Recently, despite huge incentives and subsequent increases in investment in
customer relationship management technology, many firms have not been able
to increase their customer satisfaction index ratings. The purpose of this
paper is to gauge whether IT management practices differ among firms where
IT has a major role in transforming marketing, operations, or both, which
give the firms advantage by affecting their customer service. Several resea
rch hypotheses are tested using data obtained from a survey of 213 IT-leade
rs in the financial services industry. The results clearly indicate that th
e IT-leader firms have a higher level of IT management sophistication and a
higher role for their IT-leaders compared to IT-enabled customer focus, IT
-enabled operations focus, and IT-laggard firms. This paper concludes with
the implications for both researchers and practitioners.