Defines the concept of strategic alliances as well as outlining the potential benefits and disadvantages of entering into such relationships. This will facilitate critical reviews of the nature and type of relationship that best satisfies their individual needs. Strategic alliances are a means of rationalizing business operations and improving the overall competitive position of a company and are important because of the sheer speed and dynamism of technological change which has opened up a wide range of new activity areas. Banking firms, however, experienced difficulty in defining the type of relationship that best suits their needs. To a significant extent this is due to the fact that a great deal of confusion exists regarding the term “strategic alliances”. In particular parties have difficulty in distinguishing strategic alliances from other forms of organizational relationships.

In their search for optimum performance and cost‐efficiency many organizations have been critically examining the value of the seemingly ever increasing cost of, and dependence on, technology. In the course of examining possible alternative, and potentially more efficient, approaches to technology management, the concept of outsourcing has become widely discussed. In this context it has attracted high levels of interest among both industry and Government. In spite of this high level of interest and increasing willingness to consider outsourcing, a great deal of uncertainty exists among potential users regarding both the meaning and implications of entering into outsourcing arrangements. Intends critically to examine the concept, implementation and management issues related to outsourcing information technology services.

Discusses the role of technology in financial institutions. Suggests that, given its cost and operational importance, technological change must be carefully planned and managed and integrated with business planning. Technology′s role has increased from back‐office support to a wider role incorporating product and service development and delivery and is becoming increasingly vital in increasingly competitive financial markets. However, a “technology race” has also developed which is expensive and may yield a poor return on investment.

Aims to facilitate a clearer understanding of the issues involved in formulating and implementing an electronic data interchange (EDI) strategy. In particular, analyses the potential benefits to be derived from EDI implementation, outlining operational and management difficulties likely to arise as a result of implementation. Examines the inter – and intra‐organizational issues to which EDI gives rise. This involves a discussion of the relationship between EDI and related developments such as quick response (QR), just‐in‐time (JIT) and electronic funds transfer (EFT). Outlines the relationship between EDI and EFT, arguing that EDI‐EFT has the potential to redefine organizational cash management policies and strategies, particularly in relation to the “float”, as well as the relationship between organizations and their respective financial institutions. Concludes that EDI is both complex and costly to implement and careful cost benefit analyses as well as senior management support are required.