Royal Bank Financial Group e-Business Vision
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Royal Bank Financial Group e-Business Vision

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  • It is important to emphasize that this presents the eBusiness vision and strategies for all of RBFG and it is dependent on each platform’s own eBusiness strategy. By ensuring alignment between each unit’s eBusiness strategy and the RBFG umbrella strategy, we can take a more complete or holistic approach to the customer. We will discuss some of the governance around aligning these strategies in a few minutes.
  • I nformed customer Customer views themselves as being in charge of the relationship Rapid access to comparative information & pricing (e.g. AOL Finance) Customer has the tools to create her own solution (e.g. Schwab & Fidelity) Customer connectivity Markets are created where critical mass can be developed either with buyers or sellers (e.g GE Polymerland) Customer experience is determined by availability of bandwidth which is rapidly becoming free and unlimited (e.g. MP3 sites) Ubiquitous access - anywhere, anytime, multiple personal devices (e.g. wireless banking/trading etc.) Ability to integrate with the customer’s technologies without human interaction (e.g. automated buying - GE Purchasing Exchange) Disaggregation of the Value Proposition Separate price for financial products and the previously bundled financial services (e.g. Merrill Lynch, American Express) Unbundling of the Value Chain Nimble focused attackers (e.g. Priceline, Intuit, Ernie (E&Y)) Global Competition Foreign Financial Institutions entering home turf with less brick and mortar overhead (HSBC/Merrill Lynch) Financial Services deregulation
  • This strategic framework ensures: speed of decision-making for potential eBusiness initiatives focus of our eBusiness efforts & investments
  • This single organizational vision serves to provide: consistent, succinct messaging to external stakeholders focus to our eBusiness efforts as an organization a “rallying cry” for our staff to allow them to talk about and mobilize around one eBusiness vision - the tag line is designed to be memorable for this specific purpose The vision emphasizes our customer focus, addresses the global nature of eBusiness and encompasses all of the businesses we are in as an organization. Because we define eBusiness as: connection, communication, commerce and collaboration realized through multiple technology enabled initiatives with our employees, customers and partners and their employees, customers and partners the relationships mentioned in the Vision, anticipate the networked relationship that is made possible in the web-enabled economy.
  • Build essential relationships with customers and partners by: being easy to do business with be available 7 by 24 by 365 seamless across all product/channels/devices Integrate Bricks & Clicks being attractive to partner with, recognize and react fast to opportunities leverage the relative strengths and minimize weaknesses maximize mutual value, not control personalizing solutions bundle products and services that make sense know and offer what each customer needs before they need it integrating into their life-experience or business workflow focus on major life and business events and link with key customers and partners design transaction and information products to be easily integrated into processes EXAMPLES OF POTENTIAL FUTURE INITIATIVES FOR THIS STRATEGY: Personalization Develop My Royal Bank on current web site like My Yahoo SME Portal Marketplace for SME customers that addresses multiple SME needs and draws on expertise of GIS, C&IB, P&CB, RBC Insurance and eBusiness groups
  • Create and distribute selected world-class eBusiness products and services by: establishing a customer centric eBusiness product development discipline take a portfolio approach to eBusiness product development cross-functional/cross-platform team real-time development, market testing and launch entering selected new markets to reach high-value segments assess RBFG digital assets for new market appeal identify appropriate combination of products and services to be distributed develop specific strategies to market the world-class assets partnering for scope, reach, speed, shared risk identify and stratify potential complementary partners EXAMPLES OF POTENTIAL FUTURE INITIATIVES FOR THIS STRATEGY: CREATE: Global e-Custodian DISTRIBUTE: & PARTNERING: Baldhead - partnering with Baldhead to deliver wireless banking and brokerage over multiple devices CREATE & DISTRIBUTE & PARTNERING: Interactive TV - Create targetted product bundles, including existing and new products and partner with others for products & delivery
  • Continually improve organizational cost efficiencies through the deployment of eBusiness technologies by: fully leveraging web technologies ubiquitous access for employees standardized cross-organizational infrastructure and collaboration tools digitize internal processes enabling complete customer self-service identify and fix incomplete customer solutions [e.g. 5% incomplete = 100% human assisted] develop a continual feedback loop where we regularly review customer processes and eliminate unnecessary human intervention providing straight-through transaction processing to back-end systems Assess where we are [either big opportunity or hard work] EXAMPLE OF POTENTIAL FUTURE INITIATIVES FOR THIS STRATEGY: IP network in branches (currently almost complete) provides the ability to distribute policies, procedures and training material through LeoNet at a lower cost than paper and with the convenience of being able to keep information current on a real-time basis also would lead to front-line staff being more comfortable with Internet and able to help customers self-serve - cost savings as more people transact online
  • Breaking down internal walls: Single sign-on to Royal Bank Online Banking and Action Direct Breaking down external walls: Federal Express - opening up its internal tracking system to customers so that they can track their own parcels
  • Take a leadership role in creating new eBusinesses by: investing in opportunities aligned with RBFG strategic intent create an internal New Venture Group and an e-fund to invest in strategic concepts outside the platform strategies capitalizing on disruptive opportunities that have potential for high impact partner or invest to gain access to products and services that could cannibalize the core markets grow the external venture business being fast into market EXAMPLES OF POTENTIAL FUTURE INITIATIVES FOR THIS STRATEGY: Payments: Create an Internet Payments Utility that provides service to the payment side of Internet-based commerce
  • This slide shows how the current initiatives align to the strategies developed and the trends identified. As you can see a significant number of initiatives address relationships and the needs of the informed customer as well as the changes in the connected B2C marketplace. Strategy 1 Primarily RBFG properties and alliances e.g. royalbank.com, rbcds.com, sfnb.com, bullbear.com, AOL, Microcell, RoyalPass Strategy 2 Primarily offerings on RBFG properties as above plus PrimeStreet, SFNB relationship with DirectAg.com, British Airways Strategy 3 Primarily impact of customer self-serve through applications on the RBFG properties Strategy 4 SFNB, PrimeStreet, DirectFX, VIP Private Capital NOTE: For full descriptions of the trends see speaker notes for slide 5

Royal Bank Financial Group e-Business Vision Presentation Transcript

  • 1. Royal Bank Financial Group e-Business Vision & Strategies
  • 2. Industry Positioning RBFG eBusiness
    • Royal Bank judged Internet Bank 2000
    • World's top-ranked bank for e-finance
    • Lafferty Research UK, December 1999
    • SFNB rated #1 Internet bank for 7 Consecutive quarters
    • Boston-based Gomez Consultants, August 2000
    • royalbank.com rated the most popular Financial Services web site destination for Canadians
    • Media Metrix Canada, September 2000
    • The bank has demonstrated innovative thinking towards the internet and other changes in technology
    • Morgan Stanley, December 1999
  • 3. Strategic Issues RBFG eBusiness Customer Connectivity (B2B & B2C) Informed Consumer Disaggregation Of Value Proposition (Products separate from services) Unbundling of the Value Chain Global Competition
    • Challenge:
    • Competitive standard for products, services & relationships is raised
    • Customer views self as being in charge
    • Customer has easy access to tools & information to create own solution
    • Challenge:
    • Marketplaces are being reshaped
    • Bandwidth becoming free and unlimited
    • Ubiquitous access - anywhere, any time, multiple personal devices
    Challenge: Financial products and previously bundled financial services are being priced separately
    • Challenge:
    • Foreign FIs entering home turf
    • Financial services deregulation
    • Challenge:
    • Nimble attackers focus on specific pieces of the value chain
    • Creates margin pressure
  • 4. Strategic Framework RBFG eBusiness
      • One vision
      • Aligned strategies
      • Verifiable Measures
      • Initiatives
    Success Measures Initiatives Strategies Vision
  • 5. RBFG eBusiness E-enable each customer’s quest for financial success: Vision We build global eBusiness products and services, and trusted relationships that continually draw customers to RBFG.
  • 6.
    • Build essential relationships
    • with customers and partners
    • Create and distribute selected world class eBusiness products and services
    • Continually improve organizational cost efficiencies through the deployment of eBusiness technologies
    • Take a leadership role in creating new businesses
    Strategies RBFG eBusiness Aligned Strategies
  • 7.
    • being easy to do business with,
    • being attractive to partner with,
    • personalizing solutions, and
    • integrating into their life-experience or business workflow.
    Relationships Strategies Build essential relationships with customers and partners by:
  • 8. Relationships Strategies Seamless Customer Experience…..? 8
  • 9.
    • establishing a customer centric eBusiness product development discipline
      • take a portfolio approach to eBusiness product development
      • cross-functional/cross-platform team
      • real-time development, market testing and launch
    • entering selected new markets to reach high-value segments
    • partnering for scope, reach, speed, shared risk
    Products & Services Strategies Create and distribute selected world-class eBusiness products and services by:
  • 10. Products & Services Strategies World Class Products….. “ THERE’S NOTHING WRONG WITH OUR PERSONAL FINANCE SOFTWARE, WE JUST DON’T HAVE ANY CUSTOMERS.”
  • 11.
    • fully leveraging web technologies
    • enabling complete customer self-service
    • providing straight-through transaction processing to back-end systems
    Reduce Base Costs Strategies Continually improve organizational cost efficiencies through the deployment of eBusiness technologies by:
  • 12. Reduce Base Costs Strategies Business Unit B Business Unit A External Partner It’s about breaking down internal walls: integrating and redesigning enterprise processes to gain efficiencies. Then it’s about breaking down external walls: integrating and redesigning inter-enterprise processes using the Internet 1999 © The Concours Group. RBC051000
  • 13.
    • investing in opportunities aligned with RBFG strategic intent
    • capitalizing on disruptive opportunities that have potential for high impact
    • being fast into market
    Innovation Strategies Take a leadership role in creating new eBusinesses by:
  • 14. Innovation Strategies Creating new eBusinesses aligned with strategic intent…….
  • 15. Aligning Initiatives To eBusiness Strategies RBFG eBusiness Self-enrollment for on-line banking Online cheque ordering
  • 16. Directional Analysis of Current Initiatives RBFG eBusiness High initiative alignment Medium initiative alignment Little initiative alignment Key:
  • 17. RBFG eBusiness B2B Online Marketplace Strategy V- Market Financial Services E-Procure Freight Fwdr Insurance Web Hosting RBFG Financial Services Internal E-Procurement Spend Aggregator Horizontal Marketplaces Vertical Marketplaces Online Business Centre Agriculture Hotels Real Estate Intranet Ariba Indirect Capital Customs Logistics Accting HR Trade/FX L/Cs L/Gs FX Payment Wire ACH Tax Filing Banking Balances Transfers Reports Risk Mgt Credit Scoring D&B A/R Mgt Lock Box Bills pd Bill Pres. Inv Pres.