Information technology plays an important role to support the relationships between customers and suppliers in financial industry. Different industry faces different competitive and different business practice. Besides, we can use information technology to determine the opportunities and threats to the relationships between customers and suppliers.
In this research, it focus on the financial service industry that is motivated by three factors which are the paucity of research in customer and supplier relationships in service industries relative to manufacturing industries, the sheer size of the financial service sector relative to other service sector and the potential for information technology to positively impact firm performance through channel expansion, cost mitigation and service level enhancement.
Financial service industry includes all Standard Industrial Classification (SIC) codes starting with the digit six. In this research, we only focus on those services typically classified as “financial”. Financial service companies are the earliest commercial users of information technology. Economic forces and technological advances, especially Internet has driven this consolidation across international boundaries and across type financial services. The financial service companies are relatively unique in regard to their value chains. Without possessing any intermediate product can add value to the finish product.
The financial services industry has been doing business electronically for many years. Some customer and regulatory statutes demand the use of paper-based transaction audit trails and reporting those transactions. However, the industry leaders will pressure them to adopt electric distribution and information management methods.
This report concerns on electronic connectivity, alliances and partnerships. There is a lack of understanding of and available insight into the emerging role of e-business as a delivery channel and customer connection mechanism make a great concern of many organizations. Research Methodology
The first phase of methodology is to identify the current and potential role of information technology to support relationship among customers and suppliers in financial services. It included 5 steps which are definition of scope; determination of survey methodology and identification of sample; creation of a survey instrument; administration of the survey; and analysis of survey responses. In this phase, they limited the scope to the immediate suppliers and customers of the subject companies. So the respondents no need to identify suppliers of their suppliers or customers of their customers.
In this research, it conducts two interviews in several sectors. Due to the availability of contacts, three of the subjects worked in mutual fund industry, one in retail banking, two in each insurance carriers, institutional investment companies, and brokerage. Eight of them were conducted by telephone and another two were chosen to supply written responses. The typical respondents are senior managers and vice president. Interviews were recorded manually by interviewer so that it is confidentiality and security.
The collected data were analyzed using qualitative techniques. It seeks to conceptualize theory from data rather than proposing theory. The method involves organizing and understanding interview transcripts, collected documents and observe social or business practice. The methodology involves extracting theory from one case study and studies to augment, refine the theory by using subsequent case. Since the sample is limited, they only drew inferences upon a convergence of ideas across industry sectors.
Findings / Results
Based on the results of interview, there are consistent patterns in the thought, planning, and implementation processes of various participants. They have group the result into five categories. First is how information...