...International Management II (Core Competencies) Case Study Bank of America (A) by Alexander Beil Christoph Hillgärtner Florian Schlegelmilch Harvard Case Study: Bank of America List of Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction / Definitions Overview “Bank of America” Product development processes Strength and weaknesses of the systems Learning through experimentation Conclusion / Learnings Summary Questions for group discussion References 1 Harvard Case Study: Bank of America 1. Introduction / Definitions Description of the case study “Bank of America (A)” * The case study describes how Bank of America is creating a system for product and service innovation in its retail banking business. Emphasis is placed on the role of experimentation in some two-dozen real-life "laboratories" that serve as fully operating banking branches and as sites for testing new ideas and concepts. Focuses on: 1) 2) 3) how learning from experimentation can be maximized; incentive and reward systems that motivate employees to experiment in "life" environments; the challenges of managing innovation in an industry that eschews risks, failure, and change. *Reference: http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=603022 Harvard Case Study: Bank of America 1. Introduction / Definitions Process: which activities are to be taken, in which order* Organization: who (person, team or department) is involved (who is responsible for what)?*...
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...International Management II (Core Competencies) Case Study Bank of America (A) by Alexander Beil Christoph Hillgärtner Florian Schlegelmilch Harvard Case Study: Bank of America List of Contents 1. Introduction / Definitions 2. Overview “Bank of America” 3. Product development processes 4. Strength and weaknesses of the systems 5. Learning through experimentation 6. Conclusion / Learnings 7. Summary 8. Questions for group discussion 9. References 1 Harvard Case Study: Bank of America 1. Introduction / Definitions Description of the case study “Bank of America (A)” * The case study describes how Bank of America is creating a system for product and service innovation in its retail banking business. Emphasis is placed on the role of experimentation in some two-dozen real-life "laboratories" that serve as fully operating banking branches and as sites for testing new ideas and concepts. Focuses on: 1) how learning from experimentation can be maximized; 2) incentive and reward systems that motivate employees to experiment in "life" environments; 3) the challenges of managing innovation in an industry that eschews risks, failure, and change. *Reference: http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=603022 Harvard Case Study: Bank of America 1. Introduction / Definitions Process: which activities are to be taken, in which order* Organization:...
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...Introduction: The Bank of America was formed in 1998 after the merger of California based Bank of America and the Nations Bank of North Carolina. At the end of the 20th century the bank stood as the second largest bank in the American market with close to 4500 branches operating in 21 states. Most of these branches were located in high growth markets of the south and west coast. Globally, it employed 1, 40,000 employees across 190 nations, over $8 billon in revenues, $360 billion in deposits and some $600 billon in assets. However the markets had been consolidating for sometime with the total number of banks in America having reduced to 7000 from an figure of 14000 first recorded in 1985. Intense competition characterized the market and the challenge for national banks was to be able to localize product and service offerings for their customers. Financial services had traditionally been looked upon as commodities by banks and lack of experimentation marked the sector. The sector was however slowly realizing that traditional methods of cost reduction and other control mechanisms could only take growth so far. ‘Organic Growth', a higher wallet share of existing customers was a concept of much relevance in the highly competitive market. For achieving this Bank of America had given more freedom to individual bank managers to undertake more responsibilities. Others like Washington Mutual (WAMU) had introduced new models of customer experience, benchmarking their services...
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...Case Study: Bank Of America How it learned that what customers really want is to Keep the Change THE PROBLEM Innovation in services is rare. In financial services, the last big breakthrough was online banking, nearly a decade ago. In October, 2005, Bank of America (BAC ) brought out a radically different product that broke the paradigm. It's called Keep the Change.The cocept solves a critical banking problem -- how to get consumers to open new accounts. The product works like this: Every time you buy something with a BofA Visa debit card, the bank rounds up your purchase to the nearest dollar and transfers the difference from your checking into your savings account. It also matches 100% of transfers for the first three months, and 5% of the annual total, up to $250 a year. Since the launch, 2.5 million customers have signed up for Keep the Change. Over 700,000 have opened new checking accounts and 1 million have signed on for new savings accounts. THE RESEARCH How did Bank of America create Keep the Change? In the spring of 2004, it hired an innovation and design research firm in Palo Alto, Calif., to help conceive of and conduct ethnographic research on boomer-age women with children. The goal was to discover how to get this consumer segment to open new checking and savings accounts. For the next two months, a team of five BofA researchers and four researchers from a West Coast consulting firm visited Atlanta, Baltimore, and San Francisco. They observed a dozen...
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...consider to be the most critical for the I & D team to address and discuss how the Systems Model of Change might be applied to resolving that issue. The most critical issues facing the Innovation and Development team are how the opening of more branches will affect the team’s ability to develop new products and services. The Systems Model of Change approach takes a look at the “big picture” perspective of organizational change. The Systems Model of Change has four components input, strategic plans, target elements of change, and outputs. The System Model of Change can be applied by developing the “what” and “how” the innovation and Development team and branches will perform. The team will has to decide what the input is for the Innovation & Development team. This can be done in a very clear and concise mission statement. Once an agreement is reached on the input they must then develop the strategic plan to reach the goals set in the mission statement (inputs). The strategic plan will outline the company’s directions and steps needed to achieve the goal. The target elements of change also need to be defined. The last step, output, will represent the end results of the change. The Innovation and Development team has already developed a mission statement. The mission of the Innovation &Development team is to provide a test bed for creative ideas to increase customer satisfaction and grow revenue. Now the team has to figure of the “how” portion of the equations. With...
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...Table Of Contents Brief Company Information Brief History and Company Information----------------------------------------------------------- 2 Mission and Vision Statement------------------------------------------------------------------------3 Industry and Competitive Analysis Industry Dominant Economic Features-------------------------------------------------------------4 Porter’s Five Competitive Factors-------------------------------------------------------------------4 Key Success Factors-----------------------------------------------------------------------------------6 Driving Forces------------------------------------------------------------------------------------------8 Industry Competitors-----------------------------------------------------------------------------------9 Strategic Map-------------------------------------------------------------------------------------------10 Strategic Position Hambrick Model---------------------------------------------------------------------------------------12 SWOT Analysis----------------------------------------------------------------------------------------14 Company Competitive Strategy----------------------------------------------------------------------17 Leadership and Corporation Culture-----------------------------------------------------------------19 Company Resources and Competencies-------------------------------------------------------------21 Competitive Strength Assessment-------------------...
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...Our Mission Statement 4 Management & Ownership 5 Product of Service 6 Market Overview / Competition / Market Share 7 A. Industry Analysis 7 B. Marketplace Analysis 8 C. Competition 9 Customer Profile 9 Objectives & Strategy 10 A. Product Strategy 10 B. Place/Distribution Strategy 10 C. Price Strategy 11 D. Sales Strategy 11 E. Operations Strategy 11 F. Development Strategy 12 Advertising & Promotion 12 Survey (25 People) 13 Rodgers 5 characteristics 15 Relative Advantages: 17 Compatibility: 18 Complexity: 19 Triability 19 Observability 20 Sources 21 EXECUTIVE SUMMARY Business Description Micro Life is an innovative, convenient all-in-one card for those who use to carry all their cards in their daily life. Because of Micro Life, consumers will not have to carry them around. Micro Life wants their customers to experience the new technology; they will be able to move around without having to worry about losing their IDs or Credit Card. This card can hold up to 10 pieces of information or transaction cards.. We have a contract with Chase, Bank of America, different hospitals and some retailers. By using the card, the consumer is able to pay, travel, get in his car or house as fast as he can say “Micro Life”! Our Mission Statement Designed to make your daily life easy, convenient and secure, Micro Life can be used in all stores, websites, banks partners. It allows you to take live your life without...
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...the raising of the National Debt Ceiling, and seeking immunity from prosecutors in a Mortgage deal are economic trends that Bank of America is facing today. According to Rugaber (2011), the Labor Department reported that unemployment benefits adjusted to 400,000, decreasing 1,000 from the previous four months (para.3-4). While in Washington, D. C., Brown (2011), reported that “after months of partisan gridlock, both houses of the U.S. Congress have approved a bill to raise the federal borrower limit and cut government spending (para.1). On the other hand, Touryalai (2011) confirms that Bank of America is seeking immunity in a Mortgage deal with prosecutors that would make the bank pay a hefty fine which would be used toward writing down certain homeowner’s mortgages (para.2). The trends described above are issues that Bank of America and other financial institutions are currently tackling and adapting to as they develop. The following business analysis will outline on how each development is affecting the organizational and operational philosophy of the bank; possible strategies that the bank can use to adapt will also be described; implementation of tactics to address each trend will be elaborated on; how the human resource management plays in helping the company achieve its business goals, and last the analysis will give a summary on whether Bank of America is a company worth to invest in or not. The unemployment trend is an issue that has been going on for the past decade. According...
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...ZURHANIM BT AMER AZIDEN PRESENTED TO : DR. TEY LIAN SENG CEB 120002 CEB 120044 CEB 120070 INTRODUCTION • Wells Fargo is a stable and long term company providing financial products such as banking, mortgages, credit cards, insurance, and investment services to consumers and business client. • Wells Fargo has been in business since 1852. • Their first office opened in San Francisco during the gold rush. • The stage coach was used to transport gold and other valuables. • Wells Fargo helped establish the Great Overland Mail service continuing to use the stagecoach but also adding steam ship, rail road, pony rider, and telegraph. • From their humble beginnings they expanded from California to the rest of the nation. CORE PRODUCT BANKING MORTGAGE CREDIT INSURANCE INVESTMENTS • • • • • • Online ATM Business Wholesale Government and Institutional • • Home equity Mortgage • • • Debit & consumer credit card • Personal credit management • Auto dealer service Education financial service • Well Fargo insurance Rural community insurance service • • • • • Retail brokerage Wealth management Retirement Norwest equity & venture partners Lowry hill Capital markets VISION “We want to satisfy all our customers’ financial needs and help them succeed financially” MISSION “Our Product: SERVICE. Our value-added: FINANCIAL ADVICE. Our competitive advantage: OUR PEOPLE” EXTERNAL OPPURTUNITIES & THREATS WELLS FARGO OPPURTUNITIES Historically Low...
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...1. What are the core business processes (i.e. high level; major business and financial services) performed at Bank of America as part of its product and service offerings? Core Bank of America Business Process: | Activities within the Core Process | people management | * recruiting * performance management * staff development * payroll * benefits administration | financial management | * general ledger * accounts payable * accounts receivable * reporting and compliance * cash management * asset management | Customer Relations | * Online banking ease * Help customers accessing all services provided by the bank * Help and guidance * Maintain good relations * Updating customers on their accounts * Informing them about best ways to update accounts and their information | Deposit account management | * Proof of identity * Social security number * Customer information * Account information * Transaction details | Marketing and sales of account | * Updating customers about benefits and relations * Responding timely * Benefits by attaining better relations | add as many rows as required…… | | 2. List the sequential, descriptive steps required in a typical ATM transaction (your choice), such as drawing out cash or transferring funds from one account to another. Be sure to include those steps executed by local ATM system itself as well as those done by information systems housed within the Bank’s centralized...
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...World retail Banking report 2012 Contents 3 4 7 Preface Key Findings Chapter 1: 8 12 21 Unlocking Pathways to Greater Customer Loyalty Customers Express Conflicting Sentiments toward Banks The Need for a Customer Experience Index The Growth of Mobile Banking 25 Chapter 2: At a Crossroads, Retail Banks Must Identify and Prioritize Core Strengths The Ground Beneath Banks Is Shifting Traditional Tactics Are Less Effective in the Current Environment The Way Forward: Extreme Measures for Extreme Times 26 28 32 40 41 Methodology About Us Preface Capgemini and Efma are pleased to present the 2012 World Retail Banking Report. Retail banks around the world are struggling to maintain their competitiveness in the face of severe external challenges. Massive debt loads are threatening the global economy, while stringent regulations put in place as a result of the financial crisis of 2008 are staunching traditional revenue streams. Customers, still distrustful of the industry, have become increasingly accepting of nonbank alternatives, and social media is giving them an opportunity to publicly explore them. More than ever, retail banks must strive to create stronger bonds with their customers. The 2012 World Retail Banking Report addresses this imperative by establishing a new framework for identifying and measuring success in retail banking. Specifically, our Customer Experience Index (CEI) offers a mechanism for accurately taking stock of the critical...
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...processes (i.e. high level; major business and financial services) performed at Bank of America as part of its product and service offerings? Core Bank of America Business Process: | Activities within the Core Process | people management | * recruiting * performance management * staff development * payroll * benefits administration | financial management | * general ledger * accounts payable * accounts receivable * reporting and compliance * cash management * asset management | | | | | | | add as many rows as required…… | | 2. List the sequential, descriptive steps required in a typical ATM transaction (your choice), such as drawing out cash or transferring funds from one account to another. Be sure to include those steps executed by local ATM system itself as well as those done by information systems housed within the Bank’s centralized data center. Use this table to organize your responses. Steps by Customer | Steps by ATM System | Steps by other Banking Systems | Practice basic safety procedures | | | Insert the card into the ATM | Request card | Verify authenticity of the card | Remove the card | | | Select machine’s language | Receive card | | Enter the pin number | Pin number | | Select your form | | | | | | | | | | | | | | | | | | | | | 3. Why do the core processes at the Bank of America require centralized information systems? a. . b. . c....
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...TABLE OF CONTENTS: INTRODUCTION 1 1. CREATIVTY TOOLS, INNOVATION MANAGEMENT & FINANCIAL SERVICES 1 2. RBS INTRODUCTION 3 2.1 RBS Innovations 3 2.2 RBS Creativity Tools 4 3. SANTANDER INTRODUCTION 5 3.1 Santander Innovations 5 3.2 Santander Creativity Tools 6 4. SUGGESTIONS FOR FURTHER CRETIVITY TOOLS 6 FINDINGS AND CONCLUSIONS 8 REFERENCES 9 INTRODUCTION The aim of this report is to introduce the latest innovation end products and service and identify and describe creativity tools used by Royal Bank of Scotland (RBS) and by Banco Santander (Santander). Furthermore this report seeks to explain why the tools applied are useful for a particular organisation’s innovation management. This report will also suggest 2 additional creativity tools for each organisation and will also explain why these tools are useful. To achieve the above a short introduction about organisations will be provided and secondary research resources: companies’ websites, journals, books and articles will be used. 1. CREATIVTY TOOLS, INNOVATION MANAGEMENT & FINANCIAL SERVICES Creativity tools can be described as combinations of factors that can help to engender new ideas (Fig 1). Fig.1. Creativity tools in organisations Source Aurnhammer, 2013 There are different factors that can contribute to successful innovation in organisations. Fig.1 shows tools covering People, Methods and Platform combining to create the optimal conditions for the creation of innovative ideas and concepts...
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... Introduction a. Company history Citibank was first incorporated in 1812 as the City Bank of New York. Citibank is a U.S. based commercial bank, headquartered in Las Vegas, Nevada, US. The bank offers consumer finance, mortgage lending, retail banking products and services, investment banking, commercial banking, cash management, trade finance and e-commerce products and services, and private banking products and services. Citibank is also the daughter company of Citigroup, Inc. It provides deposit accounts, credit cards and loans to consumers and small businesses, and utilizes its parent company's breadth of financial services by also offering insurance and investment products. The bank mainly operates in Europe, America, Middle East, Asia and Africa including the US, China, Hong Kong, India, Japan, the Philippines and Singapore. http://www.researchandmarkets.com/reports/1291111/citibank_n_a_strategic_swot_analysis_review.pdf b. Biographical information on any prominent managers, etc. c. Pertinent industry information (history, recent developments) d. Growth of company and industry II. Perform a SWOT analysis a. Strengths o Company’s rich history o Over 100 years experience in international lending o World’s largest credit lender o Effective communication o High R&D o Innovation o Online growth o Loyal customers o Market share leadership o Strong...
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...1. What are the core business processes (i.e. high level; major business and financial services) performed at Bank of America as part of its product and service offerings? Core Bank of America Business Process: | Activities within the Core Process | people management | * recruiting * performance management * staff development * payroll * benefits administration | financial management | * general ledger * accounts payable * accounts receivable * reporting and compliance * cash management * asset management | Manufacture management | Produce ATMsChecking the quality of machineProducing billsRecycling of destroyed ATM | Marketing management | Selling serviceRecognize customersAdvertising managementCustomer service management | | | add as many rows as required…… | | 2. List the sequential, descriptive steps required in a typical ATM transaction (your choice), such as drawing out cash or transferring funds from one account to another. Be sure to include those steps executed by local ATM system itself as well as those done by information systems housed within the Bank’s centralized data center. Use this table to organize your responses. Steps by Customer | Steps by ATM System | Steps by other Banking Systems | Insert card | Recognize card info. | Recognize card info. | Enter pin code | Authorized user’s ID | Authorized user’s ID | Withdraw money | Update new balance of the accounts. Given money. | Record time and location...
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