Functional Relationships Affecting the Innovation Adoption Decisions
Presently, the digital era dictates that many firms have to adopt the use of automated processes and systems. One of the industries that have automated its operations is the banking sector. However, the extent to which a company adopts the automated system is highly dependent on the stakeholders’ attitudes and opinions. The industrial needs are unique; thus, the opinions of a supervisor in the manufacturing industry may significantly differ from that of a senior in the service industry such as banks. Because of this, this research paper seeks to analyze the managers’ perceptions of automation processes in the banking areas such as EAU banks.
Accordingly, many managers relate the adoption of automated systems to their economic impact on their firm’s gain. Regarding this, these managers may hold worry about the efficiency of the automated process. Therefore, the economic effects and the level of uncertainty are crucial in automated business operations. According to Kaleem and Ahmed (2008), the automation of bank service delivery has effects not only on the cost side but also on the revenue side. Consequently, the researcher draws their findings from such matters.
One finds out that managers perceive bank automation as a mechanism for improving service quality. In such cases, managers report that automating servicing delivery facilitates quick service delivery (Rogers, 1995). In fact, one has to remember that some banks invest a considerable proportion of their gains in training programs that aim at managing queues. On the other hand, the automated system ensures that customers can easily and comfortably access banking services. In electronic fund transfer (EFT), the use of ATMs (Automated Teller Machines) has proved to foster the delivery of quality services at one’s convenience. That is, one can send or withdraw funds right away from their premises.
Secondly, supervisors have the firm conviction that automating services in the banking industry reduces the customers’ complaints. Logically, customers’ complaints stem out of dissatisfaction; thus, the possibility of a named business suffering from insufficiency of customer base. However, if enterprises automate their activities they are less likely to experience more complaints from the customers. The use of appropriate databases, for example, ensures that the bank employees can quickly retrieve their customers’ records, and update and modify them. In this regard, the company can visit the customer experience dashboards and positively react to the customers’ inquiries; hence, timely responding to clients’ needs. Mainly, the corporation builds loyalty with its customers, which creates a broad customer base (Al-Hawari, 2006); thus, least likelihood of such a bank curtailing its operations shortly.
Further, managers indicate that in the due processing of automating the bank service delivery, the banks enhance accuracy. Importantly, the use of computerized accounting as an example is prone to fewer errors when compared to manual computations. Through continued use of automated processes, the banking sectors experience efficiency as they can comfortably handle large data. Talon (2010) has stated that automating bank services eliminate redundancy; hence, a high level of accuracy when treating customers. The automation can detect shared primary keys and, therefore, warns the user who in turn corrects the entry (Varlander & Julien, 2010). Additionally, many managers offer system training programs and involve their employees in automated system design; thus, developing user-friendly systems. Therefore, the end-users are not prone to the inaccuracy that may emerge out of ignorance.
The fourth benefit that bank managers perceive in the use of automation services is the reduced labor costs. As earlier mentioned, a reasonable proportion of bank managers involves their subordinates in the system design to familiarize themselves with the departmental needs. This cuts down the number of IT specialists that the firm wishes to recruit. Vividly, the use of the electronic fund transfer reduces the number of workers that the bank could have hired. From this, it follows that automated processes do require a few working hours as well as a small number of workers. Precisely, automating bank service delivery and operations reduces labor costs; thus, increasing the realized gains.
Contrarily, bank managers have also pointed out the challenges that the banking industry experiences in the adoption of automated processes. The primary problem that these managers perceive lies in the security of the system. The managers have reported that automated systems are prone to illegal data access and online frauds that raise the discussion of ethical concerns such as privacy intrusion (Kaleem & Ahmed, 2008). In such cases, these supervisors are of the opinion that their banks might find themselves in court, pay fines, compensate victims and taint their public image. On another occasion, one might gain access to the data and unlawfully amend it, which has a repercussion on the banks’ daily operations.
The second reported challenge is the training of personnel in the use of the system. This challenge has a close relationship with another threat of the exponentially increasing cost of developing and maintaining up-to-date systems. For banks to remain competitive, they have to take advantage of the appropriate technology (Rogers, 1995), which proves to be costly to acquire. Moreover, the banks have to familiarize their staff with emerging technological needs; thus, such activities financially consume the banks’ profitability. The other challenge that managers visualize in the adoption of an automated system is employee resistance. However, both young and experienced managers have agreed that workers’ resistance should be the last factor to think of since the current generation is digital. Furthermore, the involvement in system acquisition and training programs psychologically prepare the banks’ stakeholders.
National and Foreign Bank Managers’ Perceptions of Automation of Banking Services
According to the researcher, there would be a difference in managers’ automation perceptions between the local and foreign banks. Firstly, the level of technical expertise heavily depends on the stage of a country’s development; thus, the understanding and degree of automation of banking services in a particular country are unique (Rogers, 1995). Relationally, the developing countries lag behind modern technology. Therefore, managers of such banks will give different opinions from those of managers in already developed countries. The second reason is that cultural factors determine the speed with which a society adopts technology. Thus, managers will give varying opinions due to cultural differences.
Besides the aforementioned reasons, the prevailing environmental condition is the causative agent of differing opinions of managers in the same industry. An example is a political environment. Deductively, the government authority and the politicians may either hinder or facilitate technology adoption in their ruling regimes. In a nation where the political leaders are open-minded, the followers enjoy the benefits of using the appropriate technology. Clearly, a nation’s prevailing condition determines individual judgment, and so is that of a bank manager. Hence, managers’ perceptions differ.
How the Study Assists Managers in Making IT Investment Decisions
The study alerts the managers of the likely challenges; thus, organizations develop the appropriate contingency plans and control programs to correct the erupting deviation. Critically, the managers learn to be consultative, open-minded, decision-makers, and problem-solvers within their areas of authority. Eventually, these managers perceive the increasingly many benefits of automation; thus, acquiring high-level systems to promote efficiency and effectiveness in banks.
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