Business Development and Innovation: Commonwealth Bank Australia Case

This case study examines Commonwealth Bank Australia's business model, focusing on innovation and sustainable business development. It identifies opportunities and threats related to smart-connected products, highlighting the bank's key partners, activities, value proposition, resources, and capabilities. The analysis incorporates the Business Model Canvas to illustrate the bank's strategic approach to retail banking, financial services, risk management, and customer relationships. The study concludes that by effectively adopting disruption and technology, Commonwealth Bank can enhance service delivery and address challenges posed by technological advancements, while also mentioning that Desklib is a platform where students can find similar solved assignments and past papers.

Commonwealth Bank Australia
*Innovation and
Sustainable Business
Development

*What is Business Model
*Business model is a plan for successful
operations of a company.
*Identification of revenue sources, client
base, products and funds.
*Business Model Canvas
*Expression of business idea of a firm.

*What is
Disruption
*Result of rapid development of a business
*Disruption is subset of innovation
*It is the creation of something new that
shifts the old ones (Chesbrough, 2010).
*Disruption develops new dimensions like
accessibility, simplicity, convenience,
lower prices, ease of use etc.

* Commonwealth Bank
Australia
*One of the largest banks in Australia
*Founded in the year 1911
*Offers personal and institutional banking
services and business solutions.
*It has its business across Asia, United
States, United Kingdom and New Zealand.
*The company is using different smart-
connected products to advance its services
(Commonwealth Bank, 2018).

Opportunities
* To stay competitive in today’s
business environment.
* To control and operate
business activities through
smart machines.
* To attract a large customer
base (Paetz, 2014)
* Examples: cyber, big data,
smart machines, Internet of
Things, Ag-Tech, Block-chain.
Threats
* Older people in bank are
unable to understand the
updated services.
* Higher cost of training
* There are so many customers
which are unable to access
updated applications
(Osterwalder & Pigneur, 2010).
* Issues related to security of
confidential information.
* Smart-connected Products and its
Opportunities and Threats to
Commonwealth Bank

* Business Model Canvas of
Commonwealth Bank
Key Partners
 Subsidiaries
 Investors
 Agreements with
2 Chinese banks
(Hangzhou City
Commercial
Bank and Jinan
City Commercial
Bank)
 Credit card firms
 Financial
community
 ATM service
desk
 Regulatory
Agencies
Key Activities
 Financial services
 Credit card
facilities and loans
 Investment
services
 Customer
acquisition
 Transaction and
saving account
 Risk assessment
Value Proposition
 Retail banking
and financial
services
 Risk taking
 Sustainable
development
 Financial
services to
small business
and personal
customers
 It is one of the
four biggest
banks in
Australia.
 Premium
services
 Wealth
management.
Customer
Relationships
 Security
 Automati
on
 Convenie
nce
 Direct
contact
with
regular
customers
 Non-
personal
channels
 Trust and
reputation
.
Customer
Segments
 Corporate and
massive retail
customers
 Credit card
holders
 Account
holders
 Merchants
 Governments
 All the group
of customers
(Male and
Female)
Key Resources
 100 plus branches
of bank
 Largest bank
 ATM networks
 Information
technology
capabilities
 Bank staff
 Customer base
 Brand presence all
over the world.
Channels
 Online Banking
 Mobile Banking
 Official website
of Bank
 Social networks
 Newsroom

Value Proposition
* Retail banking and financial
services
* Risk taking
* Sustainable development
* Financial services to small
business and personal
customers (Rajasingham, 2018)
* It is one of the four biggest
banks in Australia.
* Premium services
Resources and
Capabilities
* 100 plus branches of bank
* Image of Largest bank in Australia
* ATM networks
* Information technology capabilities
* Bank staff
* Customer base (Drucker, 2014)
* Brand presence all over the world.
* Physical resources at bank branch
*Components of Business
Model

*Conclusion
*Business model is a advanced framework
that can assist the organization for future
growth.
*Through effective adoption of disruption
and technology, the bank can improve
service delivery.
*It can eliminate the challenges posed
through technological advancements.

*References
*Applegate, L. M. (2007). Jumpstarting Innovation: Using Disruption to Your Advantage. HBS working.
*Chesbrough, H. (2010). Business model innovation: opportunities and barriers. Long range planning, 43(2-3), 354-363.
*Commonwealth Bank. (2018). CommBank: Personal banking including accounts, credit cards. Retrieved from
https://www.commbank.com.au/.
*de Jong, M., & van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model innovation. McKinsey Quarterly.
*Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
*Eckhardt, J.T. (2013). Opportunities in business model research. Sage Journals, 11 (4).
*Jones-Evans, D., & Klofsten, M. (Eds.). (2016). Technology, innovation and enterprise: The European experience. Springer.
*Meltzer, D. (2017). Disruption vs. Innovation: Defining Success. Retrieved from
https://www.entrepreneur.com/article/311246.
*Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation : A Handbook for Visionaries, Game Changers, and
Challengers. Hoboken: Wiley.
*Paetz, P. (2014). Disruption by Design: How to Create Products that Disrupt and then Dominate Markets. Apress.
* Rajasingham, D. (2018). Welcome to the machine-to-machine economy. Retrieved from
https://www.commbank.com.au/content/dam/caas/newsroom/docs/Commbank-Whitepaper-Machine-to-Machine-economy.
pdf
.
*Zott, C., Amit, R., & Massa, L. (2011). The business model: recent developments and future research. Journal of
management, 37(4), 1019-1042.