Information technology and business transformation in Uganda: a case study of the entrepreneur’s financial center (EFC) microfinance

Abstract

This study was carried out to examine the relationship between IT and Business Transformation in the microfinance industry taking the Entrepreneurs Financial Centre (EFC) Micro Finance as a case study. The specific objectives of the study were to establish the prevailing IT used by microfinance institutions in Uganda; to examine the effectiveness of the existing IT in facilitating business operations of microfinance institutions of Uganda; and to determine the relationship between IT and business transformation. The study was carried out in the EFC branches of Kalerwe, Kireka, Nansana and Nateete. The study utilized a descriptive cross-sectional research design and employed a mixed research approach. The study constituted a population of 151 staff from whom a sample size of 108 respondents was selected for the study using simple random sampling. Data for the study was collected from both primary and secondary sources and was analyzed using SPSS and content analysis. The major findings of the study revealed that; EFC has several IT resources in place that are utilized by almost half of the staff of EFC. The findings further showed that the use of IT in business transformation caused an increase in profitability, market share, cost reduction and customer satisfaction and the relationship between IT and business transformation was established to be positive in such a way that a positive change in IT caused significant increase in the organization’s business transformation. It was therefore concluded that: IT facilitates business transformation positively, and that the optimal use of IT in the business operations of microfinance organizations facilitates business transformation. The study recommends a further investment by EFC in getting at least three quarters of its staff effectively and efficiently involved in the use of IT to cause about a greater level of business transformation and the provision of unlimited internet access to all the staff so as to have them cope up with the use of IT. Areas cited for further study about the subject of the study include; Information Technology and Transformation of microfinance institutions into accredited commercial banks, Information Technology and Service Delivery in financial institutions and Service Automation and Customer Relationship Management in financial institutions.