Strategic Investment Decision in High-Tech Business Environment: A Case of the Nigerian Banking Sector

Abstract

The global financial crisis triggered major changes in the approach to the ways business are run with the recognition that in order to ensure survival, management strategies must include employing financial stability through high-tech operations as an additional objective. The banking sector is arguably one of the most active and largest of the services sector in Nigeria playing an important role in the monetary system and the financial frame work of the country. The business dynamics of this sector largely differs from other service sector as it is information technology driven. Information in high-tech environment generally referred to as STEM (Science, Technology, Engineering, and Mathematics) which the banking industry can be classified as is capital intensive and with the world seen today as a global village where transaction are no more done in isolation to a country alone but within a spider web form of connectivity, this drives banks to now requires a sound information technology system to cope with the changing demand. Adequate capital budget is needed to provide sound data management alongside data security for the system to run and meet this trend. This theoretical paper reviews the concept of capital budgeting in high tech environmentsand how science, technology, engineering, and mathematics can be applied by Nigerian banking industry to reduce costs, improve product quality, and enhance organizational performance and acceptance. The paper attempts to show issues and challenges faced by Nigerian banking sector under the new normal driven by high-tech information system that gives an edge over other competitors