CEC - Surath - SCB (CEC) PDF

CIM Membership No.
40040524 Creating Entrepreneurial Change - December 2018
Creating Entrepreneurial Change

(2306)
December 2018
CIM Membership No. 40040524
Word Count
Task 1(a) 525
Task 1(b) & 1(c) 1,056
Task 2 2,006
Task 3 1,813
Total 5,400
CIM Membership No. 40040524 Creating Entrepreneurial Change - December 2018
Table of contents
Task …………………………………………………………………………………………………........... 1
Task 1.(a) - Background of the chosen organization………………………………………………………. 2
Task 1.(a).1 - Organization name………………………………………………………………………….. 2
Task 1.(a).2 - Type of the organization .…………………………………………………………………... 2
Task 1.(a).3 - Size of the organization ..…………………………………………………………………… 2
Task 1.(a).4 - Range of products and services …………………………………………………………….. 2
Task 1.(a).5 - Customer base ….………………………………………………………………………… 2
Task 1.(a).6 - Main competitors .…………………………………………………………………………... 2
Task 1.(b) - Assessment of macro environment aspects that has the most substantial impact…………….. 3
Task 1.(b).1 - Technological factors……………………………………………………………………….. 3
Task 1.(b).2 - Socio-Cultural factors………………………………………………………………………. 4
Task 1.(c) - Approaches to innovation in improving customer engagement………………………………. 5
Task 2 - Briefing Paper…………………………………………………………………………………….. 7
Task 2.(a) - Analysis of the organizational culture, structure, processes and operations………………… 8
Task 2.(b) - Innovation opportunities to improve customer engagement with a key segment…………….. 9
Task 2.(b).1 - Biometric Authentication…………………………………………………………………… 10
Task 2.(b).2 - Robotics…………………………………………………………………………………….. 11
Task 2.(c) - Evaluation of benefits and risks of Biometrics and Robotics………………………………… 12
Task 2.(c).1 - Biometric Authentication…………………………………………………………………… 13
Task 2.(c).2 - Robotics……………………………………………………………………………………... 14
Task 3………………………………………………………………………………………………………. 15
Task 3.(a) - Value Proposition Canvas …………………............................................................................. 16
Task 3.(b)& 3.(c): Report………………………………………………………………………………….. 17
Task 3.(b) - Identification of potential barriers to implementation for the innovation…………………….. 18
Task 3.(c) - Strategic implementation/ feasibility plan…………………………………………………….. 19
Task 3.(c).1 - Stakeholder analysis..……………………………………………………………………….. 19
Task 3.(c).2 - SFA Framework…………………………………………………………………………….. 19
Task 3.(c).3 - Kotter’s change management model………………………………………………………... 20
Task 3.(c).4 - Implementation timeline……………………………………………………………………. 21
Task 3.(c).5: Budget……………………………………………………………………………………… 22
Terms of Reference………………………………………………………………………………………… 23
Appendices
Appendix 01 - PESTEEL Analysis………………………………………………………………………… 25
Appendix 02 - Five Forces Analysis……………………………………………………………………….. 26
Appendix 03 - Force Field Analysis……………………………………………………………………….. 27
Appendix 04 - Competitor Analysis……………………………………………………………………….. 28
Appendix 05 - Cultural Web……………………………………………………………………………….. 30
Appendix 06 - Group structure…………………………………………………………………………… 31
Appendix 07 - Mind map ………………………………………………………………………………….. 32
List of tables
Table 01: SCB Product Offering………………………………………………………………………… 2

Table 02: Technological factors ………………………………………………………………………… 3
Table 03: Socio-Cultural factors ………………………………………………………………………... 4
Table 04: Competitor Innovations ………………………………………………………………………. 6
Table 05: Culture, structure, processes and operations …………………………………………………. 8
Table 06: Balanced Scorecard …………………………………………………………………………... 13
Table 07: Biometric authentication ……………………………………………………………………... 13
Table 08: Robotics ………………………………………………………………………………………. 14
Table 09: Stakeholder analysis ………………………………………………………………………….. 19
Table 10: SFA Framework ……………………………………………………………………………… 19
Table 11: Kotter Change Management Model ………………………………………………………….. 21
Table 12: Gantt Chart …………………………………………………………………………………… 21
Table 13: Budget ………………………………………………………………………………………... 22
Table 14: PESTEEL Analysis …………………………………………………………………………... 23
Table 15: Five Forces …………………………………………………………………………………… 24
Table 16: Competitor Analysis ………………………………………………………………………….. 26
Table 17: Cultural Web …………………………………………………………………………………. 27
List of figures
Figure 01: SCB at a glance ……………………………………………………………………………… 2

Figure 02: Total Asset Base …………………………………………………………………………….. 2
Figure 03: Asset & Operating Income Growth …………………………………………………………. 2
Figure 04: Customer Segments …………………………………………………………………………. 2
Figure 05: Operating Income ……………………………………………………………………………. 2
Figure 06: Operating Income ……………………………………………………………………………. 2
Figure 07: Fintech Adoption % …………………………………………………………………………. 4
Figure 08: Roger’s Diffusion Curve …………………………………………………………………….. 9
Figure 09: Different Biometric Mechanisms ……………………………………………………………. 10
Figure 10: Robotics in banking …………………………………………………………………………. 11
Figure 11: Value Proposition Canvas …………………………………………………………………… 16
Figure 12: Clark & Henderson’s four types of innovation ……………………………………………… 26
Figure 13: Grab+Go Process (Author Generated) ………………………………………………………. 26
Figure 14: HSBC MyDeal Platform Process (Author Generated) ……………………………………… 27
Figure 15: Geographic based group structure ………………………………………………………… 29
Figure 16: Customer segments ………………………………………………………………………….. 29
List of abbreviations
AI Artificial Intelligence
API Application Programme Interface
ASEAN Association of Southeast Asian Nations
ATM Automated Teller Machine
Bn Billion
C&IB Corporate & Institutional Banking
CASA Current Accounts & Savings Accounts
CB Commercial Banking
CEO Chief Executive Officer
CSR Corporate Social Responsibility
DORI Dining, Offers, Rewards, Intercative
EoS Economies of Scale
EU European Union
EY Ernst and Young
FDI Foreign Direct Investments
Fintech Financial Technology
Gen-Z Generation Z
GSMA Groupe Spéciale Mobile Association
H.Kong Hong Kong
H/M/L High, medium or low
HSBC Hongkong and Shanghai Banking Corporation
IoT Internet of Things
ISO International Standards Organization
IT Information Technology
JV Joint Venture
KPI Key Performance Indicator
M&A Mergers & Acquisition
Mn Million
NPL Non performing loans
O/T Opportunities & threats
PB Private Banking
Qtr Quarter
R&D Research & Development
RB Retail Banking
RFP Request for Proposals
ROI Return on Investment
S&P Standard & Poor's
SBU Strategic Business Unit
SCB Standard Chartered Bank
SME Small and Medium Enterprises
UK United Kingdom
US United States
Task 1
Report
To: Senior Management Team, Standard Chartered Bank
From: The Consultant
Date: 20th Nov 2018
Subject: Company background,

Macro environment and
Approaches to innovation
Page 1 of 32
Task 1(a)
Background of the chosen organization
1. (a). 1. Organization name: Standard Chartered Bank PLC (SCB)

SCB was incorporated via a merger of Standard Bank and Chartered Bank. The latter
was formed by James Wilson the under a Royal Charter obtained from Queen Victoria
in 1853 and expanded mainly in Asia while the Standard Bank of British South Africa was formed by John
Paterson formed in 1862 with operations expanded in the African region. In 1969, aforementioned banks
focused on two regions of the globe merged to form one global bank. (Source: www.sc.com)
1. (a). 2. Type of the organization:

SCB is a global private sector bank and it is a Public Limited Company listed in London Stock Exchange as
well as in Hong Kong Stock Exchange. (Source: SCB Annual Report 2017)
1. (a). 3. Size of the organization:

Figure 01: SCB at a glance
Global Rank 48th largest bank as per S&P global market
from asset base intelligence report 2018.
Reach 60 countries across Europe, America, Asia, Africa and
Middle East.
Staff 86,000 staff & 15,000 non-employed workers.
Asset Base $ 663,501 Mn as at 31 Dec 2017 increased to $
684,605 Mn as at 30 Sep 2018.
Operating $ 14,289 Mn during year 2017 (including a Net
Income interest income of $ 8,181 Mn).
Source: SCB Annual Report 2017 & KPMG H.Kong Banking Report 2018
1. (a). 4. Range of products and services:

Product Category Sub Products
Retail Products Deposits, savings, mortgages, credit cards, personal loans
Wealth Investments, portfolio management, insurance & advice,
Management planning services
Transaction Cash management, payments & transactions, securities services,
Banking trade finance
Corporate Finance Structures & project financing, strategic advice, M&As
Financial Markets Investment, risk management, debt capital markets
Table-01: SCB Product Offering. (Source: SCB Annual Report 2017)
Source: SCB Annual Report 2017
1. (a). 5. Customer base:
Figure 04: Customer Segments
B2B
Corporate & Institutional Banking
(C&IB)
Commercial Banking (CB)
B2C
Retail Banking (RB)
Private Banking (PB)
Source: SCB Annual Report 2017 Source: SCB Annual Report 2017
1. (a). 6. Main competitors:

SCB compete with global players such as HSBC (World’s 7th largest bank) and Barclays. Since Greater China
& North Asia is SCB’s largest region while Hong Kong is the largest market, SCB competes with local and
regional giants such as Industrial & Commercial Bank of China, China Construction Bank Corp, Bank of China
etc. (Source: S&P global market intelligence report 2018 & KPMG Hong Kong Banking Report 2018)
Page 2 of 32
Task 1(b)
Assessment of macro environment aspects that has the most substantial impact
PESTEEL analysis (Appendix-01) was utilized for this purpose. Based on that, Technological and Socio-
Cultural factors were identified as the most influential.
1.(b).1. Technological factors:

Historical industry scenario Industry scenario today Future macro environment
impact
Banks have been focusing on Most favoured mode of expansion Future of banking is forecasted to be
organic growth via traditional has become digital channels. virtual banking where there won’t
methods (e.g.: branch Traditional banking has been be any physical branches but all
expansions) while online and overtaken by mobile apps and banking services are carried out via
mobile banking activities were online banking where customers Fintech. Banks could even consider
minimal. can get most banking services closures of branches.
done with ease, while developed
Customer oriented personalized countries are gradually moving Significant investments needed to
services were visible, but towards virtual banking. EY’s build IT infrastructure, but in the
services were mostly Global Banking Outlook 2018 medium term, banks could enjoy
standardized. Survey reveals that 85% of banks lower cost to income ratios as these
from the survey prioritize developments will reduce
Time consumption to get implementing a Digital operational costs (e.g.: branch
services done was much higher Transformational Program. overheads, marketing costs etc.).
due to the requirement to visit
branches, longer processing Banks have the ability to enhance Cyber security risks will continue to
times etc. product portfolios by adding more remain, but banks are expected to
customized products based on implement procedures to mitigate
specific customer needs with the such emerging risks (Ng and Kwok,
assistance of technology. 2017).
Time consumption to get services

done has declined as customers
could get banking services done
by several clicks.
Nevertheless, there will be cyber

security risks. The aforesaid
survey similarly reveals 89% of
the surveyed banks consider
enhancing cyber & data security
as a top priority.
Table-02: Technological factors
Page 3 of 32
1.(b).2. Socio-Cultural factors:

Historical industry Industry scenario today Future macro environment impact
scenario
People were keen to visit Preference has shifted more towards The trend is expected to be skewed
branches to get their banking via digital channels especially more towards Fintech even among
banking services, less among millennials. Despite that, there’s communities above age 35, as present
worried about a clear correlation between the age and millennials would enter the next age
standardized products appetite for digital channels where range and a fresh set of youngsters will
and time consumed. elderly community still vary on utilizing join 18-24 age range who are tech
digital. savvy. Therefore it’s critical for banks
The awareness about to be digitalized and adapt to changing
digital channels and consumer needs.
their benefits were low.
Socio-cultural challenges are expected
ease off, as the positive attitude and
knowledge on digital will increase.
Source: Fintech Adoption Index 2017-EY
Challenges:
- Language and IT literacy barriers
especially in developing countries
(Appendix-03).
- Branch closures may not be a favoured
among some customer groups.
- Health concerns in using high tech.
Table-03: Socio-Cultural factors
Page 4 of 32
Task 1(c)
Approaches to innovation in improving customer engagement
Refer Appendix-04 for competitor comparison and Appendix-02 for Five forces.
Innovation Clark & Present Status & Impact Customer Engagement Critical Evaluation
Henderson
(Appendix-
04
Barclays
Grab+Go invisible Radical Won Wallets & payments Increased customer engagement Europe and North America
payments: category award from Efma by smartphone penetration is 70-80%
Shoppers could scan/ and Accenture Awards.  Tech savvy consumers from total mobile connections and
capture the items required  Busy scheduled consumers forecasted to reach 81-91% by
to purchase by smartphone Impact:  Cashless transactions 2025, (GSMA’s “The-Mobile-
and upload to the app. It’ll Shopper could experience preferred consumers. Economy-Global-2018”) which
initiate a mobile payment a queue-less checkout provides an enormous potential to
without any wait in and cashless Increased customer engagement Grab+Go. The emergence of e-
queues. transactions. by; commerce is a concern, but with
 Convenience/ time saving delivery costs, inability to inspect
Cost saving for retailers  Improved satisfaction items etc., in-store shopping is still
due to lesser queue traffic.  Possible personalized services active. (Stanley Frederick et al.,
offered by analysing buying 2018)
behaviours.
Regular touch with bank when

shopping and bank finances
purchases.
Access to E-receipts and spending

history.
HSBC
MyDeal: Architectu- Pilot phase raised $25 Increased customer engagement The relevant segment contributes
Digital platform dedicated ral Billion within 7 months. due to; 27% to net profit (HSBC Annual
for Debt/ Equity Capital  Convenience/ time saving Report, 2017). Yet $25 Billion
Market clients for capital Full launch: End 2018. (Manual method takes several (across 30 deals) is only 1% of
raising by API technology days while MyDeal does it HSBC assets, which suggests the
to centralise information Impact within hours) lack of keenness of clients.
from various sources and Real time access to  Real time information (However should factor in this is
present for analysis. information and saving  Cost savings only 7 months).
time.  Collaboration of all
information to one platform Possible reason is capital raising
Extreme simplification of  Access to historic information decisions are unlikely to be made
the process. depending solely on an API
platform. Although gathering
Keeping track of all information in one platform is
information in one useful, tasks which require
platform. physical presence such as one-on-
one meetings, presentations, board
Reduced paperwork. meetings etc. are essential.
Therefore this isn’t a total solution.
Page 5 of 32
Innovation Clark & Present Status & Impact Customer Engagement Critical Evaluation
Henderson
(Appendix-
04)
Hang Seng Bank

Chat with DORI: Architectu- First retail banking Increased customer engagement While this is in early stages to
AI Chatbot for Credit ral Chatbot in Hong Kong. due to customer satisfaction identify whether a success, it could
Cardholders with regard to created by; serve customers better with more
“Dining, Offers, Rewards, Impact  One on one communication individualized offerings and cost
Intercative” (DORI). Enables direct  Preference to individual needs savings for the bank due to less
Cardholders could connect communication with  Language choice: English, staff required. However it’s not a
via Facebook Messenger chatbot which will suggest Chinese or mixed English- total solution since a chatbot
& could experience customer specific offers Chinese cannot answer all customer queries
personalized offers. after analysing customer Access via social media opening and hence human involvement is
requirements. up opportunity to engage more required
with Gen-Z.
Table-04: Competitor Innovations
Task 1(b) & 1(c) word count: 1,055
Page 6 of 32
Task 2:
Briefing Paper
Page 7 of 32
Task 2(a)
Analysis of the organizational culture, structure, processes and operations available to support
innovation
Cultural Web by Johnson & Scholes (1992) was utilized for this purpose. (Appendix-05)
Culture:
SCB’s group strategy has been evolved considering six long term trends and based on those, SCB has three
strategic pillars. One trend being “digital revolution”, as a strategic response to that, one of the three
strategic pillars is dedicated as “Invest and Innovate”. In addition, CSB has provided 10% weight on digital
in measuring director performance. This indicates that SCB has incorporated digitalization and innovation to
their culture. Despite being open to innovation at strategic level, there seems not much evidence regarding
encouraging innovation at the operational level. These possible mismatches in the culture could hamper
innovations when implementing as ground level support is essential.
Structure:
As a global bank, SCB has a tall organization structure and innovating ideas requires going through several
layers of geography based pecking order to reach Group CEO. While this isn’t unusual for a global
organization, if “Invest and Innovate” is one key strategy, processes to capture innovative ideas rapidly are a
necessity. SCB has overcome this challenge to some extent via launching “SC Ventures” dedicated to
promote digital innovation. In addition, launching “eXellerator innovation lab” in three important locations
(Singapore, Hong Kong and London) to collaborate clients, Fintechs and partners to come together to solve
business problems is commendable. Therefore, it is evident that SCB do own an upper hand in driving
innovation. Nevertheless, at the group director board level, when analysing their corporate profiles, there
seems to be less expertise on technology and innovation. This could be a possible shortcoming in driving
innovation as game changing disruptive innovative ideas may not get the board approval.
Processes and operations:

SCB has incorporated digitalization effectively in day to day operations such as utilizing blockchain for cross
border remittances and using IoT. SCB has also applied for virtual banking license in their largest market,
Hong Kong which specifies their openness to futuristic digitalization and innovation. Furthermore, SCB’s
partnering with Fintech driven firms for certain processes indicate that SCB has identified the requirement to
move forward with innovation driven fintech despite having less internal expertise. However, the downside
of this is increased bargaining power of partners.
Conclusion:
It is clear that SCB has the readiness to embrace innovation despite having few concerns aforesaid which
requires fixing in order to bring about ground breaking innovations. Therefore following mechanisms are
suggested;
- Cascade down the innovation driven culture to the operational level via in depth training,
performance incentives etc. to overcome cultural mismatches.
- Appointment of few directors with expertise in innovation and technology to encourage innovation
and to voice on behalf of disruptive innovation ideas.
- Discover ways to develop internal capabilities on innovation and technology via SC Ventures and
eXellerator innovation lab.
Table-05: Culture, structure, processes and operations
Page 8 of 32
Task 2(b)
Innovation opportunities to improve customer engagement with a key segment
The segment selected:

Generation Z retail clientele who are in their early 20s is the segment selected despite being a small segment
due to this community is the most confident in utilizing high tech innovations (Refer PESTEEL in Appendix-
01) despite having lesser buying power.
Based on Roger’s Diffusion Curve, this segment could be considered as Innovators which is only 2.5% of the
target audience. In the medium term, these clientele are expected to enter the corporate world which provides
the opportunity for SCB to introduce Corporate and Commercial Banking products given SCB’s strength in
those segment as well as its expertise in cross selling (SCB Annual Report 2017). Therefore, successful
implementation with Gen-Z will provide the opportunity for SCB to expand the innovation to a larger audience.
Innovators Early Early Late Laggards

2.5% Adopters Majority Majority 16%
13.5% 34% 34%
Gen-Z
Figure 08: Roger’s Diffusion Curve
Page 9 of 32
2.(b).1. Biometric Authentication:

Refer Appendix-06 for idea generation mind map.
Biometrics means measuring and analysing an individual’s physical and behavioural characteristics. In banking,
biometrics are mainly utilized for authentication. Biometrics that are widely used are fingerprint, face detection,
voice detection, Iris/ eye detection, hand detection etc. Security is of supreme importance in banking and
therefore biometrics are utilized in many banking activities such as Mobile App login, Online Banking login,
Virtual Banking, Cash/ cheque deposit machines, ATMs and Bank lockers.
Global trends that facilitate the requirement for biometric authentication

Global smartphone adaptation has been constantly increasing and is expected to reach 77% of mobile
connections by 2025. (GSMA’s “The-Mobile-Economy-Global-2018”) Similarly, percentage of consumers that
use mobile payments goes up to 47% in emerging markets. (Deloitte Global mobile consumer trends: 1st
Edition) IT literacy rates have also been on the rise across globe. Consequently these trends lead to higher
mobile, online and virtual banking. “By the end of 2020, some 1.9 Billion bank customers will be using
Biometrics” (Researchandmarkets.com's Biometrics for banking second edition).
However on the flipside, cyber-attacks, cyber-crimes and hacking have also risen. Privacy and security are the
two major factors that affect customer’s trust in electronic transactions. (Thakur and Kakde, 2018) Therefore,
identifying methods to mitigate them is essential in order to succeed.
Why SCB should adapt this?

SCB is already providing mobile app facility and online
Figure 09: Different Biometric Mechanisms
banking while started to step into Virtual Banking in Hong
Kong. The aforementioned security risks will be common and
therefore a Multiple Layer Biometric Authentication is
recommended. Reputation damages due to security threats
could also be avoided.
“Invest and Innovate” being a strategic objective, to facilitate

future digital initiatives, biometric authentication is expected
to add value.
Enhanced customer satisfaction is expected to drive brand

loyalty.
In the medium term, branch related overheads and other costs

could be reduced due to increased use of digital channels.
(Image Courtesy www.industrytap.com)
How customer engagement will be improved?
Increased customer engagement by;

- Facilitating digitalization.
- Attract Gen-Z followed by millennials.
- More convenience (e.g.: Reduced requirement to visit branches, time saving, memorizing passwords
not required)
- Reduced security risks.
- Draw customers who dislike complicated authentications (e.g.: alpha numeric passwords).
Page 10 of 32
2.(b).2. Robotics:
Why SCB should adapt this?

SCB’s Cost to Income ratio, one of the key KPIs in banking, has been on the rise during last 5 years, from 54%
in 2013 to a touch above 70% in 2017, which is a significant increase. (SCB Annual Report 2017) Similarly, in
Hong Kong, their largest geographic market, it’s 65%, which
is the highest in Hong Kong and massively above the industry Figure 10: Robotics in Banking
average of 43%. (KPMG Hong Kong Banking Report 2018)
Therefore with automation via robotics, SCB could discover
ways to keep the ratio under controlled.
Robotics too will facilitate SCB’s “Invest and Innovate”

strategic objective and enable digitalization. However given
this requires high technology, the requirement to obtain third
party expertise is essential.
Enhanced customer satisfaction is expected to drive brand

loyalty.
(Image Courtesy www.financialexpress.com)

How customer engagement can be improved?
AI robotics will create substitutes for humans in brain work as well as in physical labour. (Freeman, 2018)
Increased customer engagement by;

- High accuracy & mitigate human errors.
- Prompt processing time (loan approvals, credit card processing etc.).
- Improved customer service.
- 24/7 availability.
- Providing more customer specific personalised offers.
Page 11 of 32
Task 2(c)
Evaluation of benefits and risks of Biometrics and Robotics
For this purpose, the Balanced Scorecard by Kaplan & Norton (1992) was used.
SCB’s strategic objectives are;

- Secure the foundations (Ensure having a strong capital position, with a balanced client and
products portfolio)
- Get lean and focused (Drive towards sustainable and profitable growth and improve productivity)
- Invest and innovate (Invest in improvements to drive better client experience, meet clients’
requirements, and drive growth)
SCB’s corporate actions should focus on achieving aforementioned strategic objectives. For the two
innovations, Balanced Scorecard sets goals under four perspectives and includes metrics to measure the success.
Goal Linked Applicable Metrics

strategic innovation
objective
Financial Perspective:
1 Managing cost Get lean and Biometrics, Cost to Income ratio = Operating expenses
structure focused Robotics (Net Interest Income + Non Interest Income)
2 Grow total assets Secure the Biometrics, Quarterly Asset growth = Total Assets as at current qtr -1 x 100
foundations Robotics Total Assets as at previous qtr
3 Top-line growth Get lean and Biometrics, Revenue growth = Current qtr revenue -1 x 100
focused Robotics Comparative qtr revenue
4 Profit growth Get lean and Biometrics, Profit growth = Current qtr profit -1 x 100
focused Robotics Comparative qtr. profit
5 Investment appraisal Invest and Biometrics, 1. Net Present Value = Cash inflow - Initial investment
innovate Robotics (1+discount rate)
2. Payback period = Initial investment

Annual cash inflow/ cost saving
3. Discounted payback = Initial investment

Annual discounted cash inflow/ cost saving
Customer Perspective:
6 Directing customers to Invest and Biometrics % customers using biometrics = No. of registered biometrics x 100
digital channels innovate Total retail customers
7 Encourage consumers Invest and Biometrics Decline in password requests = Current qtr password requests -1 x100
to use biometrics innovate Previous qtr password request
8 Customer retention & Secure the Biometrics, Change in customer base = Total customers as at current qtr -1 x 100
new cus.acquisition foundations Robotics Total customers as at previous qtr
Internal Business Perspective:

9 Core business Secure the Biometrics, Net interest = Interest income - Interest Expenses x100
excellence foundations Robotics margin Interest earning assets Interest paying liabilities
10 Quantify investment in Invest and Biometrics, R&D cost
innovations innovate Robotics Total Income
11 Improve efficiency in Get lean and Robotics Average processing time – average processing time before
banking activities focused After robotic utilization robotics utilization
12 Ensure high security Secure the Biometrics Hacking incidents reported - Hacking incidents reported
standards foundations per qtr prior to innovation per qtr post innovation
Page 12 of 32
Goal Linked Applicable Metrics
strategic innovation
objective
Innovation and Learning Perspective:

13 Invest in staff training Invest and Biometrics, 1. Training & Development cost %
on innovations innovate Robotics Total Income
2. Training hours per employee = No. of training hours

No. of employees
14 Prompt transition Invest and Biometrics, Actual transition time to new innovations – Planned transition time
innovate Robotics
Table-06: Balanced Scorecard
2.(c).1. Biometric Authentication:

Benefits Risks
 In line with SCB’s strategic objectives.  Risk of not being financially worthwhile
(Metrics-5). Investment appraisal metrics can be
 Cost to Income Ratio (Metric-1) is forecasted used here. Net Present Value by Fisher (1907) is
to reduce as branch overhead costs will the sum of present values of project cash inflows
decline as biometric authentication encourages and outflows. (Gaspars- Wieloch, 2017)
customers to use digital channels. Discounted payback measures the time taken to
recover the initial investment taking into account
 Growth in assets, revenue and profits time value of money. The effectiveness of staff
(Metrics 2-4) expected as biometrics will training could be quantified by metrics given in
attract several customer segments. (e.g.: Gen- Metrics-13.
Z, Millennials, customers who dislike
complicated authentications, customers who  Risk of inability to collect biometric
fear security risks) information from existing customers.
 Improved Customer retention and new  Risks of low acceptance by customers especially
customer acquisitions (Metric-8) due to by elderly communities.
benefits of biometrics to customers. (e.g.:
Convenience, high accuracy)  Possible legal barriers in collecting biometric
information.
 Ensure high security (Metric-12) and decline
in hacking. Damages to corporate reputation
due to security threats expected to be
mitigated.
Table-07: Biometric authentication
Rank: 8/10 since benefits outclasses risks.
Page 13 of 32
2.(c).2. Robotics:
Benefits Risks
 Facilitates Invest and Innovate strategic  Risk of not being financially worthwhile
objective. (Metrics-5).
 Opportunity to keep Cost to Income ratio  Possible stakeholder resistance due to negative
(Metric-1) under control using automation. implications on them (e.g: Staff resistance due to
concerns on job security) leading to longer than
 Improved efficiency (Metric-11) in expected transition time. (Metric-14)
processing customer requirements resulting in
improved customer satisfaction and
engagement.
 Provide personalized services based on

customer specific requirements using robotic
analytical skills enabling Customer retention
and new customer acquisitions (Metric-8).
 Enhance accuracy and eliminate human

errors leading to customer satisfaction
Table-08: Robotics
Rank: 7/10 since benefits outclasses risks.
Task 2 word count: 2,006
Page 14 of 32
Task 3
Page 15 of 32
Task 3(a)
Value Proposition Canvas (Osterwalder et al., 2014)
Value Proposition Customer Segment
GAIN CREATORS GAINS
Rewards for creating online accounts & App downloads Banking at fingertips
Reduced fees on transactions via digital channels Customer satisfaction JOBS
PRODUCTS Applying for virtual banking licesne Cashless transactions
& S ERVICES Fintech related strategic partnerships Queueless banking
Easy authentication via biometrics No password memorizing Online, mobile & virtual
Biometric authentication for; Secure transactions banking
ATM Time saving Convinience
Cash/ cheque deposit machines Adherence to legal standards Legal barriers Security of funds & data
Online banking User friendly technology Lack of IT literacy 24/7 availability
M obile app Provide choice of authentication Physical disabilities Feel proud about being
Virtual banking Detailed awareness campeigns Lack of confidence digitalized
Bank lockers Health & safety standards Health concerns
Flexibility by allowing several login attempts External environmental & practical issues
(e.g.: background noise, unclean hands)
PAIN RELIEVERS PAINS
Figure 11: Value Proposition Canvas
Online and mobile banking has overtaken traditional banking and virtual banking is expected to be the future of
banking. Therefore that is regarded as the main job that a customer expected from the bank besides other jobs
stated in Figure 11. To facilitate all types of jobs (functional, social, emotional, basic), biometric
authentication was recommended which could be utilized in digital banking channels (i.e.: online, mobile &
virtual), convenience is fulfilled by easy access and no password memorizing, security is ensured, 24/7
available and social factor of feeling proud about utilizing digital channels (especially among Gen-Z) is
satisfied.
Being a forerunner in applying for virtual banking license in Hong Kong can be considered as a major gain
creator as it’ll facilitate banking at fingertips, cashless transactions and queue less transactions. Easy
authentication via biometrics will facilitate time saving, secure transactions and no password memorizing. With
assistance of biometric authentication, digital channel usage is expected to increase which results in a reduction
in branch related overheads. Therefore SCB could pass on the benefit to customers by reducing transaction fees.
This will encourage more digitalization. It is recommended to introduce a reward scheme for opening online
accounts and App downloads as a gain creator to further motivate digitalization.
Several pains have been identified for biometric authentication and for each one of them, a pain relievers was
suggested. Legal barriers could create significant negative influences and therefore SCB should ensure
adherence all legislations (e.g.: protection of Personal Data Act etc.). Less IT literacy and less confidence in
technology are concerns especially among elderly and tech adverse community. (PESTEEL- Appendix 01) This
could be overcome by using user friendly and simple technology and creating awareness. People with physical
disabilities may find it challenging to use biometrics and to overcome that, a choice for authentication to be
provided. SCB should also ensure health & safety standards. (e.g.: Rays sending to eye for eye recognition
authentication) In addition, external issues are also a pain in the hands of customer which could be relieved by
allowing several login attempts.
Page 16 of 32
Task 3(b) & 3(c):

Report
To: Senior Management Team, SCB
From: The Consultant
Date: 20th Nov 2018
Subject: Strategic implementation/ feasibility plan

& Potential barriers to implementation
Page 17 of 32
Task 3(b)
Identification of potential barriers to implementation for the innovation
Potential internal barriers to implementation is explained through Force Field Analysis (Appendix-03)
High investment
Given that this is introduced to Gen-Z clientele across 5 continents, the investment will be considerably higher.
Convincing shareholders to bear that cost will be challenging, especially considering that SCB has recently
turned to profitability subsequent to two consecutive years of losses.
Stakeholder acceptance
Lack of evidence on the involvement in novel technology by operational staff will be a substantial barrier.
Given that, less board level experience in high technology, the senior management team will require convincing
director board for approval. Some shareholders too may vary to take the risk. Conversely, customers are
expected to react positively sighting benefits, but existing customers will require following the additional step
of submitting their biometrics to the database probably by visiting a branch. However new customers can add it
when initially signing up with SCB. Also, elderly clients, tech adverse clients, disabled clients (who are unable
to use biometrics) etc. too may resist the change.
Skill requirements
High level of modern technology and skills is required in implementing biometrics which SCB might fall short
internally.
Legal barriers
Since this is dealing with customers’ extremely confidential information, tight regulations from various
jurisdictions are expected. In addition, SCB will require adhering to local and international standards (e.g.: ISO)
Page 18 of 32
Task 3(c)
Strategic implementation/ feasibility plan
3.(c).1: Stakeholder Analysis

In implementing a novel concept, it’s critical to evaluate expectations of stakeholders with regard to the
innovation.
Stakeholder Expectation Resist biometrics Action to break resistance
Internal Director Responsibility, decision making powers, job Yes. Due to lack of Convince via the alignment
board security, remuneration, tech knowledge with strategic objectives to
get board approval.
Employees Job security, remuneration, career Yes. Awareness, communication
development & training, recognition
Connected Customers Enhanced security, convenience, Elderly clients, tech Awareness, convince via
digitalization adverse clients, communicating benefits,
disabled etc. provide authentication
options for disabilities
Shareholders Dividends, capital gains, ROI Possible, due to high Convince via the alignment
investment needed with strategic objectives
External Governments Complying with laws, data protection Yes, if non-compliant Ensure compliance
with regulations
Regulators Complying to regulations, fair competition Yes, if non-compliant Ensure compliance
Media / Transparency, Ethical operations, serving Due to disadvantages Awareness
Community community (e.g.: health concerns)
Table-09: Stakeholder analysis
3.(c).2: Suitability, Feasibility & Acceptability (SFA Framework)

Once stakeholder expectations are identified, Aaker & McLoughlin’s (2010) SFA Framework is used to analyse
the viability.
Suitability The key factor here is biometric authentication will facilitate SCB’s “Invest and Innovate”
strategic objective. It also enables SCB’s plans to move ahead with virtual banking while
assists mobile and online banking presently. Cyber security threats have also become
common and these could be mitigated by biometrics.
Feasibility Funding can be done internally given SCB’s balance sheet position. (SCB Annuals Report
2017) However given the significance of the investment (Refer task 3b), SCB should face
the challenge of getting shareholder consent. SCB also doesn’t have technical capabilities
internally, but proper bases are in place with SC Ventures dedicated for innovation
(Appndix-05). In addition, SCB could partner with a technology expert in biometrics if SCB
falls short in internal expertise. Nevertheless, the bargaining power and dependency on the
outside expert will increase.
Acceptability As aforementioned in 3(b) and 3.(c).1, main resistance is expected from operational staff,
some customer groups, part of shareholders and director board. However given the
alignment with SCB’s strategic objectives (i.e. Invest and innovate) and its benefits, it is
expected that director board and majority of shareholders could be convinced. Proper change
management procedures (explained in 3.c.3) could change the staff attitude towards the
innovation.
Table-10: SFA Framework
Page 19 of 32
3.(c).3: Kotter’s change management model

As it’s accepted by SFA framework, SCB should go ahead with implementation. John Kotter’s 8 step change
management model (Kotter, 1996) is utilized for this purpose.
Step 1: Create The involvement and commitment of top management could positively influence
urgency sense of urgency. People with relevant expertise should be hired while outside
consultants can be hired as change agents to create urgency. External information
(media, news articles etc.) are another low cost source which could create
awareness and urgency. External sources could be instrumental in creating sense of
urgency and readiness for change. (Armenakis et al., 1993) SCB should be careful
not to rush which will not allow required time for adaptation (Appelbaum et al.,
2012)
Step 2: Build a Proper leadership is essential here and therefore initially a special task force needs
guiding coalition to be appointed which requires to collaborating with SC Ventures. This should
include enough board representation so that one’s outside cannot interrupt the
progress (Appelbaum et al., 2012), enough experts and respected personalities (to
influence the change) within the organization.
Step 3: Develop A clear and well-articulated vision needs to be established with regard to the
vision and strategy implementation of biometrics to provide proper direction.
Step 4: Communicate Effective communication will build trust and openness which is critical for success.
the vision Especially with groups who are resistant towards change, two-way communication
will be more effective, (Kotter, 1996) which allows feedback from the receiving
end. Communicating the message via multiple channels is also effective
Step 5: Remove Barriers to implement biometrics are identified under Force Field Analysis
barriers (Appendix-03) and internal barriers were touched under 3b.
Internal barriers Remedies

High investment Utilize internal funds.
Convince director board & shareholders.
Stakeholder acceptance Explained under 3.(c).1
Skill requirements Innovation and training via SC Ventures
Legal Ensure compliance
External barriers Remedies

Customer acceptance Explained under 3.(c).1
Collecting biometrics of Create awareness, provide a grace period to subscribe for the facility
existing customers and submit biometric information
Health concerns Ensure health & safety standards
Practical problems Flexibility by allowing several login attempts
Step 6: Generate The full implementation will require a long time period. However it is critical to set
short-term wins short term goals and analyse how SCB is progressing in the long term plan. This
helps SCB to get back on track if there are any deviations.
Step 7: Sustain While cherishing short term wins, SCB requires accelerating the change faster from
acceleration that point onwards.
Page 20 of 32
Step 8: Institute Ensuring that biometric authentication becomes a part of core and part of culture at
change SCB in the long run. As discussed earlier, despite benefits offered by this, there will
be stakeholders who resist. However in the longer run, SCB’s challenge is to make
this innovation accepted by most (if not all) stakeholders.
Table-11: Kotter Change Management Model
3.(c).4: Implementation timeline

For this purpose, Gantt chart developed by Henry Gantt was used.
FY FY FY FY
2018/19 2019/20 2020/21 2021/22
Quarter-3
Quarter-4
Quarter-1
Quarter-2
Quarter-3
Quarter-4
Quarter-1
Quarter-2
Quarter-3
Quarter-4
Quarter-1
Quarter-2
Research by SC Ventures
Idea generation
Screening alternatives
Final decision taken on biometrics
Developing project proposal
Sending for board approvals & discussion
Board & shareholder approval
Appointment of the special task force
Development of vision
Planning
RFPs from tech experts
Staff training & awareness
Two way communication with internally resistant
stakeholders
Identify barriers to implementation and take remedies
Pilot project
Create awareness & marketing activities targeting
customers
Evaluate success of pilot project (short term wins)
Corrective actions if there are deviations from the plan
Full launch
Win resistant customers
Periodic reviews
Discontinue password access & make authentication
completely through biometrics
Table-12: Gantt Chart
Page 21 of 32
3.(c).5: Budget
Estimated cost ($ Mn)
R&D 200
Recruitments: 11
SCB average pay = $5,047 Mn/86,794 = $ 0.06Mn
New 60 recruits’ pay = 60 x 0.06 = $ 3.6Mn
For 3 years = $ 3.6Mn x 3 = $ 10.8Mn
10 External consultants = 10 x $ 0.1Mn x3 = $ 3 Mn 3
System costs 250
Training 20
Overheads 16
500
Table-13: Budget
Task 3 word count: 1,813

Page 22 of 32
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Page 24 of 32
APPENDIX 01
Table 14: PESTEEL Analysis
Driver Impact to the organization O/T H/M/L
Political / Trade conflict between US & Low trade activities between largest 2 economies could lead to T H
Legal China low banking activities, higher Non performing loans (NPLs)
Legal barriers Especially when implementing new tech innovations. (e.g.: T M
collecting biometrics –Protection of Personal Data Act etc.)
Brexit UK banks will lose their EU passport rights, which enabled them T L
to sell their services right across the EU
Regulatory requirements Requirement to comply with additional regulations will increase T M
post economic crisis Cost to Income Ratio while compliance will reduce the risk level
Relaxed FDI restrictions Opportunity to access emerging markets O H
Increased protectionism While some countries open up their economies, some still follow T L
protectionism which is a barrier for trade flows.
Lack of regulations of Less regulations on fintech start-ups while tighter regulations on T L
Fintech banks, enables them to capture banks’ market share
Decline in public welfare Opportunities for retirement schemes, pension plans etc. O L
Overall Medium
Economic Higher economic growth in Provide ample growth opportunities to an established global bank O H
emerging markets
Pressures due to economic Despite occurring back in 2008, this continue to impact with low T L
crisis banking activities leading to lower CASA, Higher NPLs
Recovery of Oil Prices Strengthening of economies in Middle East O M
Tight Monetary policy by Major economies are expected to grow at a slower rate due to T M
major central banks tightening policy. Possible increase in NPLs
Overall Medium
Socio Tech savvy millennials Most likely to try new digital features O H
Cultural Low interest in new tech by Difficulty in reaping benefits from new innovations T H
elderly population
Displeasure over branch Belief that it damages relationship with the bank & will be a T M
closures resistance to introduce new innovations (e.g.: Virtual Banks)
Changing consumer trends & Requirement to adopt to changing consumer needs fast T M
culture
Population growth Opportunities for retail banking especially in Asia O H
Low financial literacy Difficulty in introducing finance related innovations T M
among millennials
Lack of confidence in banks Possible hampering of growth opportunities for banks T L
post economic crisis
Reluctance to change brands Difficulty in capturing rival market share T M
Risk averseness Go for safe investments like term deposits. Could hamper loan O/T M
growth as people may vary of borrow & invest in risky ventures
Health concerns Reluctance to use biometrics like eye recognition T L
Language barriers Global banks will face this especially in emerging markets T L
Overall High
Technology Biometrics Can be utilized to enhance security & convenience O H
Internet of Things Ability to provide customized and more personalized service O H
High IT penetration Provides opportunities to introduce new fintech solutions O H
Other Fintech developments Online & mobile banking, cloud, AI, cognitive, social media etc., O H
provides convenience, but high investments needed
Use of technology to reduce Reduce cost to income ratios with traditional branch banking O H
costs becoming non-essential. Also save marketing costs
IT security threats With technology growth, the IT security threat is attached & T H
client concerns on that could be a resistance to utilize them
Connectivity via digital Making global flows of trade, finance & data much easier O H
Overall High
Ethical / CSR Banks are expected to do CSR. Need for a CSR budget. O L
Env. Sustainable growth Developing skills of employees, customers & communities O L
Overall Low
Page 25 of 32
APPENDIX 02
Porter’s Five Forces Analysis
Michael porter’s Five Forces Analysis (1979) was utilized to 26nalyse the banking industry attractiveness.
Forces Driver Implication Rating Overall
Threat of Capital requirements Physical capital as well as banking software, IT systems etc. H Low
new Economies of scale Significantly larger players have economies of scale H
entrants (EoS)
Exit barriers Possible to divest from SBUs, but exiting entirely from banking is H
difficult
Existing competition Few large players. Highly competitive H
Buyer switching cost High since they will stick to a brand they trust H
Industry growth The UK banking industry forecasted to shrink L
Access to dist. Channels Building branch network will take time, but will have digital H
channels
Brand identity Banks have built their brands overtime, consumer reluctance to H
switch brands
Threat of Substitutes availability No direct substitute for banking as a whole. Some products have M Med.
substitutes substitutes (e.g.: insurance companies, open banking, investment
banks, mutual funds). Also substitutable fintech start-ups.
Switching cost High for customers since they will stick to a brand they trust H
Brand loyalty Customers usually reluctant to change brands. H
Relative price Substitute price performance expected to be low vs banks with L
performance E.o.Scale
Bargaining Buyer concentration Banks will have millions of customers & volume per customer is L Low
power of low
customers Switching cost High for customers since they will stick to a brand they trust H
Substitute availability No direct substitute for banking, but substitutable fintech start-ups M
are growing gradually
Product differentiation All major banks serve all segments & no major differentiation of L
services
Bargaining Switching cost Not easy to switch away from vendors especially IT related H High
power of Supplier differentiation Highly differentiated since the service is pretty much custom made H
suppliers
Substitute availability No direct substitute for banking, but substitutable fintech start-ups M
are growing gradually
Supplier concentration High since there are limited no. of suppliers H
Importance of volume Banks’ high volume of service requirement will be important to H
vendors
Industry Industry growth UK banking industry decline leading banks to eat into rival market L High
rivalry share for growth
Fintech start-ups Could provide some of the services provided by banks with using L
high tech & with more convenience. Operates with less regulations
Differentiation Less differentiation as most cater to all segments (Retail, business, M
SME etc.)
No. of players Moderate no. of players including few large competitors H
Switching cost of High for customers since they will stick to a brand they trust H
customers
Exit barriers Possible to divest from SBUs, but exiting entirely from banking is M
difficult
Mergers & acquisitions Will create stronger banks and increase competitions H
Open Banking Competition will also increase from third party providers
Brexit Possible loss of 500 Mn market could result in intense competition H
Table 15: Five Forces
Page 26 of 32
APPENDIX 03
Force Field Analysis
Force Field Analysis developed by Kurt Lewin (1943) was utilized to identify forces for change and forces
resisting change in introducing biometric technology. Forces have been rated 0-10 (0 being the lowest score and
10 being the highest score) based on the importance.
Forces for change Forces resisting change
Enhanced security standards (10) Less IT literate customers, tech

adverse customers, elderly and/or
disable customers might not be able
to utilize (6)
Convenience (Easy login, not Collecting biometrics of existing

required to remember complex customers will be challenging (5)
passwords etc.) (9)
Facilitates online, mobile & Health concerns (e.g.: Rays to eyes

virtual banking (8) when using Iris scanners etc.) (5)
Improved customer experience (8) High cost of implementation (5)
Biometric
Improving IT & mobile Technology Legal barriers (e.g.: Collecting of
penetration and literacy levels (7) personal data etc.) (5)
In Banking
Reduction in cyber-crimes & Resistance by some stakeholders are
hacking (7) expected (e.g.: Employees) (5)
High accuracy (7) Practical difficulties (e.g.:

Background disturbances in voice
recognition, unclean hands in
fingerprint recognition etc.) (4)
Ability to have multiple layers of High technology expertise & skills

authentication (7) required (4)
Potential cost savings (e.g.: less Minor possibilities of false rejections

branch costs, less staff costs etc.) and false acceptances (3)
(7)
Impact score of drivers Impact score of resisters Total Score

70 41 70-42 = 28
Page 27 of 32
APPENDIX 04
Competitor Analysis
Innovations that SCB’s competitors have introduced are categorized based on Kim Clark & Rebecca
Henderson’s four types of innovation.
Core Concepts
Reinforced Overturned
Modular Innovation
concepts and components
Incremental Innovation
Linkages between core
Unchanged
Architectural Innovation Radical Innovation
Changed HSBC M y Deal Platform

Barclays Grab+Go
Hang Seng Bank DORI Chatbot
Figure 12: Clark & Henderson’s four types of innovation
Competitor Analysis
Table
Bank Regions / Countries Profitability Total Assets S&P Rank based on No. of staff
(Mn) (Mn) total assets
Barclays Europe, Asia, Africa, Middle East, £ (894) £ 1,133,248 18 79,900
America & Australia
HSBC Europe, Asia, Africa, Middle East, $ 11,879 $ 2,521,771 07 229,000
America & Australia
Hang Seng Bank Hong Kong, China, Singapore, HK $ 20,003 HK $ 1,478,418 Below top 100 9,795
Macau
Table 16:Competitor Analysis
Hong Kong $ 0.13 = US $ 1 as at 31 December 2017
£ 0.74 = US $ 1 as at 31 December 2017
Sources: Barclays Annual Report 2017 & website, HSBC Annual Report 2017 & website, Hang Seng Annual Report 2017 & website,
S&P global market intelligence report 2018
Grab+Go Process
Figure 13: Grab+Go Process (Author Generated)

Create an account & Visit Use phone camera Click "I'm
Download
pre-upload payment Retail to scan barcodes of Done &
Grab+Go
details Store required goods Walk out
Source: Barclays Website
Page 28 of 32
HSBC MyDeal Process
Figure 14: HS BC MyDeal Platform Process (Author Generated)

Investor Investor Client Deal Other
Profiles Feedback Orders Pricing Info.
Data collection to one platform
Processing
Output
Graphs & Historic

Analytics
Visuals Info.
Page 29 of 32
APPENDIX 05
Cultural Web
Stories  John Paterson formed the Standard Bank of British South Africa which operated mainly in the
African region. James Wilson formed the Chartered Bank in 1853 under a Royal Charter received
from Queen Victoria with operations were mainly focused in Asia. The Standard Chartered Bank
was incorporated in 1969 via the merger of aforementioned banks focused on two regions of the
globe merged to form one global bank. (Source: SCB website)
 Awards won across the globe in innovation (The Innovators 2017) & other areas.
Rituals &  Focus on digitalization. (e.g.: Tracking of retail banking digital adoption, Partnering with Huawei
Routines for Internet of Things solutions, Collaborated with TencentFiT to launch a new E-commerce
solution for corporates, Strategic partnerships with TradeIX and Infor to advance the digitalization
of trade finance, JV agreement with Paxata to assist employees, digital wealth advisory tool for its
relationship managers etc.).
 One of the three strategic objectives is Invest and innovate.
 Working with over 50 Fintech companies. (e.g.: Ant Financial partnership)
 Blockchain based cross-border wallet remittances between Hong Kong and Philippines.
 The eXellerator innovation lab in Singapore, Hong Kong & London.
 SC venture, a dedicated unit for digital innovation.
 Chatbot facility in mobile banking platforms.
 Embed innovation, digitization and analytics being one of the performance criteria for director
remuneration
Symbols  SCB logo with connected letters S (in blue colour) and C (in green colour) signifying the merger
of Standard Bank and Chartered Bank.
Organizational  Two classifications: Regional classification and Product based classification.

Structures If an innovative idea is generated from the lower level of the hierarchy, there are many layers to be
passed in order for it to reach the Group CEO. (e.g.: If an idea come from an Executive, it should
go through his department head to the branch CEO and then to country CEO. Once it is approved
by the country CEO, it needs to go through the Regional CEO and then to Group CEO).
 If anything relevant to a product, it should go through product manager ultimately to group’s

relevant product CEO. For instance, if it is a retail product, ultimately it should reach Group Retail
Banking CEO, Benjamin Hung Pi Cheng.
 A tall hierarchy.
Control  Financial Crime Risk Mitigation Programme.

Systems  Client Tax Fraud/Evasion Frameworks.
 Embed innovation, digitization and analytics having 10% weight in measuring director
performance with targets of growth in digital volumes and drive innovation through new products,
solutions & services.
 Internal & external audits.
Power  Well diversified board with many nationalities. (Implementation of the Board Diversity Policy)
Structures  Board members having less technology experience.
Table 17: Cultural Web

Source:www.sc.com, Standard Chartered Bank Annual Report 2017, Standard Chartered 1H2018 Half Yearly Report
Page 30 of 32
APPENDIX 06
Group Structure
Figure 15: Geographic based group structure

Group CEO
Bill Winters
Greater
China AS EAN Africa & Middle East Europe
& North Asia & S outh Asia & Americas
Benjamin Hung
Pi Cheng Anna M arrs Sunil Kaushal Tracy Clarke
Regional CEO Regional CEO Regional CEO Regional CEO
China Australia Angola Nigeria Argentina

Hong Kong Bangladesh Bahrain Oman Bahamas
Japan Brunei Botswana Pakistan Brazil
Korea Cambodia Cameroon Qatar Colombia
M acau India Egypt Saudi Arabia Falkland Islands
Taiwan Indonesia Gambia Sierra Leone France
Laos Ghana South Africa Germany
M alaysia Iraq Tanzania Guernsey
M yanmar Jordan UAE Ireland
Nepal Kenya Uganda Jersey
Philippines Lebanon Zambia Sweden
Singapore M auritius Zimbabwe Turkey
Sri Lanka UK
Thailand United States
Vietnam
Source: SCB website
Figure 16: Customer segments

Group CEO
Bill Winters
Corporate &
Institutional Retail Commercial Private
Banking Banking Banking Banking
Benjamin
Simon Cooper Hung Pi Anna M arrs Anna M arrs
CEO Cheng, CEO CEO CEO
Page 31 of 32
Page 32 of 32
APPENDIX 07
Mind Map
Focus on improving Better Customer Time saving Pharming

cost to income ratio Experience M obile Online Increasing Virtual Password hacking
Not required Banking Banking IT literacy Banking Card skimming
Operational cost High Accuracy to remember Frauds / Shoulder surfing
savings for banks passwords Present Future Scams Fake PIN pads
trends Trends Phishing
Customer acceptance Easy login Security Salisi Gang
Reliable performance concerns Eavesdropping
Scalability to Convinience Facilitating banking trends
accommodate growth Debit / credit cards
Interoperability with Theft PINs

present systems Why Biometrics? M obile devices
Features of an effective Weaknesses in traditional access
authentication method control
Possible weaknesses Biometrics in Bank lockers
Hand disables Fingerprint Banking Processes where biometric Automatic Teller
Use with dirty hands authentication is useful M achines
Types of biometrics Online banking login

Health concerns: Iris/ eye detection in banking Components of a Challenges M obile banking App
Rays on your eyes biometric system Cash / cheque deposit
Biometric machines
Lighting issues Face detaction Authentication Sensor High cost Virtual banking
Feature extractor Legal concerns
Background noises Voice recognition M atching code with input Template database Collecting biometrics
Unclear pronouncing biometrics M atcher of existing customers
Hand detection Decision module IT illeterate customers
Generate algorithm codes Tech adverse customers
Prerequisitis Elderly customers
Segmentation, Enhancement &
Biometric input for Search similarities Core point detection High investment
acceess
Software Technology
Storing Database, server
Gather biometric Algorythms Skills

information Coding
Page 32 of 32

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CIM Membership No.

40040524 Creating Entrepreneurial Change - December 2018

Creating Entrepreneurial Change

CIM Membership No. 40040524

Table 01: SCB Product Offering………………………………………………………………………… 2

Figure 01: SCB at a glance ……………………………………………………………………………… 2

From: The Consultant

Date: 20th Nov 2018

Subject: Company background,

1. (a). 1. Organization name: Standard Chartered Bank PLC (SCB)

1. (a). 2. Type of the organization:

1. (a). 3. Size of the organization:

1. (a). 4. Range of products and services:

1. (a). 6. Main competitors:

1.(b).1. Technological factors:

Time consumption to get services

Nevertheless, there will be cyber

1.(b).2. Socio-Cultural factors:

Source: Fintech Adoption Index 2017-EY

Table-03: Socio-Cultural factors

Regular touch with bank when

Access to E-receipts and spending

Hang Seng Bank

Table-04: Competitor Innovations

Task 1(b) & 1(c) word count: 1,055

Processes and operations:

Table-05: Culture, structure, processes and operations

The segment selected:

Innovators Early Early Late Laggards

Figure 08: Roger’s Diffusion Curve

2.(b).1. Biometric Authentication:

Global trends that facilitate the requirement for biometric authentication

Why SCB should adapt this?

“Invest and Innovate” being a strategic objective, to facilitate

Enhanced customer satisfaction is expected to drive brand

In the medium term, branch related overheads and other costs

How customer engagement will be improved?

Increased customer engagement by;

Why SCB should adapt this?

Robotics too will facilitate SCB’s “Invest and Innovate”

Enhanced customer satisfaction is expected to drive brand

(Image Courtesy www.financialexpress.com)

Increased customer engagement by;

SCB’s strategic objectives are;

Goal Linked Applicable Metrics

2. Payback period = Initial investment

3. Discounted payback = Initial investment

Internal Business Perspective:

Innovation and Learning Perspective:

2. Training hours per employee = No. of training hours

2.(c).1. Biometric Authentication:

Rank: 8/10 since benefits outclasses risks.

 Provide personalized services based on

 Enhance accuracy and eliminate human

Rank: 7/10 since benefits outclasses risks.

Task 2 word count: 2,006

Value Proposition Customer Segment

GAIN CREATORS GAINS

PAIN RELIEVERS PAINS

Figure 11: Value Proposition Canvas

Task 3(b) & 3(c):

From: The Consultant