Does IT Payoff? Strategies of Two Banking Giants
Author(s) -
Ali Farhoomand,
Minyi Huang
Publication year - 2009
Publication title -
communications of the association for information systems
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.576
H-Index - 48
ISSN - 1529-3181
DOI - 10.17705/1cais.02447
Subject(s) - investment (military) , stochastic game , globalization , business , finance , information technology , industrial organization , economics , market economy , microeconomics , computer science , politics , political science , law , operating system
Banks have long been among the most intensive users of information technology (IT). Globalization has further accentuated banks’ reliance on IT, leading to further increase in their IT investment. It is not all that clear, however, whether these investments pay off. This case presents the complexities involved in measuring IT investment by comparing and contrasting the IT strategies of two of the world’s largest banks: HSBC and Citigroup. Will the IT investment strategies adopted by HSBC and Citigroup enhance their operational efficiency or strategic positions? Which of the two banks will have higher returns on their IT investments in the long run? How should they measure such returns?
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