Philip Ho Katherine Hui Karen Lui

1
Wireless Strategy

• Group 13
• Philip Ho Katherine Hui Karen Lui
• Brent Sellors Kamen Sun

2
The Story So Far

• CIBC is one of North Americas leading financial
  institutions
• Offers retail and wholesale products and services
  through its global electronic banking network,
  branches and offices
• Electronic banking division is newly formed
• Vision monitor emerging technological trends and
  to gauge their impact on the bank
• Kevin Lasitz, director of business development in
  the electronic banking division
• August 1999 the wireless team requested approval
  from executive committee for the wireless pilot
  project
• November 1999 CIBC experienced a year 2000
  freeze and pilot project was halted
• March 21, 2000 Kevin has been given the yellow
  light to develop and implement a wireless bank
  strategy

3
A Look Ahead

• Development
• CIBCs wireless strategy
• What is the problem?
• Diamond-E analysis
• Identify issues and prioritize
• What are the options?
• CIBCs wireless strategy, v2.0

• Implementation
• Execution processes
• Social operating mechanisms
• Start and stop items
• Action plan and process integration
• Conclusion

4
Strategy Components Model - Revisited
Source CFK
5
A Work In ProgressCIBCs Existing Wireless
Strategy

• Goals
• Learn complexities of new delivery channel
• Competitive response/maintain pace with customer
  and technology
• Establish strategic partnerships and alliances
• Low cost pilot leverage existing infrastructure
• Increase profitability

• Product/Market Focus
• New and existing customers who have mobile
  technology with internet capabilities
• Online banking and brokerage services
• Non-banking functions such as cross promotion
• Value Proposition
• Anytime, anywhere (convenience)
• Core Activities
• ???

CIBCs wireless strategy is currently in its
infancy. It lacks focus and detail, making it
impossible to implement.
6
Weve Got A Problem

• Undesired Result
• A poorly formulated and incomplete strategy that
  is yet to be implemented

• Desired Result
• A fully developed and implemented wireless
  strategy

Gap!
7
A Diamond In The Rough

• Environment
• Demand potential growth in wireless market -
  existing 30 remote customers (not loyal)
• Supply mobile phone carriers (low bargaining
  power), ASP, portal, platform, broadcast, content
  and service (in-house or outsource)
• Competition no dominant players yet, but
  competitors already have launch dates. Limited
  approach
• Technology wireless is still in the early
  stage, access speeds are slow but will increase
  tremendously. Risk fast obsolescence.

• Management Preferences
• Upper management not aligned with project
  management preferences
• Resources
• Financial limited for the project
• HR lack expertise in IT
• Developmental would need full scale
  implementation
• Organization
• Required capabilities will be determined by the
  strategy

Source CFK
8
Issues Identified And Prioritized
Our criteria Urgency two weeks Impact
attracting and retaining customers
9
Issues Prioritized
2.
1.
4.
High
Urgency
3.
Low
High
Low
Impact
Issues 1, 2 and 4 are clearly the areas in most
need of attention
10
Choices, Choices, Choices

• Wait and see slow down implementation, wait
  until technology is more developed, until
  competitors have already fully implemented their
  wireless system, then we can piggyback on
  established knowledge base
• Limited approach like most competitors just go
  with one mobile carrier, focus on banking and
  brokerage service, and no content portal, limited
  devices
• Full scale approach/implementation banking,
  brokerage and content services, support all
  carriers and devices

11
Criteria

• Cost in line with CIBCs restructuring focus on
  increased profitability through rationalization
  (double weighting)
• Time to implement the strategy CIBC is already
  at a competitive disadvantage (double weighting)
• Customer reach the ability to attract new
  customers, for example full implementation will
  bring new customers
• Customer retention (loyalty) 30 of CIBC
  customers are remote and less loyal but more
  profitable, so must meet their needs (double
  weighting)
• Risk (technology obsolescence) the level of
  implementation would affect how much resources
  are committed to technology that may run the risk
  of becoming obsolete

12
The Options Summed Up
13
We Have A Winner

• Option 2 Limited Approach
• Best time to implement the strategy
• Decreased risk of losing its 30 of remote and
  disloyal customers
• Offers a balance between Option 1 and 3 by
  offsetting their weaknesses with respect to risk
  of losing customers and budgetary constraints
• Limited Approach Extends to the Services Offered
• Banking and brokerage services only
• No content/general information
• Can always expand later
• Why We're Outsourcing instead of Developing
  In-House
• Limited IT expertise
• Lessen implementation time
• Meets our most important criteria

14
Wireless Strategy v2.0

• Goals
• Competitive response/maintain pace with customer
  and technology
• Establish strategic partnerships and alliances
• Low cost pilot leverage existing infrastructure
• Increase profitability

• Product/Market Focus
• New and existing customers with mobile technology
  with internet capabilities
• Online banking and brokerage services
• (Non-banking functions such as cross promotion)

15
Wireless Strategy v2.0

• Value Proposition
• Anytime, anywhere

• Core Activities
• Manage outsourcing relationships
• Marketing of wireless services
• Customer support
• Development of wireless services

16
Linking It All Back

• Goals
• Competitive response/maintain pace with customer
  and technology
• Establish strategic partnerships and alliances
• Low cost pilot leverage existing infrastructure
• Increase profitability
• Product/Market Focus
• New and existing customers with mobile technology
  with internet capabilities
• Online banking and brokerage services
• Value Proposition
• Anytime, anywhere
• Core Activities
• Manage outsourcing relationships
• Marketing of wireless services
• Customer support
• Development of wireless services

Summary After identifying issues and
opportunities in our Diamond-E analysis, we have
chosen the best option to help us formulate a
new, complete strategy. As seen from the
linkages, the components of the new strategy are
consistent.
17
And Now

• Development
• CIBCs wireless strategy
• What is the problem?
• Diamond-E analysis
• Identify issues and prioritize
• What are the options?
• CIBCs wireless strategy, v2.0

• Implementation
• Execution processes
• Social operating mechanisms
• Start and stop items
• Action plan and process integration
• Conclusion

18
Execution Processes

• Strategy Processes
• Core activities marketing, customer support,
  development, outsourcing
• Product wireless banking and brokerage services
• People Processes
• Hire new staff with IT expertise
• Train staff to support wireless system (learn
  while outsourcing)
• Succession pick someone from the wireless team
  to lead the system once online
• Reward system incentives to deliver on time

• Operations Processes
• Establish supplier/outsourcing relationships (ex.
  phone carriers, ASP, platform)
• Collect measures of customer satisfaction and
  internal measures (achieve 90 before full
  implementation)
• Institute at least 85 completion rate of pilot
  wireless banking transactions
• Social Operating Mechanisms
• Formal meetings with management to maintain
  commitment
• Cross-functional meetings to determine customer
  needs
• Informal e-mails on timely basis to keep
  stakeholders informed about progress
• Formal wrap-up presentation about strategy
  decisions

19
Starts Stops
20
The Plan Action Integration
21
A Look Back

• Development
• CIBCs wireless strategy
• What is the problem?
• Diamond-E analysis
• Identify issues and prioritize
• What are the options?
• CIBCs wireless strategy, v2.0

• Implementation
• Execution processes
• Social operating mechanisms
• Start and stop items
• Action plan and process integration
• Conclusion

22
Before We Bid Adieu

• CIBC started with an incomplete strategy to enter
  the wireless banking arena. Through the analysis
  we have presented today, we have identified the
  key gaps and filled them in. With attention paid
  to tight budgeting and a limited operating scope,
  we have provided CIBC with an airtight wireless
  strategy. Following an ambitious implementation
  timetable, CIBC will be able to launch its
  wireless banking service, before the end of the
  year 2000.

23
Sources

• Listed in order of use
• Custom Business Resources Casebook
• CFK Textbook
• Bossidy Charan, Execution
• Jim Collins, Good to Great