| dc.description.abstract | Business firms operate as open systems and are affected by external conditions that are largely beyond their control. Strategic planning is an open-systems approach to steering an enterprise over time through uncertain environmental waters. It is a pro-active, problem-solving behaviour directed externally at conditions in the environment. Information technology (IT) has offered alternatives to achieve strategic objectives through e-commerce and online banking. IT has become a major player in the external environment of most firms and so firms are now developing strategic IT policies and IT strategies which are then incorporated into strategy formulation for the firm. The objective of this study was to determine the application of information technology in strategic planning among commercial banks in Kenya. The target populations of this study were commercial banks in Kenya while study populations were management were in commercial banks. This study employed a descriptive research design and relied mostly on primary data sources. The study generated both qualitative and quantitative data where quantitative data was coded and entered into Statistical Packages for Social Scientists and analyzed using descriptive statistics. Basing on the study findings, the study concluded that commercial banks have embraced IT in their strategic planning where banking services such as money transfer, ATM application among others were most adopted by majority of the banks in their service delivery. Additionally, the study found that sending mails, opening of accounts, payment of bills and Loan/overdraft application were services offered online by the commercial banks in Kenya which were applicable regardless of geographical location. The study also found out that a majority of the banks do have a strategic policy in IT which is reviewed from time to time. Since the analysis shows that a majority of the banks IT departments are represented in the board of directors, then one can conclude that IT is catered for at the strategic planning levels of different banks.The study experienced some setbacks. Due to the busy schedule of the respondents, given that a majority were bank officers, there is the likelihood that the questionnaires were filled in a hurry and thus it could have affected the quality of the responses. Some bank officials were not able to complete the questionnaires at all because of the bank policies thus we could not achieve 100% response rate. Others who completed the questionnaires left some questions blank claiming they were confidential. The study recommended that since financial institutions such as banking sector plays a vital role in economic development, bankers and government policy makers should keep abreast of changes in the IT industry, train staff to be competent and willing to disseminate the IT knowledge gathered to the benefit of their clients and the general population. The government should also encourage banks to adopt internet banking in line with the main objective of automating services. The government also needs to increase the literacy levels in technology and create policies supporting IT adoption by citizens. On the other hand, the study recommends that core banking system should be able to support human resource management. The study suggests that further research to be done on same in the financial sector in order to give informed information that reflect real situation in the financial sector. The study also suggests that further studies be done on the impacts IT application on the organization performance so that to encourage organization to embrace the IT application. | en |
