Case Study on Icici Bank How Companies Can Use Technology as Core Competence
Case Study on ICICI Bank
How companies can use technology as core competence
INTRODUCTION
In the 1990s, Indian industry was liberated from ‘licence raj’ with the introduction of new measures and policies. The financial reforms introduced at the time ushered in globalization, and a completely new environment was seen in the banking sector. Whereas earlier the banks had been operating in a protected environment, they were now competing against each other with private players jumping into the fight. Foreign investment in the banking sector was now allowed and, as a result, Indian market saw the sudden entry of a number of foreign players in the banking and financial institutions segment. This required the banks to scale up their operations without diluting their quality of service. Consistency and predictability became the keys to success in the banking industry. Unless state-of-the-art IT was introduced as early as possible, winning new businesses and even holding on to the old ones was becoming increasingly difficult. With concepts such as ‘anywhere banking’ and ‘telebanking’ being introduced along with Internet banking, automation in banking operations was becoming a must. A combination of regulatory and competitive reasons led to an increase in the importance of total banking automation in the Indian banking industry.
INDUSTRY OVERVIEW
In the last one decade, banks all around the world have operated in an environment of major and minor changes and have to a large extent shown an ability to transform themselves to keep up with the evolving and growing environment. Consolidation is also moving ahead where cross-border mergers and acquisitions are creating ever larger financial institutions. Globalization remains a basic concern, with the growing importance of offshoring and the continuous need to expand into new markets. This is necessary not only to keep one jump ahead of competition but also to take advantage of the new opportunities of these emerging
How companies can use technology as core competence
INTRODUCTION
In the 1990s, Indian industry was liberated from ‘licence raj’ with the introduction of new measures and policies. The financial reforms introduced at the time ushered in globalization, and a completely new environment was seen in the banking sector. Whereas earlier the banks had been operating in a protected environment, they were now competing against each other with private players jumping into the fight. Foreign investment in the banking sector was now allowed and, as a result, Indian market saw the sudden entry of a number of foreign players in the banking and financial institutions segment. This required the banks to scale up their operations without diluting their quality of service. Consistency and predictability became the keys to success in the banking industry. Unless state-of-the-art IT was introduced as early as possible, winning new businesses and even holding on to the old ones was becoming increasingly difficult. With concepts such as ‘anywhere banking’ and ‘telebanking’ being introduced along with Internet banking, automation in banking operations was becoming a must. A combination of regulatory and competitive reasons led to an increase in the importance of total banking automation in the Indian banking industry.
INDUSTRY OVERVIEW
In the last one decade, banks all around the world have operated in an environment of major and minor changes and have to a large extent shown an ability to transform themselves to keep up with the evolving and growing environment. Consolidation is also moving ahead where cross-border mergers and acquisitions are creating ever larger financial institutions. Globalization remains a basic concern, with the growing importance of offshoring and the continuous need to expand into new markets. This is necessary not only to keep one jump ahead of competition but also to take advantage of the new opportunities of these emerging