Value Increasing Model in Commercial E-Banking

Abstract

The existing research showed approaches that support and enhance information system in commercial banking remain fuzzy concerning the fulfilled information technology level. This paper proposed to build an electronic strategy analysis model for commercial banking business based on the strategic value chain analysis, in order to accelerate information technology adoption for commercial banking business. Specifically, first, it developed a Commercial Banking Electronic Strategy model to demonstrate how information technology supports the commercial banking business. Second, the developed model was decomposed to derive seventy-eight implementable items in commercial banking electronic business. Third, the current pattern of information technology adoption in the twenty dominant U.S. commercial banking companies was analyzed to get a structured picture of the research in the domain. The pattern analysis across electronic business items classified the derived seventy-eight items into three categories. The pattern analysis across banks classified these twenty dominant banks into four groups based on multivariate cluster analysis. The study concludes that the electronic strategy model based electronic business solutions are crucial to accelerate the information technology adoption in commercial banking; and thereby, enhancing banking security and reducing risks involved in financial crisis. Recommendations and implications were also discussed.

• electronic strategy model
• value chain management
• commercial banking
• electronic business