Innovation and Sustainable Business Development - A Case Study of Commonwealth Bank

This presentation discusses the case study of Commonwealth Bank and its approach to innovation and sustainable business development. It covers topics such as the business model, disruptive innovation, smart-connected products, opportunities and threats of smart-connected devices, and the business model canvas of Commonwealth Bank.

Innovation and
Sustainable
Business
Development

Table of Conent
2
▫ Business Model
▫ Disruptive Innovation
▫ Commonwealth Bank’s
services
▫ Smart-connected products
of Bank
▫ Threats and Opportunities
of smart-connected
devices
▫ Business Model canvas of
Commonwealth Bank

“Commonwealth Bank is
Australia's leading provider
of integrated financial
services (Commonwealth
Bank, 2018).”
3

Business Model
Business model describes the procedure of how
an organization delivers, creates, and captures
the value in correlation with the social,
economic, cultural and in other contexts.
Construction of business model is a crucial
segment of business strategies (Osterwalder &
Pigneur, 2010).
4

5

Disruptive Innovation
Disruptive innovation is used in
the businesses to form new
markets and value network and
disrupts existing markets and
value networks in order to
enhance the productivity and
efficiency. All innovations are not
disruptive but all disruptions are
tending to be innovations
(Osterwalder, et. al, 2011).
6

Commonwealth Bank’s Services
Services
Leading Australian Bank engaged in
providing integrated financial
services including premium, retail,
business and institutional banking,
funds management, superannuation,
insurance, investment and share-
broking products and services
(Porter & Heppelmann, 2014)
Customer Centric
Adopted various
initiatives and
policies to meet
customer’s needs
in order to be a the
most accessible
Australian bank.
7

Smart-connected
products
These devices are assisting
the companies to move
towards automation from
manual work procedure.
Apart from this, smart-
connected devices reduce
chance of men-made errors
and other glitches which
could reduce the efficiency of
an organization (Porter &
Heppelmann, 2015).
8

Opportunities and Threats of Smart
Connected Devices
9
Opportunities
• Attaining competitive
advantage in the
banking industry
• Expansion in other
parts of globe
• Adaptation of unique
and advanced
measures for meeting
desired objectives
(Chesbrough, 2010).
Threats
• Increased training and
development costs
• Increased security and
maintenance costs
• Chances of miss-
utilization of
customer’s credentials

Business Canvas Model 10
Key Partners
 Firms issuing
credit cards
 Subsidiary
companies in
other parts of the
globe
 Local clients in
other countries
 Stakeholders
 Security
providing firms
 Vault services
providing firms
Key Activities
 Retail banking
 Investment
schemes
 Credit card facility
 Insurance plans
 Risk evaluation
techniques
Value Proposition
 Quality
financial
services
 Reliable
investment
schemes
 Customer-
centric retail
banking
services
 Brand equity in
banking sector,
Australia
 Practical
growth
 Provides
services to
local and small
banks and
financial
institutions
Customer
Relationships
 Renders
quality
services to
its
customers
 Practice
various
functionaliti
es in
relevance
with
making
customer
relations
strong
 Customer
centric
approach
 Takes
customer
feedbacks
on priority
 Brand
image
Customer
Segments
 All
customer
segments
 Business
organization
,
government,
and all
people
 Credit card
users
Key Partners
 Firms issuing
credit cards
 Subsidiary
companies in
other parts of the
globe
 Local clients in
other countries
 Stakeholders
 Security
providing firms
 Vault services
providing firms
Key Activities
 Retail banking
 Investment
schemes
 Credit card facility
 Insurance plans
 Risk evaluation
techniques
Value Proposition
 Quality
financial
services
 Reliable
investment
schemes
 Customer-
centric retail
banking
services
 Brand equity in
banking sector,
Australia
 Practical
growth
 Provides
services to
local and small
banks and
financial
institutions
Customer
Relationships
 Renders
quality
services to
its
customers
 Practice
various
functionaliti
es in
relevance
with
making
customer
relations
strong
 Customer
centric
approach
 Takes
customer
feedbacks
on priority
 Brand
image
Customer
Segments
 All
customer
segments
 Business
organization
,
government,
and all
people
 Credit card
users

To be continued… 11
y Resources
Wide and effective
distribution
network
Operates from
more than 1100
branches
worldwide
Brand image of
being one of the
largest banks in
terms of revenues,
service quality,
etc. across the
globe
ATM
Effective men-
power
Skilled technicians
Channels
 Own
communication
channels
 Official website
 Other social
media platforms
st Structure
Salaries to employees
Remuneration to financial experts
Administrative costs
Other financial costs
Maintenance, security, interest, etc. fees.
Rewards and returns
Revenue Streams
 Interest on loans
 Interest on credit card payments
 Fees for overdraft facility
 Debit card fees
 Other services fees and fees on non-maintenance of
minimum balance in account.
y Resources
Wide and effective
distribution
network
Operates from
more than 1100
branches
worldwide
Brand image of
being one of the
largest banks in
terms of revenues,
service quality,
etc. across the
globe
ATM
Effective men-
power
Skilled technicians
Channels
 Own
communication
channels
 Official website
 Other social
media platforms
st Structure
Salaries to employees
Remuneration to financial experts
Administrative costs
Other financial costs
Maintenance, security, interest, etc. fees.
Rewards and returns
Revenue Streams
 Interest on loans
 Interest on credit card payments
 Fees for overdraft facility
 Debit card fees
 Other services fees and fees on non-maintenance of
minimum balance in account.

References 12
• Osterwalder, A., & Pigneur, Y. (2010). Business model generation:
a handbook for visionaries, game changers, and challengers. John
Wiley & Sons.
• Osterwalder, A., Pigneur, Y., Oliveira, M. A. Y., & Ferreira, J. J. P.
(2011). Business Model Generation: A handbook for visionaries,
game changers and challengers. African journal of business
management, 5(7), 8918-8932.
• Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected
products are transforming competition. Harvard Business
Review, 92(11), 64-88.
• Porter, M. E., & Heppelmann, J. E. (2015). How smart, connected
products are transforming companies. Harvard Business
Review, 93(10), 96-114.
• Chesbrough, H., 2010. Business model innovation: opportunities
and barriers. Long range planning, 43(2-3), pp.354-363.
• Commonwealth Bank. (2018). Harwood, J., Dooley, J. J., Scott, A. J.,
& Joiner, R. (2014). Constantly connected–The effects of smart-
devices on mental health. Computers in Human Behavior, 34,
267-272.accessed from:

13
THANKS!
Any questions?