Case Study on Chapter 13

Q1: ALCS was outdated, cumbersome, unreliable, and not compliant with the current IT security requirements. ALCS actually was not a loan control system handling all the details of the loan, it was just a tracking system that interfaced with the agency’s mainframe that ran a program that actually funded and dispersed loans. Applications should be generated and followed up all in paper form. The physical files were sent back and forth, and there were chances of them being lost, duplicate entries were made, calculations were mistaken, and this all causes delays. The agency required 200 people to control the files, and over 3000 people on staff to feed the paper monster.
Q2: At some point in history it would make sense to have multiple regional locations to assist the file generation and follow up, but today this is very much outdated. Each center was a duplicate of the other, and in addition each had its own IT infrastructure. Therefore, there was a need to consolidate the centers to create a single point of contact and base of command for IT support. By creating a single call center, all calls now go through one place rather than being routed based on geography. Plus, by centralization, one office could handle the loans and legal staffs and disburse loans. Same software could be used by all people involved without need of any mail courier, therefore cutting the time needed for communication and significantly reducing the cost.
Q3: Self-service applications should be implemented. Staff management tools can keep track of work hours of the employee. In addition, personalized profiles can be made for applicants to track the process of their claims, and see the balance sheets on their loan, and/or make direct transaction online, eliminating the waiting time on claimed checks, money orders, etc.