Timing the introduction of information technology

Abstract. Deciding when to adopt or introduce new information technology (IT) is a relatively difficult problem. This paper presents a method that can be used in many circumstances to evaluate new IT. The model is based on modelling the response of customers and rivals to services provided by IT. The methodology recognizes competitor reactions on two levels: within the local market and actions by rivals in the international market. The model examines behaviour, costs, and benefits over time. Several different types of models are examined, ranging from competitive (Nash) equilibriums to joint ventures. This model is illustrated by examining when banks should implement new technology. The results indicate that large banks can effectively utilize technology as a strategic weapon. Smaller, local banks are more limited in their control of technology. The model reveals some strategic uses that are not evident from existing models.