The Efficacy Of Information Technology And Communication [ICT] On Organisational Performance
Abstract
Information and communication technology (ICT) is currently a crucial component of economic growth and the foundation of knowledge-based economies in terms of operations, the quality of service delivery, and the productivity of services. Therefore, utilizing information technologies (IT) is becoming more difficult for developing nations. There is mounting proof that knowledge-driven innovation plays a key role in the competitiveness of countries, sectors, organizations, and businesses. E-banking, one of the ITC uses for boosting competitiveness, has greatly benefited organizations like the banking industry.
This project effort looks specifically at First Bank Nigeria Plc. to examine the effectiveness of information technology and communication [ICT] on organizational performance. The research project outlines the current ICT application trend in Nigeria’s banking sector and provides information on how ICT has improved quality banking. The report also demonstrates how the introduction of IT infrastructure in Nigeria’s banking sector has fundamentally altered the nature and scope of the nation’s banking operations.
Through a review of the literature and personal observation, this analysis and clarification of how Nigerian banks have used IT to reengineer their operations is provided. In this project’s work, three types of variables that relate to the usage and application of information technology devices were taken into account. These include the extent to which ICT affects the First Bank Plc. banking system’s efficiency and effectiveness, the connection between ICT and organizational performance, and the degree to which ICT supports organizational decision-making. The three null hypotheses were rejected after these hypotheses underwent Chi-Square analysis, but the alternative was accepted.
Chapiter 1
Introduction
1.0 Background of the study:
The business climate in today’s world is quite dynamic and changes very quickly as a result.
as a result of client expectations, increased awareness, and technological innovation. Business organizations, particularly the banking sector, operate in a challenging and competitive environment that is defined by constantly shifting circumstances and an unpredictably volatile economic environment. On this worldwide change curve, Information and Communication Technology (ICT) is at the center. Managers cannot overlook Information Systems, according to Laudon and Laudon (1991), who argue that they are essential to modern organizations. They draw attention to the fact that most Fortune 500 firms’ entire cash flow is dependent on their information systems.
All banks now consider the use of information and communication technology concepts, methodologies, policies, and implementation strategies to their core business, and it is indeed a requirement for both local and global competitiveness. ICT has a direct impact on the banking industry’s decision-making, planning, and product and service offerings. It has continued to alter how banks and their corporate connections are set up all over the world, as well as the range of cutting-edge tools accessible to improve the efficiency and standard of service delivery.
Using computers, telecommunications, software, and auxiliary devices like automated teller machines and debit cards, information technology communication (ICT) automates processes, controls, and information generation (Khalifa 2000). It is a term that mainly refers to the use of electronic technology to meet all of a business’s information demands. Irechukwu (2000) mentions the account opening, client account mandate, transaction processing, and recording as some of the banking services that have been transformed by the use of ICT.
The field of communication technology focuses on the hardware and software that link
data transport between physical locations and various computer hardware components (Laudon and Laudon, 2001). Automated Teller Machines, Smart Cards, Telephone Banking, MICR, Electronic Funds Transfer, Electronic Data Interchange, and Electronic Home and Office Banking are examples of ICT products used in the banking sector.
The effect of ICT on the banking sector of the Nigerian economy has been studied by a number of authors. Agboola et al. (2002) talked about the ways that automation in Nigeria’s banking sector manifests. They consist of:
Magnetic Ink Character Reader (MICR) is used in Bankers Automated Clearing Services to process checks. It has the ability to encode, read, and sort checks.
Automated Payment Systems: The Automatic Teller Machine (ATM), plastic cards, and electronic funds transfers are among the tools utilized here.
Automated Delivery Channels: These include the Internet and interactive television.
Agboola (2001) investigated how computer automation affected banking services in Lagos and found that Electronic Banking had a significant positive impact on the way some banks served their customers there.
In comparison to the rest of the industrial sector of the economy, Nigerian banks have outperformed it since the 1980s in terms of their investment profile and use of ICT systems, according to Woherem (1997). Banks have made higher IT investments, according to an examination of the African Development Consulting Group Ltd. (ADCG) study on IT diffusion in Nigeria. The study did note, however, that Nigerian banks are significantly falling behind, with only a PC per capital ratio of 0.18, compared to the majority of banks in the west and other areas of the world, which have at least one PC per staff (Woherem, 2000).
To remain competitive in the 1990s and the decades that follow, financial service providers, according to Harold and Jeff (1995), should alter their standard operating procedures. They contend that the biggest weakness in the banking sector today is top management’s pervasive inability to recognize the significance of information technology communication (ICT) and appropriately incorporate it into their strategic objectives.
According to Woherem (2000), the only banks that are likely to survive and thrive in the new millennium are those that completely remodel their payment and delivery systems and integrate ICT into their daily operations. In order to position banks effectively within the constraints of the dynamism of information and communication technology, he counsels banks to re-examine their service and delivery systems. In Nigeria, the banking sector has seen significant changes as a result of ICT advancements over time.
The fight for survival, maintaining global relevance, preserving market share, and
Utilizing the many benefits of ICT through the usage of automated equipment has become essential in the sector due to sustainable development. The purpose of this study is to assess the impact of information and communication technology (ICT) on organizational performance.
FIRST BANK OF NIGERIA PLC’s historical background, in part (1.1),
For more than a century, First Bank of Nigeria Plc has distinguished itself as a preeminent financial institution and a significant force behind Nigeria’s economic growth. Sir Alfred Jones, a shipping magnate from Liverpool, founded the Bank Commercial in 1894 as a tiny business in the Lagos office of the Elder Dempster Company.
On March 31, 1894, The Bank was established as a limited liability business with its headquarters in Liverpool. After absorbing its predecessor, the African Banking Corporation, which had been founded earlier in 1892, it began operations under the corporate name of the Bank of British West Africa (BBWA). This signaled the dominant position the bank would later establish in the banking sector in West Africa. The Bank had rapid development in its early years of operation and collaborated closely with the colonial government to carry out the usual duties of a central bank, such as the issuance of specie throughout the West Africa Subregion.
The bank’s foreign banking operations began in 1896 with the opening of branches in Accra, Gold Coast (now Ghana), and Freetown, Sierra Leone, which served as justification for its West Africa coverage. In 1900, the bank opened a second branch in Nigeria in the ancient Calabar, and two years later, northern Nigeria received service. The bank currently has the largest branch network in the sector, with 358 locations scattered across the federation.
First Bank has expanded into a variety of banking activities and services to meet the demands of its clients. These consist of corporate, retail, mortgage, and registrar ship banking. Additionally, the Bank established a subsidiary bank in the United Kingdom in November 2002 as part of its policy of gradual internationalization, making it the first financial institution in Nigeria to do so.
With a share capital of N55.6 million in 1980, the bank’s share capital increased to N 1,751 billion as of March 2000. Over the years, the bank has anticipated amazing growth. As of March 2004, the bank’s total assets were N312.5 billion, while its deposit base was N207.18 billion. Additionally, as of March 31, 2004, the Bank’s market value was N98.41 billion, or N28.10 per share.
The Bank started a number of restructuring measures to reposition itself and seize possibilities in the changing environment. Bank of British West Africa was replaced by Bank of West Africa as its name in 1957. In accordance with the company decree from 1968, the bank was locally incorporated in 1969 as the Standard Bank of Nigeria Limited.
First Bank of Nigeria and First Bank of Nigeria Plc were the new names for the bank in 1979 and 1991, respectively. 1985 saw the Bank. introduced a five-regional administration, decentralized framework. to make the Bank’s operations even more effective. In 2003, this was converted as a sixteen-area office; the bank had previously introduced the FBN century in 1996. In order to revolutionize its operations in line with the dynamics of the environment, “Project and revalidated it in 2001 under the name century,” the new frontier. In light of the aforementioned, it was therefore a logical step when the bank started the process of changing its corporate identity in 2001 to reflect its renewed focus. The brand transformation process, which started in earnest in 2001 and gained momentum in 2003, was officially launched on Tuesday, April 27, 2004, with the introduction of a new corporate identity.
When the first long-term loan was issued to the colonial administration in 1947, the bank proved its continuous leadership in the financial long-term development of the economy. to prove its dedication to both the growth of the Nigerian economy and its customers. Since then, the bank has increased the range of industries for which it offers loans and credit.
Based on a number of metrics, including the number of branches, expansion of the deposit base, asset size, the amount of loans and advances, and the use of information technology communication systems, the bank has significantly improved.
1.2 Purpose And Goals Of The Study
With particular reference to First Bank Nigeria Plc, the goal of this study project is to assess the effectiveness of information technology and communication (ICT) on organizational performance. The study’s goals are as follows:
Analyze the relationship, if any, between ICT and organizational performance.
Identify the level to which First Bank Nigeria Plc.’s IT enables information.
Identify ways to leverage IT to obtain information that is more useful.
Statement Of The Problem
Modern banks must adapt the technology used in these transactions if they want to continue participating actively in international financial transactions. On the domestic front, regulatory incentives and competitive pressure forced banks to gradually embrace computerization of front and back office banking processes. With time, networking of systems (local area network (LAN), wide area network (WAN), and even internet connectivity became vital and strategic. It was no longer sufficient to merely computerize bank activities. Nowadays, many banks have live, online branches. It was challenging to interface these applications for overall system synergy because the majority of banks employed network architecture and solutions without much consideration for their compatibility (CBN, 2001).
Customers of banks in Nigeria nowadays are not just concerned with increasing their investment returns and the protection of their money. Customers need services that are effective, quick, and convenient. Customers desire a bank that will provide them with services that will both support their business objectives and cater to their unique demands (personalized banking). They want to be able to transfer money between accounts, view their balance online, and download transaction history to their own computer for use at home or at work. Banks that implement this advanced banking system still encounter compatibility issues when integrating these applications with the overall system, which can lead to issues like crediting an account without using an ATM and network outages during ATM withdrawals both in the banking hall and at the ATM location.
The focus of this research study is on how to recognize these issues as an ongoing approach to organizational performance in the Nigerian banking industry. This research tends to assess the impact of information technology and communication (ICT) on organizational performance, as shown above.
1.4 Questions For Research
The study will make an effort to respond to the following research questions in order to fulfill its intended objective.
Is there a connection between ICT and organizational performance?
How much professional accounting service is required by IT?
How much does IT help accounting operations function better?
How can businesses use IT to increase productivity and effectiveness?
What role does IT play in an organization?
Does IT aid the business in making decisions?
Any organization be successful without IT?
1.5 Hypotheses For Research
The following information will answer the research issues raised by this study.
There are proposed hypotheses.
1. Ho: The effectiveness and efficiency of First Bank Plc.’s banking system are unaffected by ICT.
HI: ICT affects First Bank Plc’s banking system’s efficacy and efficiency
2. Ho: There is no connection between ICT and organizational effectiveness.
It’s true that ICT and organizational performance are related.
3. IT does not aid organizations in making decisions.
HI: IT helps organizations make decisions
1.6 Research methodology
Both primary and secondary data collection methods will be employed to get the required data for this research project. Three main methods of gathering data will be used: questionnaires, in-person interviews, and observation. The company’s reports and records will be used to gather the secondary data. Additionally, reports from outside the company as well as materials from libraries and desk research will be utilised.
In this study, data will be presented using a descriptive approach, and chi-square (X2) will be utilized to evaluate hypotheses. The research problem hypothesis will be considered in the context of the study’s findings, and conclusions, recommendations, and suggestions will also be presented.
1.7 The study’s scope and limitations
The goal of this study is to assess how effective information and communication technology is in improving organizational performance, specifically with regard to First Bank of Nigeria PLc. This study’s focus will be on the ICT used at First Bank Niegria Plc’s corporate headquarters. Lagos, Marina.
The study’s limitations are only related to the information that is currently available, which is restricted by the availability of funds, transportation, time, secretariat barriers, and relevant information, as well as by the availability of statistical data provided by the study organization’s management (First Bank of Nigeria Plc) and other restrictions anticipated by the researcher.
1.8 THE STUDY’S SIGNIFICANCE
When evaluating the effects of ICT in Nigeria, it is common to note not only the growing significance of IT but also the crucial functions that ICT plays in Nigerian banking institutions, with specific emphasis on First Bank Nigeria Plc.
One of Nigeria’s key economic sectors is The First Bank. The speed of the country’s economic, political, social, and cultural development has been defined and devoted to the banking industry.
The importance of the study is to focus on how well ICT impacts organizational performance in Nigeria. The study’s significance mostly relates to how IT affects performance.
ICT has a significant benefit for both organizations and the entire planet. Therefore, determining the study’s relevance is crucial for the following reasons:
evaluating the contribution of ICT to organizational decision-making
to improve management evaluation of operations and performance using ICT.
to assess organizational growth using information gathered
1.9 TERMINAL DEFINITIONS
A computer is an electronic device that can precisely and quickly solve complicated problems.
Data processing is the procedure for gathering, documenting, filling out, computing, and transmitting information about a physical event that occurs in a business.
The term “mainframe” refers to a class of early computers that were distinguished more by their size than by their processing capacity.
Next-generation computers with the same processing power as mainframes are referred to as mini computers.
Computers that were modeled after the Apple Macintosh and IBM Personal Computer are referred to as microcomputers.
Software refers to the non-hardware parts of a computer, namely the programs that enable it to function.
Hardware refers to the actual, tangible parts that make up a computer.
The Internet is a vast, diverse network of computing systems that uses a single protocol.
A system is an assembly of parts in which the parts are connected to one another in a planned manner.
Source of Personnel (people) from Environment: Displacement
written exams, interviews, fitness testing, and capability tests
Technology is the study and application of scientific principles.
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