Abstract
The main objective of the study is to examine the impact of information technology on strategic management in the banking sector. The specific objectives are to identify the applications of information technology in banking sector; to examine the association between education level and customer's usage of IT applications in the banking sector; and to examine the relationship between information technology and organization's strategy. The methodology of the study is supported by interview of bank customers and interview of industry experts based on purposive sampling technique. The findings revealed that Electronic cards, ATMs, online banking, electronic payment, and mobile banking were the major application of IT in Iraq banking sector. There is an association between education level of bank customers and their usage of IT applications regarding banking transactions in Iraq. There is a relationship between information technology and organization's strategy which has resulted in value creation and competitive advantage of banks. It was recommended that for better performance of IT on banking, the management of banking sector should adopt better policies that will encourage users to adopt IT usage in banks. The main contribution of this study is that information technology enhances value creation and competitive advantage in Iraq banks.
Highlights
IntroductionInformation technology is encapsulation of computer and telecommunication application that is used for storing, transmitting and sending, retrieving and processing data
The evidence of information technology (IT) has become real in the 21st century
The following: electronic cards, ATMs, online banking, electronic payment, and mobile banking were listed to be the major application of IT in banking sector
Summary
Information technology is encapsulation of computer and telecommunication application that is used for storing, transmitting and sending, retrieving and processing data. Strategic management has been identified as the systemic process of identifying internal and external factors of an organization to describe improved organizational objectives. Strategic management enhances value creation and competitive advantage for the purpose of maximizing profit and minimizing cost. Organizations cannot create value nor achieve competitive advantage without adopting information technology. Evolvement of information technology saves time and monetary cost, and enhances data security. The advent of information technology was evidenced by the dominance of computer system, and it has become possible for strategic managers to select relevant information without wasting time. Reddy, Srinivasu, Rikkula, and Rao (2009) noted that most organizations rely on information technology as it often enhances organization’s success. Keen (1981) perceived that information technology has become the backbone for organization
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