Managing the Digital Enterprise Essay Example | Topics and Well Written Essays - 2000 words

Managing the Digital Enterprise - Essay Example From this definition, information system is an arrangement of data, technology, processes, and groups that function together to collect, provide, store, and process information output required to improve and increase the speed of the decision making process. In the past decade, various organizations have began utilizing computer technology to facilitate the provision of services and the process of adoption is expected to increase at a higher rate as technology advances (Hamdan and Jalal-Karim 2010, p1). This paper focuses on the impact of modern digital technologies on the banking sector with a bias toward electronic banking. 1.2 Banking Activities and Developments in IT All aspects of the banking activity are influenced and continue to be influenced by the development of information transmission, distribution, processing, storage, and collection. Developments in information technology affect the banking industry in two ways. Firstly, the information technology contributes in the dec rease of the costs linked with information management (information is managed by means such as processing, transmission, collection, and storage) through the replacement of labour-intensive and paper-based methods with processes that are automated. Secondly and lastly, information technology modifies the ways through which the consumers access the bank’s products and services, for instance, through automated channels such as remote banking. Developments in information management have been occurring for a considerable length of time but remote banking (the latest phenomenon in the banking industry) developments are occurring more gradually especially within retail banking (European Central Bank 1999, p5). Business model can be utilized to describe the main components of any banking business. In regard to the differentiation of the bricks-and-mortar banking from e-banking, there are five crucial dimensions of the business model and they include market scope, profit potential, v alue network, cost structure, and value proposition. Since consumers are capable of electronic banking over the internet regardless of the time and location, electronic banking eradicates time limitations, and physical and geographic boundaries linked with bricks-and-mortar banking. Electronic banking also offers consumers with efficient online financial services (the services are offered at high speed and they are time saving). Additionally, through the internet, the consumers are able to access numerous information and services (Heng, Hsia, and Wu 2006, p115). 1.2.1 Electronic banking and its value The convenience resulting from electronic banking has three considerable impacts. Firstly, it may lead to information symmetry where the consumers can access more information than through the bank; the consumers may opt to avoid the bank for services provided through alternative parties (SCN Education