Reaping the benefits of innovative IT: The long and winding road

The expectation that banks and other service industries will do better thro ugh investments in innovative IT applications requires a fundamental unders tanding that benefits do not stem from technology alone. Innovative IT appl ications have the potential to change the way banks conduct their business and, as such, must be viewed as a major organizational change. This study e xamines how different stakeholder perspectives of innovative IT influence t he implementation process, attitudes toward usage, and perceived benefits i n mandatory use situations. Using a case study methodology, we explore thes e issues in the context of a major IT initiative underway at a multbank hol ding company headquartered in the Midwest. We found that innovative IT appl ications involve change that is inherently a long-term endeavor requiring t ransformations of individual skills and organizational processes and practi ces. Our research suggests that the time lag before realization of performa nce gains is affected by the implementation process. Our findings have a nu mber of generalizable lessons for practice as well as implications for futu re research.