Enterprise Mobile Application for Commonwealth Bank's Referral Program

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CIS8000
ASSIGNMENT 2
ENTERPRISE MOBILE APP
BUSINESS CASE
Student ID:
Student Name:
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Chief Information Officer
Commonwealth Bank
201 Sussex Street
SYDNEY NSW 2000
08 May 2019
Chief Executive Officer
Commonwealth Bank
201 Sussex Street
SYDNEY NSW 2000
Dear Matt,
Following our discussion last week, I am adding a report which presents a strategic plan for
developing a mobile app to replace our nation-wide operations. The offer is primarily focused
on our Business Manager's previous presentation and provides scheduling, design,
developing & implementation strategy.
The report also examines and documents possible changes in the nature and processes of the
Commonwealth Bank, business management skills and technology skills and corporate
structure. A cost-benefits analysis will demonstrate how the referral application for the bank
as a visionary in the technology industry provides direct or indirect benefits and how our
mission would be to provide our customers with the best benefits. We truly think that this
mobile app will make business processes more effective, help increase our customer base and
produce enormous revenues that do not match any existing banking services.
Thank you for giving us the chance to propose this referral system application as a part of the
next big service of the Commonwealth Bank. I will be happy to discuss any further questions
or queries you may have at our very next meeting.
Yours Sincerely,
Signature of student
Name of student – CIO Commonwealth Bank
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A REPORT ON THE
NEW REFERRAL PROGRAM
MOBILE ENTERPRISE APPLICATION
Commonwealth Bank of Australia
PREPARED FOR: Mr Matt Comyn, CEO
DATE:
PREPARED BY:
STUDENT ID:
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1. Executive Summary
Technology is growing at a faster pace, so Commonwealth Bank is also expanding its
systems. The report is a proposal of the referral system in which the customers, as well as the
staff, will be able to refer other people and increase the overall customer base as well as
generate huge revenues. With the use of mobile applications, the referral system will be
made. IOS, as well as Android, will be used as these two platforms are the most common
among customers. In this report, we discussed the background of the bank’s referral process,
proposed a solution, performed a cost analysis, developed strategies, value proposition,
project development methodology, gathered requirements, software design layout and
development strategies with testing strategies. We also discussed the international market
with respect to the application and social media importance with the risk management.
Overall this is a proposal report for the Commonwealth Bank’s new referral program project.
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Table of Contents
1. Executive Summary...............................................................................................................4
2. Background............................................................................................................................6
3. Proposed Solution..................................................................................................................6
4. Cost Analysis.........................................................................................................................7
5. Strategic Alignment...............................................................................................................8
6. Value Proposition...................................................................................................................8
7. Project Management and Control...........................................................................................9
8. Infrastructure Requirements...................................................................................................9
9. Software design, development methodologies & testing strategies.....................................11
10. Internationalisation.............................................................................................................13
11. Social Media.......................................................................................................................13
12. Risk Management...............................................................................................................13
13. Integration & Deployment Strategies.................................................................................14
14. User Acceptance and Change Management.......................................................................15
15. Maintenance.......................................................................................................................15
16. Future Opportunities & Enhancements..............................................................................15
17. Recommendations & Conclusion.......................................................................................16
References................................................................................................................................17
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2. Background
In April 2019, the Business Manager proposed that a Commonwealth Bank referral system be
replaced by a mobile business app for improvement of the overall referral program and also for
revenue production and an increase in the overall customer database. The business study has been
created by the CIO. Commonwealth Bank is in need of a referral program because of many
factors which are affecting the overall growth in the right direction. There are various factors
due to which the bank needs a referral program – It has been observed that the
Commonwealth Bank is experiencing an overall decline in the profit giving customer
behaviours. The customers are not happy with the current system which the bank is
following. Also, there is a large decrease in the overall high customer exp. number as the
banks are unable to digitalize and still rely on the legacy systems which are inflexible in
nature and slow to work. With the flaws in the referral program, the customers are on average
saying that they won’t be referring to their friends or family to the bank. "Switching kits"
make it easy and quick to move from one bank to another, leading to an increase in customers
in every region of the world who report likely to leave the bank within 6 months. To stay
competitive in this market, the Commonwealth Bank will have to come with an innovative
plan which will help the business grow to new heights. Customers are far too pressured to
live with a financial institution which does not meet their requirements. Most of the programs
fail in designing a reference program, both in terms of user experience and business rules. A
brand which sets the program up so it's convenient and easy to manage for them but fails to
regard the end user is the most consistent design defect of a failed program.
3. Proposed Solution
According to the Business Managers report, customers are also looking for comfort in their
banking selection process these days. It is also necessary to provide digital methods with an
established name in order to simplify the banking process for the client. Easy applications can
also help staff manage and enhance efficiency. We need to develop something for our
customers to take us to our bank so that they can start ahead of our bank. If the
Commonwealth Bank wants to increase the overall revenue generated from the customer base
then there are certain things which the bank must do to achieve the needful. There are a few
proposed solutions which will be implemented in the mobile app for the new referral
program. The solution is mentioned below.
As we have seen that 40% of the customers of the bank are not interested in the overall
referral process or program, they just simply don’t want to make referrals. But still, we are
left with the other 60% of the customers which are there to make referrals and are very much
interested in it as they also want the benefits which are coming from it. So, looking at the
future we are certain that the overall referral process or the program will help the bank grow
its revenue. The need for the referral customers is an important aspect for the bank as the
referred customers generally have the overall knowledge of the banking system. This process
actually helps the bank in increasing the overall generated revenue and that too at a lower
cost. The customers which are referred are generally more loyal and also stay for a longer
duration than the customers which are acquired by the other channel sourcing. A study
calculated that around 20% of the referred customers stay longer and also help the company
to make 16% more profits as compared to the customers which are non-referred.
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4. Cost Analysis
A major part in software development would be the compilation of a cost-benefit analysis for
the referral program. A cost-benefit analysis quantifies the achievements and risks involved
with that of the mobile app maintenance & production, allowing the Commonwealth Bank to
budget for all of the long run. The shown table provides an approximately net current value
of $14,921 for a five-year cost-benefit analysis. The excessive margin for technical
improvements, malfunctions as well as other unforeseen scenarios are also included in the
analysis. The referral program is projected to provide an efficient, productive application to
Commonwealth Bank with a net positive cash flow of $32,265, with an internal rate of return
of 43.68%.
Year
2019 2020 2021 2022 2023 TOTAL
Project Benefits - Anticipated
Direct 12,000 24,000 36,000 72,000
Referral Sales -$
Direct Benefits 12,000.00$ 24,000.00$ 36,000.00$ 72,000.00$
Indirect 700 1,400 2,200 3,600 5,000 12,900
Equity -$
Experience & Performance Increase -$
TOTAL BENEFITS 700.00$ 1,400.00$ 14,200.00$ 27,600.00$ 41,000.00$ 84,900.00$
Project Costs
Software Pricing 1,500.00$ 350.00$ -$ -$ -$ 1,850.00$
Designing 600.00$ 600.00$
Development 900.00$ 350.00$ 1,250.00$
Software Maintenance / Subscription 1,500.00$ 2,000.00$ 2,500.00$ 3,000.00$ 3,500.00$ 12,500.00$
Marketing Cost 1,000.00$ 1,500.00$ 2,000.00$ 2,500.00$ 3,000.00$ 10,000.00$
Maintenance Cost 500.00$ 500.00$ 500.00$ 500.00$ 500.00$ 2,500.00$
Services Implementation 800.00$ 400.00$ 400.00$ 400.00$ 400.00$ 2,400.00$
Staff Training 400.00$ 200.00$ 200.00$ 200.00$ 200.00$ 1,200.00$
User Training 400.00$ 200.00$ 200.00$ 200.00$ 200.00$ 1,200.00$
Services Maintenenace / Upgrades 500.00$ 500.00$ 500.00$ 500.00$ 500.00$ 2,500.00$
Upgrades 500.00$ 500.00$ 500.00$ 500.00$ 500.00$ 2,500.00$
Infrastructure Purchase 4,200.00$ 3,850.00$ 4,350.00$ 4,850.00$ 5,350.00$ 22,600.00$
Server Purchase 3,500.00$ 3,500.00$ 4,000.00$ 4,500.00$ 5,000.00$ 20,500.00$
Office Servers 700.00$ 350.00$ 350.00$ 350.00$ 350.00$ 2,100.00$
Infrastructure Maintenance 400.00$ 800.00$ 1,200.00$ 1,600.00$ 2,000.00$ 6,000.00$
400 800 1200 1600 2000
TOTAL 8,900.00$ 7,900.00$ 8,950.00$ 10,350.00$ 11,750.00$ 47,850.00$
GST 890.00$ 790.00$ 895.00$ 1,035.00$ 1,175.00$ 4,785.00$
TOTAL COSTS 9,790.00$ 8,690.00$ 9,845.00$ 11,385.00$ 12,925.00$ 52,635.00$
Net Present Value
Total project benefits 700.00$ 1,400.00$ 14,200.00$ 27,600.00$ 41,000.00$ 84,900.00$
Total project costs 9,790.00-$ 8,690.00-$ 9,845.00-$ 11,385.00-$ 12,925.00-$ 52,635.00-$
Net cash flow s 9,090.00-$ 7,290.00-$ 4,355.00$ 16,215.00$ 28,075.00$ 32,265.00$
NPV years 1-5 $14,921.23
Internal Rate of Return
IRR years 1-5 43.68%
Cost Analysis: Commonwealth New Referral Program
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5. Strategic Alignment
The Commonwealth Bank customers are the number one priority for the bank. The bank is
unified by the customers and the core part of what work they do at the bank. Improving the
overall customer satisfaction and financial well-being is what is most important for the bank.
The main focus of this bank is on its customers and getting new proposals to increase the
benefits for the customers as well as the bank. The bank wants its customer to feel valued.
The new referral program application will provide the customers with an overall new concept
of the referral process. By developing our app, we try to influence our clients in all ways, so
that it leads our bank to the largest number of customers. The usefulness of the application is
important because customers only use the app when a big problem is solved. With
an adaptable interface, the application should be easy to use. The system must be safe, not
exposed to hackers that can steal data. The system must be secure. The performance of the
system built should be reliable and exceptional information quality. The bank uses world-
class technology to satisfy our customers ' evolving needs. It also develops programs to build
real-time capabilities, look at new ways in which the customers interact, using the analysis to
provide more value for money and higher prices, provide the customers with more stability
and use technology to improve productivity. The way the bank does business for the
customers and the people is continually simplified. This is always done by good companies
and is essential to long-term success. It examines the Group process by process, find ways of
improving turnaround times, reducing bugs and reducing unit costs. This app provides a way
for the user to refer a bank service or an employee to another user directly. This reduces the
chance of a mistake and also gives the reference person the status of the process. The
workflow would be more flexible since the app can be used everywhere without restrictive
time on mobile devices owned by employees. It can track and understand the management of
referrals and provide a clear overview of the overall referral program.
6. Value Proposition
A value proposition relates to the value that a business is promising to deliver to its clients if
its products are to be purchased. A value proposition is a declaration of a statement which
presents the brand of a company to consumers, telling them what it stands for, how it works
and why it deserves its business. A value statement can be presented as an enterprise or
commercial declaration, which is used by a company to summarize why a consumer must
buy the product.
The main target audience for this application are the customers who will use it. The
customers have several powers which can benefit the bank such as they can attract new
customers to the bank & without even publicising the bank the customers can refer to the
bank’s application. The overall referral process is a win for both the parties – the customer as
well as the bank. Other target audiences for this application are the employees working in the
bank. The employees are just like the customers as they refer the bank services to the friends
& family which in turn increase the overall revenue of the bank. Even before the customers
get to know about the referrals, the bank employees know it and then they attract early
customers with best deals which helps the bank. The employees understand well and tracking
all referrals which are there in their department or they also track the referrals of their own.
This application for the referral program will easily and provide clearer referral status which
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will, in turn, reduce the overall rate of mistakes and will definitely improve the work-flow
with good communication.
7. Project Management and Control
The monitoring of the progress of the new referral project will require integrated project
management as well as control methodologies, with various tools and methods integrated into
a single system to support decision making. Control of projects is the method used to monitor
and identify possible problems and possibilities promptly so that corrective measures can be
taken when required. A GoalPost is an integrative project tracking tool that is built on the
research and planning of the research team as integrated project management and monitoring
system. To facilitate and improve project management, GoalPost software tools helps in
bridging the relationship between baseline planning and risk analysis. A deep analysis is
required before starting with the development of the project as this new referral project is
very crucial for the bank to generate a good amount of revenue.
The referral project will be managed by the project manager. The team will consist of the
designing team, development team, testing team, suppliers, and the manager. The Project
Manager for Referral Application will be responsible for project management and control.
The Referral Project Manager observes, collects, measures data, records downtime and refers
per customer in a timely manner. In order to provide access and support for the project team,
the project manager will reside in the department as an employee. A representative of each
skill; a database manager, software development, designer, testing company, supplier and
other representatives will be included in the main reference project team. Any questions,
feedback or questions regarding the development of your app may be reported to a project
team member who provides the Project Manager with the information. In monthly meetings
with Upper management and the Company Execution Team at the headquarters, the projects
manager compiles reports via the GoalPost software. Any important problems are reported to
the management of the company implementation team in a timely manner, in order to achieve
effective and efficient control management measures where necessary.
8. Infrastructure Requirements
This new referral application will be integrated with the Commonwealth Bank’s current
mobile application. This application will access the Commonwealth Bank database and will
also share the networks. The server capacity used by the Commonwealth Bank is sufficient
enough for the project proposal. For the smooth functioning of the application, the
application servers will be centralized for the wide app deployment. The overall
infrastructure that any digital platform provides is a way to better than any other technologies
as the organisation is provided with a large number of benefits such as less cost and dynamic
nature. Using the digital platform is really important in today’s marketing. Every person out
there has a phone in hand and it’s very convenient for the people to use things on the
application on the go. So, the referral system being on an application will definitely help the
organisation grow. This application will be able to run on both IOS & Android platforms
because the majority of the customers use either of these two. As per a research report,
around 78% of mobile phones use Android as an OS whereas only 15% of the users use IOS
devices. Now, for the Android application development, Java will be used and for the IOS
development, Swift will be used. For IOS device application development Object-Oriented C
programming language will be used. These languages are all open source languages. The
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developers of these applications will be using a cross-platform application dev tools. The
final product design & development will be discussed in the planning stage. But moving on to
the IOS application development, the swift should be used in place of Objective-Oriented C
as the swift is simpler and faster to use, it has proper management of memory and less coding
lines are required. It also supports libraries which are dynamic in nature. A member of the
development team will be interacting with the Commonwealth Bank team to fully ensure the
referral system is going parallel to the requirements told by the Bank. Cloud services will be
required for the mobile application and reliable service would be required as there shouldn’t
be any delay in the overall customer app running process.
Cloud computing is for everything involving the provision of hosted Internet services. These
services are divided into three categories in general:
Figure 1: Cloud computing Services
The Commonwealth Bank’s new referral system will be using the Public IaaS cloud
computing service for all the referral as well as other services.
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Figure 2: Type of Cloud Computing
9. Software design, development methodologies & testing strategies
The project management rules are followed by the referral system software development. It
includes extra factors like challenges & other setbacks in the Information Technology
industry. The first stage of this software development will the planning stage where all the
requirements will be gathered and then the teams will come for a discussion for the project
planning. After the project planning is completed, the design team will be responsible for the
overall design of the application. The user experience will be kept in mind while designing
the app. The software development team will now start coding of the application. The
developers will try to make the application livelier and more reliable to use without any bugs.
To make sure any requirement is not missing and a proper check should be done by the
testers. A set methodology will be used in this development such as requirement gathering,
planning, designing, development, testing, deployment and maintenance. There are different
types of software methodologies which are mentioned in the diagram below.
 Prototype Model
 Waterfall Model
 Agile Model
 Rapid Application Development Model
 Spiral Model
 V-shaped Model
For the development of the referral project, we will be using the agile model as it is the best
for the development of a mobile app and it’s very efficient as well. Agile methodology has
many features for example – it’s adaptable, very much flexible & also meets all the
requirements in a shorter duration of time. Other methodologies are costlier than the agile
methodology so, this gives the bank more reasons to select the agile methodology as the
software development methodology. As we know that many companies have to face very bad
software development and testing strategies and the companies face huge risks and losses.
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But in agile all these problems are solved as this methodology incorporates the most
important process i.e. testing into the design and development where all the criteria are full
filled and any problems that come while developing are solved as well without any further
problems.
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