Innovation and Business Development: A Case Study of Commonwealth Bank

Desklib provides past papers and solved assignments. This report analyzes Commonwealth Bank's use of design thinking for innovation.

INNOVATION AND SUITABLE BUSINESS
DEVELOPMENT
1

Executive Summary:
In this study, the explanation about the design thinking will be done and in the context of
Commbank Company. This study will explain the innovation trends, innovation strategies and
vale of the innovation which is very important for the growth of the company. It also explains the
impact of innovation on the working of the company like Commbank. SWOT analysis and
business canvas model is also given in this study.
2

Contents
Executive Summary:........................................................................................................................2
Introduction:....................................................................................................................................4
Discussion:.......................................................................................................................................5
An organisational environment of the Common Wealth Bank:..................................................5
Innovation trend:..........................................................................................................................5
Innovation strategies:...................................................................................................................5
Innovation capabilities:................................................................................................................7
Innovation value creation:...........................................................................................................7
Creation of innovation strategy to make sure the organisation’s alignment and its importance:8
Impact of design thinking on Commbank:..................................................................................9
Conclusion and Recommendations:..............................................................................................13
References:....................................................................................................................................14
3

Introduction:
Design thinking is known as the methodology or technique which gives the approach to solve the
problems within the company. It is a non- linear and highly interactive or communicative process
which helps users to understand the real meaning of design and challenges thoughts of the people
or users. It also redefines the problems and helps in developing innovative and creative solutions
to test and prototype. The tools and techniques which are used in design thinking consist of 5
parts define, ideate, empathise, test and prototype. These methods are highly useful when the
company wants to handle the problems which are unknown and undefined in nature.
In this study, the company Commbank or commonwealth bank is used which is situated in
Australia and had it’s headquartered in Sydney. It is a multinational bank of Australia who
conducts their businesses across New Zealand, United States and Asia. This study will show the
relationship of design thinking with the Commbank and how this bank uses the techniques of
design thinking to grow on the national and international grounds. The trend of design thinking is
going on currently which helps companies to make them increase as compared to other
companies in the world of competitions. Design thinking is an innovation trend which is selected
in this study which shows the importance of this trend in the Common Wealth Bank.
4

Discussion:
An organisational environment of the Common Wealth Bank:
The Commonwealth Bank located in Australia is one of the best driving and encouraging
monetary organisations of the country. The organisational environment of this company is highly
professional and the customer feels safe and secured while depositing their fund in this bank. The
working condition of the bank is very easy to understand and the employees are very helpful to
their customers because of their norms, cultures and values (Beltagui, 2018). The technologies
used by this bank are really advanced and time effective which helps in reducing and saves the
time of customers. Targets which are carried out with replacing the lights which are ineffective
and produces heat in the company. The surrounding the company is successfully ventilated and
air-conditioned which are fitted in their commercial and retail buildings.
Innovation trend:
The innovation trend which is used in this study is design thinking because it has become one of
the crucial parts of every company to create and polish their skills which gives them permission
to understand the changes going on in the company rapidly and act upon the changes happened
in the behaviour and environment of the company or organisation. The world is becoming
progressively connected and inextricable in their way of working which leads to an increase in
the problem of growth and increment in the profits of the company. The design thinking provides
the grapples to companies like Commbank and gives the solution to all the types of changes that
occurred in a very high human-centric manner. Design team of the company Commbank utilizes
the design thinking to face the undefined or any kind of unknown issues or problems which can
be faced by the company because the reframed process of the company creates these kinds of
problems which are human-centric in nature and focuses their attention on the very most
important and necessary problems of the company.
Innovation strategies:
The design thinking is the ideal and best process for making up the objectives and setting up the
strategies where the company wants to attain real innovation. Commbank always creates their
own design thinking strategies to achieve its goals and objective in a very effective and efficient
manner (Luotola, et. al., 2017).
5

Here are some of the design thinking strategies which can be used by the Commbank to promote
innovation in the company because no matter how creative the team is but there are the times
when a company have to face the lack of thoughts:
 Observation and empathy:
The design thinking of the Commbank starts from empathy because it makes the
relationship of the company with their customers rich, healthy and meaningful.
Commbank always performs the task by keeping themselves as a customer and
experience their thoughts about their bank and how they feel while coming into the
building of their bank. They try to wear their customer's shoe and try to understand their
perspective. Understand their customers and empathy are very important to bring the
solution out which should be effective and efficient in solving the problems of the
company. Commbank takes care of their customers and try to listen, observe, learn and
then provide or fulfil the requirements of their customers (Eines and Vatne, 2018).
 Think holistically:
This is another strategy of the design thinking which is used by Commbank and searches
for the hopes, pains and fears pointed for the main user of the product or services. It also
helps the company to understand how they can improve their customer’s experience
while dealing with their bank.
 Brainstorming:
In search of a highly innovative approach, Commbank tries to engage them with the
customers by the help of a brainstorming session in which they try to convince their
customers to be their customers and they will provide benefits to their customers. During
this process customers are also involved and they give feedback on the session they have
attended before making the final product available to them and ask for the solutions of
the problem.
 Prototype:
The prototype is the very important part of the session which is attended by the customers
and it also includes the procedure of making prototype so that Commbank can get new
ideas to run their business successfully (Beverland, et. al., 2015). The design thinking is
all about excreting or finding the best possible solutions for the problems or the issues
which can be faced by the company. Commbank always tries to share and collaborate the
6

ideas and thoughts with their customers so that they can also understand the new and
innovative plans which are created by the team of design thinking.
Innovation capabilities:
The innovation capabilities are the very important part of the company like Commbank because
the capability to be innovative is not an easy task to perform which can be attained simply. To
become capable of producing innovative ideas needs a discipline which may not be important for
customers but it is highly important for the company because they want to grow and increase
their profit (Schütte, 2017). The disciplinary capabilities and experienced people play a very
important role which drives the creation of the new product and services for their customers and
also helps in developing the business model for the benefit of the company. Without the help of
in-depth specialisation, the usage of cutting edge technology, new practices for the business and
proper understanding of the factors related to human and it cannot be joined together to develop
the solutions of the problem faced by Commbank and their customers.
Innovation value creation:
Value creation in design thinking is known as the value of utility which defines the economies of
the company like Commbank. It is technically right but not useful terribly. Commbank always
thinks of a number which they want to achieve for the better future and serves the new
requirement of the customers from the company.
7

Creation of innovation strategy to make sure the organisation’s alignment and its
importance:
The strategic alignment of the Commbank can create an innovative and creative project which is
importantly opposite of performing the random acts of creativity and innovation. The design
thinking helps the company to undertake the creativity with the specified goals and objectives
decided by the company for their own benefits. The company creates a map of what customers
are hoping from the company and what the company is expecting from customers and how these
activities match the vision and mission of the company (Prajogo, 2016). The company
sometimes start overarching their objectives and they have least of abrupt knowledge and
understanding of the different paths to reach the desired or positive outcome, it is also done with
the unique but necessary milestone which Commbank have to move.
The innovators in the corporate world are not safe and know that they can be influenced by the
external environment. The creators lure the new type of technologies like blockchain, 3D
printing, artificial intelligence, etc. Creating the innovation strategy is not an easy task because
the world is changing and the company must make sure about their innovative ideas which will
fight against the competition in the market. The importance of alignment of the organisation is
developed by the design thinking in the company because if the thought of the organisation is
good and growing then they will definitely grow. The exploration of new technologies in the
market is highly exciting and entertaining on the individual and organisational level. So,
Commbank put their teams in the direction of exploring the latest technologies which may not be
higher in strategic level but it will be fun and interesting for both the company and their
employees (Sanja and Santo, 2017).
8

Impact of design thinking on Commbank:
The impact of design thinking is done on the leverage innovation and creation to bring the level
of productivity in up-word direction within the Commbank Company. It has impacted the
Commbank by providing them with the knowledge of new technologies. Commbank founds that
the innovation all over the business activities and the implementation of the innovative ideas also
have its impact over this company which helps the company to boost the million and billions of
dollars within the economy of the country. It also plays a very vital and important role in
supporting the competitiveness going on globally which gradually helps in the growth of the
economy with a very high rate. The design thinking promotes innovation in the nation which
supports the performance of innovation and it also increases the expectation by the company and
has its impact on the business of Commbank. It encourages a high level of productivity at a very
large or macroeconomic platform or level (Mihaela, 2018).
Strengths
 Successful record of the company in
creating and developing the new
products like production of the
innovation.
 It has a high level of skilled workforce
which is highly successful in giving
their employees learning and training
programs.
 The activities within the company are
automotive which brings stability and
consistency in the quality of the
products of Commbank.
Weakness
 The company is incapable of facing the
challenges which come into their way
by the entrance of the new companies
in the market.
 They are not good at demanding the
product forecasting which leads to a
higher amount of opportunities missed
by them.
Opportunities
 The Commbank has a new trend which
they can receive from the behaviour of
the customers who can open up in the
current or new market of the company.
Threat
 Increasing trends for the isolation in the
economy of the company can lead to
the same type of reaction face by the
company of the customers.
9

 The main opportunity with Commbank
is that the rate of inflation is very low
so they can keep the price as they want
but suitable to their customers.
 There is high and intense competition
in the bank field which is faced by the
Commbank (Valentine, et al., 2017).
Business Canvas Model:
Key Partners
Flex-N-Gate
NHK Spring
Seebrum
Valeo electric
and
Electronic
system
Key activities
Designing
Manufacturing
Marketing
Value
Proposition
Better position
Good quality
products and
services
Customer
Relationships
Redressing of the
grievances
Providing better
satisfaction
Customer
Segments
Each and every
segment of
consumers
should be made
targets of the best
operations
Key Resources
Financial and
human resources
Infrastructure
created by the
help of
technologies
Channels
Agencies
Suppliers
Intermediaries
Cost Structure
Higher contribution to the environmental
analysis
Higher contribution to innovation in the latest
trends
Revenue Streams
Debit card
Credit cards
Cash on delivery
10

11

How the strategies of the organisation which ensures the alignment to trends of the
innovation
The Commbank should make sure that they focus on the suitable alignment which is effective in
nature and the strategy innovative to addresses the trend in the innovation or creativity. For this
type of purpose, it is the pre-requisite which is concerned make sure that the company focuses on
the suitability of the identification of the requirement and demands of the consumers so that it
can satisfy the customers effectively and efficiently.
The main purpose of this study is concerned about the company should focus on the adaptation
and application related to the suitability of the strategy innovation. The company is concerned
about the suitable and technologies appropriate which assists working better in terms of patterns
working on the competition in the market (Parkinson and Warwick, 2017).
12