On Application Of Information Technology And Competitive Advantage Of Commercial Bank

With the quick development of information technology, especially the propagation and application of the Internet. The society economy is undergoing a great change, which make the cost of people acquiring, converting and transporting the information decrease sharply, information is change our managerial style.Information technology is scanning the whole economy, none of a industry and a company can escape from the influence of it. Since 1960s', the developed country began to manage its business with the help of computer. And since 1980s',there is a tide of IT in financing, new financial service device appeared on and on, such as ATM, POS, EDI technology, the credit card, telephone bank, PC bank and so on, which take people into electronic money times, and with the coming of computing times which marked with net application i.e. digital revolution times, the quite new managerial pattern of banking, Network bank begin to form."Information technology and the competitive advantage of Commercial Bank" includes two. On the one hand, information technology change the competitive advantage of Commercial Bank by affects its value chain and industrial structure. On the other hand, information technology creates the competitive advantage of Commercial Bank.The innovation of information technology is not important in nature, but the innovation will be of importance if it affects the industrial structure and competitiveadvantage. Information technology is penetrating every knot of value chain of commercial bank, change the mode of value activity and the nature of their connection, also, information technology impact on the scope of competition, reform the product to satisfy the customer. Information technology affects the competition of commercial bank through three ways followed. Information technology change the five force of banking structure, supplier, purchaser, latent competitor, alternative and competitor, thus change the competitive rules; information technology decrease the cost of bank greatly, make difference and support the cost leadership and differentiation, it create the competitive advantage of commercial bank; information technology transform the old business and create a quite new business and a new managerial pattern.Facing the great change of competitive rules accompany by the change of banking structure, to achieve competitive advantage in the future, according 3M Theory, commercial bank must develop the basic installation, integration and synthesis of application system and try hard to carry out various bank service, especially the sales, decision and business analysis and management is the most important of all. In the prospective competition on banking, Commercial bank must choose Reengineering and Customer Relation Management as the emphatic strategy.