Disruptive Innovation at BBVA

This study material explores the concept of disruptive innovation and its impact on BBVA, a Spanish multinational organization providing financial services. It discusses digital transformation in the banking industry and the risks it poses for incumbents. It also analyzes BBVA from a 3C perspective and identifies the problems it needs to solve. Recommendations are provided for BBVA to prepare for digital disruption.

Disruptive Innovation
At- BBVA
Table of Contents
INTRODUCTION...........................................................................................................................1
MIAN BODY...................................................................................................................................1
1. Critically discuss digital transformation in the banking industry and the ensuing risks for
the incumbents............................................................................................................................1
2. Analyse BBVA from 3C perspective and identify the problem BBVA has to solve.............1

3. Can BBVA gain competitive advantage as a result of digital transformation?......................2
4. Recommendation for BBVA to prepare for digital disruption................................................2
..........................................................................................................................................................4

INTRODUCTION
Disruptive innovation involves generation of new market and new values through which
changes are created in the market. Disruptive innovation do not involves something new but with
slight change it made goods and services more accessible (Dedehayir, Nokelainen and Mäkinen,
2014). In this project Banco Bilbao Vizcaya Argentaria (BBVA) is considered which is a
Spanish multinational organisation providing financial services. It was founded in the year 1857
in Spain. The report consists information regarding disruptive innovation for BBVA.
MIAN BODY
1. Critically discuss digital transformation in the banking industry and the ensuing risks for the
incumbents
Digital transformation is the process through which new and fast methods which for
accomplishing number of activities are made using different types of digital technologies.
Transformation in the digital area has made a grate impact on different types of businesses. One
of the biggest example of digital transformation is cloud computing. As it minimises reliance on
any form of storage system for information. Digital transformation in the banking industry leads
to generate change in the fundamentals of operating system of financial institutions
(Kumaraswamy, Garud and Ansari, 2018). This transformation leads to reduction in operating
cost of business and made every service hassle-free. As economy is growing and developing at
large scale this enhances involvement and importance of different banks. This digital
transformation is an asset for banking sector as huge number of benefits are available with them.
Quick adaptation of technological changes enhances trust worthiness of online system,
access to new consumers become cheaper for banks. This digital transformation in biggest
financial system of the economy has generated number of risk. Data security risk is one of the
most threatening among all as it is a means for generation of other risks. Availability of
information regarding bank accounts and their password are available on online system and this
generates risk for financial risk to a grate extent. Banks are using this transformation for finding
new opportunities and risking each person involved through online banking system.
2. Analyse BBVA from 3C perspective and identify the problem BBVA has to solve
3C analysis business model was introduced by Kenichi Ohman, a management
consultant. This model focuses on analysing 3C's which are the customer, the competitors and

the corporation. These three elements of business is analysed so that key success factors of
business can be evaluated for viable marketing strategy.
Customer analysis of BBVA organisation helps to make a complete research for
consumers and identify best way to serve target market (Nagy, Schuessler and Dubinsky, 2016).
This analysis of BBVA organisation provides information regarding shifting needs of consumers.
Consumers in present time demanding for grater value added service which are based on new
needs. Technology is contributing to meet such requirements. Competitors analysis is made so
that level of competition in the market is accessed. This also helps in accessing types of
competition available in the market.