Analysis of Innovation & Sustainable Business Development at CommBank

This case study examines Commonwealth Bank's (CommBank) business model, focusing on innovation and sustainable business development. It explores the bank's services, including financial, retail, investment, and insurance offerings, alongside its adoption of smart-connected products to enhance customer experience. The analysis identifies opportunities such as gaining a competitive edge and moving towards automation, as well as threats like increased training costs and potential misuse of customer information. The business model canvas highlights key partners, activities, resources, value propositions, customer relationships, channels, customer segments, and revenue streams. The study concludes that CommBank's business model is effective for enhancing goodwill and achieving future growth, but also emphasizes the need for adapting strategies and resources to meet evolving customer needs. Desklib provides access to this case study and other resources for students.

Innovation and
Sustainable Business
Development

“
CommBank Can.
2

Table of Content
- Business model
- Disruption
- Services of Commonwealth Bank
- Smart-connected products
- Threats and Opportunities of Smart-
connected devices
- Business model canvas of Commonwealth
Bank
- Conclusion
3

Business Model
Business model acts as
the structure for a
business that includes
sundry aspects for an
organization. All these
aspects consists key
capabilities and resources
which plays crucial role in
terms of overall
environment of a
business enterprise
(Paetz, 2014). 4

Disruption
Disruptive innovation
is a term which
indicates the field of
business
administration. It
refers to an
innovation which
creates new markets
or modifies existing
products of the
organization to
acquire an effective
position in the
existing market
(Porter & 5

Services of Commonwealth Bank
6

to be continued…..
7
Commonwealth bank, Australia which is a
multi-national bank and offers various
services to the customers as well as to the
business enterprises (Commonwealth
Bank, 2018). Financial services, retail
services, investment, insurance, business
banking, etc. are some of the primary
services offered by bank. Along with
Australia, Commonwealth Bank is also
situated in various parts of the globe such
as New Zealand, United Kingdom, and
United States of America (Porter &
Heppelmann, 2015).

Smart-connected Products
8
Disruptive innovation leads to create
smart connected devices which are
essential to operate in an effective
manner. In terms of banking sector, it has
been reviewed that banking sector plays
crucial role as smart-connected devices
helps the banks to enhance the customer
experience in relation with the
consumption of banking services. In
relation with the continuous increase in
the customer base, management of
Commonwealth Bank has adopted usage
of smart-connected devices in their
procedure (Radziwill, 2015).

Opportunities and Threats of Smaart-connected products
Opportunities
Acquiring competitive advantage
in the internal banking industry.
Enhancing customer base
Moving towards automation
(Schlagwein, Thorogood &
Willcocks, 2014).
Threats
Training and development
costs increases
Adaptation of change in
technology for staff is bit
diffiuclt process
Miss-utilisation of customer’s
infromation.
9

Business Model Canvas
10
Key Partners
 Investors
 Credit card
firms
 Society
 clients
 Agreements
with
Hangzhou City
Commercial
Bank and
Jinan City
Commercial
Bank.
 Financial
regulatory
agencies.
Key Activities
 Insurance and
Investment and
services
 Saving account
 Risk
management
and assessment
 Loan facility
 Customer
procurement
Value Proposition
 Manageme
nt of wealth
 The bank is
popular as
one of the
largest
banks in
Australia.
 Risk
monitoring
and control
 Viable
growth
 Financial
and retail
banking
services.
 B2C and
B2B
services.
Customer
Relationships
 Security to
confidential
information of
customers.
 Brand image
and
reputation.
 Trust and
convenience
Customer
Segments
 Mass
populati
on
 Unisex
 Account
holders
 Credit
card
users
 Governm
ent
Key Resources
 Wide network
of distribution
 ATM
 IT capabilities
 More than 100
branches
 Human
resources
 Mixture of
traditional and
modern
methods.
Channels
 Website of
Commonwealt
h Bank
 Presence over
social media
platforms
Cost Structure
 Administrative costs
 Technology development costs and
maintenance charges
Revenue Streams
 Policy premium
 Return on investment.
 Financial revenues
Key Partners
 Investors
 Credit card
firms
 Society
 clients
 Agreements
with
Hangzhou City
Commercial
Bank and
Jinan City
Commercial
Bank.
 Financial
regulatory
agencies.
Key Activities
 Insurance and
Investment and
services
 Saving account
 Risk
management
and assessment
 Loan facility
 Customer
procurement
Value Proposition
 Manageme
nt of wealth
 The bank is
popular as
one of the
largest
banks in
Australia.
 Risk
monitoring
and control
 Viable
growth
 Financial
and retail
banking
services.
 B2C and
B2B
services.
Customer
Relationships
 Security to
confidential
information of
customers.
 Brand image
and
reputation.
 Trust and
convenience
Customer
Segments
 Mass
populati
on
 Unisex
 Account
holders
 Credit
card
users
 Governm
ent
Key Resources
 Wide network
of distribution
 ATM
 IT capabilities
 More than 100
branches
 Human
resources
 Mixture of
traditional and
modern
methods.
Channels
 Website of
Commonwealt
h Bank
 Presence over
social media
platforms
Cost Structure
 Administrative costs
 Technology development costs and
maintenance charges
Revenue Streams
 Policy premium
 Return on investment.
 Financial revenues

Conclusion
11
It could be concluded that the business
canvas model adopted by Commonwealth
Bank is effective enough to enhance the
goodwill along with attainment of future
growth objectives. With the above
analysis, it has been recognised that
Commonwealth Bank is required to adopt
certain other strategies and resources with
the objective of meeting with future
customers’ needs.

References
12
• Paetz, P. (2014). Disruption by Design: How to Create Products that Disrupt and
then Dominate Markets. NY: Apress.
• 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.
• Radziwill, N. (2015). Value Proposition Design. The Quality Management
Journal, 22(1), 61.
• Schlagwein, D., Thorogood, A., & Willcocks, L. P. (2014). How Commonwealth
Bank of Australia Gained Benefits Using a Standards-Based, Multi-Provider Cloud
Model. MIS Quarterly Executive, 13(4).
• Commonwealth Bank. (2018). CommBank: Personal banking including accounts,
credit cards. Retrieved from https://www.commbank.com.au/.