Issues that the Australian Banking Sector Faces in Managing IT/IS
The banking sector in Australia has become extremely competitive. With the various acquisition processes, the storage of relevant information needs the effective use of IT/IS. The information technology architecture is complex too with the various processes forming the framework while it is being implemented in the organization (Martins, C., Oliveira, T. and Popovi?, A., 2014, 12; Frame, W.S. and White, L.J., 2014; Silvestro, R. and Lustrato, P., 2014, 319). The IT Architecture consists of the various procedures that need to be synchronized with the banking procedures.
The SWIFT technology is also a recent development in the arena of Australian banking. The effectiveness in handling the various processes and transactions in a bank need the understanding of the platform amongst the users in Australia (Martins, C., Oliveira, T. and Popovi?, A., 2014, 12; Frame, W.S. and White, L.J., 2014; Silvestro, R. and Lustrato, P., 2014, 319). This poses to be a greater challenge for the banks.
Though the process backed with the IT/IS offers greater ease, but the adaptation to the technology is a concern. The users need to be well trained to equip themselves with the effectiveness needed (Navimipour, N.J. and Soltani, Z., 2016, 1059; Kahandawa, K. and Wijayanayake, J., 2014, 549; Ogwueleka, F.N., Misra, S., Colomo?Palacios, R. and Fernandez, L., 2015, 29-30).
The advances in technology also pose a challenge for the customers of the Australian banks to adapt to the technology. There are customers who would not want to be part of the effective technology and are comfortable with the earlier processes (Salim, R., Arjomandi, A., & Seufert, J. H., 2016). The transformation has to offer the advantages to the customers and they need to be convinced in the use and benefits with adopting the new forms of technology.
How IS Strategy can Help The Australian Banks Achieve Competitive Advantage
It is extremely important that the banking organizations in Australia gain competitive advantage. By offering better products than offered by the competitors, the banks can be in a position of win-win situation (Peppard, J. and Ward, J., 2016; Gianiodis, P.T., Ettlie, J.E. and Urbina, J.J., 2014, 82; Sakas, D., Vlachos, D. and Nasiopoulos, D., 2014, 190-192). The banking organization needs to able to adapt to the IS strategy that would be helpful for it. It is not only crucial to have the competitive advantage over the competitors in the global market, but also in sustaining the competitive advantage.
With the adaptation of the processes backed with the IT/IS technology, the systems, processes and the architecture with respect to the framework gets altered to a greater extent (Peppard, J. and Ward, J., 2016; Gianiodis, P.T., Ettlie, J.E. and Urbina, J.J., 2014, 82; Sakas, D., Vlachos, D. and Nasiopoulos, D., 2014, 190-192). Considering the Porters Five Force Model, the rivalry existing within the competitors within the banking industry along with the threat of new entrants in the sector is a constant challenge (Indiatsy, C.M., Mwangi, M.S., Mandere, E.N., Bichanga, J.M. and George, G.E., 2014, 77).
The Commonwealth Bank, AMP Bank, Bendigo Bank and Westpac Bank in Australia are the competitors. The bargaining power of the customers and the suppliers offering the IT/IS processes also offers a challenging situation for the banks. The IS strategy can aid in provisioning benefits to the bank with the various methodologies it offers in adapting to the new environment.
Approaches the Australian Banking Organization can Adopt While It Attempts To Develop Innovative Uses of Strategic IS
The various approaches that the Australian bank can adopt as it tends to develop innovation are significant. The differentiation approach is crucial as the banking organization can utilize the information systems with the features that are differentiated to a greater extent. This would help in the reduction of the differentiation advantage that the competitors pose. The use of social networks to serve the Australian customers with extended support is an effective methodology that the organization can adopt.
The effectiveness of innovation can be justified with the adherence to the digital modeling and simulation as part of the innovation to comprehend the effectiveness to the core. The methodology to have the connectivity work at its best is with the setup of the networking that offers least concerns on connectivity (Navimipour, N.J. and Soltani, Z., 2016, 1066). This would offer the opportunity for the customers and users to have a better connect and avail the facilities of the Australian bank with the needed innovation. The adoption of strategic information services with the innovation taking place needs to be justified by the banking organization with the offering of an enhanced remote banking approach.
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Frame, W.S. and White, L.J., 2014. Technological change, financial innovation, and diffusion in banking.
Gianiodis, P.T., Ettlie, J.E. and Urbina, J.J., 2014. Open service innovation in the global banking industry: Inside-out versus outside-in strategies. The Academy of Management Perspectives, 28(1), pp.76-91.
Indiatsy, C.M., Mwangi, M.S., Mandere, E.N., Bichanga, J.M. and George, G.E., 2014. The Application of Porter’s Five Forces Model on Organization Performance: A Case of Cooperative Bank of Kenya Ltd. European Journal of Business and Management, 6(16), pp.75-85.
Kahandawa, K. and Wijayanayake, J., 2014. Impact of Mobile Banking Services on Customer Satisfaction: A Study on Sri Lankan State Commercial Bank. International Journal of Computer and Information Technology, 3(3), pp.546-52.
Martins, C., Oliveira, T. and Popovi?, A., 2014. Understanding the Internet banking adoption: A unified theory of acceptance and use of technology and perceived risk application. International Journal of Information Management, 34(1), pp.1-13.
Navimipour, N.J. and Soltani, Z., 2016. The impact of cost, technology acceptance and employees' satisfaction on the effectiveness of the electronic customer relationship management systems. Computers in Human Behavior, 55, pp.1052-1066.
Ogwueleka, F.N., Misra, S., Colomo?Palacios, R. and Fernandez, L., 2015. Neural network and classification approach in identifying customer behavior in the banking sector: A case study of an international bank. Human factors and ergonomics in manufacturing & service industries, 25(1), pp.28-42.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a digital strategy. John Wiley & Sons.
Sakas, D., Vlachos, D. and Nasiopoulos, D., 2014. Modelling strategic management for the development of competitive advantage, based on technology. Journal of Systems and Information Technology, 16(3), pp.187-209.
Salim, R., Arjomandi, A., & Seufert, J. H. (2016). Does corporate governance affect Australian banks' performance?. Journal of International Financial Markets, Institutions and Money, 43, 113-125.
Silvestro, R. and Lustrato, P., 2014. Integrating financial and physical supply chains: the role of banks in enabling supply chain integration. International journal of operations & production management, 34(3), pp.298-324.
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