An Evaluation of Information Technology (It) Impact on the Development of Effective Marketing Strategies in the Banking Industry
An Evaluation of Information Technology (It) Impact on the Development of Effective Marketing Strategies in the Banking Industry
Abstract of An Evaluation of Information Technology (It) Impact on the Development of Effective Marketing Strategies in the Banking Industry
The fundamental facts of the topic “The Evaluation of Information Technology Impact in Development of Effective Marketing Strategies in the Banking Industry in Enugu Metropolis, “which looks into or investigate the trend ratio or quantum of this integral system (ITS) yield in the banking industry since the Y2k compliance and the revolutionary epoch of its, and accelerated future target goals to turn labour intensive market of workforce to capital intensive in no distance time. Meanwhile, this work run through five distinct chapters to make it a reality. The chapter one deals on the background, statement of problem objectives, research questions, purpose of study, significance and scope. The chapter two covers the literature review. Again, chapter three the research methodology and its distinctive components. The chapter four discusses the analysis and interpretation of data and test of hypotheses respectively. Finally, chapter five highlights the summary of findings, recommendations and conclusion which brings to fore the innovative and transformatory role, this subsystem have given towards five tuning the efficiency, effectiveness and productivity that is inherent in this use of Information Technology on organizational performance.
Chapter One of An Evaluation of Information Technology (It) Impact on the Development of Effective Marketing Strategies in the Banking Industry
INTRODUCTION
BACKGROUND OF THE STUDY
Today’s business environment is very dynamic and undergoes rapid changes as a result of technological innovation, increased awareness and demands from customers.
Business organizations, especially the banking industry of the 21st century operates in a complex and competitive environment characterized by these changing conditions and highly unpredictable economic climate. Information and Communication Technology (ICT) is at the centre of this global change curve. Laudon and Laudon, (1991) contend that managers cannot ignore information systems because they play a critical role in contemporary organization they point out that the entire cash flow of most fortune 500 companies is linked to information system. The application of information technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all banks and indeed a prerequisite for local and global competitiveness. Information Technology directly affects how manager decide, how they plan and what products and services are offered in the banking industry.
It has continued to change the way banks and their corporate relationships are organized worldwide and the variety of innovative devices available to enhance the speed and quality of service delivery. Harold and Jeff (1995) contend that financial service providers should modify their traditional operating practices to remain viable in the 1990s and the decades that follow. They claim that the most significant shortcoming in the banking industry today is a wide spread failure on the part of senior management in banks to grasp the importance of technology and incorporate into their strategies plans accordingly. Woherem (2000) claimed that only banks that overhaul the whole of their payment and delivery systems and only apply information technology to their operations are likely to survive and prosper in the new millennium. He advices banks to re-examine their service and delivery systems in order to properly position them within the framework of the dictates of the dynamism of Information and Communication Technology.
The banking industry in Nigeria has witnessed tremendous change linked with the development in ICT over the years. The quest for survival, global relevance, maintenance of existing market share and sustainable development has made exploitation of the many advantage of ICT through the use of automated devices imperative in the industry.
STATEMENT OF THE PROBLEM
The rate of proliferation and adaptation of information technology as a vital tool to the development of competitive marketing strategies in the banking industry and as a necessary tool for the advancement of organizational goals have continued to prop up questions, bearing in mind the inherent danger in the use of modern technology advancements. This brings to mind, varying questions as to the reality of the true advantageous position placed by information system on marketing organizations.
Information technology no doubt holds a lot in stock for the banking industry in the development of effective marketing strategies and operations should the old ways of doing things which have also yielded positive results be discarded for the progress that is seemingly apparent with the use of information systems? To what extent should the services of information systems be applied in developing marketing strategies? Are there marketing advantages derivable from the implementation of information systems by organizations in the development of their marketing strategies?
PURPOSE OF THE STUDY
This research study aims at accomplishing the following objectives
- Determine the effect of information systems on the development of effective marketing strategies in the banking industry in Enugu metropolis.
- To determine possible extents to which banking industries can implement the use of information systems as a tool in its activity of developing marketing strategies.
- The effects, if any, the application of information technology to the development of marketing strategies has on the achievement of organizational goals.
- To highlight the contribution of information technology in spending up marketing decisions.
- To determine possible ways which consumers relationships and satisfaction can be enhanced with the aid of information systems.
- To determine the extent to which banks in Enugu metropolis have adopted innovative technologies in their operations and the resultant effects.
SIGNIFICANCE OF THE STUDY
The importance of information technology in developing and implementing marketing strategies occupies an indisputable position in modern day marketing. Information and technology are necessary tools for an organization to have firm foundation.
Management needs to be abreast with information in developing marketing strategies and improving consumer satisfaction. Modern managers should consider information as a valuable commodity, which is a great resource in developing marketing activities in most organizations.
Information is to any organization system what blood is to the circulatory system of the human body. Therefore, when information fails to reach any part of the organization system due to structural deficiency, that part becomes anemic and soon becomes a liability to the rest of the organization.
A good understanding of information system and its adaptation in organizational activities will go a long way in improving the quality of output from the organization. Management needs to be at home with the use of information technology to help in its marketing activities so as to aid in giving it competitive edge in the market and an increase in its served market.
HYPOTHESES
For the purpose of this study, the following research hypothesis will be tested
HO: The use of information systems increases effectiveness and efficiency in the banking industry in Enugu metropolis.
HI: The use of information systems does not increase effectiveness and efficiency in banking industry in Enugu metropolis.
SCOPE OF THE STUDY
The study focuses on drawing a relationship between information system and the evaluation of the effect of information technology on the development of effective marketing strategies in the banking industry in Enugu metropolis and to what extent information systems have been accepted by the company as being relevant to its growth.
DEFINITION OF TERMS
In the course of writing this project, some terms where used which are defined below for clarify of the work.
Information: According to Njoku (2000:13) information consists of data, not all data produce specific and meaningful information for decisions making. It is all the processed data that is meaningful used in decision making.
Computer-Based Information System: Information system that rely on computer hardware and software for processing and disseminating information Alu (2002).
Information System (IS): According to Modum, U., (2005), inter-related components that collect, process, store and disseminate information to support decision making, control, analysis and visualization in an organization.
Management Information System (MIS): Computer systems at the management levels of an organization that serve the functions of planning, controlling and decision making by providing routine summary and exception reports, Modum, U.S. (2005).