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In our view, banks should build theircustomer experience
initiatives throughdigital activities to differentiate
theirbusiness in the market and reap the benefitsof this evolving
consumer age. Sociallyengaged banking can help improve
crossselling,brand value and the customerexperience while
positioning banks forthe market shift towards the age of cocreation
,where consumers help develop thepersonalised products and services
they wantand for which they are willing to paya premium.
Although new features and functionalitieshelp banks meet
customer needs, withouta deep transformational adjustment, banksmay
fall short in their bid to deliver the digitalexperience that today
s consumers seek.To overcome IT challenges and create adigital
banking programme that has thepotential to contribute significant
revenuegrowth, leadership should make a strong,
upfront commitment to a wide-rangingtransformational shift. This
includesoperating model adjustments, culturaland skills alignment,
and technologysimplification.Simplifying the bank s architecture
andplatforms can enable better functionality andimproved experience
across digital channels.These improvements can spur innovation,as
well as boost revenue and efficiencythrough channel ubiquity (a
surge in digitalbanking channels such as mobile kiosks andsocial
media). They can also free the bank to
improvise on revenue models (such as socialmedia-based gift
cards and payments) andreduce the costs associated with
disjointedlegacy platforms.
The globalization of the economy and the liberalization of the
trade markets haveformulated new conditions in the market place
which are characterized by instability andintensive competition in
the business environment. Competition is continuouslyincreasing
with respect to price, quality and selection, service and
promptness
of delivery.Removal of barriers, international cooperation,
technological innovations causecompetition to intensify. All these
changes impose the need for organizationaltransformation, where the
entire processes, organization climate and organizationstructure
are changed. Hammer and Champy provide the following
definitions:
Since information systems are designed to provide the
informationneeded to support desired work practices, they are often
used for training and l
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earning. Asshown by an expert system and a decision simulator,
they sometimes provide new andunique training methods.IBM developed
an expert system for fixing computer disk drives. The expert system
wasan organized collection of the best knowledge about fixing these
disk drives, and itfostered rapid and efficient training. Before
the system was developed, technicianstypically took between 1 and
16 months to become certified, but with the expertsystem,training
time dropped 3 to 5 months.
One common way to improve data processing is toeliminate
unnecessary paper. Although paper is familiar and convenient for
manypurposes, it has major disadvantages. It is bulky, difficult to
move from placeto place,and extremely difficult to use for
analysing large amounts of data. Storing data incomputerized form
takes much less physical space and destroys fewer forests, but that
isonly the beginning. It makes data easier to analyze, easier to
copy or transmit,
and easierto display in a flexible format. Compare paper
telephone bills with computerized bills fora large company. The
paper bills identify calls but are virtually impossible toanalyze
forpatterns of inefficient or excessive usage
