Project On IT Sector in India

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This is a Nice one, But this Project is on BPO, Call Center's..

Moderators.. Please make this change after having a Look..

THx
Sagar
Challenges facing Banking industry in India
The banking industry in India is undergoing a major transformation due to
changes in economic conditions and continuous deregulation. These multiple
changes happening one after other has a ripple effect on a bank (Refer fig. 2.1)
trying to graduate from completely regulated sellers market to completed
deregulated customers market.
· Deregulation: This continuous deregulation has made the Banking market
extremely competitive with greater autonomy, operational flexibility, and
decontrolled interest rate and liberalized norms for foreign exchange. The
deregulation of the industry coupled with decontrol in interest rates has led to
entry of a number of players in the banking industry. At the same time
reduced corporate credit off take thanks to sluggish economy has resulted in
large number of competitors battling for the same pie.
· New rules: As a result, the market place has been redefined with new rules
of the game. Banks are transforming to universal banking, adding new
channels with lucrative pricing and freebees to offer. Natural fall out of this
New
Players
New
channels
Squeezed
spreads
Demanding
customers
Better
service
Matching
skills
Heightened
Competition
New rules
of the game
Pressure on
Efficiency
Missed
opportunities
Need
For new
orientation
Diffused
Customer loyalty
Deregulation
Retail thrust
Pricing
Value added service
Aligned mindset
Cont. skill building
Bank
Challenges Facing Indian Banking Industry
Figure 2.1
has led to a series of innovative product offerings catering to various
customer segments, specifically retail credit.
· Efficiency: This in turn has made it necessary to look for efficiencies in the
business. Banks need to access low cost funds and simultaneously improve
the efficiency. The banks are facing pricing pressure, squeeze on spread and
have to give thrust on retail assets
· Diffused Customer loyalty: This will definitely impact Customer preferences,
as they are bound to react to the value added offerings. Customers have
become demanding and the loyalties are diffused. There are multiple choices,
the wallet share is reduced per bank with demand on flexibility and
customization. Given the relatively low switching costs; customer retention
calls for customized service and hassle free, flawless service delivery.
· Misaligned mindset: These changes are creating challenges, as employees
are made to adapt to changing conditions. There is resistance to change from
employees and the Seller market mindset is yet to be changed coupled with
Fear of uncertainty and Control orientation. Acceptance of technology is
slowly creeping in but the utilization is not maximised.
· Competency Gap: Placing the right skill at the right place will determine
success. The competency gap needs to be addressed simultaneously
otherwise there will be missed opportunities. The focus of people will be on
doing work but not providing solutions, on escalating problems rather than
solving them and on disposing customers instead of using the opportunity to
cross sell.
Strategic options with banks to cope with the challenges
Leading players in the industry have embarked on a series of strategic and
tactical initiatives to sustain leadership. The major initiatives include:
· Investing in state of the art technology as the back bone of to ensure reliable
service delivery
· Leveraging the branch network and sales structure to mobilize low cost
current and savings deposits
· Making aggressive forays in the retail advances segment of home and
personal loans
· Implementing organization wide initiatives involving people, process and
technology to reduce the fixed costs and the cost per transaction
· Focusing on fee based income to compensate for squeezed spread, (e.g.
CMS, trade services)
· Innovating Products to capture customer ‘mind share’ to begin with and later
the wallet share
· Improving the asset quality as per Basel II norms
Transformation initiatives needed for banks
Tech
Npreowd ucts support
Right
sizing
Flexible
structure.
Change
mgt
New
mindset
Reliable
process
Cost
efficiency
Matching
skills
Pressure on
efficiency
New rules of
the game
Heightened
competition
Resistance to
change
Diffused
Customer
loyalty
Banks would require a holistic approach to continuously
address all the challenges
The ECS value proposition for helping banks in their transformation agenda
We at ECS Limited have vast experience in partnering with leading players in
banking for addressing these challenges in a holistic manner. Our expertise is
reflected in our product offerings for addressing the key challenges. A select few
are outlined below:
· Strategy
o Sales & Marketing strategy for both retail & wholesale banking
o Expanding geographies
· Brand
o Understanding the values of the brand
Figure 2.2
o Repositioning the brand to communicate the values
· Organization restructuring
o Re organization of the bank in line with the strategic thrust
· Re engineering of the key business processes
o Redesign of Sales processes to increase conversion ratio
o Six Sigma process improvements for branch channel, Call Center &
back office processes
o Centralization of branch operations and deferred processes to free up
resources
· Cost efficiency
o Reduction in Total cost of acquisition
o Reduction in Transaction costs
o Reduction in fixed and overheads cost
· Right sizing and matching of skills
o Manpower modeling for branch & back office at various volume
scenarios
o Productivity improvement for sales & service functions
o Competency Assessment & profiling
· Creating a high performing organization
o Define new roles & responsibilities, KRA
o Assessing competencies of people across levels and match the
position with the skill set
o Designing and implementing a new PMS for restructured organization
· Change management & creating a new mind set
o Developing critical mass of champions and drive ‘Change’ across the
organization to move from conventional banking to new age banking
 

jderashri

New member
Re: Project On IT Sector in India / COMPETETIVE ADVANTAGE OF IT IN NEW ERA OF BUSINES

COMPETETIVE ADVANTAGE OF IT IN NEW ERA OF BUSINESS

Strategic View of Information Systems
Information systems are vital competitive networks.

Information systems are a means of organizational renewal.

IS are a necessary investment in technologies that help a company adopt strategies and business processes that enable it to reengineer or reinvent itself in order to survive and succeed in today’s dynamic business environment.
Strategic Information Systems
Definition:
Any kind of information system that uses information technology to help an organization gain a competitive advantage, reduce a competitive disadvantage, or meet other strategic enterprise objectives.
Porter’s Competitive Forces Model
To survive and succeed, a business must develop and implement strategies to effectively counter the:

Rivalry of competitors within its industry
Threat of new entrants into an industry and its markets
Threat posed by substitute products which might capture market share
Bargaining power of customers
Bargaining power of suppliers
Competitive Strategies
Cost Leadership
Differentiation
Innovation
Growth
Alliance
Cost Leadership Strategy
Becoming a low-cost producer of products and services
Finding ways to help suppliers and customers reduce their costs
Increase costs of competitors

Examples: Use IT to reduce the cost of business processes – Reduce Order Processing Costs, Lower Inventory costs

Differentiation Strategy
Developing ways to differentiate a firm’s products and services from its competitors’
Example: Wal-Mart P.44

Reduce the differentiation advantages of competitors
Innovation Strategy
Development of unique products and services

Entry into unique markets or market niches

Making radical changes to the business processes for producing or distributing products and services that are so different from the way a business has been conducted that they alter the fundamental structure of an industry
Growth Strategy
Significantly expanding a company’s capacity to produce goods and services

Expanding into global markets

Diversifying into new products and services

Integrating into related products and services
Alliance Strategy
Establishing new business linkages and alliances with customers, suppliers, competitors, consultants, and other companies
Competitive Strategy Examples
Other Competitive Strategies
Locking in customers or suppliers by building valuable new relationships with them and Lock out Competitors

Building switching costs so a firm’s customers or suppliers are reluctant to pay the costs in time, money, effort, and inconvenience that it would take to switch to a company’s competitors.

Other Competitive Strategies
Raising barriers to entry that would discourage or delay other companies from entering a market, by increasing Investments in Technology required to compete.
Leveraging investment in information technology by developing new products and services that would not be possible without a strong IT capability.

Advantage vs. Necessity
Competitive Advantage – developing products, services, processes, or capabilities that give a company a superior business position relative to its competitors and other competitive forces

Competitive Necessity – products, services, processes, or capabilities that are necessary simply to compete and do business in an industry
Customer-Focused Business
A business that:

can anticipate customers’ future needs.

responds to customer concerns.

provides top-quality customer service.
IS in a Customer-Focused Business
Value Chain
Definition:
View of a firm as a series, chain, or network of basic activities that add value to its products and services, and thus add a margin of value both to the firm and its customers.
Value Chain
Value Chain Examples
Support Processes
Career development intranet can help the human resources management function provide employees with professional development training programs.
Computer-aided engineering and design extranets enable a company and its business partners to jointly design products and processes.

Value Chain Examples
Support Processes
Extranets can dramatically improve procurement of resources by providing an online e-commerce website for a firm’s suppliers.

Value Chain Examples
Primary Processes
Automated just-in-time warehousing systems to support inbound logistic processes involving storage of inventory, computer-aided flexible manufacturing (CAM) systems for manufacturing operations, and online point-of-sale and order processing systems to improve outbound logistics processes that process customer orders.

Value Chain Examples
Primary Processes
Support of marketing and sales processes by developing an interactive target marketing capability on the Internet and its World Wide Web.
Customer service can be dramatically improved by a co-ordinated and integrated customer relationship management system.

Value Chain
Business Process Reengineering
Definition:
Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed, and service.
Examples: VMI using Internet & Extranets
CRM using corporate Intranets
Cross functional ERP solution for integrating manufacturing, distribution, finance and HR processes
Business Process Reengineering
The Role of Information Technology
Information technology plays a major role in reengineering business processes. The speed, information processing capabilities and connectivity of computers and Internet technologies can substantially increase the efficiency of business processes, as well as communication and collaboration among the people responsible for their operation and management.
BPR vs. Business Improvement
Cross-Functional Processes
Knowledge Management
Definition:
Techniques, technologies, systems, and rewards for getting employees to share what they know and to make better use of accumulated workplace and enterprise knowledge.

Knowledge Management Systems – manage organizational learning and business know-how
Levels of Knowledge Management
 
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