[Jochen Franke, E-Finance Lab]

In the research model presented in this speech, the impact of IT-flexibility on the overall profitability of a bank is investigated. On one hand, IT-flexibility drives (ex ante) flexibility costs for establishing a highly flexible IT-infrastructure (which consist of technical and human capabilities) and lowers (operating) change costs by being able to more easily readjust the IT infrastructure. On the other hand, a higher IT-Flexibility in conjunction with an internal fit (business-IT alignment) fosters internal business process performance in IT-intensive processes. The alignment between both departments is hypothesized to play a crucial role in realizing superior internal performance in order to gain a competitive advantage.

This speech presents results of a quantitative empirical study and several qualitative case studies in the german banking industry and addresses the research question whether flexibility and alignment have a substantial effect on business process performance and assist banks in gaining a competitive advantage. Furthermore, the role of flexibility as a prerequisite of succesfully integrating outsourcing vendors is addressed.