Read the case study below and answer the questions that follow.

Standard Bank of South Africa Limited Standard Bank harnesses information technology to respond to the competitive forces acting upon it, either to develop improved product and service strategies or to influence the market (or indeed the whole industry structure) within which it operates.

Two of the ways in which information technology can be used to add value to a service is by means of product differentiation and by increasing the information content of the service. Considering these in the context of banking, one could ask the following: is it possible to create banking products that are intrinsically very similar to each other, but as different from one another as chalk and cheese? Take, for example, the elementary case of what differentiates current account services available from two banks.

Possible responses to this question might be real differentiation in the sense of how the current account services are delivered, or perceived differentiation in terms of how the services are packaged.

The latter is really a differentiation that is in the domain of marketing strategy, where deception of a gullible public is a common trick of the trade. So, lets rather illustrate this problem by referencing the use of information technology as a real differentiation between current account services on the basis of the delivery mechanism used in providing the service. To start with, lets use the simple example of the ability to withdraw cash from a current account. In the past, the only way to withdraw money from your account was through a teller at a bank.

That situation is far behind us, yet it was only in 1980 that banks started using technology to radically transform the whole delivery mechanism. At first, ATMs were only used for withdrawals, but today the technology enables a whole array of services.

The second area where product differentiation was achieved was in the granting of credit. Traditionally, this was managed by means of a single account with a single limit called an overdraft. Using information technology, a whole variety of credit facilities could be provided, with the important ability to integrate them and to freely move funds between them.

Such enhanced facilities naturally gave rise to increased information demands on the part of customers. In place of the rather rigid current account statement that came on a fixed cycle, new delivery mechanisms now enable clients to examine the entries on their banking accounts from any place and at any time.

The use of information technology in this way has an influence on the cost structure of a bank and upon the value and therefore the price of such services to a customer.

Required: Technology provides a competitive advantage for companies in every industry, not just the banking industry. In the operational space, where information is used to make crucial business decisions, the use of technology brings about accuracy and speed of delivery. It is important for operations managers in the technological era to understand what technology to acquire and how the technology will integrate with the business model and strategy.

Formulate a plan in which you outline how to integrate technology in process and product development to enhance operational efficiency and effectiveness, while working with accurate and relevant information to increase productivity. You can use the banking industry or any other industry as an example. (25)