Evaluating the Impact of Information Systems in Ethiopian Commercial Banks
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Date
2016-06-03
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Addis Ababa University
Abstract
Information system is revolutionizing how business organizations operate; and it is giving a vital opportunity by enabling to work more efficiently and maximize productivity. This research is conducted to evaluate the impact of information systems (IS) in Ethiopian commercial banks. In Ethiopia, there are no foreign banks yet. IS is becoming the main determinant for all activities of the organization. The availability of permeating and continuous information is becoming a determining factor of World‟s economy.
Quantitative research approaches were followed and this research is more of behavioral science research. Stratified sampling is used in order to divide the total population into two strata, so as to select one public bank and four private banks, from public bank strata, solely Commercial Bank of Ethiopia, and from private bank strata, Awash International, Birhan International, Debub Global and United Bank were selected. A confidence level of 95% and confidence interval of 8% was taken to calculate sample size using Cochran formula; SPSS Version 20.0 is used for analyzing quantitative data.
Information system is composed of people, hardware, network, software, database and procedure and above, it has deliverable. This study evaluates the overall information system impact in Ethiopian commercial banks and the impact IS component has. The study used strategic management grid model to evaluate the impact of IS. Also, the impact of People, Hardware and Network, Software and Database component was evaluated and in addition to that, Service Delivery and IT Governance were also evaluated in order to identify the overall IS impact in Ethiopian banks.
The overall information system has high present and high future impact. The people component has turnaround impact; hardware and network has strategic impact; service delivery has factory impact and the last IT governance has turnaround impact. The last not the least, IS has strategic impact. However, software and database needs further research to see their impact on information system.
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Keywords
Information System; Commercial Banks; strategic management grid model