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1、Four short words sum up what has lifted most successful individuals above the crowd: a little bit more.-author-dateTrvmk市场营销-北大MBA原文案例库How Financial Firms Decide on Technology，介绍国际大银行在决定对信息技术投资时的考虑要点和他们具体的实施过程| Never Make Somebody Your Everything, cause when theyre gone, youve got nothing。无论如何，不能让某个
2、人成为你的全部。若是有天他们离开了，你将一无所有。欢迎下载各种资料大全！精品水晶，动人礼品我的网店 : 欢迎下载各种资料大全！我的网店 : How Financial Firms Decide on Technology，介绍国际大银行在决定对信息技术投资时的考虑要点和他们具体的实施过程。How Financial Firms Decide on Technology(Abstract) The financial services industry is the major investor in information technology(IT) in the U.S. economy;
3、 the typical bank spends as much as 15% of non-intereste expenses on IT. A persistent finding of research into the performance of financial institutions is that performance and efficiency vary widely across institutions. Nowhere is this variability more visible than in the outcomes of the IT investm
4、ent decisions in these institutions. This paper presents the results of an empirical investigation of IT investment decision processes in the banking industry. The purpose of this investigation is to uncover what, if anything, can be learned from the IT investment practices of banks that would help
5、in understanding the cause of this variability in performance along with pointing toward management practices that lead to better investment decisions. Using PC banking and the development of corporate Internet sites as the case studies for this investigation, the paper reports on detailed field-bas
6、ed surveys of investment practices in several leading institutionsHow Financial Firms Decide on Technology(Part One) 信息技术对金融服务业的影响正在增加，不仅仅表现在银行的15%无息开支上，而且对金融服务业的运做和战略也有很强的影响。 一个对金融机构的长期研究表明，不同的机构的效率和表现也不同。其决定的因素有以下一些其中的一个因素就是对投资的决定和管理。SBS是一个失败的例子，但是成功的公司也不少。本文注重解答以下的问题： .银行对投资的评估和管理过程？ .在对的管理过程中，理论
7、和实际操作的结合如何？ .投资的管理和银行性能的关系如何？ 1.0 IntroductionInformation technology(IT) is increasingly critical to the operations of financial services firms. Today banks spend as much as 15% of non-interest expense on information technology. It is estimated that the industry will spend at least $21.1 billion on
8、IT in 1998, and financial institutions collectively account for the majority of IT investment in the U.S. economy. In additon to being a large component of the cost structure, information technology has a strong influence on financial firms operatons and strategy. Few financial products and services
9、 exist that do not utilize computers at some point in the delivery process, and a firmsinformation systems place strong constraints on the type of products offered, the degree of customization possible and the speed at which firms can respond to competitive opportunities or threats.A persistent find
10、ing of research into the performance of financial institutions is that performance and efficiency varies widely across institutions, even after controlling for factors such as size(scale), product breadth(scope), branching behavior and organizational form(e.g. stock versus mutual for insurers; banks
11、 versus saving & loans). Given the central role that technology plays in these institutions, at least some of this variation is likely to be due to variations in the use and effectiveness of IT investments. While some authors have argued that the value of IT investment has been insignificant, partic
12、ularly in services, recent empirical work has suggested that IT investment, on average, is a productive investment. Perhaps more importantly, there appears to be substantial variation across firms; some firms have very high investments but are poor performers, while otheres invest less but appear to
13、 be much more successful. Brynjolfsson and Hitt found that as much as half the returns to IT investment are due to firm specific factors.One potentially important driver of differences in IT value, and of firm performance more broadly, is likely to be the decision and management peocessed for IT inv
14、estments. Horror stories of bad IT investment decisions abound. Consider the example of the new strategic banking system(SBS) at Banc One(American Banker 1997). Banc One Corp. and Electronic Data Systems Corp. agreed last year to end their joint development of this retail banking system after spendi
15、ng an estimated $175 million on it. As stated in the American Banker article, SBSwas just so overwhelming and so complete that by the time they were getting to market, it was going to take too long to install the whole thing, said Alan Riegler, principal in Ernst & Youngs financial services manageme
16、nt consulting division. However, not all the stories are negative. New IT systems are playing a vital role in reshaping the delivery of financial services. For example, new computer-telephony integration(CTI) technologies are transforming call center operations in financial institutions. By investin
17、g in technology, more and more institutions are moving operations from high-cost branch operations to the telephone channel,where the cost per transaction is one-tenth the cost of a teller interaction. This IT investment not only reduces the cost of serving existing customers, but also extends the r
18、each of the institution beyond its traditional geographic boundaries.In this paper, we utilize detailed case studies of six retail banks to investigate several interrelated questions:.What processes do banks utilize to evaluate and manage IT investments?.How well do actual practices align with theor
19、etical arguments about how IT investments should be managed? .What impact does that management of IT investments have on performance?How Financial Firms Decide on Technology(Part Two) For the first question, we develop a structured framework for cataloging IT investment practices and then populate t
20、his framework using a combination of surveys and semi-structured interviews. We then compare the results of this exercise with a synthesis of the literature on IT decision making to understanding how practices vary across firms and the extent to which this is consistent with best practices as descri
21、bed in previous literature. Finally, we will compare these processes to internal and external performance metrics to better understand which sets of practices appear to be most effective.To make these comparisons concrete, we examine both the general decision process as well as the specific processe
22、s used for two recent IT investment decisions :the adoption of computer-based home banking (PC banking), and the development of the corporate web site. These decisions were chosen because they were recent and are related but provide some contrast; in particular, PC banking is a fairly well defined p
23、roduct innovation, while the corporate web presence is more of an infrastructure investment which is less well-defined in terms of objectives and business ownership.Overall, we find that while some aspects of the decision process are fairly similar across institutions and often conform to best pract
24、ice as defined by previous literature, there are several areas where there is large variation in practice among the banks and between actual and theoretical best practice. Most banks have a strong and standardized project management for ongoing systems projects, and formal structures for insuring th
25、at line-managers and systems people are in contact at the initiation of technology projects. At the same time, many banks have relatively weak processes(both formal and informal) for identifying new IT investment opportunities, allocating resources across organizational lines, and funding explorator
26、y or infrastructure projects with long term or uncertain payoffs.The reminder of this paper is organized as follows. Section 2 describes the previous literature on performance of financial institutions and the effects of IT on performance. Section 3 describes the methods and data. Section 4 describe
27、s the current academic thinking on various components of the decision process and compares that to actual practices at the banks we visited. Section 5 describes the results of our in-depth study of PC banking projects and the summary, Section 6 contains a similar analysis for the Corporate Web Site
28、and discussion and conclusion appear in Section 7. How Financial Firms Decide on Technology(Part Three) 2.0Previous Literature2.1Performance of Financial InstitutionsThere have been a number of studies that have examined the efficiency of the banking industry andthe role of various factors such as c
29、orporate control structure (type of board, directors, insider stock holdings, etc.), economies of scale (size), economies of scope (product breadth), and branching strategy; see Berger, Kashyup and Scalise (1995) and Harker and Zenios (forthcoming) for a review of the banking efficiency literature.
30、While there is substantial debate as to the role of these various factors, there is one unambiguous result: that most of the (in) efficiency of banks is not explained by the factors that have been considered in prior work. For example, Berger and Mester (1997) estimate that as much as 65-90% of the
31、x-inefficiency remains unexplained after controlling for known drivers of performance. A similar story also appears in insurance where x-efficiency varies substantially across firms when size, scope, product mix, distribution strategy and other strategic variables are considered. It has been argued
32、that one must get inside the black box of the bank ot consider the role of organizational, strategic and technological factors that may be missed in studies that rely heavily on public financial data.2.2 Information Technology and Business ValueEarly studies of the relationship between IT and produc
33、tivity or other measures of performance were generally unable to determine the value of IT conclusively. Loveman (1994) and Strassmann (1990) ,using different data and analytical methods both found that the performance effects of computers were not statistically significant. Barus, Kriebel and Mukad
34、opadhyay (1995), using the same data as Loveman, found evidence that IT improved some internal performance metrics such as inventory trunover, but could not tie these benefits to improvements in bottom line productivity. Although these studies had a number of disadvantages (small samples, noisy data
35、 ) which yielded imprecise measures of IT effects, this lack of evidence combined with equally equivocal macroeconomic ananlyses by Steven Roach (1987) implicitly formed the basis for the productivity paradox. As Robert Solow (1987) once remarked, you can see teh computer age everywhere except in th
36、e productivity statistics. More recent work has found that IT investment is a substantial contributor to firm productivity, productivity growth and stock market valuation in a sample that contains a wide range of industries. Brynjolfsson and Hitt (1994,1996) and Lichtenberg (1995) found that IT inve
37、stment had a positive and statistically significant contribution to firm output . Brynjolfsson and Yang (1997) found that the market valuation of IT capital was several times that of ordinary capital. Brynjolfsson and Hitt also found a strong relationship between IT and productivity growth and taht
38、this relationship grows stronger as longer time periods are considered. Collectively ,these studies suggest that there is no productivity paradox, at least when the analysis is performed across industries using firm-level data. The differences between these results and earlier studies is probably du
39、e to the use of data taht was recent , more comprehensice ,and more disaggregated (firm level rather than industry or economy level). Most previous sutdies have considered the effects of technology across firms in multiple industries, although a few studies have considered the role of technology in
40、specifically in the banking industry. Steiner and Teixiera surveyed the banking industry and argued that while large investments in technology clearly had value,little of this value was being captured by the banks themselves; most of the benefits were being passed on to customers as a result of inte
41、nse competition. Alpar and Kim examined the cost efficiency of banks overall and found that IT investment was associatied with greater cost efficiency although the effects were less evident when financial ratios were used as the outcome measure. Prasad and Harkere examined the relationship between t
42、echnology investment and performance for 47 retail banks and found positive benefits of investments in IT staff. While these studies show a strong positive contribution of IT investment on average, they do not consider how this contribution (or level of investment )varies across firms. Brynjolfsson
43、and Hitt found that firm effects can account for as much as half the contribution of IT found in these earlier studies. Recent results suggest that at least part of these differences can be explained by differences in organizational and strategic factors. Brynjolfsson and Hitt found that firms that
44、use greater overall IT benefits. Bresnehan, Brynjolfsson and Hitt found a similar result for firms that have greater levels of skills and those that make greater investments in training and pre-employment screening for human capital . In addition, strategic factors also appear to affect the value of
45、 IT. Firms that invest in IT to create customer value (e.g. improve service, timeliness, convenience, variety) have greater performance than firms that invest in IT to reduce costs. While these studies are begining to explore how the performance of IT investment varies across firm, particularly due
46、to organizational and strategic factors, little attention has been paid to the technology decision making process.How Financial Firms Decide on Technology(Part Four) 2.3IT Investment DecisionsWhile there is no concise definition of best practice in IT investment decisions, there are a number of cons
47、istent arguments advanced in the IT management literature that can be synthesized into an understanding of the conventional wisdom.For the pruposes of discussion it is useful to subdivide the process of IT management into seven discrete, but interrelated processes. The first six processes are orient
48、ed around the proposal, development and management of IT projects, while the last process is about maintaining the capabilities of the IT function and its interrelationships with the rest of the business:1.Identification of IT opportunities2.Evaluating opportunities3.Approving IT projects4.The make-buy decision5.Managing IT projects6.Evaluating IT projects7.Manage and Develop the IT FunctionThis subdivision loo