MGMT20132: Business Model Disruption at Commonwealth Bank Australia

This essay examines the role of business models and disruption in the growth and survival of businesses, using Commonwealth Bank Australia as a case study. The essay defines business models and disruption, highlighting how companies use disruption to enhance business operations through innovation and updated technology. It discusses Commonwealth Bank's implementation of smart-connected products like blockchain, smart machines, big data, and the Internet of Things to improve service delivery and gain a competitive edge. While these products offer opportunities such as improved financial services and data management, they also pose threats like data theft and employee resistance. The essay applies the Osterwalder & Pigneur business model framework to illustrate Commonwealth Bank's value proposition, resources, and customer relationships. The conclusion emphasizes the importance of a sustainable business model for future development and anticipates significant growth for Commonwealth Bank in the coming years.

Slide: 1 Title page
Slide: 2 What is business model?
Business model is structure in strategic management which is used to incorporate all the business
processes and activities. These business processes can be visualized under a business model
canvas (Osterwalder, et al. 2011). The canvas is a structure that includes all the components
defining product’s value proposition, customers, resources, infrastructure and finances. The
above picture shows all the components of business model which a company considers to deliver
product and services to its final customers. It assists the organization in gaining more
competitive advantage over its competitors (Baldassarre, et al, 2017). .
Slide: 3 What is Disruption?
To deal with the increased competition in the market, the organizations are using disruption in
their business processes. It is the process that changes and enhances the way of business
operations. Under this process, the companies introduce new products with new point of view.
Disruption can be implemented in process in the form of innovation and updated technology. It
offers new value dimensions to both the business and its customers. These dimensions are
simplicity, accessibility, lower prices, user interface and convenience (Christensen, 2006).
Slide: 4 Commonwealth Bank Australia
For the further discussion, commonwealth Bank is chosen as an organization that has
implemented disruptive technology in its operations. Commonwealth Bank is a multi-national
bank in Australia that offers different services like retail and financial services, insurance,
investment, institutional and business banking, broking and superannuation services
(Commonwealth Bank, 2018). The bank was founded in the year 1911 in Darling Harbour,
Sydney, Australia. The company is well-known as Australia’s the largest bank for opening safe
and quick account.
Slide: 5 Smart connected products
Considering the increased demands of customers, Commonwealth Bank has implemented smart-
connected devices in its processes. Smart-connected products are developed by the organization

using sensors and modern technologies. The major smart-connected products at Commonwealth
Bank are such as Block-chain, smart machines, big data, Internet of Things. Smart machine is
one of the most important product that assists in making service deliver easier and affordable.
The diagram shows the use of smart-connected product at Common-wealth Bank (Christensen,
Raynor, & McDonald, 2015).
Slide: 6 Opportunities and threats of smart connected products
These products allow the bank to create new opportunities to become more competitive in the
industry. At Commonwealth Bank, one of the major innovations through smart-connected
products is smart-machine that helps it in delivering financial services to its customers all over
the world. The firm is able to attain competitive advantage in global banking sector by the use of
these products. Smart machines are created with the sensors that enable this bank to gather and
manage the information of customers among its all departments or branches (Chesbrough, 2010).
Apart from this, the organization is facing some threats also such as theft of confidential data,
security issue, employee change resistance, higher cost of training etc.
Slide: 7 Business model canvas (CBA)
The diagram shows the business model canvas of Commonwealth Bank that includes all the
important components of a business. These components play a significant role in the
organization’s life.
Slide: 8 Value proposition and resources
The value proposition of Commonwealth Bank is very impactful that entices customers towards
its financial and banking services. The organization is offering various banking and retail
services to Australian clients. It is delivering the value to customers as one of the largest banks in
Australia and all over the world. By attracting customers and small businesses, it is able to
manage a sustainable growth in global banking industry (Cohn, Fehr & Maréchal, 2014). One of
the major resources is the staff of bank that delivers the satisfactory services to targeted
customers. It has opened more than 100 branches which are serving customers in New Zealand,
Australia, United States and United Kingdom. By the use of smart-connected products, the bank
has developed its IT capabilities effectively.

Slide: 9 Conclusion
From the essay and presentation, it can be concluded that business model and disruption play an
important role in the growth and survival of a business. For the future development of
organization, the organization needs to develop a sustainable business model. Commonwealth
Bank is operating its business operations by developing a business model canvas. By effective
use of this, the company can overcome different future challenges. The graph shows the future
expected growth of company in coming years. The organization is expecting a significant growth
in its profits and revenues. Thus, it will assist the organization in gaining competitive edge in
banking industry.