland and make the future unlikely.

A case study (Currie & Willcocks, 1996) documenting the reorganization of the Royal Bank of Scotland shows the prevalence of communication problems. The business unit appeals that computers are imposed on them and have little connection with the business environment. However, the technology department thinks that business users regularly change their minds and decide what they need. This misunderstanding can lead to high cost, failure to keep delivery, loss of management control, and a drop in morale. Depending on the level of use of ICT, a new form of organization emerged and a new research opportunity was born in highly confidential fields. In addition, the emergence of new organizational forms arises from the fact that the technology is no longer a mere link in the enterprise process chain, but the driving force behind this chain in internal and external business environments.

Whether it is a bank or a social welfare organization, technology has a big impact on various organizations. RBS technology has a major impact on the working environment. Basically, all banks use computers and no one manually stores data, so banks need to keep in touch with the latest task performance all the time. Royal Bank of Scotland is always willing to introduce a new computer system to keep employees up-to-date. Intranet facilities play an important role in raising employee knowledge. Bank employees communicate with customers by email for technical reasons; for technical reasons ATM and online banking is possible. In this way technology plays an important role and helps management to further improve its function.

According to the 2009 Royal Bank of Scotland report, credit risk assets play an active role in banking. In 2005, Royal Bank of Scotland's risk assets amounted to 708.78 billion pounds, which decreased to 587.27 billion pounds in 2008. In 2009, the risk decreased to £ 498.2 billion. Understanding the risks of banks and the challenges facing companies is important by investigating bank risk (RBS Report, 2009). Since Royal Bank of Scotland is a well-known bank in the UK, Royal Bank of Scotland can be considered socially responsible. The Royal Bank of Scotland is taking a positive attitude toward society. In 2009, the bank donated nearly 7 billion pounds to society, accounting for about 3% of annual income. Such social behavior brought a big positive image to the company and society.