Abstract
This paper aims at developing a set of tactical electronic business solutions for the electronic credit card issuing industry. Specifically, a strategic credit card issuing (SCCI) model is developed to analyze e-business in the credit card issuing industry. Second, a set of tactical solutions is derived based on the SCCI model. Third, pattern analysis is conducted based on data collected from dominant credit card issuing companies to further investigate the implementation status of these electronic business solutions in the credit card issuing industry. The findings show that there are three categories of electronic business solution items can be classified. The average variability of electronic business implementation patterns for business-to-business, business-to-customer and business-to-internal in each company shows a variety of electronic business strategies implemented by these dominant companies. The results will help managers and executives when they make strategic and tactical decisions on electronic business in the credit card issuing industry.
5. Discussions, Implications and Conclusions
This paper developed an e-credit card issuing model for the credit card issuing companies by integrating IT into their operations. The model was developed based a strategic value chain supports theories to identify the weaknesses and strength in the credit card issuing industry. Specifically, there are several primary findings and contributions from the research.
First, by breaking down the strategic value chain model in the credit card issuing industry, these credit card issuing companies can determine where their strengths and weaknesses are based on the tactical e-business solution items. The findings, from the current research, indicate that most of the credit card issuers using information system as a training tool or internal use for operation purpose. However, few credit card issuers are willing to create some sort of credit score tracking services for their existing cardholders. To provide better customer service and distinguish itself more, credit card issuers should consider to add a feature on their official websites for member logins to be a credit score tracker that can give members a clear sense of where their scores are at and how to improve them. This credit score tracking services will serve as a potential marketing tool that will encourage members to take actions to improve their credit scores enough to have an opportunity as a potential member for high ranking cards with more premium benefits.
