STRATEGIC IMPLICATIONS OF THE INFORMATION SUPERHIGHWAY/INTERNET AT CB FINANCIAL BANK

Strategic Implications of the Information Superhighway/Internet

at CB Financial Bank

School of Management

IS535

Fall Term 2009

ABSTRACT

.This report will discuss the impact of the Information Superhighway/ Internet on CB Financial Bank Focus will be emphasized on current business issues such as customers’ online banking, fraud and identity theft prevention and information security strategies utilized at CB Financial. Employee job loss due to customers’ increased use of information technology (ATMs) will be briefly addressed. Proposed solutions and suggested recommendations to resolve these issues will be made to the CB Financial Executive Committee to be expedited over a three year period.

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Introduction
The Internet has become the Information Superhighway of choice for an ever increasing number of financial institutions such as CB Financial Bank. The impact of the Internet has changed the banking system as its customers once knew it. Numerous research studies suggest that the utilization of the Internet plays a fundamental role in a firm’s ability to enhance business performance through innovations in products, channels and customer segments (Sambamurthy & Grover, 2003; & Tanriverdi, 2005). Banks are making significant investments on the Information Superhighway to align business strategies enable innovative functional operations and provide extended enterprise networks (Tubin, 2008). Much of the fundamental and pervasive change in the financial services industry and the pace at which it is taking place is driven by extraordinary advances in computing and telecommunications technology. These advances in technology are not just evolutionary, they are revolutionary, and they are transforming virtually every aspect of