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E banking research paper
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1. Core Capabilities Model :
Banks that are equipped with a good grasp of the e-banking phenomenon will be more able to make informed decisions on how to transform them into e-banks and to exploit the e-banking to survive in the new economy. Given the e-banking is a financial innovation (Liao and Cheung, 2003) [9], the change may render the organizational capabilities of the traditional banks obsolete. From the resource-based view (Mahoney and Pandian, 1992) [10], in such a context, the banks must constantly reconfigure, renew, or gain organizational capabilities and resources to meet the demands of the dynamic environment. Developing core capabilities can help the banks redeploy their resources and renew their competencies to sustain competitive
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Disruptive Innovation Model :
Clayton Christensen’s Disruptive Innovation Theory (DIT) is one of the most influential theories in the recent academic and management literature. This is reflected not only in his best selling books “The Innovator’s Dilemma” and “The Innovator’s Solution”, but also in the discussion and follow-up work that his theory created among academics and managers alike.
Christensen suggests a broad definition of the concept of innovation. To him, innovation refers to all changes of “processes by which an organization transforms labor, capital, materials and information into products or services of greater value” (Christensen 1997/2002) [14]. Thus, in addition to creating new processes and products, innovation also includes new types of business models. The DIT recognizes two types of innovation: on the one hand, sustaining innovations generate growth by offering a better performance in existing markets. Usually, regardless of whether they are incremental or radical, these innovations are exploited successfully by the established players in an industry and do not lead to revolutionary changes in an industry’s landscape. On the other hand, compared to existing products and business models, disruptive innovations initially have a lower performance in the traditionally most important performance criterion (such as functionality, speed, or
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M-banking, rather than driving m-commerce, will in fact be driven by the increasing availability of mobile-focused, user-friendly content. And because the rise of m-business will be based on the inclusion of a strong payments engine, which can provide better payment transaction processing services. Regardless of the bright future of mobile banking, its prosperity and popularity will be brought to a higher level only if information can be securely and safely exchanged among end systems (mobile users and banking service providers). Online banking through mobile service providers is more secure than online banking through internet because of the usage of private network of the service provider (PNSP) and the users’ personal mobile device. The existing electronic authorizations for mobile payment security are based on account - holder authentication by the payment system. The use of secure and convenient mobile personal devices through PNSP could revolutionize the payment, banking and investment industries
When comparing these two innovators, I think that is important to note that neither speaker applies their theories of innovation to just one business sector. Although Christensen is using the argument of disruptive innovation in order to create lower-cost, higher-quality
Teece, D.J. (2010) ‘Business Models, Business Strategy and Innovation’, Long Range Planning, vol.43, issue 2-3, pp.172-194 [Online]. Available at: http://www.sciencedirect.com/science/article/pii/S002463010900051X [Accessed 24th November 2013]
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Innovations are traditionally categorized into solely two groups, radical innovation and incremental innovation. However, Henderson and Clark felt that these two groups provide little insight on minor innovations that creates tremendous impact on the industry. Therefore, they bring forth a concept called architectural innovation, to classify innovations that modify the way in which components of a product are linked together while keeping the fundamental design concept the same. It is essential for firms to recognize the importance of architectural innovation in order to stay competitive because the failure to distinguish this innovation will result in the loss of market shares as shown by the example of Kasper and Canon.
First of all, it is very important to distinguish the key terms used in this article that are “sustaining technology” and “disruptive technology”. Sustaining technology, which is also called sustaining innovation, maintains a steady rate of product improvement. On the other hand, disruptive technology opens a totally new market by its new elements. Usually, disruptive technology has to “sacrifice performance along dimensions that are important to current customers”. Following Bower and Christensen, there is a new innovation introduced the market whose att...
Kelley,T. (2005, Oct.). The 10 faces of innovation. Fast Company, 74-77. Retrieved 6th March’ 2014 from http://web.ebscohost.com/ehost/detail?vid=9&sid=1d6a17b7-c5f7-4f00-bea4 db1d84cbef55%40sessionmgr10&hid=28&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=18386009
This definition has extended the power of the theory to explain different types of disruptive innovations across a wide range of industries (Schmidt and Druehl, 2008).
Communication modern technological tools that have been enhanced by Information Technology are having an impact on changing the very structure and communication of banking. That is, clients are enabled to make their banking transactions whenever and wherever they want. Bank clients, by just logging on their online account, can transfer any amount of money from their account to any other account, check their last processed banking transactions and apply for loans and other banking services. According to Keyes ( 2000, p.591) 'electronic checks provide consumers with the benefits of convenience and safety while allowing billers to maintain their existing depository relationships with their banks'. Further, e-mails has enabled bank employees to notify their customers of any new enhanced bankin...
As regarded by a growing body of researchers, Gunday (2011) also explains organizational innovation as a catalyst of growth in business and economy. Luecke & Katz (2003, p.2) refers to innovation as ‘the introduction of a new thing or method. Innovativeness refers to ‘a firm's capacity to engage in new enterprise, that is, the introduction of new processes, products, or ideas in the organization' (2004, p. 429). This capacity to innovate is among the most important factors which influences the business performance and as such, innovativeness is amongst the unique beliefs which is surrounded in the tangible and intangible resources leading a firm towards successful business
One of the most integral qualities of an entrepreneur as well as that of a successful business is the degree of innovation it possesses. Innovation refers to the creation of new ideas, improvement of existing production processes, and effective problem solving. Innovation allows for increased efficiency in a business, which in turn increases its supply potential and productive capacity. Being innovative may involve either improving upon old methods o...
Innovation in business is a key aspect of staying viable in an ever changing climate of competition. One must continuously provide insight and solutions to issues, known and presently unknown through investigation and collaboration. Within this paper we will look into four businesses and their use of innovation in attempt at a better business or greater market share. The innovative businesses of interest are: Taco Bell, Zipcar, Dollar Shave Club and Kickstarter.
Mobile devices have become attractive platforms for communication in today’s society to an extent that they are increasingly used for storing and accessing personal information as well as company data. The increased use of the devices has been enhanced by the adoption of near field communication for mobile payment services, particularly in business. As a result, people and businesses not only rely on these devices for communication purposes but also use them for monetary services. Actually, it is estimated that the use of mobile devices will continue to grow in the future for various purposes.
E-Commerce is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. It also includes ‘M-commerce’ which makes use of various mobile devices or smart phones. It means "the delivery of e-commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology.” The various services available on M-Commerce are Mobile Money Transfer, Mobile ATM, Mobile ticketing, Mobile vouchers, coupons and loyalty cards, News, Stock Quotes, shopping apps, Mobile brokerage etc. Launching of Google Wallet Mobile App is one of the recent developments.
The first online banking system was created in 1980 in New York, and was adopted by four main banks; Citibank, Chemical, Manufacturers Hanover and Chase Manhattan. The sector needed an innovation in banking systems because of growing consumer demand for service improvements as well as fear of losing market share. In the beginning, online banking was treated at private customers and small companies, to help customers have easier access to their bank accounts, however, now it achieves a global reach through the population. (Cronin 1997) In today’s world, electronic business (E-business) is very important especially for the banking system, plays a fundamental role in online banking (Nasri 2011). A true definition of online banking is difficult, because this system is connecting with different services which are constantly evolving. Access to online banking is possible through the internet, phone or even television. (Daniel, 1999; Mols, 1998). This ‘open system’ is available to the customers twenty four hours a day, seven days a week. This is a multi-level organized system, which helps people pay bills, check credit cards or even arrange mortgages without leave their houses. (Singer 2012)
Innovation may be defined as exploiting new ideas leading to the creation of a new product, process or service. It is not just the invention of a new idea that is important, but it is actually