The strategic context for information systems use: An empirical study of the financial services industry

Abstract

This paper reports a study into the relationship between the strategic use of information technology in financial service organizations and the strategic context within which such use is made. Using an obtained sample of 46 per cent of all major banks, building societies and insurance companies in the UK, we evaluate the extent to which the financial services industry is, in general, strategically orientated in its utilization of information technology (IT) to support marketing. We find a good degree of integration of marketing and IT groupings with the strategic planning process but document a high degree of strategic ambiguity and lack of strategic time frame for such investment decisions. These results, coupled with a general reliance on traditional cost benefit appraisal methods are, we argue, indicative of a short-term, rather than strategic, focus for information systems use. We conclude that, within the UK financial services industry in general, the strategic vision does not seem to exist to enable the majority of those firms adopting IT innovations to support marketing to gain sustainable strategic advantage.