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- E-Finance Lab e.V. (294) (remove)
THE FINANCIAL SERVICES INDUSTRY IS OPERATING IN HIGHLY VOLATILE MARKETS.
TO CONSIDER THE IMPACT OF UNCERTAIN MARKET ENVIRONMENTS ON INAND OUTSOURCING DECISIONS, WE INTRODUCE A REAL OPTIONS BASED DECISION SUPPORT MODEL. WE APPLY THE MODEL TO AN IT INFRASTRUCTURE OUTSOURCING DECISION AND DETERMINE - BASED ON COST SAVINGS RESULTING FROM OUTSOURCING AND OPTION VALUES ACCOUNTING FOR UNCERTAINTY - DIFFERENT “TRIGGER” OUTPUT VOLUMES WHICH INDICATE IF IN- OR OUTSOURCING IS PREFERABLE. FINALLY WE SHOW THAT THE MODEL CAN ALSO BE TRANSFERRED TO SOURCING DECISIONS OF TRANSACTION BASED BUSINESS PROCESSES LIKE CLEARING AND SETTLEMENT OF SECURITIES.
IN A CASE STUDY IN THE GERMAN RETAIL BANKING BUSINESS IT IS SHOWN THAT ALIGNMENT BETWEEN IT AND BUSINESS UNIT IS CRUCIAL FOR THE ACTUAL USAGE OF IT SYSTEMS WHICH IN TURN IS A KEY DRIVER FOR BUSINESS PROCESS QUALITY. BANKS SHOULD THEREFORE FOSTER INTERRELATIONSHIPS BETWEEN IT AND BUSINESS AS WELL AS CROSS FUNCTIONAL WORK BIOGRAPHIES OF TEAM LEADERS
INDUSTRIALIZATION TENDENCIES WITHIN THE CREDIT BUSINESS ARE IN PARTS BROADER SOPHISTICATED THAN WITHIN FINANCIAL PROCESSES OF OTHER INDUSTRIES. CREDIT PROCESS MANAGERS OF BANKS ESTIMATE ECONOMIES OF SCALE AND SKILL ACHIEVABLE BY OUTSOURCING TO BE HIGHER THAN CHIEF FINANCIAL OFFICERS OF NON-BANKS DO. FURTHERMORE, ECONOMIES OF SCOPE, WHICH INHIBIT SELECTIVE SOURCING, ARE EVALUATED AS LESS PROBLEMATIC.