Business Modell Banking 2015 John White IBM Achieving more by doing less

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Usefull slideshow that I always use in discussions in the organizational restructuring activities within our company.

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  • 2015 UNIVERSAL BANKS: Use scale, capital, product breadth and distribution reach to build on efficient provision of low cost products and services—build specialist capabilities in focused areas with higher margins (e.g., wealth mgmt, investment banking); also sell services to other FSI’s (e.g., RBS back office outsourcing)‏ COMMUNITY/REGIONAL BANKS / CREDIT UNIONS (Community/CUs in US, regional in smaller countries): Build on local knowledge, ties to small-med business and customer relationships—able to remain competitive by joining with specialists and like banks to outsource and share non-core capabilities (products, IT, processing, compliance, etc.)‏ INDUSTRY SPECIALISTS: maintain value proposition focused on distinct expertise, products and services, customer base or markets NON-BANK BANKS: Use brand, customer relationships and distribution networks to expand range and quality of products and services at low cost—will outsource and partner to realize efficiencies, build expertise and expand offerings
  • “ Using two criteria – ownership and strategic differentiation – companies can group their constituent components into four main categories: strategic, support, partner and utility.” (Specialized Enterprise, Executive Brief p.19)‏
  • Business Modell Banking 2015 John White IBM Achieving more by doing less

    1. 1. The Paradox of Banking 2015: Achieving More by Doing Less John White Americas Banking Leader, IBM IBV May 2007
    2. 2. The Institute for Business Value is IBM’s global research group focused on issues critical to business executives <ul><li>Part of IBM’s Global Business Services </li></ul><ul><li>Focuses on vertical industries and horizontal processes </li></ul><ul><li>Over 60 dedicated, experienced consultants </li></ul><ul><li>Primary offices in Boston & Amsterdam </li></ul>Mission: The IBM Institute for Business Value (IBV) creates fact-based thought leadership and tools that help clients realize business value
    3. 3. We conducted an in-depth study to better understand the changes shaping the global banking industry <ul><li>Customers are taking charge </li></ul><ul><li>Specialization becoming imperative in a crowded market </li></ul><ul><li>Business model innovation is key to growth and differentiation </li></ul>2015 Industry Snapshot Source: IBM Institute for Business Value Top performing banks will deliver best-in-class performance through internal excellence and external partnerships
    4. 4. Customer value drivers are fragmenting and making customer “norms” harder to identify Customer Value Drivers Fragment 20 th Century Homogenous Customers 21 st Century Fragmented Customers Extreme shifts in: Age Wealth Ethnicity/Culture Lifestage patterns Household composition Value systems Source: IBM Institute for Business Value Customer Segments % of population Customer Segments % of population
    5. 5. Banking customers will seek to optimize value from providers that meet their needs at opposite ends of the spectrum Polarization in the Customer Marketplace Competitive Spectrum “ Bell Curves” Today “ Well Curves” Tomorrow Mass Targeted Deliver “good enough” value efficiently at very low prices Maximize buying power for commoditized products/services Deliver high value, differentiated products & services Obtain “personal value” through customized products & services Growth and perceived value Source: Wired; IBM Institute for Business Value analysis Customers Banks
    6. 6. Consolidation, new entrants and specialization will leave four dominant business models with differentiating capabilities Middle Squeeze Universal Banks Community Banks Industry Specialists Non-Bank Banks 2005 Transformation of the Industry Marketplace Source: IBM Institute for Business Value 2015 Large Banks Industry Specialists Small Banks Non-bank Banks Co-ops S&Ls Building Societies Mid-tier Banks
    7. 7. Industry specialization and competition from smart players are forcing banks to rethink their differentiation strategies Source: Thomson One Banker; The Banker; Company web sites; IBM Institute for Business Value analysis Selected Non-Banks, Industry Specialists and New Entrants <ul><ul><li>Traditional banks will both partner and compete with industry specialists to a far greater extent </li></ul></ul>
    8. 8. Competition, commoditization and specialization are driving a networked banking industry Enterprise Reconstruction Business-Unit Optimized Enterprise Optimized Process Optimized Industry Deconstruction Vertically Integrated Industry Networks Disaggregated Source: IBM Institute for Business Value
    9. 9. Competing in the emerging industry will require strategic decisions about business models Source: IBM Institute for Business Value Business Component Decision Matrix External Specialization Non-Differentiating Differentiating Internal Specialization Executive Summary #10 Support Component Manage to meet the needs of strategic components Strategic Component Invest in and expand to gain advantage Utility Component Use specialists to reduce costs and free up resources Partner Component Develop alliances to meet critical business requirements Illustrative Component View of Hypothetical Universal Bank, 2015 Risk Insight Distribution Processing Manufacturing Compliance Strategy & Planning HR IT Service IT Infrastructure Product Mfg Client & Trade Support Product Mgmt Facilities Risk Sales Governance Fin Mgmt Sales Specific Data Common Administration
    10. 10. Decisions about value proposition and operational approach will determine priorities Support Partner Utility Strategic Key: Differentiating Non-Differentiating Risk Insight Distribution Processing Manufacturing Comp Strategy HR IT Service IT Infrastructure Product Mfg Client & Trade Support Product Mgmt Facilities Risk Sales Governance FM Sales Specific Data Common Admin Risk Insight Distribution Processing Manufacturing Comp Strategy HR IT Service IT Infrastructure Product Mfg Client & Trade Support Product Mgmt Facilities Risk Sales Governance FM Sales Specific Data Common Admin Risk Insight Distribution Processing Manufacturing Comp Strategy HR IT Service IT Infrastructure Product Mfg Client & Trade Support Product Mgmt Facilities Risk Sales Governance FM Sales Specific Data Common Admin Risk Insight Distribution Processing Manufacturing Compliance Strategy HR IT Service IT Infrastructure Product Mfg Client & Trade Support Product Mgmt Facilities Risk Sales Governance FM Sales Specific Data Common Admin Universal Bank Community Bank Specialist (Direct) Bank Non-Bank Bank (Retailer)‏ Hypothetical Business Models, 2015
    11. 11. Thank you ibm.com/iibv

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