Case Study Ch. 13: Business Process Re-Design at the small business administration

What was wrong with the existing computer system (ALCS) and why did SBA decide to replace it?

A majority of their process was paper based and the only system they had in place was ALCS. This system was outdated, unreliable and did not comply with the current IT security requirements. ALCS was a tracking system that handled all of the details of a loan. SBA decided to replace his system because it didn’t meet the companies IT requirements. SBA needed a loan control system.

What was the purpose of re-organizing the ODA and centralizing IT in a single office, and centralizing other functions like the call center in a single office?

SBA had organized its agencies into regional areas. They had established four agencies throughout the country that had different IT infrastructures. Each center was a duplicate of the other. In the past files were mailed across the country several times and paperwork was lost, data was entered incorrectly or multiple times. SBA wasted a lot of time trying to send paperwork back and forth, and re-directing victims based on their region. SBA realized that this was inefficient and decided to centralize each process to one area in order to have better control of the process and be more effective and efficient.

In what other ways could the agency use information systems to improve the process of loan application, approval, and maintenance?

SBA can develop a system that allows the victims to apply online. This would save the company a lot of time and money because the company wouldn’t have to set up centers at various disaster locations. It was also reduce the time it takes to process the application because they would receive the application as soon as the victim submits it online. Through this system they can grant approvals and also have the ability to trace the progress of each application.