The drive for excellence in the banking industry is a matter of priority that given the well being of this industry integral to the growth and development in Malaysian economy. The latest advancement in technology and globalization together with financial sector liberalization have created many challenges for banking industry in Malaysia where it has increased the Malaysian government to progressively liberalize the banking industry. Failure to do so will jeopardize the country’s economy to participate in the global economy. Therefore, in order to catch up, the Financial Sector Masterplan (FSMP) was created to design a new financial landscape that are more competitive and market driven. The bank industry plays an important role in the development of a progressive and inclusive financial sector which entails preserving the core foundations of financial stability to ensure the effectiveness and efficiency of financial intermediaries which leads to economic growth and development in Malaysia.
In any business, if technology serves as a catalyst for improvement without significant drawbacks, adopting the changes that it brings will be more beneficial than harmful. Online banking is a technological advancement that has brought about such a change. The banking industry has adopted virtual banking to improve business process, infrastructure, and customer relationships. These changes have had a major impact on the banking business, but more transparently on the customers of online banking. The matrix measures for the improvements added by online banking can be evaluated on comparable levels of service, efficiency and cost satisfaction, for both the provider and consumer of this technology.
According to Osterwalder (2005), business model is based on many factors and the relation between them. It basically describes how business operates, it is a conceptual tool that used to explain how the enterprise creates cusumer value, how to set up internal structure in the business, as well as expand the market by forming network with partners to deliver value, gain profit and maintain the cash flow. The key factor for the emergence and innovation of new business models is the arising of new economy. New economy usually refers to the changes on the growth of economic, economic structure and the economic operation rules, caused by the revolution of new technology began from the middle of 1990s. New economy started from the United States, but its wave has swept across all over the world.
1.1 INTRODUCTION In recent years the banking industry around the world has undergone a rapid transformation. The financial sector is considered one of the most affected by the proliferation of new technologies, particularly digital banking. Banks of all sizes are choosing to run their business digitally since this new medium offers distinct advantages to all parties involved. Through this, banks can reduce their costs and expand their markets, so users can enjoy a variety of services. The number of digital banking users is growing rapidly and is a competitive advantage for both public and private banks.
The rise of technology has increase the business opportunities. Earlier general purpose technologies, such as the telegraph, the steam engine and the electric motor, illustrate a pattern of complementary innovations that eventually lead to dramatic productivity improvements (Brynjolfsson & Hitt, 2000). Today the technology are developing and it change everything on this world. From the lifestyle, education, hospitality, social, military to business are develop by technology. For business, there are a lots of changes compared to 20th century.
Marketing techniques continue to expand and reach new potential parallel with technological changes of the modern world. Emphasis on faster and larger data sharing networks provide open framework for vast possibilities in the field of marketing. Not only do companies have the ability to reach out to people all across the globe but it happens without hesitation due to more powerful, creative, and personal means of communication. Eric Hammis, author of How Wearable Technology Will Impact Digital Marketing, and Jeffrey A. Rayport, author of Will Programmatic Advertising Be the Future of Marketing?, offer great insight into understanding how marketing is and will further be effected by growing technology. Presenting new ideas and radical change in this industry gives companies the ability to induce much more advanced and renowned ways of marketing.
In the changing economical condition and economic expansion contemporary financial management has a very pertinent role. Modern reforms of contemporary financial management are the foundation for sustained economic growth and reducing inequalities. Such successful financial management strengthened budget execution. Through this Government is now engaging in a second wave of improving financial systems to deal weaknesses in governance. The term “Contemporary” means that this approach to new financial management which has a modern objective and outlook for financial system and entail maximum economic growth and strength.
The important factor here is the investment in new technology and how it will affect the business. In looking at the financial aspect and how it will be beneficial, we see that there could be a rise in new state of the art architecture, infrastructure, integration platforms. Publix has the ability to reach new heights. The design of these applications will open doors for a more diverse environment and support financial EFT networks. In providing the right kind of tech support for all offices, retail, ware houses and hard are/software aspects could lead to more efficient logistics and increased revenue in the back of house so to speak.
Ans. 1 I would like to build my career in banking industry. In this era of up-and-coming technologies I think IT will play major role in my business. Implementing Service Oriented Architecture (SOA), my employees will value the process of high performance by getting knowledge of IT, customer relationship management (CRM), supply chain management (SCM) and the essential of maintaining good relationships with my customers. First and foremost, SOA can help to cut the IT controls and allows banks to be a joint venture with other banks and with their customers more effectively.
Corporate Entrepreneurship Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests a formal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment. Corporate entrepreneurship (CE) is widely considered as a vital means to stimulate and sustain the overall competitiveness of an organization. Both practitioners and researchers have recognized the challenges of pursuing entrepreneurship within a corporation.