Business Innovation and Sustainability: CBA Group Report Analysis

This report discusses innovation and sustainable business development, focusing on the Commonwealth Bank of Australia (CBA). It highlights the importance of innovation for competitive advantage and long-term business durability, particularly in the context of evolving market needs. The report emphasizes CBA's digital innovation strategies, including digital banking services and investments in technology systems, aimed at improving customer experience and business efficiency. It explores the transformation of CBA through digitalization, addressing questions about the impact of innovation on legacy banking operations and the future of the banking industry. The advantages and disadvantages of digital banking are also discussed, including security concerns and potential technical glitches. The report concludes by referencing various sources that provide further insights into sustainable finance, organizational change management, and the role of social construction in sustainability transitions.

INNOVATION AND SUSTAINABLE
BUSINESS DEVELOPMENT
NAME OF THE STUDENT:
NAME OF THE UNVERSITY

INTRODUCTION
 The following report is based on the discussion of the innovation and sustainable
business development processes.
 Innovation and business sustainability are two of the most important elements that
are related to each other in different manners.
 The present demand of the globe for different kinds of the resources is not
sustainable.
 The sustainability is such a process that helps the organization or a person to act
and operate on such a manner that it is able to cope up with the different demands
of the future.

INTRODUCTION
 The management of the business organizations have been constantly involved in
the creation of the different kinds of strategies and products that outclass the
expectations of the people and makes them inclined towards them.
 This particular process is termed as innovation. The better the innovation, the
better will be the chances for the organization to ensure business success and also
ensure the long term durability of the organization in the future.
 The innovation in a business will involve the likes of the change in the vision and
the leadership styles, multiple level focus and the elimination of the different kinds
of the perverse subsidies.

INTRODUCTION
 The following report has been based on the study of the innovation and the
development of a particular business organization in accordance with the
different kinds of the market needs of the modern days.
 The Commonwealth Bank of Australia is a multinational bank with businesses
spread around Australia, New Zealand, Asia, the United States and the United
Kingdom (commbank.com.au, 2019).
 The management of the business organization provides a number of different
kinds of financial services like that of institutional banking, funding services,
retail business services, management of business funds and many more as such.

INTRODUCTION
 With a huge revenue of around A$30 billion, the company is one of the largest
listed companies in Australia as well as globally (commbank.com.au, 2019).
 Globally, sustainability challenges have turned out to be even more material that
helps to formulate and implement long term business strategies and make the
most of the different kind of the customers and the stakeholders of the business
accordingly (commbank.com.au, 2019).
 Therefore the changing times and the need for better and developed services has
compelled the management of the Bank to innovate their products and address the
needs of the people.

AIMS AND INNOVATION PROCESS
 The major aims for the different business organizations of the globe is to remain
innovative and to develop new products in a fast manner in order to stay updated
with the market and make necessary steps to keep their market share intact.
 Innovation has the natural capability to create a competitive market share for the
organizations operating in the market.
 The management of the innovation process which finally leads to the development
of the business is the major reason behind the success of the business in a proper
and innovative manner.
 According to, Loorbach et al. (2016) the Management of a company effectively
through the process of innovation and development of the business needs a
structured and informed business analysis.

AIMS AND INNOVATION PROCESS
 The management of Commonwealth Bank has been dedicated to its use of
innovation and development process.
 The innovation and development process are two of the most important elements
and perspectives that helps in the prosperity of the business organization.
 The business prosperity and the application of the different kinds of the business
rules has a serious implication on the success of the business (Loorbach et al.
2016).

DIGITAL INNOVATION
 As mentioned earlier the major innovation that will be undertaken by the business
organization will be the introduction of the digital innovation of the business
organization.
 The innovation that will be undertaken by the business organization will include a
number of digital banking services that will include the identification of the $150
Million each year in unclaimed benefits for the different kinds of the business
customers.
 This provides technological innovation and the implementation of the different
digital business tools that are appropriate for the banking business.

DIGITAL INNOVATION
 The above mentioned business lending processes are mainly solutions to different
kinds of technological problems faced by the business organization.
 The targeted customers of the following process will be mainly the clients who are
in need of huge loans.
 This includes the likes of the different kinds of the multinational companies, export
organizations and many more as such (Clarke & Boersma, 2016).
 The management of the company will be investing more than $5bilion during the
next 5 hours in its technology systems.

DIGITAL INNOVATION
 Over the next year, CBA will serve up 3 billion personalised messages inside its
app.
 It is sending 500,000 alerts a week to customers with overdrawn accounts, saving
them $60 million a year. CBA will lose $415 million in non-interest income a year
as a result of the fee notification initiatives (commbank.com.au, 2019).
 The benefits of the following process will help the business to ensure a healthy
competitive advantage in the business market.

TRANSFORMATION OF COMMONWEALTH
BANK OF AUSTRALIA THROUGH
DIGITALIZATION
 The new entrants in the Australian business sector has changed the face of the
banking sector and the traditional, financial, hiring, crowdsourcing and piloting
new solutions that generally focuses on the experiences of the customers.
 The major aims of the business organization is to maximize the experience of the
customers and increase the profitability of the business (commbank.com.au,
2019).

TRANSFORMATION OF COMMONWEALTH
BANK OF AUSTRALIA THROUGH
DIGITALIZATION
The lack of rhetoric around the disruption of the banking industry raises a number of different
questions that needs to be answered by the management of the business organization in order
to ensure the success of the business organization. Some of the common questions are as
follows;
 How will the innovations transform the legacy banking operations in the business?
 Will the incumbent banking organizations continue in its aim to dominate or will there
be a disintermediation of the banking organizations by the bank?
 Will the traditional banking operation and the new banking operations of other banks be
competitors or partners in the near future?
 The major question surrounding the ban king industry in the modern day is not whether the
industry will be transformed or not transformed. However, question arises as to what kind
of techniques and digital innovations will be applied to ensure the success of the business
organization in a proper and effective manner (afr.com, 2019).

ADVANTAGES OF DIGITAL
INNOVATION
 There has been a whole lot of different changes in the elements of business and its
operations within each and every industry of the modern business world
especially the way they buy and sell.
 The digital revolution of the modern world has especially changed the ways and
techniques of the process within the financial industry. The new technologies
especially the application of the different kinds of the digitalized information has
been one of the best features that has changed a lot of the traditional banking
structures (Avelino et al. 2017).
 The banking solutions based on the traditional banking services have experienced
a drastic change since the introduction of the different kinds of the online banking
options.

ADVANTAGES AND DISADVANTAGES
OF DIGITAL BANKING
The main advantages of digital banking are as follows;
 The digital transformations will smoothen the banks operation process
 The digital transformation will help to maintain a digitalized database for the
customers of the business
 The transformation will help to make the business superior compared to other
business organizations
 Efficient service to the customers because of the implementation of the digital
services

ADVANTAGES AND DISADVANTAGES
OF DIGITAL BANKING
The major disadvantages of the Digital Banking Process are as follows;
 Security is a huge concern in the absence of proper security
 Cyber-security threats leads to major problems
 Technical glitches can lead to temporary black outs which may lead to the
failure of the business

REFERENCES
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 Avelino, F., Wittmayer, J. M., Pel, B., Weaver, P., Dumitru, A., Haxeltine, A., ... & O'Riordan, T. (2017).
Transformative social innovation and (dis) empowerment. Technological Forecasting and Social Change.
 Bolton, R., & Hannon, M. (2016). Governing sustainability transitions through business model innovation:
Towards a systems understanding. Research policy, 45(9), 1731-1742.
 CBA accelerates digital banking innovation. (2019). Retrieved from https://www.afr.com/business/banking-
and-finance/cba-accelerates-digital-banking-innovation-20190528-p51rxd
 Clarke, T., & Boersma, M. (2016). Sustainable finance? A critical analysis of the regulation, policies,
strategies, implementation and reporting on sustainability in international finance. UNEP-Inquiry: Design of a
Sustainable Financial System.
 Clegg, S., & de Matos, J. A. (Eds.). (2017). Sustainability and organizational change management. Routledge.
 Loorbach, D., Avelino, F., Haxeltine, A., Wittmayer, J. M., O'Riordan, T., Weaver, P., & Kemp, R. (2016). The
economic crisis as a game changer?: Exploring the role of social construction in sustainability
transitions. Ecology and Society, 21(4), 15.