Today’s concern organisations are information based. The major driving force is IT which increases the use of information in an around administrations. It besides leads to a greater shrinking of clip and distance effects and greater inter relatedness within an industry and organisation. Business finds new ways to work information engineering to be effectual. In this enterprise they. in add-on to the conventional methods. seek to work all available communicating engineerings. computer-aided designs and sophisticated computer science engineerings. to derive competitory advantage.
Banking is one of the industries. which involve both high information content of the merchandise and high information strength of procedure. The nature of the industry implies that it is extremely competitory. Therefore. in order to get by up with the lifting competition Banks can reflect on the usage of IT as a competitory tool. Hence. this survey deals with the research inquiry whether Sri Lankan Banks use IT to derive competitory advantage.
The survey was carried out in four public quoted commercial Banks in Sri Lanka. viz. Bank A. Bank B. Bank C and Bank D. The reply to the research inquiry was given by research findings. Two Bankss viz. A and C use IT to derive competitory advantage. while Bank B and D do non utilize IT expeditiously to derive competitory advantage. Some subdivisions are non equipped with ATM installations and IT related services have to develop to vie with other Bankss. In bank A and C profitableness is higher than bank B and D. Harmonizing to the 2nd aim of the research use of IT increases the profitableness. Further. IT related services such as Internet banking and Credit card have brought the competitory advantage to these Bankss as a whole. Almost all the Bankss provide better ATM services. Tele-banking and Money transportation to the clients. Hence they have to develop Internet banking and do it convenience to utilize the Credit card.
The survey excessively revealed that a Sri Lankan banking client ( possible ) considers stableness. dependability. accessibility/convenience. service factor. pricing. capable employees/staff. safety of money. and banking image when choosing their banking spouse. They excessively expect different sort of quality in IT related services. This was evidenced by the pick of the bank. based on penchants. Competitor attraction and hapless quality service had lead to a alteration in the client base of certain Bankss. Therefore the strategic usage of IT plays a critical function in retaining bing clients and pulling new clients.
The information age is besides altering the face of banking. In maintaining with the client demands and fight. Bankss have no option but to maintain up with the most modern alterations in engineering. All the Bankss in the sample compete with each other to supply better services. since a good client service is critical in developing a loyal client base. In order to remain in front of their rivals these Bankss focused on distinction instead than be leading. By distinguishing their services they are able to lock in the client. and thereby cut down dickering power of client. In relation to entry barriers. other than immense investing they are unable to forestall new entrants in the market. Hence. it can be concluded that the Sri Lankan Banks have to give farther idea to derive competitory advantage through IT.
Mentions
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