Citibank strategic goal is to transform the traditional business management funds in the context of e-business. How Citibank transform traditional assets into digital assets? What are the issues, if any, do you imagine that Citibank must overcome in order to implement to be successful?
According to Porter two main ways for the company to compete are on cost or differentiation advantage. Citibank chose not to compete on price, but instead chose to compete for the distinction.
as many other companies have similar products and services, Citibank differentiation based on customer service. Traditionally, and this "requires providing hotlines, relationship managers who understood clients and counselors who provided the product needs service expertise and, most importantly, the continued investment in technology to support the background of electronic banking systems on both the front and". In order to shift "successful" than traditional assets into digital assets of a company must maintain a distinction between him and strengthen. Since the company's differentiation is based on customer service, and this means that in the transition from traditional to digital assets the company must continue to be very responsive to the needs of current and future customers, and we must do it to a higher level of competition. The
key one way that City Bank has achieved the transition from traditional to digital through alliances with these technology companies, Oracle and Commerce One Inc., SAP AG, wisdom and techniques Bolero.net. It invested earlier in the company of millions of dollars of its own in multiple areas of e-business, and failed. Technology is not the City Bank of experience, and they have found to deal with the ever-changing technology to be expensive struggle, who lost in the end. However, by 00, Citibank has changed its strategy to a crowd of alliances and the use of force its partners to create a technological infrastructure that the company needs to gain access to markets and to meet the changing demands of its customers. Working through alliances minimize risk Citibank and costs, and increase its effectiveness, and has allowed it to remain flexible in meeting changing technological demands and customers.
different customer requirements, both short term and long term. According to McCauley was, one of the most important obstacles for Citibank to overcome in migrating customers from traditional to digital services and to meet the demands of the profound security. While some of these degrees hindered City's efforts bank in deploying applications on the Internet, not City actual implementation of "multi-layer security architecture ... public and private access keys, and passwords are used once and controls multi-license" in order to meet customer needs (02 , p. 9). In addition, with digital processing it seemed to transform repetitive operations that could be "commoditized" in the digital factory efficiency. Tslieha repeat operations improves efficiency, but also allows for additional regional focus - localization resources. Also, a strong brand name Citibank is a resource that translates into increased trust as a trusted provider. "" When you compete with Deutsche Bank and other competitors. In fact, most of the Fortune 500 companies set the value of specific offers Citibank, preferably providers of payment services other international. Citibank, then, offers several areas of value to customers.
The key question, however, is whether this value translates into a competitive advantage which translates into additional profits. Although Citibank met the needs of its customers in the field of information technology, and how unique is what is offered to him? Advanced technological capabilities can soon become a "hygiene factors", which is considered to be required, not a competitive advantage. This, then, is not eligible for differentiation or competitive advantage. While at one point Citibank cutting edge technological capabilities, and competitive advantages of this bearing can be quickly eroded offered. Customer service and the efficiency of significant transactions. But we need to ask what other areas of the business that require attention for the success of Citibank in the end. If these are not met, the company does not meet its growth targets.
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