Why IT Does Matter

8/8/2019 Why IT Does Matter

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very skill of IT organization that's the problem. Enterprises aregeographically dispersed, as are their customers and partners. ITallows them all to communicate and transact with amazing speed andclarity and, in this way, is a fundamental enabler of business. The ideathat IT has no value because it doesn't produce money is disingenuous

—ultimately that idea dismisses every single thing that actuallyenables sales to happen. Because IT is so much part of theinfrastructure in many industries, it is considered a given and thereforeaccorded no respect. It's to the credit of most IT organizations, of course, that they are invisible to the end user. That fact shouldengender reward, not disdain. You might as well question the value of the building the business is quartered in or the desks people sit at.Does this perspective result from competition among various parts of the organization, or from lack of vision? No matter; those who cannotsee how other parts of the body economic contribute to the whole aresimply being petty. Technology has opened up new markets, new

products, new services and efficient delivery channels for the bankingindustry. Online electronics banking, mobile banking and internetbanking are just a few examples. Information Technology has alsoprovided banking industry with the wherewithal to deal with thechallenges the new economy poses. Information technology has beenthe cornerstone of recent financial sector reforms aimed at increasingthe speed and reliability of financial operations and of initiatives tostrengthen the banking sector.

 The IT revolution has set the stage for unprecedented increase infinancial activity across the globe. The progress of technology and the

development of world wide networks have significantly reduced thecost of global funds transfer.It is information technology which enables banks in meeting such highexpectations of the customers who are more demanding and are alsomore techno-savvy compared to their counterparts of the yester years. They demand IT provides instant, anytime and anywhere bankingfacilities. IT has been providing solutions to banks to take care of theiraccounting and back office requirements. This has, however, nowgiven way to large scale usage in services aimed at the customer of the banks. IT also facilitates the introduction of new delivery channels--in the form of Automated Teller Machines, Net Banking, Mobile Banking

and the like. Further, IT deployment has assumed such high levels thatit is no longer possible for banks to manage their IT implementationson a standalone basis with IT revolution, banks are increasinglyinterconnecting their computer systems not only across branches in acity but also to other geographic locations with high-speed networkinfrastructure, and setting up local area and wide area networks andconnecting them to the Internet. As a result, information systems andnetworks are now exposed to a growing number.

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