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Clr case monsters-ddge

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Clr case monsters-ddge

  1. 1. Strategy: Moscow as a Global Financial Center (GFC) Changellenge >> Cup Russia 2011 CaseMonsters Moscow, March 2011
  2. 2. Now Russia does not reach the level of other world leading GFCs The main area for Bank of Moscow should be in human capital development Medium Low None Insignificant Tasks for Creation GFC in Moscow Level of development: Absolute Sufficiently high Human Capital Development © 2011 Casemonsters All Rights Reserved <ul><li>Human capital </li></ul><ul><li>Increasing the citizen financial activity </li></ul><ul><li>Forming an institute of financial consultants </li></ul><ul><li>Development of respective services oriented on the population involvement </li></ul><ul><li>Financial Infrastructure </li></ul><ul><li>Stock exchange development </li></ul><ul><li>Alignment of Russian accounting standards with IFRS </li></ul><ul><li>Urban Architecture </li></ul><ul><li>Transport system </li></ul><ul><li>Health services of the capital </li></ul><ul><li>Education </li></ul><ul><li>Environment protection. </li></ul><ul><li>IT infrastructure </li></ul>Moscow (68 th in GFCI * ) London (1 st in GFCI) Dubai (28 th in GFCI) New strategy for Bank of Moscow: Customer oriented organization focused on key financial products consumed in GFCs Choose target customer segment [Slide 3] . Choose right group of retail products [Appendix 1] Align Bank of Moscow with new strategy [Slide 4] <ul><ul><li>Grow financial competence of Moscow population </li></ul></ul><ul><ul><li>Create initiative, which can be implemented around all Moscow universities either by government or commercial organization </li></ul></ul><ul><ul><li>[Slide 5] </li></ul></ul>
  3. 3. The most appropriate segment that respond target requirements ( income rate/Potential demand for diversified banking products) is “Young Leaders” 18% 21% 18% 3% 12% 11% High Low High Below avg. Segment attractiveness evaluation Choosing target segment Potential demand for diversified banking products 1 2 Young Leaders – Target Segment! 3 <ul><li>Young Leader particular features : </li></ul><ul><li>Actively use bank products </li></ul><ul><li>High level of financial literacy </li></ul><ul><li>Use technical means to control their finance </li></ul><ul><li>Oriented to modern values </li></ul><ul><li>High income per family member: 35 000 rub. </li></ul>Current penetration : About 10% of people in this segment use the services of the Bank of Moscow <ul><li>Young Leader expectations : </li></ul><ul><li>Personal high-class treatment </li></ul><ul><li>Comfortable internet-service </li></ul><ul><li>Discounts and special offers </li></ul><ul><li>Convenient office location </li></ul><ul><li>Innovations in banking service </li></ul>
  4. 4. New strategy for Bank of Moscow: Customer oriented organization focused on key financial products consumed in GFCs Degree of Differentiation Low High AS-IS TO-BE AS-IS TO-BE Target concept Location Promotion Pricing Communi- cations Client Service Products & Services <ul><li>Refurbish 80% of branch offices in 5 years, concentrated inside the 3 rd transport ring </li></ul><ul><li>Renovate Mobile-offices in supermarkets </li></ul><ul><li>Increase internet-advertising share </li></ul><ul><li>Make an accent on cross-sales </li></ul><ul><li>Establish marketing of investment products </li></ul><ul><li>Discounts for users of 4+ products </li></ul><ul><li>Create alliances with investment companies </li></ul><ul><li>Grow insurance, pension funds, brokerage products and services </li></ul><ul><li>Further implementation of Digital Offices </li></ul><ul><li>Staff trainings of new products and new level of personalized service </li></ul><ul><li>Increase usability and quality of Bank of Moscow internet-portal </li></ul><ul><li>Brand strategy focused on modern values </li></ul><ul><li>Main idea – “ Modern man actively uses bank products” </li></ul>Bank of Moscow Strategy in creating GFC in Moscow-City Promotion Significantly increase proportion of internet and in store-advertise . Accent on modern channels of promotion Communications Use current communication channels but realign content with new strategy Products & services Significant changes in product line: Insurance, Pension Funds, Brokerage in addition to traditional products Location Primarily focus on refurbishing branches where Young Leaders live ; ( Large malls , inside 3 rd transportation circle ) Client service Revolutionize customer service, go away from traditional, soviet style customer service to modern GFC customer service concept Create customer service blueprint Pricing It would be difficult to keep current price level on banking products . Main value for clients will occur due to cross-sales and discounts Differentiations that should be made in today’s Bank of Moscow strategy
  5. 5. New offering (business-to-business) Growing financial competence of Moscow population <ul><li>Build up initiative , independent project offering, which will include conducting financial seminars in Moscow universities, Higher Schools and within social organizations </li></ul>Key goal Target buyers of this offering Primary Outputs Illustrative Assets, Tools, Methods <ul><li>Government agencies ( Board of Education) </li></ul><ul><li>Commercial universities </li></ul><ul><li>Brokerage firms, investment banks (interested in new employees) </li></ul><ul><li>Set of comnemporary financial seminars </li></ul><ul><li>Marketing materials </li></ul><ul><li>Human capital (mentors) </li></ul><ul><li>Clear guidelines of the process </li></ul>Build up process model Construct balanced KPI scorecard Prepare visual materials and instructions to conduct financial and economics seminars Set up application tools <ul><li>Understand the target audience of financial seminars </li></ul><ul><li>Choose best location to conduct financial seminars </li></ul><ul><li>Identify presentation concept </li></ul><ul><li>Establish clear guidelines of presentations </li></ul><ul><li>Grow mentorship capability </li></ul><ul><li>Create content of seminars </li></ul><ul><li>Provide virtual options of seminars </li></ul><ul><li>Package up all content and organizational point into one integrated offering </li></ul>Key Activities © 2011 Casemonsters All Rights Reserved
  6. 6. There are 4 main initiatives, which will guide Bank of Moscow through its new strategy Customer Insight New branch office concept Programme & Change Management Marketing stage Growing mentors human capital Establish process Campaign Management Learning offering establishment Customer service strategy Business processes realignment with new strategy Financial competence offering 2015 20% 1,0 0,8 0,6 0,4 0,2 0,0 +14% 2014 19% 2013 18% 2012 15% 2011 12% 35% 2015 1,0 0,0 +63% 2014 35% 2013 32% 28% 5% 2012 0,2 2011 0,4 0,8 0,6 New branch office concept Customer service strategy Business processes realignment with new strategy Financial competence offering Strategic Initiatives <ul><li>Invest heavily into branch infrastructure to align it with new digital concept </li></ul><ul><li>Invest into systems, which will raise customer experience blueprint process compliance </li></ul><ul><li>Bring in external consultancy services to align new and traditional business process of the organization </li></ul>Build up independent offering then to attract buyers for it <ul><li>Invest heavily into financial seminars learning material </li></ul><ul><li>Attract over 100 mentors into the offering </li></ul>ROI (%) © 2011 Casemonsters All Rights Reserved Establish new branch concept Branch offices refurbishment (pilot) Branch offices refurbishment (industrial stage) BP optimization Bring in external consultancy to align business processes Development of customer service personnel Implement customer service compliance system Commercial Transformation
  7. 7. APPENDIX Changellenge >> Cup Russia 2011 CaseMonsters Moscow, March 2011
  8. 8. Appendix 1 Distinguishable retail products of GFC as percentage of population usage © 2011 CaseMonsters All Rights Reserved Peer group (GFC), % of population Investments 0.3% Loans Moscow, % of population Peer group: London New York Hong Kong Singapore 47% 38% Investments 72% 78% 95% Non-state pension funds Debit cards Loans Deposits Non-state pension funds 4% Debit cards 9% 15% Deposits 23%

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