CASE STUDY 1

CHAPTER 3 CASE 2:
NEW SYSTEMS AND BUSINESS PROCESSES PUT MONEYGRAM
“ON THE MONEY”

SUMMARY

MoneyGram is the second largest money transfer business in the world, with 293,000 agent locations and 2,350 employees in 197 countries and territories. Most of MoneyGram’s money transfer services are provided through its worldwide network of third-party agents. In 2012, MoneyGram generated over $1.3 billion in revenue. In many locations, customers can collect funds in local currency, U.S dollars and euros. In some markets, customers also have the option to send and receive money through alternative channels such as online services, mobile phones, ATMs, kiosks, call centers, and home delivery.

For the technology, MoneyGram selected Oracle’s E-Business Suite with the Oracle Incentives Compensation module. Oracle’s E-Business Suite consists of enterprise resources

planning(ERP), customer relationship management(CRM), and supply-chain management(SCM) applications using Oracle’s relational database management system.

MoneyGram still uses global process owners or GPOs in its operations, along with subprocess owners (SPOs), who are responsible for handling day-to-day activities and problems. The company can now handle more transactions without having to hire additional staff.

Important of MoneyGram to pay attention to business processes and the related to the company’s global growth plans.

MoneyGram uses and automated financial management system to handles 100s of 1000s of money transfer transactions each day and ensures that all of the retail stores, banks and other MoneyGram agents, receive proper financial settlement and commissions for each money transfer.

MoneyGram’s managers made changes in staff responsibilities to make employees more aware of the company’s business processes and ways to improve them.

Employees were instructed to understand each step in the business processes that they were part of, instead of their own individual job function. The company used numerous Webinars and other tools to show employees how business processes were being altered.

Advantages of using an enterprise-wide software suite

1. Consists of enterprise resource planning (ERP),customer relationship management (CRM), supply chain management applications using Oracle’s relational database management system.

2. Oracle Incentive Compensation module automates the process of designing, administering and analyzing variable compensation programs

3. Oracle software was capable of handling the customization work required to integrate with the processes used.

4. Oracle system included capabilities for creating, viewing and managing customer information online.

5. Making it easier to process more customer transaction and settlements with agents and billers to update company’s General Ledger.

New system and process improvements changes the way MoneyGram ran it business, how did these changes help to compete on a global scale?

New Oracle system allows MoneyGram to configure the processes easily simply by adjusting currently existing parameters instead of coding or developing new software.

Centralized data are up-to-date an d easily available and save time.

It is cost savings. Implementation of Oracle E-Business Suite, company can now handle more transactions without having to hire additional staff.