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Business and Information
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Business and Information system
Business Case for Investing in Information Systems
For banks and financial institutions, investing in information systems can deliver significant increases in profitability and customer loyalty. At the center of any banks business model is the need to keep three sets of critical success factors in balance. These critical success factors are the financial performance of the bank, the ability to maintain customer loyalty, while continually improving the operational performance of the bank (Leem, Yoon, Park, Kyu, 2004). To keep financial, marketing & selling and operational systems in synchronization with each other and for the bank to stay profitable, there must be a high level of interprocess integration (Pleshko, 2006). IT systems are the enablers of the modern banking business model because these systems make interprocess integration possible, further enabling greater accuracy and efficiency (Keziere, 2009). In building a business case for automating a bank, it is critical to first look at the opportunity costs of having employees do the majority of tasks by hand relative to automating them through the use of systems and software. One study indicates that when a bank first defines a specific objective for increasing Return on Assets (ROA) they have been able to attain in
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