Table Of ContentManagement for Professionals
Stefanie Auge-Dickhut
Bernhard Koye
Axel Liebetrau
Customer Value
Generation
in Banking
The Zurich Model
of Customer-Centricity
Management for Professionals
More information about this series at
http://www.springer.com/series/10101
Stefanie Auge-Dickhut (cid:129) Bernhard Koye (cid:129)
Axel Liebetrau
Customer Value
Generation in Banking
The Zurich Model of
Customer-Centricity
StefanieAuge-Dickhut BernhardKoye
SwissInstituteforFinancialEducation SwissInstituteforFinancialEducation
Zurich,Switzerland Zurich,Switzerland
AxelLiebetrau
BIG-BankingInnovationGroupGmbH
Stuttgart,Germany
OriginallypublishedinGermanwiththetitleClientValueGeneration:DasZu¨rcherModellder
kundenzentriertenBankarchitektur,ISBN978-3-658-01523-7,bySpringerGablerin2014
ISSN2192-8096 ISSN2192-810X (electronic)
ManagementforProfessionals
ISBN978-3-319-19937-5 ISBN978-3-319-19938-2 (eBook)
DOI10.1007/978-3-319-19938-2
LibraryofCongressControlNumber:2015946108
SpringerChamHeidelbergNewYorkDordrechtLondon
#SpringerInternationalPublishingSwitzerland2016
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Foreword by Dr. Markus Sulzberger
A new future has begun for the financial industry, and it is striding rapidly and
inexorably forward in various substantial directions. What makes the
accompanyingchallengesespeciallydemandingisthefactthatthesedevelopments
tendtooccurinsidiouslyorevenunnoticed,ratherthanemergingasabigbangora
catastrophe.Asaresult,thebesttimeframefortriggeringstrategicinitiativesand
projects is often missed. In addition, it is very tempting to wait before starting a
serious discussion about the future. Time and energy are becoming ever more
scarce resources. Currently, there are a number of projects being carried out in
banksundertheoverallheadingofindustrialisation,whichareprimarilyconcerned
with optimising the actual situation. These are necessary steps for many reasons,
mostlyduetosinkingmarginsandtheassociateddemandforincreasingefficiency.
But they are simply not enough to ensure a long-term future. Frequently, greater
priorityisplacedonexaminingtheinternalsituationthanonglobaldevelopments
and the “new” customer. This customer is now supremely educated and very
familiar with the instruments of the digital world. Furthermore, these industria-
lisationprojectsaresocomplexandcostlythathardlyanytimeremainstocontem-
plate,reflect,andthinkspecificallyaboutfuturechallenges,opportunitiesandrisks.
And finally the clamouring by stakeholders for increased efficiency is constantly
growinglouder.Incombinationwithtryingtomanagerapidlygrowingregulation
atagloballevel,which donotallowforanytimedelays intheirrealisation,most
employees and managers at all levels are working to capacity, or indeed often
overworked. Initiatives in the area of company development cannot be regarded
simplyasasideline.
Mostexternaldevelopmentsthatarerelevanttothesuccessfulfutureofthebank
arecontinuouslyrapidinnatureordevelopevenindiscontinuousspurts.Themain
drivers are the almost endless options to attract the “new” customer, especially
members of Generations X and Y. The second main driver is technology as an
enabler.Verymanyquestionsarestillopen,thedirectionisunclearandthechances
andriskscanbepredictedonlytoalimitedextent,letalonequantified.Dealingwith
suchchallengeshasneverbeenapronouncedcompetenceofbanks.Inlargeglobal
bank concerns in particular, internal innovation ideas often rebound against the
hierarchicalstructures.Itislikelythatsmallerandmedium-sizedinstituteshavea
muchbetterstartingpointhere.
v
vi ForewordbyDr.MarkusSulzberger
Thewake-upcallhasbeenmadelongago.Manyinstituteshavehearditandare
striving totrulyplacethe “new” customer atthe core,toadaptorganisational and
management structures, and to implement flexible solutions such as sourcing,
where the traditional value chain is being successively broken up, or the use of
temporarystaff.Theresultingdemandsonthecorporateculturemustbeprocessed
in detail. All of these activities lead to concrete advantages for customers,
stakeholders, andthe bank.Thiscan beseen very clearly fromthe success stories
of many new providers in the banking environment. In addition, fundamental
changes are foreseeable in the area of infrastructure. Increasingly, customers are
demanding a system-based bank consultation. This provides them with additional
and wide-ranging freedoms such as independence from time and place, with
corresponding price advantages.Resourcesthathave been freed upfor infrastruc-
ture must be used for the smart integration of the customer. Such an appreciated
customerwillbecomemoreeasilyenthusedbyexcitinginnovations.
All of this is very demanding in terms of conception and implementation, but
sadly it is not even the whole truth. For many years to come, there will still be a
numberofcustomerswhorenouncethe“24-honlinesociety”andwhowilldemand
personalcontact.Thiswillresultintheopeningupofnichesfornewproviderson
theonehand,butontheotherhand,banksmustgrowaccustomedtodealingwith
fundamentally different customer needs. Such segment-specific demands have
always existed; the difference today is that more cost-intensive technical
infrastructures are necessary, and new providers can threaten traditional market
shares to a much greater extent. Banks must cope with new dualities. More and
more paradoxes are occurring, which demand great intuition, openness, and flexi-
bilityfromallemployeesandmanagers.
Bank institutes are social constructs that are being increasingly shaped by
employees with different requirement profiles in terms of work, working
environments, and a new understanding of life-domain balance. The classic
top-downstructures,whicharealreadybeingsoftenedtoday,willtransfergradually
frombeingself-organisedunitstoself-regulatingones.Organisationaleconomyis
taking great steps towards understanding the company no longer based on classic
business functions—production,advice, financing—butrather bytaking aholistic
viewunderconsiderationofnewvaluesandbymakingspaceforthepreferencesof
staff.Thisopensupthepotentialthatresponsibleemployees,shapedbyproductive
well-being,arethebestpartnersfortheincreasinglydemandingcustomer.
This requires new, further developed management and organisational
approaches. Many relevant answers can be found behind terms such as agile
management, agile leadership, sustainable management, and agile project-based
networkorganisations.Itisbecomingevenmoredifficultforthemanagementofa
bank to find orientation in this abundance of solution approaches and recipes for
success. With such ground-breaking developments,there mustalsobeencourage-
ment to concentrate on a few, fundamental values (trust, openness) that shape
people, both customers and employees. Two components are identified here as
success factors. One concerns management, in particular self-management. This
dimension, which is still underestimated in management theory and practice,
ForewordbyDr.MarkusSulzberger vii
provides opportunities to avoid excessive demands and workloads. This is very
importantinanageofgreatchange.Anothercomponentisdealingwithmeaningful
experiments. These can help to sound out sustainable solutions. Organisational
learning must be supported and, in the event of a negative outcome of an experi-
ment,thecollectivefearoffailuremustberemoved.
This work is a stroke of luck for the financial industry and, specifically, for
banks.Inanexceptionallyclear,transparent,comprehensive,andsubstantialman-
ner, the authors have managed to outline the need for action, present the chances
andrisks,andsummarisetheessencesrepeatedlyandmemorablyinwrap-ups.The
authorsdonotassumethateverythingisfamiliarandclear.Muchisyettoemerge.
Therearetopicsinwhichthequestionsareasyetunknown.Oneexampleofthisis
howtohandleandproductivelyusebigdata.
With the Zurich Model of customer-centred banking architecture, the authors
have filled a large gap in the present range of academic, practical, and
implementation-oriented expert contributions. Thanks to the clear structure of the
book, readers can easily select the content and chapters that are most relevant to
them. It is especially important that the authors have devoted much space to
success-criticalimplementation.
Isincerelyhopethattheworkwillreceivewideacceptancecommensuratewith
its extraordinarily important topic for banks, and that readers will derive many
insights, findings, much inspiration from this exciting book, as well as the
realisationthatthetimeandwillingnessforconsiderationandreflectionareneces-
sary atthe beginning ofeverystrategicinitiative. Reading thisbookis certainlya
goodstart.
August2015 Dr.MarkusSulzberger
PresidentSGOSwissAssociationfor
OrganizationandManagement
ThiSisaFMBlankPage
Foreword by Dr. Alex Osterwalder
Businessmodelsexpirelikeyogurtinarefrigerator.Whereasitwasoncepossible
foramanagertopursuethesamebusinessmodelthroughoutanentirecareer,thatis
certainlyararitynow.
Entire industries need to rethink their business models. This first began with
digital industries such as music, news, and film. Nowadays, however, traditional
industries such as the pharmaceutical and banking sectors are also affected. It is
thereforenotsurprisingthatbusinessmodelinnovations arerightatthetopofthe
prioritylistsofglobalmanagers.
Yet only very few established companies have been really successful in
renewing their business models to date. These days, new business models often
arise bychance orfrom acrisis.Many managershave recognisedthat this cannot
formthebasisforasuccessfulstrategy.
Threeproblemareashinderthedevelopmentofnewbusinessmodels:
There is a lack of a unified and clear language and a shared methodology:
business models and value propositions are frequently used terms, but they are
interpreted differently. Without a shared understanding it is very difficult to hold
goodstrategicdiscussionsthatwillleadtoresults.Wehavealotofsuccesswithour
businessmodelCanvas,atoolthatoffersasimple,unified,andvisuallanguagefor
thedevelopmentofnewbusinessmodels.
Managers have often “become great” with previously successful business
models: many decision makers pursued only one business model throughout their
careerandweresuccessfulwithit.Theyfinditdifficulttokeepstepwiththenew
worldofrapidlyexpiringbusinessmodelsandtoimaginenewbusinessmodelsin
theirownindustry.Decisionmakersmustgetusedtodevelopingabusinessmodel
portfolio proactively before the crisis strikes and is then often too late to act.
Decision makers must involve more entrepreneurial spirits and doers in their
companies, in order to create something new before the company is compelled
toact.
Company processes, tools, and culture often do not allow proactive business
modelinnovations:becausethetopicissonew,companiesoftenlacktheprocesses
andtoolstodevelopnewbusinessmodelsproactively.Inaddition,developingnew
models requires a totally different company culture than merely executing and
improving existing business models (keyword “cost-cutting”). Searching for new
ix
