Digital Disruption in Commonwealth Bank: Before and After Analysis

This report analyzes the impact of digital disruption on Commonwealth Bank. It includes a work-centered analysis, challenges faced by the bank, and recommendations for better customer outcomes.

Online banking:Commonwealth bank
Ramanpreet kaur kabb
1105387
5/01/2018
ICT710 ICT Professional Practice and Ethics
School of Business
Faculty of Arts and Business
University of the Sunshine Coast
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Executive summary
In this report, overall report is about digital disruption of any business. This can be
analysis by comparing before digital disruption and after digital disruption. In this report,
first of all, need to identify any business background before digital disruption. After that
this report will examine effects on business after that business adopts digital innovation.
Secondly needs to clear about changes made by that company after adoption new
cloud computing strategies. Next step is to compare work centered analysis after and
before digital innovation. In work centered analysis we need to define customers,
products and services, business process. In business process, we need to identify
participants, technology and information related to that business. After comparing, we
need to identity some recommendations that help to increase customer outcomes and
benefits for company. Moreover, need to provide an implementation plan with respect to
recommendation we provide, and need to convince management to adopt our
recommendations.
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Table of contents:
1. Introduction........................................................................4
2. Introduction to the case.....................................................4
3. WCA before digital description event.................................5
 Customer
 Products
 Business process
a. Participants
b. Information
c. Technology
4. WCA after the digital description event...............................5
 Customer
 Products
 Business process
a. Participants
b. Information
c. Technology
5. Problem identification from the case....................................5
6. Recommendations to the company......................................5
7. An implementation plan based on the recommendations....6
8. Conclusions..........................................................................6
9. List of References................................................................7
Appendix A………………………………………………………………8
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1. Introduction:
In this assignment, I need to prepare a report on any business after and before digital
disruption. Most important for this report is to prepare work centered analysis. This
analysis includes customers, products and services, and business activities. After that I
need to make analysis from the reading about that business. Moreover need to provide
some recommendations to the company that can manage their business in better way in
this modern era. After that, need to provide an implementation plan based on
recommendation and also helps to minimize the negative effects of digital disruption on
that company.
2. Introduction to the case
Background:
Online banking is a part of banking innovation. Commonwealth bank of Australia was
founded in 1911, and started its business in 1912 by first governor MR. Denison Miller.
This bank was established for saving and general banking business purposes. After
World War 1, this bank provided some authorities like war loans and shipping fleet. As
time passed, commonwealth bank changes its several organization structures. From
1997 to 2003, it launched two business strategies. In this period, they became aware
about internet and other IT performance support systems that helped for improvements
in IT innovation, performance and other cost control business. In 2006, Australian bank
operates its largest financial distribution network in Australia and opens more than 1000
branches, 135000 EFTPOS terminals. It helps to increase more than 2.5 million
customers as they start internet banking services.
After that, from 2006 to 2011, new CIO saw that technology and baking both are
running in separate direction. He found there was more duplication, high errors and
there is lack between interactions with customers. Thus, they launch new required
technology that was good in speed and quality of services, minimum cost projects to be
run. They replace all older banking system with SAP. This provided a new evolution in
cloud computing and access to digitization by an internet cloud. Moreover, they start
customer interaction system at bank, net banking and mobile banking as well that help
to reach 6 million registered users. This digital innovations continuous building up and
increase its customer’s up to 53% and these customers are online registered
customers. Commonwealth bank provides a secure online business to banking solution.
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3. WCA before digital description event
See appendix A
4. WCA after the digital description event
See appendix A
5. Problem identification from the case
The commonwealth bank world’s number one bank that provides integrated
financial services. These services are retailing in banking, business in banking
share broking products and services. Digital innovation enters into
commonwealth bank system after 1997; it was a big challenge for CIOs to charge
and managed those advancements in this system. The biggest challenge was to
update IT strategy, technology and application. These three steps were going to
change the needs of that business. Another challenge was about security and
securing strategy. This strategy might be for single or multiple suppliers and
users. This is possible after 1997, when commonwealth bank adopts cloud
computing. Next challenge was to develop capabilities that used to deliver the
business, It and security strategies. These all things implemented in 2001 to
2006 (Willcocks & Reynolds, 2014). Another challenge was It governance and its
structure. For this change CIO, s made new It governance strategies and also
reconstructs IT structures of the company according to demand of IT business
functions. Last challenge is use of those changes and need to make better than
commonwealth competitors. For this they launched many projects with use of
digital innovation and cloud computing to leading banking sector.
After all these implementation commonwealth become top ranking bank in
Australia. Net banking leads the market and increase customers and business
partners. 6 million people use net banking and become online customers. For
security purpose CommBiz came into market of commonwealth bank. It helps to
provide secure and investment information and other transaction records to the
customer’s database (Willcocks & Reynolds, 2014). For the future investments
technology, it’s important that banks needs to move towards commerce platform
that connect different ways of transaction and data analytics (Mint, 2015). For
this reason common wealth bank has establish a significant pattern of investment
on products, services and also meet all small and big business requirements (PR
Newswire, 1998).
6. Recommendations to the company
In this report, from all case studied used we can suggest that Commonwealth
bank needs to provide better customers outputs. Moreover they need to provide
better product pricing and offers. As studies shows it increases its customers at a
high rate so, they need to launch some new products and that have better quality
and speed. Commonwealth bank also need to aware about customer’s
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relationship with bank and new products entries. For all these things to happen
they need to provide extra training and organize some seminar towards new
rules and strategies. Lastly, they need to provide some better plans for
international students that make ease for them.
7. An implementation plan based on the recommendations
Commonwealth need to build strong relationship between international students,
because 50 to 70% of students in Australia are international students. So
commonwealth needs to start a new project about international students that can
help international students to manage their fees and other funds while sitting in
their home country. Moreover need to provide some health insurance services,
so that they can feel more secure.
8. Conclusions
In this study, commonwealth bank moves towards innovation in 1997 and Net
bank goes live. After that, in 1999 Net bank is available to all its customers. Now
they can use bank from their home and office. These services increase its
customers up to 1 million in 2001. In 2005, some big changes were made like
international money transfer while sitting at home, Net Bank email updates and
alerts. In 2007, it improves its security system like two factor authentication
system. In 2010, real time transaction across all channels of Net bank and net
code also provides into ore inbox if we change something into our account. This
helped to maintain security into our account. Moreover it also add video
conferencing and Skype a lender. This is Australia first updating in bank that a
customer can talk face to face with expert lenders from their home or office. Now
commonwealth bank has $3 trillion Net bank transactions, 75% of logins on
mobile, 32000 financial health checks in branch per week. Moreover, 5.8 million
of customers are using digital that means 53% of customers using online digital
transactions. This report describes digital resolution came into commonwealth
bank and what challenges faced by management to approved and implement
that all plans.
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9. List of References
 Commonwealth Bank Creates global Innovation Network (2016, Jan
19). Targeted News Services from
https://search.proquest.com/docview/450009003?accountid=28745
 Commonwealth Bank Expands its Commercial Banking Team. (1998,
June 22). PR Newswire from
https://search.proquest.com/docview/450009003?accountid=28745
 Crosman, P. (2012). Innovation down under. Bank Technology
News, 25(12), 16-n/a. Retrieved from https://search-proquest-
com.ezproxy.usc.edu.au/docview/1221263723?accountid=28745
 Time to bank on technology. (2015, May 05). Mint Retrieved from
https://search-proquest-com.ezproxy.usc.edu.au/docview/1678219925?
accountid=28745
 Willcocks, L., & Reynolds, P. (2015). The commonwealth bank of australia
- strategizing from outsourcing to the cloud part 1: Perennial challenges
amidst turbulent technology. Journal of Information Technology Teaching
Cases, 4(2), 86-98.
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Appendix A
WORK CENTRED ANALYSIS(before digital innovation)
CUSTOMERS Products and Services
Australian citizen, Business people Loans, Saving accounts, Investment
services
MAJOR ACTIVTIES
Cash flow from operation activities, Cash flow from investing activities, Financing
activities,
PARTICIPANTS INFORMATION TECHNOLOGY
G L Mackrell Group
Executive,. International
Financial services, M J
Ullmer Group Executive,
Institutional and Business
Services
Customer Investment
record, Business record
loans for number of
purposes, Saving accounts
WORK CENTRED ANALYSIS(after digital innovation)
CUSTOMERS Products and Services
Australian citizen , International students,
Business people, People from Fiji, USA,
UK, Asia, New Zeeland
Loans, Credit cards, Transactions, Saving
accounts, Retail, Funds management,
Booking services, Insurance,
Superannuation, Investment services
MAJOR ACTIVTIES
Cash flow from operation activities, Cash flow from investing activities, Cash flow from
investing activities, Cash used in financing activities, Financing activities, Increase and
decrease in cash equivalents,
PARTICIPANTS INFORMATION TECHNOLOGY
Retired Executive P L
Polson Group Executive,
Investment and Insurance
Services, A R Cosenza
Group Executive, Office of
CEO, G L Mackrell Group
Executive,. International
Financial services, M A
Katz Group Executive,
investment and insurance
services, D V Murray Chief
Executive Officer, M J
Ullmer Group Executive,
Institutional and Business
Services
Customer Record,
Customer Investment
record, Business record,
Profit and Assets record,
Crimes and Security
Database records.
SAP technology used for
Card less card, lock and
limit and business app
Debit capital markets for
domestic and global,
bilateral loans for number of
purposes, Foreign
exchange and deposits,
merchant services ,
payable and receivable,
corporate cards, BPAY.
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