Satisfaction and Effectiveness of Virtual Organization in Excess of real organization: a Study of Selected Commercial Banks in India

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Authors: V. Uprit

Publication Year: 2012

Source: http://www.arraydev.com/commerce/jibc/2012-04/Vivek%20Upritv02.pdf

Journal: Journal of Internet Banking and Commerce

Volume: 17

Issue: 1

Categories: Digital Transformation, Virtual Organizations


Abstract

As technology processes, it is changing the competitive environment and influencing the way financial services are delivered and banking industry makes decision process. A new concepts is emerging which is virtual banking. This article mainly talks about comparative study of virtual banking and real or traditional banking. Results have shown that virtual corporation can produce financial rewards for the organization. The author provides a survey data to prove the increasing percentage of internet users. In traditional banking system, a customer can open any bank account in banks; take the facility of saving his money by depositing money in local bank. He can withdraw his money through check, counter payment and through bank draft. However, Virtual banking is a system which provides banking services over the internet without any need of place and time. “Virtual banking” is a term that suggests the ultimate state of technological equilibrium in banking. Then this article introduce the background of a Virtual Organization or Virtual Corporation. Therefore virtual banking can reduce operational costs and facilities. It has many benefits in comparison to real bank. The article present some study objectives and suggest a number of methodologies to resolve those study objectives.Overall, the finding of the study could be useful for India banks in planning and upgrading their virtual banking services.


Critical Reflection

Virtual banking is a specific branch of virtual organization. Traditional banking ask for face-to-face service in customers however virtual banking provides banking services over the internet without any need of place and time. This requires high security of the banking system and high availability to provide a stable and sustained banking services. In the literature review section, the article points out (Mowshowitz, 1986) used the term Virtual organization for the first time in 1986.There are numerous definitions of a VO because many authors and research groups use their own definition for their work. A virtual organization means high electronic operations of a company by utilizing the power of new systems and the Internet. The virtual company doesn’t have to carry any inventory or utilize any staff and other physical resources. Those things can be outsourced. Therefore virtual organization can have numerous benefits comparison to traditional organization incorporate accessibility, saving time, user friendly, anytime and anywhere business services, secure, convenience, better customer service, protect environment etc. It is clear that impact of virtual organization is growing.