Implications of expert systems for the operations of financial institutions

Abstract

This paper discusses how expert systems can improve operation function of the various organizations in the financial services sector. We use a well-known conceptual framework known as “the service management model” (which consists of service strategy, service product design, service process design, and service delivery system) to discuss the managerial implications of expert systems employed to manage operations of the financial organizations. By viewing expert systems as enablers to improve the various components of the service management model, we demonstrate that expert systems in various financial institutions have assisted in accomplishing the service strategy by providing alternatives for improved service design as well as more quality-based delivery systems. The operations strategy based on performance measures such as dependability, efficiency. flexibility and quality can be enhanced by ES implementations; incorporating these systems into a company's service management model will enable an operations manager to increase the attainment of each measure.