What Was Wrong with the Existing Loan Management System and Why Did Sba Decide to Replace It in 2004?
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What was wrong with the existing loan management system and why did SBA decide to replace it in 2004?
The existing system was outdated. It was simply a manual, paper-based process. It called for a large movement and storage of papers to process applications. The system was not adequate enough to handle the volume of applications in a timely fashion (GAO). The Automated Loan Control System (ALCS) that the company used in the 1990s allowed the company to track the movement of paper file applications from one stage to another. However, the fact those large amounts of paper files had to be kept and stored made the process very long and tedious. It was a very slow and stressful process. Therefore the new process was implemented to speed up time and to make the process automated and keep electronic data files. The new loan management system was implemented to upgrade the process (GAO).
In what other ways could the agency use information systems to improve the process of loan application, approval, and maintenance?
There are several things that can be done to improve the process of loan application, approval, and maintenance. One thing the SBA can do is find resources to simplify processes. The less complexity, the less it will confuse people. Also, the company could make improvements based on customer demands. There are several ways to determine which processes and procedures satisfies the majority of customers. The company could do a survey or questionnaire to determine how customers want to do business. This could definitely help the SBA improve customer communication. The SBA could always improve on reducing the cycle time. Once the company has mastered the target goal of 21 days, they should set their standards higher and try to process applications in less time than that. Furthermore, the company should do sporadic testing to ensure that the system is still intact (Laudon & Laudon, ).
Go to the SRA, Inc. Web site (
SRA is a leading provider in information technology services and solutions. SRA will help the SBA implement software changes. They will also help update system documentation and provide support to the users of the system. In addition, SRA will help maintain software and hardware architecture. The company should consider using the security feature that SBA offers. SRA has the capabilities to SBA cost effectively protect people, property and information (SRA). Another feature that the company could benefit from is the learning and performance feature. The company could implement learning plans and put into action and monitor