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ECITE:
European Conference on Information Technology Evaluation
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Information Technology in Financial Services: A Model for Value Creation.
Paul Griffiths, Henley Management
College, UK, paul.griffiths@vtr.net,
Dan Remenyi, Trinity College Dublin, Ireland,
dan.remenyi@tcd.ie
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ABSTRACT
From the research literature and
experience it appears that IT investments purely aimed at improving
productivity and reducing costs, do not lead to value creation for the
firm that makes the investment; the benefits are passed on to their
customers in the form of consumer surplus. This paper proposes a value
building model that is based on IT investments aimed at improving the
performance of the organisation through strengthening its market power.
But how far can financial services organisations differentiate from their
competition to achieve market power? There is a trade-off between the
forces of differentiation and of conformity.
Keywords and phrases: IT
investments, market power, value creation, differentiation, strategic
balance, IT alignment. |
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