Discussion Points 1. MasterCard managers are motivatedto increase (1) the number of individuals who have and use a MasterCard creditcard, (2) the number of banks and other clients who issue MasterCards tocustomers and/or employees, and (3) the number of locations that acceptMasterCard payments. Discuss how MasterCard could use its data warehouse tohelp it expand each of these customer bases.Mastercard managers can promote itsutilization by deploying core capabilities of Business Intelligence.Data Storage and Management1.
DataWarehousing2. Ad-HocAnalysis3. DataQuality4. DataMiningDataextraction is operation of extracting data from a source system for further usein a data warehouse environment. This is the first step of the ETL process.After the extraction, this data can be transformed and loaded into the datawarehouse. Designing and creating the extraction process is often one of themost time-consuming tasks in the ETL process and, indeed, in the entire datawarehousing process.
The source systems might be very complex and poorlydocumented, and thus determining which data needs to be extracted can bedifficult. The data must be extracted normally not only once, but several timesin a periodic manner to supply all changed data to the warehouse and keep itup-to-date.Theestimated amount of the data to be extracted and the stage in the ETL processhave the impact on decision of how to extract from a logical and a physicalperspective.LogicalExtraction Methods include two kinds:1. FullExtraction: In this the data is extracted completely from the source system.The advantage is that there is no need to keep track of changes to the datasource.2. Incremental Extraction: In this only the datathat has changed since a well-defined event back in history will be extracted.
This information can be either provided by the source data itself like anapplication column, reflecting the last-changed timestamp or a change tablewhere an appropriate additional mechanism keeps track of the changes besidesthe originating transactions. In most cases, using the latter method meansadding extraction logic to the source system.The extracted data from ETLprocesses can be processed through Data warehouse which is further sent to DataMarts. The information can be processed through Business IntelligenceEnvironment which includes data mining, reporting and OLAP Analytics.Some of the Data warehouse toolsare:1. PortfolioAnalytics suite: It helps in assessing the risk across multiple asset classes.
Also assists in understanding performance, measuring the ratings, view metricsand evaluate absolute performance.2. MasterCardMarketing Center: It provides access to the customers to monito and developpatterns of usage of card worldwide.3. HolisticData Management: This tool is entirely based on establishing a data objectrelationship.
Data is primarily divided in to child data object and parent dataobject. This toll performs a wide range of functions that includes datagovernance, integration and data management.4. Informatica:This tool focuses mainly on data virtualization, replication, integration andcloud data integration.
5. Teradata:This tool helps in analysing the data in simple and effective manner.it worksby dividing data into hot and cold. Cold data is the one which is not usedfrequently. 2. MasterCard makes its analyticstools available to all its member banks and other issuers. It knows thatgetting its clients to use these tools can be critical to keeping them as loyalcustomers.
Discuss the steps that MasterCard can take to promote greater use ofits BI and reporting tools by its clients. Who do you think larger or smallerclients will benefit most from MasterCard’s analytics tools? Why? Small companies will benefit themost by deploying BI tools.Stepsto promote BI:1. DetermineMarketing strategy: In a market with saturated analytic tools, apps it isimportant to have a crucial strategy for small companies to promote BI.
Identify where and how customers consume their information and what is thedriving force behind them to purchase and subscribe.2. Avoidproblems in fragile market: Deploy BI tools which predicts the future to avoidbottlenecks and acts better for decision making. BI tools are not just fortracking performance indicators.3. Deployeffective business model: this include deploying BI tools with all the corecapabilities of Business Intelligence. In the market of oversaturation itsimportant to make small decisions and tracking what are the effects of thedecisions.
4. Customersview on single platform: It’s important to understand the views of customersacross a multitude of platforms and channels. Deploying live chats, emailmarketing can get the data necessary to understand the views of customers.5. DeployData Scientists: Organization will need right people for right job. Inquisitiveworkers with analytical skills are more likely to develop the company’sstrategies.6.
Validation:its important to validate the process that focuses on enabling access o all thedata needed. It’s important to check the quality of data entering the BI tool.7. Monitorthe performance: Finally, its needed to track the performance of the tool. Theperformance f the tool across multiple users in then business should betracked. 3. Dosome Internet research to identify examples of “tap & go” applications.What are some typical types of “tap & go” payment applications and whatgrowth trends are expected? Do you think that there are limits to the types ofapplications that “tap & go” payments can be used for? Why or why not? Tap & Go is a mobile paymentservice.
It enables settlement of payment anywhere worldwide embedded in SIM oronline via MasterCard. It enables small and medium sized enterprises and onlinemerchants save on operating costs and an adorable experience.Examples:1. AndroidPay2. Applepay3. Samsungpay4. Visapay Wave5. MasterCardPay Pass6.
PayReady: Go QR, MasterCard7. Onlinepurchase8. Paypartner:in-app, online, QR code and NFC (Near Field Communication) mobile payment by HKT commercialgroup.9. PayBuddy 2.0: This is done by NFC- enabled smartphones.
10. PayMaster: it’s a tap and go mobilewallet with maximum of 5 accounts. NFC payment apps have inbuilt RFIDsystems that allows two-way communication. Its advantageous to use the tap andgo applications as they are secured: Password protection, notification oftransactions, advanced security, personalized settings, and immediatesuspension of account on report of loss. Growth:Its estimated that more than 4.8billion individuals will use these apps by end of 2016. 90 percent ofsmartphone users will have made a mobile payment. It’s estimated that by 2017,there will be $60 billion in mobile payment sales.
(Rampton J, 2016). References:https://techcrunch.com/2016/06/17/the-evolution-of-the-mobile-payment/https://blog.marketresearch.com/10-ways-business-intelligence-can-improve-your-organizationhttps://www.tapngo.com.hk/eng/about.
htmlhttps://www.rishabhsoft.com/blog/top-5-nfc-payment-apps 4. Dosome research on the extent to which MasterCard’s PayPass digital wallet isbeing embraced as a payment mechanism for online purchases.
What are theadvantages and disadvantages of digital wallets such as PayPass? What canMasterCard do to encourage online merchants to accept PayPass digital walletpayments? The PayPass digital wallet paymentsallow users to store all their cards and allows other wallets to work with itsnetwork. There is lot of competition from other digital wallets as Visa,American Express and Pay.Advantages:1.
Lowercosts: NFC based application have replaced expensive POS (Point of Scale) thatwill reduce transaction costs for the business.2. Secured:Password protection, notification of transactions, advanced security,personalized settings3. Convenience:Purchase can be made in seconds with simple atp or scan.4.
Competitiveadvantage: Redefines the competitive edge in the market by convenientexperience of customer. Disadvantages:1. Budget:Initial investment in building the app is large. Also requires maintenance,updates and fix of bugs.2. Systemoutages: Data is stored in servers or cloud and system outage is a always apose a problem for storage.3.
SupportTechnology: As the technology is new, Paypass can function only withcorresponding hardware device for each application. References:http://digitalwallet.weebly.com/advantages–disadvantages.
html 5. Supportingmobility and smartphone apps is important to MasterCard. What challenges doesMasterCard face in rolling out smartphone payment systems? Which of these doyou think will be most difficult to address? Why? Challenges:1. Financialsystem for Unbanked Individuals: Deploy a service that allows financiallyexcluded individuals to accept and deliver payments to help address theirneeds.2. Dependencyon Supporting system: NFC terminals and specialize scanners are the onlydevices created now that will support the processing of digital walletpayments; thus, it is very limited because the technology is still new.3.
Creditcard Fraud: Appropriate authentication is required for credit card transactionsto be secured. These problems must be overcome.4. CashAdvances and Interest rates: The rates for cash advances are expensive and canapply for many transactions over worldwide.Amongthese the most difficult challenge to address is cases of fraud while usingMastercard payment as it may lead to breach in security and beliefs ofcustomers.