This ppt is based on how DBS Bank has achieved digitization, vision, mission, profit, growth, market strategy, history, details, limitations, achievements, awards, CEO, products, applications they created, charts. This case study will give brief about how they become digitally strong and powerful in Asian market

1. Neera Aggarwal
DBS Bank
University of Massachusetts Dartmouth, Charlton College of Business
MIS 650-02, Information Technology Management (2017 Spring)
Professor: Rui (Rae) Huang

2. Who
Vision-Mission
Digital Transformation Strategy
Complementary Assets
Value Of Digital
Key Lesson Learned
Impacts & Capabilities
Limitations
Results
New Opportunities
Consequences of Digital Strategy
Awards & Achievements
Conclusion

3.  Founded in 1968, 49 years ago
 Headquarters- > Marina Bay, Singapore
 DBS-> The Development Bank of Singapore Limited
 Largest bank by assets in Southeast Asia
 Ranked among the top 100 banks in the world
 Emphasis on quality, added value and innovative service at an
affordable cost
WHO ?

4. LOCATIONS

6.  To adopt a digital business strategy: Need of digitization
of products, services, customer relationships
 Banking innovation and strategic implications for future
banking models
 Acquire configurable Enterprise Systems
 Modernize the legacy systems
 Adopt service-oriented architecture
 Application integration technologies across the
enterprise
VISION

7.  Rewiring : Fusion of business and IT
 Achieve new digital threats and opportunities
 To achieve digital business strategy (L O C I)
 L - Leadership
 O - Operations
 C - Customer Needs
 I - Innovation
MISSION

9. NEW BUSINESS OPPORTUNITIES
https://www.dbs.com/dbsfoundation/our-story/default.page
https://youtu.be/kBhwDjoWEcg

10. Digital Transformation Strategy

11. Cultivate Leadership for Digital Transformation
Management dimension of
information systems
 Managers set organizational
strategy for responding to
business challenges
 In addition, managers must
act creatively:
 Creation of new products and
services
 Occasionally re-creating the
organization

12. Develop Agile and Scalable Digital Operations
 The previously separate Technology and Operations
Divisions in DBS were merged to form a new Group
Technology and Operations (T&O)
 The first priority of the new T&O Division was to
rationalize and standardize the technology and
operations platforms.

13. DBS Technology Roadmap

14. Design New Digitally Enabled Customer Experiences
 DBS set up a Customer Experience Council. The
intention was to foster a mindset shift that would go
beyond developing a culture of customer service
excellence to creating a culture of digitally enabling
new customer experiences.
 M2M system ，data optimization related to ATMs
 Implement speech analytics technology at its call
center

15. Incubate and Accelerate Emerging Digital
Innovations
 In 2010, DBS established an Innovation Council
 uGOiGO™ an online time deposit group-buy
campaign
 DBS PayLah!—a mobile wallet for peer-to-peer
fund transfers among DBS account holders via
smartphones

16. Digital Transformation Strategy
Firms invest heavily in information systems to
achieve six strategic business objectives:
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Survival

17.  Complementary assets are those assets required to
derive value from a primary investment.
 Firms must rely on supportive values, structures, and
behavior patterns to obtain a greater value from their
IT investments.
 Value must be added through complementary assets
such as new business processes, management
behavior, organizational culture, and training.
COMPLEMENTARY ASSETS

18. Here, lists of the complementary social,
managerial, and organization assets required to
optimize returns from information technology
investments.
Here are a few of them:
1. Organizational assets:
 Supportive culture that values efficiency and
effectiveness
 Appropriate business model
 Efficient business processes
 Decentralized authority

19. 2. Managerial assets:
 Strong senior management support for
technology investment and change
 Incentives for management innovation
 Teamwork and collaborative work environments
3. Social assets:
 The Internet and telecommunications
infrastructure
 IT-enriched educational programs raising labor
force computer literacy
 Standards (both government and private sector)

20. There are three fundamental ways in which digital
capabilities can be used by banks to create value
1. First, digital technologies increase a
bank’s connectivity—not just with customers but
also with employees and suppliers. This extends
from online interactivity and payment solutions to
mobile functionality and opportunities to boost
bank brands in social media.
CAPTURING THE VALUE OF DIGITAL

21. 2. Second, digital draws on big data and advanced analytics
to extend and refine decision making. Such analytics are
being deployed by the most innovative banks in many areas,
including sales, product design, pricing and underwriting,
and the design of truly amazing customer experiences.
3. A third way that digital creates value is by enabling
straight-through processing—that is, automating and
digitizing a number of repetitive, low-value, and low-risk
processes. Process apps, for example, boost productivity and
facilitate regulatory compliance, while imaging and straight-
through processing lead to paperless, more efficient work
flows. Finally, digitization is a means of
fostering innovation across products and business models.
Examples of this include social marketing and crowdsourced
support, as well as “digitally centered” business models.

22. Key Lessons Learned from Pursuing a Digital
Business Strategy
 A Digital Business Strategy Demands Strong
Leadership
 An Agile and Scalable “Core” Is Critical
 A Digital Business Strategy Exploits Information
Abundance to Create New Value for Customers
 A good Digital Business Strategy Requires the
Continuous Navigation of the Dynamic and
Emerging Digital Landscape

23. STRATEGY IMPACT ON DBS BANK
 The previously separate Technology and Operations
Divisions in DBS were merged to form a new group
Technology and Operations (T&O) Divisions under Mr.
Gledhill.
 The new T&O structure being aligned with the respective
business lines and geographical markets.
 Each T&O team comprised of project managers, business
analysts and system analysts dedicated to understanding a
unique business line or local markets.

24. Cultivating
Leadership for Digital
Transformation
Developing Agile and
Scalable Digital
Operations
Designing New
Digitally Enabled
Customer Experiences
Incubating and
Accelerating Emerging
Digital Innovations
Technology
 Unified
communication
platform
 Enterprise portal
 Collaborative
platform
 Internet banking
 Mobile banking
 Configurable core
banking system
 Modernized legacy
systems
 Enterprise application
integration (EAI)
technologies
 New branch model
 Call centers with
voice analytics
 Data-drive customer
analytics
 Emerging technologies
(e.g., mobile, payment,
analytics, social media)
 Disruptive fintech
technologies (e.g.,
crowdfunding, P2P
lending, social trading)
People
 Digital thinking
among business
executives, moving
from “tech-idiots” to
“digital warriors”
 Continuous process
improvement, and
lean thinking
 Customer service
mindset (RED)
focusing on total
customer experience
 Innovative, inventive
entrepreneurial start-up-
like thinking
Digital Capabilities and the
Related Organizational Elements

25. Digital Capabilities and the
Related Organizational Elements
Cultivating Leadership
for Digital Transformation
Developing Agile and
Scalable Digital Operations
Designing New Digitally
Enabled Customer Experiences
Incubating and
Accelerating Emerging
Digital Innovations
Structure
 Visionary CEO
 CIO in senior
executive team and
reporting to CEO
 Convergence of
reporting to CIO
 Newly merged technology
and operations (T&O)
 Structural T&O alignment
to business divisions and
geographical markets
 New head of process
transformation
 Process transformation
office
 New head of customer
experience
 Customer experience council
 Customer experience office
 New head of innovation
 Innovation council
 Innovation office
Process
 IT investment
prioritization
 Enterprise governance
and coordination
 Technology road-
mapping workshops
 Process streamlining,
rationalization,
consolidation,
improvement
 Enterprise architecting
 Technology integration
competency development
 Development and diffusion
of customer service
framework
 Human-centered design
 Customer journey lab
 New training, recruitment,
assessment, promotion
 Strategic incubation,
internal crowdsourcing,
hackathons
 Technology partnering
and start-up collaboration

27. Limitations Faced By DBS
 Although DBS wanted to build a consistent technology
platform, the reality was Asian markets were diverse and
different.
 Huge Capital investments required to set up configurable
enterprise systems, to adopt service oriented
architecture, and integration technologies.
 The Technology had to be not just scalable but also
flexible.
 Continuous Navigation of Digital Landscape required to
face disruptions.

28. Challenge
 T&O analyzed the transaction statistics of its call
centers and found, out of 86,000 touchpoints in
a month, only 20,000 captured.
Result
 Improvements resulted in a 50% reduction of
queue times and saved 100 million customer
hours.

29. Result of New Initiatives
 DBS’s Finacle successfully deployed across 13 countries in
28 months.
 New functionalities in customer management and liquidity
management were introduced.
 Collaboration with Singapore’s A*STAR Institute for
Infocomm Research to better understand customer
footprints.
 DBS actively started to engage in the Tech-Startup
community through accelator programs such as
Statupbootcamp Fintech.

30. CONSEQUENCES OF PURSUING A DIGITAL
STRATEGY
 In 2014, the bank achieved its 22nd back to back
quarter of year-on-year development, salary and
income.
 In 2014, net profit crossing the $4 billion
 DBS bank’s share price also rose from $11.48 to
$20.60 from 2009 to 2014
 Robust technology infrastructure

31. CONSEQUENCES OF PURSUING A DIGITAL
STRATEGY contd.
 Design of new customer experience was based on
Acronym RED – Respectful, Easy and Dependable
 In 2012, DBS was the first bank in Singapore to
implement speech analytics technology at its call
center, which handled over 5 million calls a year.
 In 2012, 45% rise in compliments and 17% decline
in complaints compared to previous year

32. CONSEQUENCES OF PURSUING A DIGITAL
STRATEGY contd.
 Data optimization- ATMs worldwide-> bills payment,
airline tickets. Used analytics and sensors embedded
in machine-to-machine communication of ATM
network-> help the bank to optimize its cash
reloading schedule in non-peak time.
 Between 2011 and 2014, the penetration of digital
marketing rose from 59% to 92% in Asia including
Singapore, Hong Kong and Taiwan
 DBS wealth management income doubled from $506
million in 2010 to $1.1 billion in 2014

33.  DBS promoted as one the worlds best bank with ”AA-”
and a “Aa1” credit rating (by FICO assessments) that
were among the highest in Asia-Pacific.
 DBS positioned as the third-biggest exchange buy back
bank after worldwide banks like HSBC and Citigroup.
 Range of accolades for six consecutive years to 2014
 Safest Bank in Asia
 Best Bank in Asia-Pacific
 Most valuable bank brand in ASEAN
ACHIEVEMENTS

34. AWARDS
https://www.dbs.com/awards/default.page

35. Conclusion
 The transformational digitalization journey of DBS has inspired
many others.
 DBS is aware of the future threats which may arise in the near
future in the form of digital disruptions.
 For DBS it is a journey of constant growth and constant
brainstorming and finding new ways of improving their customers
digital journey.
 DBS is prepared for the future and is also a model example for
other financial institution of how a banking organization has gone
from being the least favorite to one of the most favorable banking
organizations in the country.

36. Important Links
 DBS Employees :
https://www.dbs.com/annualreports/2015/performance/employe
es.html
 https://www.dbs.com/iwov-resources/images/awards-2016/2016-
awards-brand-ad-campaign-proofpoints.pdf
 https://www.dbs.com/newsroom/DBS_breaks_new_ground_in_di
gital_banking

37. THANK
YOU
“Put digital at the heart of banking”
By Piyush Gupta, CEO, DBS