Mobile Banking Technology and Innovation Management - Essay Example

?Running Heading: Mobile Banking Technology and Innovation Management Mobile Banking Technology and Innovation Management of Instructor] [Course] INTRODUCTION: Because of increasing competition and globalization it has become important for all organizations to come up with new changes and become familiar with the new technologies with passage of time. It is essential to acknowledge that in the process of implementation of new technology, the main step is of the innovation management and brining the new technology to the market. There are several issues and challenges which hinder the successful completion of this basic step. Management has to face several challenges in the overall process of introducing the innovation in the market (Barton and Kraus, 1985). MOBILE BANKING TECHNOLOGY: There has been ongoing process of introduction of new technologies in the market every other day. However, all new technologies are not able to succeed and capture the considerable amount of market share. This requires proper and well thought planning and management. It should be ensured that the new technology which is introduced in the market is according to the needs and requirements of the customers (Souder and Sherman, 1994). Apart from this, the new technology should be user friendly and easy to use. All these factors increase the acceptance of the innovative technology. Mobile banking is one such technology, which have been introduced in order to provide customers with ease and comfort in the process of banking. In the start of banking facility, customers have to be physically present at the bank in order to make any kind of transaction. This requirement of physical presence gradually disappeared with the advent of different new technologies and facilities with passage of time. Initially, banks worked to integrate all data and information with the help of financial data networks, which in turn supported the customers in the process of electronic transfer of funds. Still, there was a need of physical presence of the customer at the bank. With the passage of time, banks introduced the technology of ATMs, in order to facilitate customers with more ease. Now, in order to allow customers with the facility of making transactions through internet, without being physically present in the banks, the technology of mobile banking has been introduced in the market. Mobile banking allows the customers to perform important transactions through their mobile phones and there is hardly any need of going to banks or being physically present there for the purpose of making transactions (Stair and Reynolds, 2009). There are several benefits of the mobile banking, not only for customers but also for the bank which is providing this facility. This facility of mobile banking can facilitates banks in reducing the charges associated with transactions, as low level of cost is associated with mobile banking. Along with this, the facility of mobile banking is easy and convenient for the consumers as it enables them to quickly access their bank account at any place and at any time (Krugel, 2007). INNOVATION AND CHANGE MANAGEMENT: The process of implementation of any change or innovation is always associated with several challenges and issue. These challenges and issues should be managed in an effective and efficient manner in order to ensure the successful implementation of the innovation. The process of innovation management is a complete change management process. Management has to conduct force field analysis in order to identify important restricting and supporting forces. Next step is to come up with effective strategies and tactics in order to minimize the restricting forces and maximizing the supporting forces (Tidd, 2001). The restricting forces can be both external and internal. Innovation or new technology not only faces resistance on part of the customers but sometime employees are also responsible for the failure of any new technology or innovation. It is important for the management to keep in consideration the needs and requirements of all associated stakeholders in order to make sure the that the new technology is accepted by the market (Storey, 2000). INNOVATION MANAGEMENT OF MOBILE BANKING FACILITY: Although the facility of mobile banking has several benefits for both banks and customers, it is also associated with several issues and problems. Most of the customers are of the view that mobile banking is not secure. Customers use the facility of the mobile banking either through computers or mobile phones. In this way the private and personal data of the customers become available on that particular device which can be misused (Mukerjee, 2008). This results in increasing the resistance against the successful implementation of the facility of mobile banking. Customer have larger number of concerns associated with the issue of security while making transactions through mobile phones. There is high risk of losing the confidential information, which in turn increase the risk associated with confidentiality and reliability of the data during the transaction process. When customer make the transaction with through mobile banking, the confidential information is transferred through the processing system of the bank, which increase the vulnerability of information misuse. Apart from this another issue which plays the role of the major resistance in the process of implementing the technology of mobile banking is that there are different drawbacks and negative features of the mobile phones. For example, mobile phones have small screen, have slow processing time and speed, and the battery has short life span. Along with this there is limited ability or capacity for data storage. All these factors results in restricting the customers to shift to new technology of mobile banking and accept it. In order to make sure that there is wide acceptance of this new technology of mobile banking, it is important to minimize all these resistive forces. Important measures are being taken on part of different concerned parties in order to solve and eradicate the issues associated with mobile banking. Management has been taking serious measures to minimize the factor of confidentiality and security risk associated with the technology of mobile banking. In this regard different wireless markup language and wireless application protocol are being revised and used. Along with this the manufacturers of the mobile phones are trying to improve the quality and features of the mobile phones. In order to ensure that the new technology of mobile banking is successful presented in the market and is accepted by the customers, it is essential the issues and challenges associated with confidentiality and security of data should be solved in effective and efficient way. This is the only possible method to make mobile banking common among the customers. The technology of mobile banking can provide the customers with wide range of useful options but it is necessary to first resolve the issues related to the security. Some of the options provide increased level of security, but at the same time there are some options which provide limited security. Management can reduced or minimize the security risk by the process of operational controls. There is much increased technical and security risk related to the mobile technology in developing countries (Bezuidenhoudt and Porteous, 2008). This is because of the low quality of the different mobile phones available there. Along with this the management can also focus on increasing the positive or supporting forces, which in this case are the ease of use and save of time. The management should make sure that these two benefits are communicated to the target consumers are also delivered through the mobile banking facility. Banks and other related stakeholders have to play their role effectively and efficiently in the process of innovation and change management. This is the only way to introduce the new technology of mobile banking in such a manner that it has high acceptance and it becomes a success. CONCLUSION: The technology of mobile banking has several benefits and advantages for the customers and banks. But at the same time, this new technology is exposed to several issues and challenges. In order to make sure that the new technology is accepted by the consumers and is properly introduced in the market it is essential to overcome all issues and challenges. Management has to devise proper innovation and change management strategies, which in turn will provide maximum returns. REFERENCES Barton, D. L. and W. A. Kraus, (1985) “Implementing New Technology”, Harvard Business Review, retrieved on 11th July, 2011 from: http://hbr.org/1985/11/implementing-new-technology/ar/1 Bezuidenhoudt, J. and D. Porteous (24th March, 2008), “Managing the Risk of Mobile Banking Technologies”, Banking Frontier Associate, retrieved on 4, 11th July, 2011 from http://www.ifc.org/ifcext/gfm.nsf/AttachmentsByTitle/Tool10.9.ManagingMobileMoneyRisk/$FILE/Tool+10.9.+Managing+Mobile+Money+Risk.pdf Krugel, G. T. (2007), “Mobile Banking Technology Options”, Finmark Trust, 3 (35) Mukherjee, A. (1st Dec, 2008), “The Electronic Bilk”, Outlook, 48(48) Souder, W. E. and J. D. Sherman (1994), Managing New Technology Development, USA: McGraw-Hill, Inc. Stair, R. M. and G. Reynolds (2009), Principles of Information Systems, Cengage Learning Storey, J. (2000). The Management Of Innovation Problem. International Journal of Innovation Management, 4(3), 347-369. Tidd, J. (2001). Innovation management in context: environment, organization and performance. International Journal of Management Reviews, 3 (3), 169–183. Read More