Information Systems and Business Strategy Alignment for Capitec Bank

This report examines the alignment of Information Systems (IS) and business strategy, focusing on the context of Capitec Bank. It explores the role of Information and Communication Technology (ICT) strategy in the banking industry, detailing its benefits and impact on enterprise transformation. The report analyzes Capitec Bank's long-term strategic needs concerning business, stakeholders, and customers, highlighting how ICT requirements can contribute to long-term advantages. It further discusses the key issues in business information and management strategy, including challenges related to technology changes, security, and resource limitations. The analysis covers the application of ICT in banking operations, its influence on competitive levels, and its role in improving customer relationships. The report concludes by summarizing the importance of aligning IS and business strategy for optimizing performance and achieving organizational objectives, with a particular emphasis on the case study of Capitec Bank.

IS and Business Strategy Alignment
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Executive Summary
It has been summarised that the Business strategy concept can establish the coordinate with the
organization structure, resources and its business culture or environment. It enables the higher
performance that will optimise their specific contribution of process, inputs and people so that it
easy for identifying the measurement and objectives. It has been understanding the requirement
of ICT that support to enhance their profitability in the global marketplace. As per review of
bank’s information communication technology operation strategy that suggest to expand the
specific role in different development areas.
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Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
QUESTION-1..................................................................................................................................4
Describe the ICT strategy in the banking industry and degree of enterprise transformation or
benefits in the Capitec Bank........................................................................................................4
QUESTION-2..................................................................................................................................5
Discuss about the long term strategic need of business, stakeholders and customers.................5
QUESTION-3..................................................................................................................................6
Describe the existing or new enterprises process of ICT requirement to bring the business
strategy in long term benefits......................................................................................................6
QUESTION-4..................................................................................................................................7
Discuss about the key issues of business information and management strategy for
development in the Capitec bank.................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business strategy alignment is a type of process that can link with the organization structure,
resources and its business culture or environment. It enables the higher performance that will
optimise their specific contribution of process, inputs and people so that it easy for identifying
the measurement and objectives. Capitec Bank is a type of retail bank that situated in south
Africa. It is a leading retail bank which has largest number of customer with opening new
account every month.
This assignment will discuss about the business strategy development and justification of the
expansion of their policy in the organization. Furthermore, it will describe the existing or new
enterprise process of ICT requirement that bring the enterprise strategy for long term advantages.
Moreover, it will describe the key issues in the business management strategy.
QUESTION-1
Describe the ICT strategy in the banking industry and degree of enterprise transformation or
benefits in the Capitec Bank.
Information communication technology strategy is the important part of business that can
help for create, store and exchange the information in different forms such as pictures, images
and other multimedia etc. it is convenient for rapidly expanding their wide range of applications
and alternative technologies. Bank’s ICT operation always stimulate the sustainable and social
development by using innovation with concern about the regional integration and e-government
policies. In this way, Capitec bank must follows the ICT strategy with influence with the
ecosystem, such as technologies, policies, strategies, stakeholder that make up the modern
technology culture and environment.
In Capitec Bank, Information technology become the tool that can useful for managing the
change the business ICT strategy and their internal processes. It is to be considered the ICT
strategy that determine the competitive level (Fritscher and Pigneur, 2019). It will use the ICT to
control the entire environment and culture of business. This strategy is based on the technology
that align with the business goals which enables for contribution on the strategic objectives.
This type of strategy will applicable for the long term goals and objective when Capitec
bank must finalize the corporate activities to maintain the task of controlling, operationalization
and other signals. In this way, ICT strategy must be adopted by Capitec Bank as per the
performance of banks. It should be implemented the strategies in the banking industry to enhance
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the benefits and installation of various facilities. It helps for Capitec Bank to run the enterprise
operations in smoothly. ICT strategy is seeking the banking operations such as back end
functions, money transfer and also help for other activities of Capitec Bank to maintain the
security or privacy in the trade finance.
Benefits of ICT strategy in Capitec Banking
 This strategy is directly influence the technology of banking industry for managing and
controlling the information in the organization. It involves the processing, collection,
transmission and storage of information in effective manner.
 Capitec bank can easily access the product and services of consumers. It applicable the
appearances of distribution channel through remote banking and other physical existence.
 ICT strategy is integrated with each department of Capitec bank which allow for business
to manage ICT environment (Héroux and et.al., 2018).
 It enables the efficient use of the various types of ICT resources such as processes,
technologies and people.
 This strategy will beneficial of banking industry to exploit the information technology for
increasing the opportunities resolve the challenges.
 It can improve the image of banking industry which lead to faster and more efficient in
global marketplace. In this way, Capitec Bank can complete their work in properly and
also increase the competitive edges.
 ICT strategy will help for business to build the relationship with the consumer and assists
for solving the issues or problems related the operations.
QUESTION-2
Discuss about the long term strategic need of business, stakeholders and customers.
A long term strategic is an essential part of business to hold the entire performance and
efficiency of operations. Capitec Bank must be planned for long term profitability in global
marketplace. They can use the Information system expansion strategy in the everyday working
operations of banking to improve their efficient in order to meet the needs of users (Kitsios and
Kamariotou, 2019). This strategy will change the today’s enterprises and also creating the new
business because it supports the operational and strategic level.
Capitec Bank customers, users has some specific requirement which can be classified on
the basis of external and internal. Internal user has analysed the enterprise operations and its
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functions. The banking industry has performed the activities and establishing the link between
different stakeholders. The employee can use the information system strategy in the business to
increase the demand in global market because they can directly coordinate with the people for
providing the better quality of services.
For long term development, the banking industry use the ICT strategy to make policy and
procedure that help for increasing the growth rate while prevent the expansion and innovation in
the business activities. African government have adopted the information expansion strategy for
promoting the banking sector. This type of advancement always opposed to the past policies that
effect on the economies (Painter and et.al., 2019). The extensive support and commitment of
government make an appropriate policy that help to overcome the barrier or challenges during
business operation in Capitec banks.
The Innovative strategy related to ICT which emphasizes the policy that support adequate
financial issues. It offers the incentive to the stakeholder for promoting the international and
local collaboration. The government can enable the working environment that maintain
innovation value chain in baking industry.
ICT invention will help for promoting the private investment for infrastructure development
to expand their broadband network. It helps for increasing the effectiveness to enhance the
operations of Capitec banks.
QUESTION-3
Describe the existing or new enterprises process of ICT requirement to bring the business
strategy in long term benefits.
The existing and new business process always implemented the ICT innovation concept in
the operations and functions. It brings the business strategy to develop the long term benefits in
global marketplace. In Capitec bank, there are different types of business process performed such
as financial services, commercial banking, funding etc. In this way., it has required for
implementing the ICT in the business for increasing the profitability in global marketplace (Tai
Wang and Yeh, 2019). ICT requirement is the important for Capetic bank that can easily
captured the business needs and organized the functional an appropriate manner.
The starting requirement of banking industry to use the Fi ware and enablers that interact
with the information system by using the Fusion Forge tools. The requirement of Capitec bank to
keep records of consumer through applications, cloud services and devices etc. In this way, the
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banking industry can improve the automation process and employee use ICT tool to share the
information from one department to other. Capitec bank continuous support the ICT to expand
the network in other areas by using mobile services. It serves the value added service for
increasing the competition and reduce the access price or cost in ICT services.
It enables for making the important decision and work together in proper manner. In this
way, it has a major requirement of ICT in the banking industry to save communicate with one
user to other. It useful for building a link between to offer different services. ICT strategy
contribute on the business process through policy which includes security, feasibility and quality
of overall system. In this way, it useful for the long term benefits to expand the business across
the world. Information communication technology will help for Capitec bank to gain and
improve the competition level in global world because they can use the different types of
simulations of IS and other type of system to bring the services in market with effectively.
QUESTION-4
Discuss about the key issues of business information and management strategy for development
in the Capitec bank.
Business information and management strategy is providing the proper direction to the
Capitec bank which involves for specifying the goals, objectives, plans, policies for achieving
the business targets and also implementing the resource plan for development. it helps for
planning the high quality of business decision related the long term growth and development. in
this way, it has required for using the resources that support in the decision making (Zhang, Chen
and Luo, 2018).
Today’s world, business run on smoothly that has required for managing and controlling their
business strategy of development. There are different types of technologies exits in the Capitec
bank to handle the task in proper manner. There are some common issues and problem occur in
the business and management of Capitec bank.
 The rapidly change in the information technology causes for increasing uncertainty in the
business environment which are not unpredictable.
 It has limited information gathering capacity and ability to make decision regarding
baking industry.
 By using the information technology tools, it comes the more possibility of abuse due to
privacy and security.
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 The lack of strategy can be created the issues of tracking and aware about the tools for
collecting data on their specific networks.
 In many cases, the basic structure of Capitec bank has developed the conflict with
changing their services of customers. In this way, it will have increased the distribution
that will enable for client to coordinate with other alternatives.
 The challenges of system investment in the banking industry because there are limited
investors for providing the funds and difficult to set up the new system. It is very
expensive to establish from initial stage.
 Ethical and security issues in the business information and management strategy because
there are various types of criminal gain to access the details of credit card. In this way, it
may have chances of loss.
 It is difficult to ascertain the management strategies and objective to which make plan but
it will not obtain the long term supports.
 There are limited resources in the business and management strategy which difficult to
operate the entire functionality of organization (Zhang and et.al, 2018).
 Management strategy also carries the challenges of banking industries related the
customer relationship management program.
 The political environment and culture may effect on the business management strategy
due to lack of coordination. It has more chances of conflict between employees at
workplace.
CONCLUSION
As per discussion, it concluded that Business strategy alignment is a method that can build a
strong link with the structure, resources, culture and environment. It enables the higher
performance that will optimise their specific contribution of process, inputs and people so that it
easy for identifying the measurement and objectives. It summarised that the business strategy
development and justification of the expansion of their policy in the organization. Furthermore, it
also understands the existing or new enterprise process of ICT requirement that bring the
enterprise strategy for long term advantages.
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REFERENCES
Book and Journals
Fritscher, B. and Pigneur, Y., 2019. A visual approach to business IT alignment between
business model and enterprise architecture. In Sustainable Business: Concepts,
Methodologies, Tools, and Applications (pp. 543-566). IGI Global.
Héroux, S. and Fortin, A., 2018. The moderating role of IT-business alignment in the
relationship between IT governance, IT competence, and innovation. Information Systems
Management. 35(2). pp.98-123.
Kitsios, F.C. and Kamariotou, M., 2019. Information Systems Strategy and Strategy-as-Practice:
Planning Evaluation in SMEs.
Painter, M. and et.al., 2019. Sharing vocabularies: Towards horizontal alignment of values-
driven business functions. Journal of Business Ethics. 155(4). pp.965-979.
Tai, J.C., Wang, E.T. and Yeh, H.Y., 2019. A study of IS assets, IS ambidexterity, and IS
alignment: the dynamic managerial capability perspective. Information & Management.
56(1). pp.55-69.
Zhang, M., Chen, H. and Luo, A., 2018. A systematic review of business-IT alignment research
with enterprise architecture. IEEE Access. 6. pp.18933-18944.
Zhang, M. and et.al., 2018. Evolvement of business-it alignment: a conceptual model and
intervening changes from resource allocation. IEEE Access. 6. pp.9160-9172.
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