We are MSc Global Supply Chain Management Students at Brunel University, updating the blog for the purpose of group discussions in Operations and Project Management (MG5579) module.
Thursday 17 January 2013
Question b
B. What are the key operational objectives for the bank to regain its position in the competitive market they operate in? How these can be improved? Provide details of your arguments and recommendations with proper justification.
In order to improve the customer experience, this bank may need a new system with consistent processes and service. This bank needs to analysis of the regional variations and customer needs, then adopt a simplified system with consistent process and leveraging specific functionality to meet the unique requirements from different region. There are some recommendations with detail: 1， easy to operate and simple interface will make a system more practical 2， increases the tasks processing automatically ( eg, develop RFID application software system)
There are few operational objectives that a bank wants achieve. Increasing efficiency can be one of them. Bank can improve its efficiency with the help of technology. Today every bank offer basic services using technology such as payroll, direct deposits, ATMs, debit and credit cards, telephone banking and home banking. These services gradually take over works provides through the branches. Today a customer can transfer money to any account or withdraw money almost from anywhere in the world. Behind all these facilities globally connected information systems play a major role. Therefore to obtain high level of efficiency it is necessary to use well-developed information systems. Many banks have stopped opening new branches and they have to calculate profitability among individual branches. Gupta (1998) mentioned that ATM machine provides the same service at 75% less cost compared to a staff member at a branch which emphasized the use of technology does not only create convenience for the customers but also help to reduce the cost.
Changes of consumer behaviour make great impact on the requirement of individuals. Today many banks try to customize its services. Gupta (1998) also explains that nonbranch usage varied based on the customer segment. For example older customer still may prefer to use their local branch, use of cheques and younger generation may refer to use ATM withdrawals and card payments. Apart from that Time is more valuable thing for human as never before, therefore service flexibility is one of the key objectives that a bank need to improve at higher level. Therefore banks’ operations have to be far more flexible to meet customer needs which leads to achieve competitive advantage through service flexibility.
Banks need to keep good relationship with its customer through every channel of communication. Customers expect three important factors from a bank. First, customers need bank to correct the mistakes and errors. Second is quick response. For example when a customer applies for a loan, he or she expects quick response than wasting time on slow “Yes”. Customers may dissatisfy with slow process and sometimes it may create a loss for customer. Third, customers expect friendly service regardless of branch or a machine. They still want to feel important and want bank to treats them as resource to the bank (Gupta.M 1998). This leads to increase the quality of service which can be another operation objective.
Ref: Gupta, M. (1998) Strategic implications of technology on operations of the banking industry. Production and Inventory Management Journal;, 39 (2), p.1-5.
<< Hi everybody, finally I tracked on the right place !!!>>
As Upeksha pointed out, the responsiveness is the most crucial for the bank operation.
Here is my comments: Hi, Upeksha, Thank you for upload the queestion! Hi everyone,
A. The cause of this challenge is that the bank was not able to grasp the change of customers’ requirement timely according to the rapid economic change such as an increasing overseas transaction etc.
B. Possible Solution First, identify the weakness in their current customer service system and study how they can be reconstructed taking into consideration of their customer requirement to improve the responsiveness. New system should be consists of two pillars, one is the global standard and the other is local standard so that the bank can continue to provide customer-tailored and intensive service for their local customers. When the implementation of new scheme, the priority is the employee training as they handle thousands of transaction which can be the source of their revenue. The most important is, the bank increasing the flexibility (VARIETY of service) without losing the responsiveness.
In order to improve the customer experience, this bank may need a new system with consistent processes and service. This bank needs to analysis of the regional variations and customer needs, then adopt a simplified system with consistent process and leveraging specific functionality to meet the unique requirements from different region. There are some recommendations with detail:
ReplyDelete1， easy to operate and simple interface will make a system more practical
2， increases the tasks processing automatically ( eg, develop RFID application software system)
There are few operational objectives that a bank wants achieve. Increasing efficiency can be one of them. Bank can improve its efficiency with the help of technology. Today every bank offer basic services using technology such as payroll, direct deposits, ATMs, debit and credit cards, telephone banking and home banking. These services gradually take over works provides through the branches. Today a customer can transfer money to any account or withdraw money almost from anywhere in the world. Behind all these facilities globally connected information systems play a major role. Therefore to obtain high level of efficiency it is necessary to use well-developed information systems. Many banks have stopped opening new branches and they have to calculate profitability among individual branches. Gupta (1998) mentioned that ATM machine provides the same service at 75% less cost compared to a staff member at a branch which emphasized the use of technology does not only create convenience for the customers but also help to reduce the cost.
ReplyDeleteChanges of consumer behaviour make great impact on the requirement of individuals. Today many banks try to customize its services. Gupta (1998) also explains that nonbranch usage varied based on the customer segment. For example older customer still may prefer to use their local branch, use of cheques and younger generation may refer to use ATM withdrawals and card payments. Apart from that Time is more valuable thing for human as never before, therefore service flexibility is one of the key objectives that a bank need to improve at higher level. Therefore banks’ operations have to be far more flexible to meet customer needs which leads to achieve competitive advantage through service flexibility.
Banks need to keep good relationship with its customer through every channel of communication. Customers expect three important factors from a bank. First, customers need bank to correct the mistakes and errors. Second is quick response. For example when a customer applies for a loan, he or she expects quick response than wasting time on slow “Yes”. Customers may dissatisfy with slow process and sometimes it may create a loss for customer. Third, customers expect friendly service regardless of branch or a machine. They still want to feel important and want bank to treats them as resource to the bank (Gupta.M 1998). This leads to increase the quality of service which can be another operation objective.
Ref: Gupta, M. (1998) Strategic implications of technology on operations of the banking industry. Production and Inventory Management Journal;, 39 (2), p.1-5.
<< Hi everybody, finally I tracked on the right place !!!>>
DeleteAs Upeksha pointed out, the responsiveness is the most crucial for the bank operation.
Here is my comments:
Hi, Upeksha,
Thank you for upload the queestion!
Hi everyone,
A. The cause of this challenge is that the bank was not able to grasp the change of customers’ requirement timely according to the rapid economic change such as an increasing overseas transaction etc.
B. Possible Solution
First, identify the weakness in their current customer service system and study how they can be reconstructed taking into consideration of their customer requirement to improve the responsiveness. New system should be consists of two pillars, one is the global standard and the other is local standard so that the bank can continue to provide customer-tailored and intensive service for their local customers. When the implementation of new scheme, the priority is the employee training as they handle thousands of transaction which can be the source of their revenue.
The most important is, the bank increasing the flexibility (VARIETY of service) without losing the responsiveness.