Shinsei Bank Case Study

978 WordsMay 30, 20114 Pages
2. Dealing with legacy systems can pose a major hurdle to many companies when the realization is made that a new IT infrastructure is needed to keep up with the times. Incompatibility issues with newer technology, residual process complexity, local adaptation and non-standard data definitions are just some of the problems that arise when a company tries to figure out how to handle their legacy systems. Jay Dvivedi came across some of these problems when he was charged with overhauling the IT infrastructure of the newly conceived Shinsei Bank. Dvivedi quickly realized that the old legacy systems were almost entirely useless to the new business model Shinsei was attempting to implement. However, legacy systems are not so easily…show more content…
Also relating to the issue of switching between mainframe computers and server banks is the fact that the case does not mention whether Shinsei provided for an alternative data back up facility (so we must assume they did not). This is absolutely paramount in case something should happen to the existing location of the servers and subsequently poses a big security risk which must be addressed. Another problem arises due to the fact that Shinsei opted to use public internet lines rather leased lines. This cost-efficient approach has its advantages which are mentioned in the case however it also has inherent disadvantages. For example, in order to avoid congested public Internet junctions, Shinsei should use back-bone providers. This would ensure that the public internet lines are used to their maximum capacity while still ensuring an extra speed-boost by circumventing congested junctions. Furthermore, what if due to some unforeseeable incident, some or worse all public internet lines in some part of Japan fail? A company can rest easy knowing that even in such an event, it has a backbone provider to rely on. In conclusion we must mention that Shinsei did take

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