RUNNING HEAD: Effects of cultural context on information system and digital disruption 1

Effects of cultural context on

information system and digital

disruption

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Effects of cultural context on information system and digital disruption 2

Table of Contents
Introduction................................................................................................................................3

Cultural context affecting information system and digital disruption for Paytm.......................4

Impact of Culture on Information System..............................................................................4

Effect of cultural context on financial implication.................................................................6

Conclusion..................................................................................................................................7

Reference....................................................................................................................................8
Effects of cultural context on information system and digital disruption 3

Introduction

Today, everywhere, technology is available. The world is becoming digital day by

day. Thereby, this situation also creates a digital disruption in the market. Digital disruption

is mainly connected with the business directly. Nowadays, businesses are getting enlarged.

Here comes the necessity of advancement. Therefore digital technology entered into the

matter. Digital technology is also developing itself, each moment. That is why it creates new

opportunities for someone and challenges for others. Both are happening at the same time at a

huge ratio. Some business person or some organisation is getting help, and some are facing

difficulties due to their non-flexible business mindset. Paytm is an India based organisation

that provides a certain amount of facilities through a digital application. This organisation has

created its market with good services.

Effects of cultural context on information system and digital disruption 4

Cultural context affecting information system and digital disruption for

Paytm

Impact of Culture on Information System

(Figure: Cultural effect on information system)

(Source: Bergeron et al. 2016)

Information management:Information that is created must be stored and maintained in an

organized manner to make it easier to share and retrieve. 

Information Culture: It is nothing but the manner of how the stored information is applied

in the organisation. It also includes the information values, behaviours, integrity, control and

other things (Alarcón-del-Amo et al. 2016, pp. 277-300). 

Information use outcomes: It consists of maintenance, performance, and self-efficacy. 

Impact of demonetization: Demonetization had a huge cultural and financial impact on the

marketing of Paytm. Paytm had 125 million users before this operation (Gurung & Prater,

2017, pp. 49-82). And after the demonetization, it became 185 million in just three months

and it never ceased rising after that. In 2017 the number of total users crossed 275 million. In
Effects of cultural context on information system and digital disruption 5

the last financial year, Paytm got nearly five million merchants who used the application with

QR code acceptance.

Impact of Festivals: During the last Diwali season, nearly $1.7 billion transactions were

processed by the company. In other festivals of India, the company gains extra profits due to

some offers during transactions.  

Cultural Values: According to Joshi et al. (2019, pp. 280-293), Paytm is a customer-centric

organisation. Culture is a must, for this organisation. At the same time, innovation in the

digital wallet, the system is the primary target of Paytm. Both of them are interconnected but

at the same time, they are opposite in manner. Considering both in some of the cases is not

very much suitable. For example, people always want as much as possible simple and a very

clear interface of anything. According to Mahapatra and Patra (2017, pp. 323-328) the

application or the websites of Paytm both have a very clear but hazard interface.

As Paytm is trying to develop and implement new things, simply the interface is

having more options and looks hazardous (Ali et al., 2016, pp. 138-158). That is why

somewhere the culture of the people is not matching with the organisation motive and then it

creates the boundaries in the digital disruption.

In the case of connectivity, Paytm has a very large customer management service

which helps 24x7 to the customer. It shows the good culture of the organisation and the ways

to maintain relationships with the customers. However, some consumers are also not very

happy with some of the services due to any reason like payment gateway delay or some other

technical issues. They are the people who create some improper relationship with the

organisation and create the position, where the demotivation comes and the digital disruption

gets lacking into the organisation (Singh & Rana, 2017, pp. 1-14).

Discipline and rules are also an important point that comes under the cultural

context. Being a very big organisation Paytm has some rules and regulations. The employee
Effects of cultural context on information system and digital disruption 6

and the customers should maintain those. Both of them are the running assets of the

organisation. Now some of the cases it happens that some rules and regulations create some

boundaries into the work of the organisation mentally or physically. For example,

there are some employees in an organisation who are very much capable, but love to do work

in a very free environment. But the regulations are the boundaries that come on the way to

that free environment mindset. Those employees cannot concentrate more on their work.

Paytm is a digital application, if the employee of Paytm is getting some problem during their

work so it indirectly affects the digital disruption of this organisation (Pal et al., 2019, pp. 43-

57).

Effect of cultural context on financial implication

According to Menon (2018), Paytm implicated many new financial strategies in

recent years. And those strategies were taken depending upon some new financial challenges

in the market.

Competition with similar rivals: Paytm had to suffer from nearly 170% losses in the last

financial year. This happened due to the increased condition with PhonePe and GooglePay.

The parent one97 posted nearly four thousand crores of losses. But one of the Paytm

spokespeople said in the recent interviews that Paytm is looking to invest about $3 billion in

the next two years (Zaidi et al., 2017).

Merchant payments: One of the most crucial goals of Paytm is to solve the issues involved

in merchant payments. Paytm has targeted to invest more than twenty thousand crores in the

upcoming two years for that purpose.

Online marketplace: Paytm payments bank provides a separate entity and is completely

excluded from its market place. This gives the customers to use it in shopping, banking,

travel, etc. 
Effects of cultural context on information system and digital disruption 7

Conclusion

Paytm is the largest online wallet in India. Amazon, Flipkart, Phonepe, they are the

greatest rivals of Paytm today. In this competitive situation, it is very tough to maintain

digital disruption as well as the organisational culture. Digital disruption is a matter that

creates opportunities and for someone it creates challenges (Coffman, 2018). Paytm is the

organisation that has taken the digital disruption as an opportunity. Today the result is live. It

has become the most used online wallet in India. Cultural boundaries will come, it is true that

they are tough to avoid. If it is important to go ahead, then one should take advantage of

whatever he has, like Paytm has done this decade.

Effects of cultural context on information system and digital disruption 8

Reference

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