Usage of Structural Equation Modeling and Analytical Hierarchy Process Approach to Select Information Technology

• Main Author: MATRA, SAIT
• Format: Thesis
• Language: English
• Published: 2011
• Subjects: TP Chemical technology
• Online Access: http://utpedia.utp.edu.my/9612/1/2011%20-Usage%20Of%20SEM%20And%20AHP%20Approach%20To%20Select%20IT%20Vendor.pdf; http://utpedia.utp.edu.my/9612/

Progressive change is an accurate way to describe the advancement of information technology (IT) throughout the 1990s. As IT continues to evolve, the ways in which companies do business are also changing. The emergence ofthe Internet as a business venue, the growing percentage of consumers accessing the Web, and the increasing number of households equipped with a PC or other Web-access device are speeding IT's rate of change. The industries especially banking and financial services industries (BFSI) are heavily supported by IT and technology vendor for their service oriented business. It indicates that choosing the right vendor remains a critical success factor for every enterprise's business success. Selection of the best possible set of vendors not only allow organisations to downsize and utilise resources more effectively, but also allows themto take advantage of the capabilities andtechnologies of the vendors. The vendor selection process can be a very complicated and emotional undertaking if the approach from the very beginning is not known. The purpose ofthis research is to identify the required criteria for selecting the best vendor for information technology (IT) process and provide a vendor selection model including these criteria by using the structural equation modeling (SEM) and analytic hierarchy process (AHP). To demonstrate the above model and also, to arrive at vendor selection scores, the vendor selection for mobile banking application was considered as an example. The developed model is a generic one considering the global economic turmoil and the amount ofpressure on banking &financial services industries (BFSI), where IT is the backbone of the BFSI; In any future studies the model could be applied in making other strategic decisions like IT outsourcing, ERP (enterprise resource planning) implementation vendor selection etc. VI