Impact of Innovation Technology in Banking Sector in Sri Lanka

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The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka

THE INFORMATION TECHNOLOGY AND ITS IMPACT IN EFFICIENCY AND EFFECTIVENESS OF THE BANKING SECTOR IN SRI LANKA (WITH REFERNCE TO PEOPLE’S BANK AND PLC COMMERCIAL BANK PLC IN SRI LANKA) AUTHOR: M.R.M. FAZMEER 2005/2006 FMC SOUTH EASTERN UNIVERSITY OF SRI LANKA

What is information technology?
The study or use of computers and telecommunications for storing and sending Information (Oxford dictionary, 2003) “The information technology refers to all forms of technology applied to processing, storing, and transmitting information in electronic form. The physical equipment used for this purpose includes computers, communication equipment and network, fax machines, and even pocket organizer. Information on system executes organized procedures and/or communicates information. We define Information as an intangible or intangible entity that severs to reduce uncertainty about some state or event. Data can be originated from the internal operation of the form external entities such as suppliers or customers. Data also come from external data bases and services, for organization purchases a great deal marketing and competitive information. An information technology usually process these data in some way and present the results to users with easy availability of personal computers, users often process the output of formal system themselves in an ad ho manner. Human interpretation of information is extremely important in understanding how an organization reacts to output of system .Different result may mean different things to two managers. A trends or problems with sales. A financial manager may see problems with cash flow given the same sales data, where the marketing manager may use the statistical programs and graphs to look for trends or problems with sales. The recipient of a system’s output 2 1

AUTHOR: M.R.M. FAZMEER

2005/2006 FMC

SOUTH EASTERN UNIVERSITY OF SRI LANKA

The impact of IT in efficiency and effectiveness of banking sector in Sri Lanka may be an individual, as in the examples of the marketing manager, or it may be a workgroup. Many systems are used routinely for control purpose in the organization and require limited decision making. The accounts receivable application generally runs with little senior management over sight. It is a highly structured application with rules that can be followed by a clerical staff. A department manager handles exceptions. The output of some systems may be used as a part of a program or corporate strategy. The system it self could be implementing a corporate strategy, such as simplifying the customer order process. A system might help manager make decision. Information technology, however, extends far beyond the computational capabilities of computers. Today, computers are used extensively for communications as well as for traditional roles of data storages and computations. Many computers are connected together using various kind of communication line to form networks. Through a network, individuals and organization are link together and these linkages are mass market networks like CompuServe, America on – line, and prodigy are a more recent phenomenon of course, the most famous network of all is the internet and shall explore its potential for business. Today every organization is faced with various information technology architectures. A manager is always concerned with various sources available for product and services. In the technology field. There are options on suppliers for both hardware and software. The area of information technology as an integration of communication technology. (Asoka S. Karunananda,1998)

History of Impact of Information Technology
In 21st century, the role of information technology is very important in every sector, whether it is agriculture industry and services. The information system’s functions in an organization have expanded significantly over the...
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