E-BUSINESS STRATEGY OF

CAPITAL ONE
CAPITAL ONE CASE FACTS
Capital One Financial corporation was established in 1995
Offers Credit Card, Banking and Insurance products
Currently the 9
th
largest retail banking player in the US
Operates in US, UK and Canada
Extensively uses IT and Information systems in its operations
Creates value to customers using E-Business Strategy
Case Revolves around how Capital One creates value to customers using IT
and IS

STRATEGY AND ROLE OF E-BUSINESS IN
IT?
Corporate strategy defines the future directions and actions of an
organization

E-business refers to application of electronic communication in the
organization

E-Business Strategy defines the impact of technology and electronic
communication on corporate strategy



FORMS OF ORGANIZATIONAL STRATEGY
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BU Strategy
Regional
Strategy
Functional
Strategy
Where does E-
Business
Strategy
generally fit in?
CAPITAL ONE E-BUSINESS STRATEGY
Uses Information Based Strategy
Heavily dependent on IT and IS
Unifies Marketing, Credit, Risk, Operations and IT
Helps in understanding customer needs and preferences better
Uses IS to provide Tailor-made financial products based on customer
needs
Different prices to different customers based on their risk status




MCFARLANS STRATEGIC GRID
Factory STRATEGIC
Support Turnaround
Capital One
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I
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O
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Impact of IT on Strategy
IMPLICATIONS OF E-BUSINESS STRATEGY
E-Business strategy should be clearly defined. Otherwise it may lead to
:
Improper or insufficient attention to E-Business initiatives.
Inappropriate direction of E-Business strategy
Limited integration of E-Business and information asymmetry
Resource wastage through functional duplication of modules


RELATION BETWEEN E-BUSINESS AND
OTHER STRATEGIES CORPORAT
E
STRATEGY
E-Business
Strategy
SCM
Strategy
Marketing
Strategy
IS
Strategy
Constraints and Opportunities
S
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p
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S
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C
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ADVANTAGES OF E-BUSINESS TO CAPITAL
ONE
Communicate benefits through electronic channel
Prioritize audiences or partners for e-channel adoption
Prioritize products sold or purchased through e-channels
Manager dashboard and analytics
DYNAMIC BUSINESS MODEL OF CAPITAL
ONE

Knowledge
Building and
Capability
Evaluation
E-Business
Design and
Business Goals
E-
Business
Blueprint
Application
development
and
deployment
INTERNAL CAPABILITIES VS EXTERNAL
FORCES
Market
Driving
Strategy
Market
Driven
Strategy
Status
Quo
Capability
Building
VISION AND OBJECTIVE
Vision and
Objectives
Business
Scope
Value
Core
Competencies
MISSION STATEMENTS
Amazon.com Our vision is o be earths most customer centric company, to build a
place where customer can come to find and discover anything they might want to
buy online.
Dell Dell listens to customers and delivers innovative technology and services they
trust and value.
Google Googles mission is to organize the worlds information and make it
universally accessible and useful.
Capital One Our brand is premised on empowering our customers with informed
choice, great value and excellent service.
HOW CAPITAL ONE USED E-
BUSINESS TO CREATE BUSINESS
VALUE ?
THANK YOU !