As discussed in the Chapter IV, e-banking is different from other forms of technological projects. It brings a different set of challenges for managers which are discussed in Section one of this chapter. It is widely acknowledged that complexityin the managerial environment has increased because e-services often require decisions that focus on integration of internal/external systems, adoption of new business models and frequent restructuring of existing business processes and structures. This chapter discusses some of those challenges and ways in which they can be met.
TopIntroduction
As discussed in the Chapter IV, e-banking is different from other forms of technological projects. It brings a different set of challenges for managers which are discussed in Section one of this chapter. It is widely acknowledged that complexity in the managerial environment has increased because e-services often require decisions that focus on integration of internal/external systems, adoption of new business models and frequent restructuring of existing business processes and structures. This chapter discusses some of those challenges and ways in which they can be met.
Management Challenges
Many authors have outlined the impact of new technologies on organizations. For example, CRM systems can force a general realignment of business processes, which in turn can cause major changes in a firm’s activities. Similarly it is widely recognised that new technologies like the Internet may have a deep influence on a firm’s organization structure (Ayadi, 2006).
Implementation of e-banking often results in significant changes in the organization, giving rise to new and complex challenges for managers. The Internet also impacts market structure, and affects competitive advantage in the banking sector. Some organizations implement changes required to respond to the above challenges before they implement e-banking technologies, some do so while implementing them, and others respond to the need as and when it is forced upon them. Which of these managerial strategies should be adopted is another managerial challenge.
Increased Customers Expectations
Arrival of online services has increased customer expectations, leading them to expect better value products delivered more quickly. E-banking has the potential to be a rich experience for customers, with the foremost goal being to increase the depth of the relationship between the customer and the bank. As technology evolves, the opportunities to extend and enrich the relationship with customers also grow.
The goal of e-banking should be to provide many, if not all, of the services offered at a branch. This may include transactions as well as information, advice, administration, and even cross-selling. However, the interactive nature of the Web not only allows banks to enhance these core services, but also enables them to communicate more effectively and expand customer relationships. When combined with the improving analytical capabilities of data mining and related technologies, the potential for innovative product and services development can go well beyond our current limits.