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

Running head: SUSTAINABLE BUSINESS DEVELOPMENT AND INNOVATION
Commonwealth Bank
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1SUSTAINABLE BUSINESS DEVELOPMENT AND INNOVATION
A business model can be described as a company plan that lays emphasis on the revenue
generation and profit making. The business model explains the services and the products that the
business plans for the market and the manufacture and also include the execution plan. A typical
business model includes the projected costs of the start-up and the different sources of financing.
The major important parts of a business model include the projected expenses and the revenues,
marketing competition and marketing strategy, and a target customer base for the purpose of
business (Amit & Zott, 2012).
Business model and disruption (literature review)- companies commercialize the new
technologies and ideas through the business models. The extensive processes and investments
that the companies have been used for the purpose of exploring the new technologies and the
ideas. This means that two products taken to through the market will have two different
economic outcomes. Thus it is recommended that the companies must have a good sense of
business so that it can have the ability to develop and innovate the business models. It is also
important to mention that the business model has the certain functions like: the articulation of the
value proportion; identification of the market segment and also the specification of the
generation mechanism; defines the proper value chain creation and distribution, it also includes
the complementary assets and offering; estimation of the cost structure and the potential of profit
(Chesbrough, 2010). The business models once used to be popular are now less durable. The
basic rules of the game include the capturing and creating economic value which once used to be
fixed for decades. In this scenario, the companies used to perform better with respect to its
market competitors. the present scenario, however, is different and lays emphasis on the rapid
disruption, displacement and in certain extreme cases, there is an outright destruction (De Jong &
van Dijk, 2015). Disruptions are both creative and destructive at the same time as it is important

2SUSTAINABLE BUSINESS DEVELOPMENT AND INNOVATION
to mention that the companies that turn upside down have a profound and permanent impact on
the industry. Disruptive technological innovations like the smart apps, new hardware, and the
Big data analytics needs the individuals to be connected with the corporation. The disruptive
technologies help in the management of the value creation and creation of the knowledge of
creation. Disruption is deeply embedded within the business model and is an important part of
the business operations (Alberti-Alhtaybat,Al-Htaybat & Hutaibat, 2017).
Analysis of the opportunities and threats of Commonwealth Bank with respect to the
smart connected products- The Commonwealth Bank is at the continuing process of innovating
the payment technology arena. Along with Pi platform, the Commonwealth Bank has built a
framework for the purpose of enabling the business to innovate via a decentralized and
distributed structure. The Pi platform has rendered an easy integration of the apps and the easy
customization to suit the needs of the customers and the businesses. The major strength of this
platform is the robust privacy protocol and secure technology that is the main foundation of the
Commonwealth Bank transaction system. Security is a critical issue for Commonwealth Bank
and is a major weakness (Harvard Business Review., 2018). It has been found that about 65
percent of the customers either have their identities stolen or compromised. This is one of the
major issues and this may lead to the customers switching to other institutions. Thus, it is
important to note that Commonwealth Bank is a compliance led organization and it requires a
continuous protection for the purpose of protecting the needs of the customers
(Commbank.com.au, 2018a). The internet of things has enabled a new kind of intuitive and rapid
payment method. The payment method takes place to form a smartphone wallet to a wearable.
This is a welcome change with respect to the traditional POS systems and this system has
become obsolete. Amongst the global transformation, it is actually practical to imagine that cash