Implementing strategic information systems in commercial banks in Kenya

Abstract

Several banks have started projects aiming at introducing interoperable Strategic information systems (SISs), thereby making banking operations more efficient and reducing banking errors based on insufficient or wrong data. Implementing the SISs is an enormous task, and there are many parties involved in implementing these systems that all have their own goals and interests. The SISs also forces processes and procedures to be changed, something that is very difficult in banking operations. As indicated by the mounting costs and severe delays in the implementation of SISs, there are many challenges faced before we can expect an operational SIS. Even the relatively simple and straightforward bank operations suffer from delays due to technical and organizational difficulties. Although the banking industry has embraced information and communication technology in its operations, the underlying factors inhibiting it the implementation of SISs are not well understood. This paper presents the challenges inhibiting SISs implementation and how banks are responding to these challenges. The targets of the study were the commercial banks in Kenya. This study gives a brief overview of the academic literature on the challenges faced and the responses that organizations employ in system implementation and the extent of such systems' use. The findings from the Kenya Commercial Banks are then reported. This paper concludes that there exist various challenges to the implementation of Strategic Information Systems (SISs) in commercial banks in Kenya. The banks have thus employed various responses to overcome these challenges with some of the responses being more popular than the rest depending on the impact they have on the implementation process. Lack of required infrastructure, resources and specialized skins, commitment from the senior management team and fear of adopting the system by both the bank employees and customers were some of the major challenges that were identified while training of bank employees and customers, employing specialized technology and staff and lowering electronic banking charges were some of the popular responses that banks have been using.