Digital Disruptions and Business Growth

This assignment delves into the effects of digital disruptions on businesses, highlighting how they have led to significant changes and growth opportunities. It emphasizes the importance of adopting suitable technologies and innovations that align with an organization's business model and future goals. The impact of digital transformations is discussed in terms of increased labor costs and turnover due to automation, but also as a means to improve customer services and create value.

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BUSINESS: A REPORT ON IMPACT OF DIGITAL DISRUPTIONS ON BUSINESS
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Executive Summary
Technology has dramatically impacted the way many organizations run their businesses in
delivering their services to their customers. The growth of technology has been however rapid in
the modern corporate world with great innovations having their way into the market and
changing many business models. The response or the adoptions of this technology in businesses
has not been rapid compared to its growth. The adoption of new technologies in companies and
organizations is always dependent on some factors. However, the big question many business
owners have would be on how this technology would fit in their business models and bring about
a positive impact on their general business performance. Not every technology can meet every
need of a business which implies that a company can only adopt the specific technology.
However, we cannot be blind to the fact that technology has brought significant transformation
to businesses. The impact of technology has affected not only the large corporate companies but
also the small businesses. The effect, however, should be understood that it can be detrimental or
even positive. Based on the impact they create on the industry some technology may be labor
intensive while others may be capital intensive. The rapid growth in technological advancements
and innovations has therefore brought about great digital disruptions in the corporate world.
Background to Digital Disruptions
Digital disruptions in the corporate world define the changes that occur and affect the value
proposition of existing services caused by new digital technologies and business models (Bughin
2017). Deloitte (2012) identifies digital disorders as the transformation brought about by how
companies and corporate businesses adapt to the disruptive technologies which affect business
engagement with their customers (Karimi & Walter 2015, p, 42). The most challenge that has

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faced many organizations is the need to update their existing technology, strategies as well as
their supporting methodologies to adapt to the new technological changes. The primary focus of
digital transformations has been on how businesses can create more value to their customer’s
thought their life cycles (Gilbert 2015, p 166). This report, therefore, will help us understand the
impact of digital disruptions in the banking industry by analyzing how the industry offered their
services before and after digital disruptions to their customers. We will be able to establish
whether it has created any value to the customers or even changed the business model of the
organizations. We focus on the impact of Digital disruptions to the Citibank Financial institution.
Citi Bank Work-Centered Analysis Framework
Citibank group is a multinational financial services group with its headquarters in New York.
The bank was founded back in the year 1812 as the city bank of New York and provides
financial services to its customers such as offering credit cards, provision of mortgage,
commercial and personal loans as well as other lines of credit (Huerta et al. 2015, p. 194). The
bank has over 2649 branches in 19 countries with most subsidiaries in the United States and
Mexico City. It is recognized as one of the early financial institutions to experience digital
disruptions and adoption of new technology in enhancing customer value creation in their service
provision.
Work centered analysis framework provides an opportunity through which most business
processes and systems can be analyzed (Ghose et al. 2016, p. 2). The structure, therefore,
outlines or provides a designed business system showing how human participants with the use of
information and technology perform business processes. The figure below shows business
processes under the work centered analysis framework.

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The significant elements of work centered analysis include the business customers who may be
either internal or external, the product or services provided or offered by the business, and the
significant steps in the business process (Chheda, Duncan, & Roggenhofer 2017). The study also
identifies the participants and information used as well as the technology used to deliver added
value to the customers.
Figure 1: Citibank work centered Analysis before digital disruptions table
customers Both internal and external customers
Services obtained at the banking institituion
Service offered by bank tellers to customers
products Main products included cash deposits and
withdrawals.

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Used bank letter to authorize the transactions
Business processes Queuing process in banks to deposit or
withdraw
Manual updates of transactions and bank
account balances
One required a bank letter to authorize any
transaction
participants Included the bank customers both internal and
external customers
information Personal id numbers
Account numbers
Stored manually in accounting ledgers
technology No significant technology employed
Brief explanation of the digital disruption impact
Customers were obtaining al their banking services including withdraw and deposit their money
at the financial institutions. They were served by bank tellers, and quieting systems characterized
the business due to a large number of people to be helped (Weill & Woerner 2015, p. 27).The
banking services or products were not capable regarding access since it took a long time to

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access the facilities and services could only be offered at a specific period, which is when the
banks are opened.
The significant steps in the banking services before digital disruptions included; making bank
deposits and withdraws through the bank tellers, manual update of the account balances and
verifications of transactions through receipts. The primary approaches would require obtaining a
bank letter which legalized or authorized sales (Peppard & Ward, 2016, p. 3). The main
participants included the bank customers, and they would be required to produce their banking
information such as personal id numbers and their bank account numbers. There were no
significant technology innovations used then, and most of the transactions were manual.
Citibank work centered analysis after digital Disruptions
Digital disruptions brought a change in the banks business model as well as its processes. The
digital transformation brought about the introduction of credit cards and automated teller
machines in the banking industry to enhance service provision to the bank's customers through
value addition.
customers Customer base increased for both internal and
external banking
More branches opened to serve the wide
customer base
More hours for working to improve efficiency
in customer services
Products Introduction of credit cards

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Introduction of ATM machines
Large banking database for storage
Tellers simple tasks digitalized and replaced ny
machines
Business processes Withdraws and deposits could be done
anywhere through use of credit cards
Transactions authorized in print information
Replacement of bank tellers with ATMs for
simples services
Participants Remained to be the bank customers
The number increased due to expansion and
service delivery
Information Information required from the participants
included, account numbers, personal Id number
or even the credit cards.
Stored in a central computers
Technology Great innovations through introduction of
ATMs, digital credit and Visa cards, a central

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computer system.
Brief explanation of the digital impact from the table after digital disruptions
Customers
The process of customers withdrawing or depositing money become easier and effective through
digitalization of banking services and the introduction of automated teller machines and credit
cards which enhanced convenience and increased efficiency in service provision and therefore
resulted to value addition to customer service.
Products
Digital disruptions led to increased availability of banking services by increasing the number of
banking sites as well as the banking operational hours. For example, in the United States, the
bank has over 700 branches whereas in Mexico City the bank has over 1200 offices. This
increased the accessibility of banking services to a wide range of customers. With the
introduction of Automated teller machines, the banks were operational or could offer services to
their customers 24/7.
Major steps in business processes
The significant actions after digital disruptions included making bank deposits; making
withdraws, verification of the transactions authorized as well as updating account balances and
providing print confirmations. These services would be offered in the past by tellers in the banks,

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but with the introduction of the automated teller machines as well as the banking database it
became easier to perform these services using the information technology (Vives 2017, p. 97).
The primary approaches in the business process involved the replacement of bank letters which
were used before digital disruptions to authorize transactions with ATMS for simple banking
transactions. The bank then went ahead to maximize the availability of the automated teller
machines to cover broad customer coverage and enhance the access to these services. The bank
would also enable or maintain a real-time link with the central banking database.
Participants, Information, and Technology
The main participants remained to be the bank customers both internal and external customers.
These participants were required to specific information in accessing the services such as the
customer ID number, the account number and could obtain information such as account
balances, amount of deposit or withdrawals made by the customer among others. Digital
disruptions, therefore, enhanced digital banking technology by introducing Automated teller
machines, telecommunication services and also through the introduction of a central computer.
Assessment of the effect of digital disruption
The impact of digital disruptions in the banking sector cannot be overlooked. One of the
significant results was the replacement of teller related functions with the automated teller
machines. Which means that human labor in the industry is under threat with increased
innovations as technology will be able to customize these services (Dodgson et al. 2015, p. 329).
However, regarding value addition to customer services, the impact of digital disruptions has had
significant improvements regarding improving accessibility to banking services, increasing

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efficiency in service delivery, increasing accountability through providing relevant accounting
information and account balances after every transaction. The increase banking services have led
to the growth of the banking business which is evident through the increased number of branches
and high expansion rates to other countries as well as increased banking revenues. For example,
when city bank introduced or adopted digital or information technology in their service provision
the bank had an increase in its market share from 4.5 to 13 percent in the period between 1978
and 1987 (Komninos 2016, p. 246). Such an increase in market share also represents an increase
in the bank's revenue. The banking industry is speculated to experience complete digital
transformation by the year 2020 where most services will now be conducted digitally and
primarily through the increased risk of the mobile technology.
Recommendations
Full integration and readiness to counter the impact of digital disruptions has not being
maximized, and therefore there is a risk that in future their digital disorders will lead to severe
consequences if not appropriately managed. The bank may suffer the problems of increased labor
turnover which may have a significant impact on the image of the company and increased cost of
training. There is also a risk of adopting new technologies which are not compatible with the
business model. This comes in as a result of fear that the company will be challenged by its
competitors in the industry. Lastly, the bank may be at risk of balancing the company long term
and short term goals by adopting technology which may help the bank achieve a short-term
strategy and become incompatible with future or even existing technologies. Lack of innovative
minds and having a conservationist mindset may also affect the bank regarding their readiness to
adapt to new technologies.

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Therefore, it is recommended that management of Citibank should have the right digital
mindset by shifting the ideas and behaviors of the organization to facilitate positive changes.
There is also a great need for the management of the bank to have a digital strategy as this will
help the institution to align their short-term strategies to future company strategies and also align
them to company direction as well as to the values of the business. Having digital principles is
very critical for the bank in helping them integrate digital decisions across the company
workforce and processes. Lastly, I recommend that the management of Citibank should be
careful in managing technological innovations by adopting technologies which influence and
enable the future works of digital transformation in the organization.
Implementation plan
The management of the Citibank should start by understanding the nature of their
business and the markets they are operating. Secondly, evaluate the business internal and
external requirements or needs and how technology can be used to bring a change or
transformation to the business. There is also a need to access their competitor’s strategies in the
market and understand the type of technological innovations they are using (Sedera et al. 2016,
p. 371). Once they have identified the need for the company such as the staffing needs, it is
essential that they develop effective digital strategies which will help them meet they're short-
term as well as the long-term company goals. However, high emphasis should be based on the
acquisition of technology that will be cost-effective and leads to value creation regarding
improving service provision to the customers and achieving business growth through increased
revenues.
Conclusion

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Digital disruptions have had significant impacts on the modern corporate world with
substantial changes leading to positive transformations and increased business growth. However
digital conversions have also led to increased labor costs through training and also led to
increased labor turnover in most companies where digital machines have replaced some simple
tasks which were previously managed by some people. It is important however for the
management of every organization to adopt technology and innovations which fit the current
business model and align with future goals of the organization. The impact of digital disruptions
is therefore tremendous and has revolutionized the way organizations see their customers and
how they can help in creating value for their customers through improved customer services
through the use of digital transformation technologies.

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List of References
Bornhofen, B., Byrne, L., Bray, D., Elder, R., Feight, R., Pinnola, K.H., Shimshi, F., Quinlan, R.
and Cheeseman, M., Citibank NA, 2018. Method and system for the issuance of instant credit.
U.S. Patent 9,898,780.
Bughin, J., 2017. The best response to digital disruption. MIT Sloan Management Review, 58(4).
Chheda, S., Duncan, E. and Roggenhofer, S., 2017. Putting customer experience at the heart of
next-generation operating models. Digital McKinsey", March.
Dodgson, M., Gann, D., Wladawsky-Berger, I., Sultan, N. and George, G., 2015. Managing
digital money. Academy of Management Journal, 58(2), pp.325-333.
Ghose, R., Dave, S., Shirvaikar, A., Horowitz, K., Tian, Y., Levin, J. and Ho, S., 2016. Digital
Disruption: How FinTech Is Forcing Banking to a Tipping Point. Citi GPS.
Gilbert, R.J., 2015. E-books: A tale of digital disruption. Journal of Economic Perspectives,
29(3), pp.165-84.
Huerta, J., Ning, Y. and Dalle Mule, L., Citibank NA, 2015. Methods and Apparatus for
Quantitative Assessment of Behavior in Financial Entities and Transactions. U.S. Patent
Application 14/138,194.
Hyvönen, J., 2018. Strategic leading of digital transformation in large established companies–a
multiple case-study.

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Karimi, J. and Walter, Z., 2015. The role of dynamic capabilities in responding to digital
disruption: A factor-based study of the newspaper industry. Journal of Management Information
Systems, 32(1), pp.39-81.
Komninos, N., 2016. Smart environments and smart growth: connecting innovation strategies
and digital growth strategies. International Journal of Knowledge-Based Development, 7(3),
pp.240-263.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Sedera, D., Lokuge, S., Grover, V., Sarker, S. and Sarker, S., 2016. Innovating with enterprise
systems and digital platforms: A contingent resource-based theory view. Information &
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Sia, S.K., Soh, C. and Weill, P., 2016. How DBS Bank Pursued a Digital Business Strategy. MIS
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Vives, X., 2017. The Impact of Fintech on Banking. European Economy, (2), pp.97-105.
Weill, P. and Woerner, S.L., 2015. Thriving in an increasingly digital ecosystem. MIT Sloan
Management Review, 56(4), p.27.