A framework for evaluating e-Business models and Productivity Analysis for Banking Sector in India

In the world of e-business the rapid growth of the market and fierce competition between the increasing numbers of participants add up to new innovations every day leading to short development cycles. New business models and a herd of start-up companies emerge every few months, to exploit the new opportunities. However, the business has had rough times trying to keep up with the rapid development of e-business. Despite the fact that more and more efforts are made to grasp the essentials of e-business and in particular e-business models, the existing literature on the subject is scattered. Moreover, the studies are quickly out-dated due to the fast phase of the 'new economy'. A clear need exists for an objective and up-to-date literature study of e-business models. This study is an effort to draw together some of the e-Business models and real-life experiments that has been circling around the e-business models. To study the sweeping changes brought about by e-initiative measures in the banking sector some banks were chosen, from public sector like SBI ,BOB etc and from private sector like ICICI, HDFC etc. The paper analyses a comparison of various models using metric method. The different elements of the metric include revenue generation, value proposition, infrastructure etc. A mathematical model taking into consideration various ranking and weightages to the elements of the metric has been developed to analyse whether investments in e-initiative increased productivity and profitability in the Indian banking system. The model suggests that the performance of the banking sector has improved considerably. Profitability, customer satisfaction, and many other parameters show a market improvement. It is believed that a mathematical approach proposed in this paper will find extensive application in other sectors of the economy also.