Impacts of It on Financial Performance of Banks
Impact of Information Technology on Financial Performance of Banks 1.0 Introduction
As an emerged business trend, the vast applications of information technology (IT) on economic organizations are immense and immeasurable. Organizational systems and functions are now considered effortless and unproblematic because of Information Technology (IT). IT also expanded the opportunities concerning product development processes or innovations that provide organizations with cost and competitive advantages. In a much broader sense, information technology strengthens the business value of every organization. The parameters of using IT for internal affairs have profound impact specifically for core management responsibilities (Gunasekaran, et al, 2002).
According to Land (2004), Information Systems "are systems whose ultimate purpose is to store and manage information". In other definitions, they are basic infrastructures of the modern business organization; they coordinate the resources and activities of the input, process and output sub-systems of the organization, thus monitoring and ensuring internal efficiency. Simply, the information system gathers and stores all the needed information of the organization. After all, to plan effectively, an organization needs to know its present position, its strengths and weaknesses, those of its competitors, market trends, etc. These can all be organized with the used of an information system.
Establishment of information systems is one of the primary techniques that businesses adapt nowadays. The success in the management of information systems development project impacts three key issues: quality, usefulness and usability. Generally, it is not known how information technology affects the financial performance of the banking sector and these three key issues, likewise, are not yet explored in the banking industry. This study proposes to investigate the impact of IT and specifically the use of information systems on the
As an emerged business trend, the vast applications of information technology (IT) on economic organizations are immense and immeasurable. Organizational systems and functions are now considered effortless and unproblematic because of Information Technology (IT). IT also expanded the opportunities concerning product development processes or innovations that provide organizations with cost and competitive advantages. In a much broader sense, information technology strengthens the business value of every organization. The parameters of using IT for internal affairs have profound impact specifically for core management responsibilities (Gunasekaran, et al, 2002).
According to Land (2004), Information Systems "are systems whose ultimate purpose is to store and manage information". In other definitions, they are basic infrastructures of the modern business organization; they coordinate the resources and activities of the input, process and output sub-systems of the organization, thus monitoring and ensuring internal efficiency. Simply, the information system gathers and stores all the needed information of the organization. After all, to plan effectively, an organization needs to know its present position, its strengths and weaknesses, those of its competitors, market trends, etc. These can all be organized with the used of an information system.
Establishment of information systems is one of the primary techniques that businesses adapt nowadays. The success in the management of information systems development project impacts three key issues: quality, usefulness and usability. Generally, it is not known how information technology affects the financial performance of the banking sector and these three key issues, likewise, are not yet explored in the banking industry. This study proposes to investigate the impact of IT and specifically the use of information systems on the