MGMT20132 T1 2018: Innovation and Business Model at Commonwealth Bank

This essay provides an analysis of Commonwealth Bank Australia's business model, focusing on innovation and sustainability. It defines the concept of a business model and disruption, highlighting the opportunities and threats presented by smart-connected products. The essay applies the Osterwalder & Pigneur (2010) business model framework to illustrate findings, examining key partners, activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams. It concludes by emphasizing the supportive role of the business model in future development and overcoming challenges, referencing growth expectations at CBA. Desklib offers a range of similar assignments and resources for students.

INNOVATION AND
SUSTAINABLE BUSINESS
DEVELOPMENT
Commonwealth Bank Australia

Business Model is the framework that includes all the components of
business together. It envisions the firm as a platform of decisions and
their results. The above picture shows different components of
business model:
What is Business Model?
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Disruption is the process which change and improve
the way in which business professionals think and run
their business (Christensen, 2006). The company can
implement disruption by following the above steps.
What is Disruption?

Commonwealth Bank is a multi-national bank in Australia
that was founded in the year 1911. It is one of the largest
banks in Australia that offers above given services.
Commonwealth Bank Australia
servic
es
Retail
banking
services
Investm
ent
Institutio
nal
banking
Superan
nuation
Insura
nce

Smart-connected products are created by incorporating
sensors, software and other updated technologies.
Commonwealth Bank has implemented different smart-
connected products.
Smart Connected Products
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Opportunities and Threats of Smart-connected
Products
Opportunities Threats
• To attain competitive
edge in global
banking industry.
• To create a large
customer base.
• To operate business
activities through
smart-machines
(Porter &
Heppelmann).
• Increased cost of
Training
• Staff is unable to
adopt changes in
technology.
• Security Issues
• Theft of confidential
data

Business Model Canvas
(CBA)
Key Partners
 Credit card firms
 Investors
 Subsidiaries
 Agreements with
2 Chinese banks
(Jinan City
Commercial
Bank and
Hangzhou City
Commercial
Bank)
 Society
 Financial clients
 Financial
regulatory
agencies.
Key Activities
 Retail banking
services
 Investment and
insurance services
 Loan facility
 Credit card facility
 Risk assessment
and management
 Opening saving
account
 Customer
procurement
Value Proposition
 Financial and
retail banking
services
 The bank is
popular as one
of the largest
banks in
Australia.
 Risk
monitoring and
control
 Viable growth
 The bank
offers financial
services to
personal
customers and
businesses.
 Management
of wealth.
Customer
Relationships
 Personal
contact
with
customers
 Security to
confidential
information
of
customers.
 Trust and
convenienc
e
 Non-
personal
channels
 Brand
image and
reputation.
Customer
Segments
 Mass
population
 All income
group
people
 Both males
and females
 Credit card
users
 Account
holders
 Government
Key Resources
 Extensive
distribution
network
 The organization
has established
more than 100
branches.
 Reputation of
Channels
 Website of
Commonwealth
Bank
 Mobile Banking
 Net Banking
 Social media
networking sites

Value proposition and
resources
 Financial and
retail banking
services
 largest banks in
Australia.
 Viable growth
 Management of
wealth.
 More than 100
branches.
 Wide distribution
network
 IT capabilities
 Human resources
Value Proposition Resources and
Capabilities

• Supportive in future development
• Business model can overcome the future challenges.
• The above-graph shows growth expectations at CBA.
Conclusion
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