Attached are articles concerning Chevy Chase and ATM’s, which is where

you should start,  I think they are very interesting and puts a twist on the concepts of using and justifying systems.  Yes, this is an old article but the points that we will discuss haven’t changed.  It documents the genesis of the ATM in the 1970’s and that its sole objective was to handle routine transactions and relieve the workload on the tellers so that the banks could capture savings.
Once the new ATM’s were implemented, the banks found that despite the fact that their initial implementation was to save some money and shorten lines in the bank they were looked upon favorably by customers.  The customers liked the convenience, they didn’t have to go to the bank itself to get funds and did not have to adhere to the times and days that the banks were open, as they were in many places and the fact that they could do simple transactions 24/7.
Convenience alone could not justify the costs associated with increasing the number of the ATM’s and placing them in various non-bank locations where customers would frequent and need cash. This became a way of competing, but also had to have more of a benefit than just increasing convenience for customers or eliminating a few tellers, because the solution was not free. It is in fact a part of a larger long term strategy that could be determined by Porter’s 5 Forces analysis.
I know that many of you just use a bank and have never thought about the processes involved in banking but it is a great place to start considering a discussion of process identification and analysis.  It is best to think about the old process then think about what the ATM brings to the table.
Why is all of this important?  As an Executive at AnyCompany what does this mean to you, when you are considering developing new systems strategies and justifications?  How would you justify the strategy of adding this expensive technology?  How does this fit into Porter’s Competitive Forces Model? What approach would you take to counter the Chevy Chase strategy? Based on this example and your own experience what can you tell us about the way that Customers interface with technology.  What should be major design considerations and why is it important?

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NEWS|POLITICS|OPINIONS|BUSINESS|LOCAL|SPORTS|ARTS & LIVING|GOING OUT GUIDE|JOBS|CARS|REAL ESTATE|SHOPPINGRegulators skeptical about PIN technology designed tothwart ATM robberiesBy Michelle SingletaryThursday, May 13, 2010; A12I’ve played out in my head many times what I would do if I were abducted and forced towithdraw money from an ATM.Well, first, if the lowlife took me to an automated teller machine not owned by my bank, I’m surean alarm would go off, because Ineveruse other banks’ ATMs to withdraw money. The machinewould say “What?!?” and immediately spit out my card.Okay, that wouldn’t really happen, but it’s my delusion.I’ve also thought about entering the wrong PIN so many times that the ATM would freeze. Butthat would surely anger my abductor.I’ve even imagined pushing a panic button on the ATM that would summon the police.Interestingly, the Credit Card Accountability Responsibility and Disclosure Act of 2009, orCredit CARD Act, contained a provision for the Federal Trade Commission to study and reportto Congress on the cost-effectiveness of making available emergency PIN technology so that abanking customer who is under duress could alert a local law enforcement agency electronically.

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This week, the FTC issued its report, more than two months overdue. With a lot of “we don’tknow,” the agency couldn’t recommend anything.Specifically, the FTC was asked to look at “emergency PIN” or “reverse PIN” and “alarm button”technologies. An emergency PIN would allow a customer in trouble to enter some variation ofthe regular PIN to summon police. With a reverse PIN, a customer could punch in the numberbackward, which would alert authorities that a robbery was in progress. So if your PIN was“1234,” you would hit “4321.” The reverse PIN has been rumored for years to be installed onATMs, but this is an urban legend.The FTC discussed another emergency PIN system that has been unsuccessfully marketed tobanks. “ATMOnGuard” requires a customer to punch one number after the PIN. The additionalnumber would indicate whether the transaction was being conducted under duress.Really, all the electronic-alert options sound feasible to me.But it took the commission 38 pages to conclude that the available technology probably wouldn’t“deter any type of ATM crime, and in some instances may actually increase the risk of danger toATM customers.” Oh, and even if the technology were effective, the cost of implementing anemergency PIN system could be substantial, although the agency could not provide anyestimates.Although news reports of ATM customers being robbed might seem frequent, there are fewstatistics that track ATM robberies in which a victim is compelled to withdraw funds. Whatevidence there is suggests that the majority of ATM robberies occur after the victim haswithdrawn funds, which means an emergency activation system involving the keypad wouldn’thelp.The banking industry hasn’t been convinced that ATM emergency-alert systems would work,either.“The findings of the FTC report confirm what we have been saying for years,” said MargotMohsberg, a spokeswoman for the American Bankers Association. “The reverse-PIN technologydoes not improve the safety of ATM users. . . . We are always looking for new ideas to improvethe safety of our customers, but research by several banks across the country has found that thereverse-PIN technology does not do this.”Mohsberg said banks that have looked into the available technology concluded that it doesn’timprove customer safety. On the contrary, she said, the institutions thought the technology couldfurther endanger customers by giving them a false sense of security.Mohsberg raised some good questions:What if a customer fumbles trying to remember the PIN backward?

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