Case Study Analysis: BBVA's Digital Transformation in Banking

This case study analyzes the digital transformation of BBVA in the banking industry. It critically discusses the impact of digital transformation on the banking sector, highlighting the ensuing risks for incumbent firms. The analysis employs the 3C perspective to identify the key problem BBVA faces, which is the disruption from new market entrants. The study examines whether BBVA can gain a competitive advantage through digital transformation, focusing on increased transparency, easier collaboration, and better market positioning. Furthermore, it provides recommendations for BBVA to prepare for digital disruption, emphasizing the development of a multi-modal approach, the formation of transformational innovative teams, and a culture of continuous market research and co-creation. The case study draws on various academic sources to support its findings and recommendations, making it a comprehensive analysis of BBVA's digital strategy.

Running head: CASE STUDY ANALYSIS
CASE STUDY ANALYSIS
Name of the Student
Name of the University
Author Note

1CASE STUDY ANALYSIS
Table of Contents
1. Critically discuss digital transformation in the banking industry and the ensuing risks for the
incumbents.......................................................................................................................................2
2. Analyze BBVA from 3C perspective and identify the problem BBVA has to solve..............3
3. Can BBVA gain competitive advantage as a result of digital transformation?........................3
4. What is your recommendation for BBVA to prepare for digital disruption?...........................4
References........................................................................................................................................5

2CASE STUDY ANALYSIS
1. Critically discuss digital transformation in the banking industry and the ensuing risks
for the incumbents.
The technological development and advancement has brought about considerate changes in
the overall banking industry (Havard.edu 2020). In association with this, it becomes critically
important for the banks as present in the industry to ensure that they are being able to inculcate
the digital transformation and in association with this, they are being able to engage in effective
technologies which will bring about better solutions for the customers and the stakeholders alike.
The digital transformation has been much more than just providing the online and mobile
functionality but instead involves that the banking needs to see to it that they are being able to
provide the digital speed and the convenience so that their overall association with the different
customers can be improved and throughout the customer journey (Havard.edu 2020). Hence, at
present the banking transactions are not just limited to ensuring that the banking services remain
with the customer just round the corner and nearest to them, instead they would be required to
ensure that the various services being provided by the firm customize the online banking for the
customers and that the entire banking system can be brought down to their overall banking
actions can be given to them at their fingertips (Tardieu et al. 2020).
This makes it increasingly important for the different businesses to see to it that they are
being able to adapt to the latest technology and in association with this, they are being able to
help the various customers in gaining sound solutions (Malar, Arvidsson and Holmstrom 2019).
Any incumbent firm when present in the market and not being able to perform well will be
facing the following risks:
 Lack of consumers: If any incumbent firm is present and not able to go through the
changes, then the firm may lose out on the different customers as present.
 Increased competition: The competition amongst the different participants will increase
which will lead to difficult operations.
 Increased cost of operations: The cost of operations will increase considerably.

3CASE STUDY ANALYSIS
2. Analyze BBVA from 3C perspective and identify the problem BBVA has to solve.
The primary problem which the BBVA has been facing can be critically described as the
entrance of the new companies in the industry. In association with this, any enterprise, who is
involved in the disruptive environment, would be required to see to it that they are being able to
come up with innovative solutions which will help them to deal with the new innovation
requirements from three different perspectives (Havard.edu 2020). The first perception is Critical
thinking. In critical thinking, the BBVA as an enterprise would be required to see to it that, the
solutions which they look out for are very innovative and process oriented. In association with
this, the critical thinking will prevent the businesses from being traditional and simple.
The next aspect which BBVA needs to consider by coming up with a digital transaction will
be the Curiosity aspect. In consideration with this, the business will be required to ensure that,
their innovative solutions are a result of considerate curiosity whereby all the aspects of
innovation are considered effectively. All limitations and considerations need to be considered
accordingly before arriving at any solution (Havard.edu 2020). Hence, the digital transformation
aspects of the BBVC need to result out of effective innovation. Lastly, the innovative solutions
and the digital transformations need to be designed in a manner such that, the Customer centric
design oriented. This means that the solutions which are offered by the BBVC need to solve
consumer problems and provide the customers with an easy solution which deals with their
problems and helps them in attaining their goals appropriately. The firm should gain long term
competitiveness accordingly (Lazić and Jović 2019).
The main problem which BBVA has to solve can be considerately defined as the problem of
other multinationals entering the industry and disrupting the business.
3. Can BBVA gain competitive advantage as a result of digital transformation?
As the BBVA has planned to engage in a digital transformation, it needs to ensure that it is
successfully being able to engage in long term effectiveness (Havard.edu 2020). Hence, the
various benefits of engaging in the digital transformation for BBVA can be mentioned to be as
follows:
1. Increased transparency: The digital transformation of the business operations will lead to
increased transparency. In association with this, the different businesses will be able to carry

4CASE STUDY ANALYSIS
out successful transparent transactions and in association of this, will be able to ensure better
operations.
2. Easier collaboration: The collaborations also become easier due to the different digital
transformations. In association with this, the firm will be able to communicate with the
various members in a very easy manner (Havard.edu 2020).
3. Better positioning: The digital transformation will place the firm at par with the international
competitors who are present in the industry.
Hence, the BBVA as an enterprise will be able to gain various benefits from the digital
transformation and will carry out the operations in a better manner (Omarini 2017).
4. What is your recommendation for BBVA to prepare for digital disruption?
As BBVA has decided to prepare for the digital disruption, it needs to ensure that, it is being
able to engage in the development of a Multi Modal Approach to ensure successful operations. In
this multi modal approach, the BBVA would be required to employ innovative teams so as to
improve the business models and create better teams which can deal with the different operations
in a successful manner (Haapio, Karjaluoto and Mero 2019). Secondly, this model also states
that Transformational Innovative teams need to be hired accordingly to ensure successful
activities. The culture of the enterprise has a key role to play in ensuring success and in
consideration with this, the management should undertake activities to ensure that harmony is
infused into the teams and that they achieve their goals successfully (Havard.edu 2020). Hence,
when the firm will remain focused on its activities and engages in continuous market research so
as to ensure that the enterprise is always on guard and the focus remains on co-innovation and
co-creation so that the customers and the different management can benefit accordingly.

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References
Haapio, H., Karjaluoto, H. and Mero, J., 2019. Antecedents of Market Orientation in The
Banking Sector During Its Digital Transformation. In Bled eConference. University of Maribor.
Havard.edu 2020. Innovation [online]. Available at:
https://eproduct.hbsp.harvard.edu/eproduct/product/m_ie_disruptive_innovation/content/
index.html (Retrieved on: 21 Feb. 2020).
Lazić, A. and Jović, M., 2019, December. Strategic digital transformation of organisations.
In 5th IPMA SENET Project Management Conference (SENET 2019). Atlantis Press.
Malar, D.A., Arvidsson, V. and Holmstrom, J., 2019. Digital Transformation in Banking:
Exploring Value Co-Creation in Online Banking Services in India. Journal of Global
Information Technology Management, 22(1), pp.7-24.
Omarini, A., 2017. The digital transformation in banking and the role of FinTechs in the new
financial intermediation scenario.
Tardieu, H., Daly, D., Esteban-Lauzán, J., Hall, J. and Miller, G., 2020. Case Study 7: The
Digital Transformation of Banking—An Industry Changing Beyond Recognition. In Deliberately
Digital (pp. 281-292). Springer, Cham.