Hello, dear friend, you can consult us at any time if you have any questions, add WeChat: THEend8_
FIT5086 – ORGANISATIONAL INFORMATICS REPORTED
Synopsis / Rationale For this report, Digital First program was chosen as the activity to focus on because of the coverage regarding the broad range of Mastercard products and services. This program can also be analysed more thoroughly using Linger’s OI framework in respect to COVID-19 accelerating the implementation and adoption of the program’s procedures and standards due to the need for access, security and flexibility of financial services. Firstly, this report addresses the ways of how Mastercard overcame the challenges imposed by COVID-19 at the height of its spread and how these methods helped Mastercard holistically be aligned better with their culture. Secondly, it describes how Mastercard supports and manages the program throughout different parts of the organisations vertically and horizontally in terms of the Linger’s OI framework. Thirdly, changes that Mastercard did in practices and processes for the program were identified, and how sensemaking and learning in the OI framework impacts this process. Lastly, there is a discussion about Mastercard’s technological current and potential abilities that propel it forward in the industry, along with the requirements needed to carry out these advancements for better service. It also highlights the impact on stakeholder’s privacy and autonomy of these requirements in an increasing connected world. In the conclusion, there are several findings from this research that Mastercard can critically review to enhance its conduct of its business activities with the Digital First Program in the presence of COVID-19. 3 II. Overarching considerations COVID-19 not only affected small businesses but also major organisations like Mastercard. In the past year, Mastercard has faced challenges such as a decrease in credit card applications and an increase in credit card cancellation. Before the pandemic, a pre-covid report was conducted and it predicted that the use of payment cards will increase over the next 5 years where there will be a growth of 1.7 billion by 2023 (Girling, 2020). However, due to the pandemic, the consumers are unsure of whether they will be receiving a consistent paycheck as lockdown happens unexpectedly hence the decrease in applying for payment cards. Travel restrictions have been a major downfall to Mastercard as an organisation as well. In relation to credit card cancellation and uncertainty of income, there has also been a sharp drop in card spending especially for travel related purchases. Before the pandemic happened, business travelling was one relevant factor that drove the growth of the payment cards market and it was continuously growing (Girling, 2020). An important precaution to prevent COVID- 19 is to minimise contacts, this in turn sparked a rise in cashless payments. Although this feature had been around for some time, it was still a service that needed more work to be done as there are new digital threats emerging every day. However, with challenges comes change. Mastercard has tried into responding and adapting to the current situation. They have started implementing tap payments which benefited them economically, where the impact of cash payments cost approximately 1.5% of GDP (Girling, 2020). Social isolation is a major factor of the current pandemic, which in turn will make online payments more important than before. Hence, Mastercard has also shifted to the e- commerce sale industry where they have collaborated with buy now pay later companies. Mastercard has several incentives such as fraud prevention. Their Digital First program aims to maximise the safety and security of online banking and contactless payments to ensure consumers are protected (Mastercard, 2021). They have also implemented quicker turnaround times on transactions that are reported or detected to be fraudulent. Mastercard is a company that targets to be customer oriented, thus they have announced a delay in interchange fee which helps merchants to be more at ease during this current economic downfall (‘Chronicle of the 4 New Normal: Managing Disputes’, n.d.; ‘Visa and Mastercard will delay merchant fee hikes another year amid ongoing pandemic’, 2021). They have also made it easier for customers of NSW transportation where riders could pay with a contactless Mastercard via their debit card or mobile (Mastercard, n.d; ‘Contactless payments’, n.d). According to a report, Mastercard is aiming to bring 1 billion people into the digital economy by 2025 as this would create pathways toward increased financial security for people, organisations and communities all around the world (Patel, 2020). As Mastercard had been straying from their culture at the beginning of the pandemic, they started to make changes in order to be aligned with its listening and impact values (‘Culture and Values’. n.d.). In terms of their listening, they had empathised with merchants and delayed the interchange fee. As for impact, they implemented cashless payment that helped prevent the spread of covid-19. Mastercard aims to be a customer-oriented organisation while maintaining profitability is how they overcome their challenges. 5 III. Structure The global Digital First program in Asia Pacific is being strengthened and supported more by Mastercard and their innovative partners so that they can provide some more secure digital payment methods to customers, because online banking and online shopping were used more than before due to the COVID-19. The security and convenience of online banking, transactions and e-commerce was maximized by the digital first program through creating end- to-end digital payment methods for their partners including payment processors, fintechs, and issuing banks (Mastercard, 2021). To support digital first program for a better development, Mastercard, Samsung and SoFi cooperate to launch Samsung Money by SoFi which is a mobile-first money management experience (Investor News Details, 2020). Furthermore, the Linger OI model was focused on for this case study. During COVID-19, infrastructure, one of the elements of structure from the OI framework, was improved by the digital first program. Mastercard's increasing digital infrastructure with payment methods to adapt the new context including digital bank account, digital card, and QR code are covered and reinforced by the access goal of the program. The network-based solutions were provided to allow Mastercard’s back-office service processes to complement the program’s goal of convenience. Additionally, at the end of 2020, digital card fraud resulted in about $11 billion losses. The covid-19 was pulling the growth of card fraud activity (Lee, 2021). Also, as the infrastructure was enhanced, the digital first program offered a new method to avoid digital fraud. People’s transactions can be tracked by a digital first program. Once a potential violation was identified by the Mastercard team, they will act immediately, such as removing the suspect items or stop the cooperation with the merchant. Then all the violated merchant’s details will be recorded in the Mastercard Alert to Control High Risk (MATCH) system to minimize further risk (Hyman, 2020). Next there is a relationship between any two elements of the OI framework. In the Mastercard case, the relationship between infrastructure and governance will be focused on. To reinforce the safety, security and convenience of the Digital First program, Mastercard has formulated 6 some policies and procedures for better governance. For instance, the Zero Liability Protection policy, which means that it is not consumers responsibility if a transaction was identified as unauthorized. If a cardholder can satisfy the below two situations, the responsibilities for unauthorized transactions will not be held: Reasonable care was taken by the cardholders to avoid loss of their cards; and the loss was reported on time to the financial institution (Mastercard, n.d.). Furthermore, another procedure is easing the burden of consumers with worry free refund processes for eligible transactions restricted by the pandemic. As most consumers wanted to get their refunds from cancelling trips, hotels, and vacations. These situations took pressure and stress to consumers, enterprises and Mastercard. A program was created to ease transaction disputes by Mastercard and Ethoca, which is named Digital Receipts service. This program can help to share alerts on time between banks and credit unions so that they can solve problems faster (Mastercard, n.d.; Mastercard, 2020). In 2020, Ethoca which is a company of Mastercard, cooperated with Microsoft to create a program which is a Digital Receipts service that can allow consumers access to their digital purchase receipts simply through digital methods such as mobile apps (Mastercard, 2020). In Ethoca’s research, 93% of participants indicated that it is helpful while reporting unauthorized transactions to financial institutions to get more information such as a picture of the printed receipt. Ethoca’s Digital Receipts service allows the organizations to provide this information to their customers through the banks which have already enrolled in Ethoca’s Digital Receipts service, and then customers can use the app on their phone to access these enhanced digital receipts (Mandel, 2020). Therefore, the stress and pressure on both consumers and enterprises can be eased through this procedure, and the transaction disputes also can be eased. These policies and procedures are helpful to manage and support the Digital First program. 7 IV. Practices and Process To talk about the practices and process, Mastercard did make kinds of changes for the activity that our group is focused on which is called digital first program. First, under the impact of COVID-19, face-to-face contact is not allowed, people cannot go to the bank to do business. Then to keep the organisation running normally, changes had to happen. Mastercard uses sensemaking to analyse the whole environment of the market. In the case of the offline market depression, on the contrary, the demand of the online market is increasing. Moreover, Mastercard predicts the impact of COVID-19 will last a long time, such as 3 years. At the same time, the openness and demand of users around the world for online transactions has reached an all-time high and is likely to continue to grow. To take full advantage of the information technology as well as service domain logic, the digital first program was pushed to a dramatically important position consequently. In practice, Mastercard’s reinforce the digital infrastructure, and launch new services, enabling them to deliver more quickly and efficiently against the ever-evolving needs of consumers, (Mastercard, 2021). With this greater demand for digital experiences, Mastercard is enabling its customers to innovate faster by providing a network of partners that support each step of the consumer digital journey – from acquisition and usage to management (Smith, 2021). Without the support of a strong network, the implementation of the digital first program will definitely be blocked. This is a particular demanded change that digital first program needed through practice and process of Mastercard’s’ exploitation. What is more, according to Bloomberg, Mastercard adjusted their organizational structure as well, due to the explosion of online business, offline workers are no longer needed in large numbers, this poses a huge challenge to Mastercard, Mastercard did their decision making through sensemaking, considering the shift in market, the adjustment of the staff structure cannot be delayed anymore. Mastercard transferred a total of 30 percent of the staff from other departments to Digital First program activity, since digital first program is not a brand-new product and activity, the COVID-19 has given digital first program a whole new meaning in both practices and process. 8 Due to the organizational culture, Mastercard focuses on service domain logic through their process and practices to provide better services for customers. According to the reaserch, the number of cases of fraud has skyrocketed in the COVID-19 environment. But Mastercard enhances close cooperation and responsiveness between departments, for example the examination department and the card issuing department, with the organization learning and updating digital first program often, on the one hand, digital first program can track online transactions, for example, once the Mastercard team finds a potential risk, they will take action immediately. Including contacting customers in a short time and stopping the cooperation with the merchants. All the merchant’s details are recorded in the MATCH system to ensure problems can be dealt with precision.
- 经济Economics
- 金融Finance
- 会计Accounting
- 工商管理Business Management
- 计算机computer science
- 商业分析business analysis
- 法律Law
- 管理Management
- 市场营销Marketing
- 哲学Philosophy
- 心理学Psychology
- 物理Physical
- 统计学statistics
- 电气工程electric engineering
- 化学chemistry
- 生物biology
- 数学mathematics
- 语言学linguistics
- 土木工程civil engineering
- 工程力学engineering mechanics
- 艺术art
PROFESSIONAL HELP!
在线咨询
立即下单
Wechat：THEend8_ 
Email：