Dbs Analysis

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- How effective is DBS in transforming itself in the digital era? What are the metrics you would use to test the success of the transformations?

The only relevant metric up to this point in time is the comparison of the current DBS to the old DBS. Based on this metric DBS has had tremendous success. One factor that is associated with technological advancement is time. Through its tactics DBS “eliminated over 240 million hours of customer wait time” (Kien, Soh, Weill, & Chong, 20115). Additional key facts after initial launch of transformation that support DBS’s transformation are:

- The identification of areas of weakness – e.g., 23.3% of touchpoints captured

- Captured 53.8 million touches with IDEAL within first two years

- Increased wealth management from S$506M to S$1.1B

- Recue ATM cash-outs by 90% positively affecting 350k customers

- Recued reload trips by 10%

- Compliments rose 45%, complaints decreased 17%

- Launched the first ever in-bank Consultation Pods

- Achieved 87% smartphone penetration with mobile apps

- PayLah! attracted 5,000 users in the first week

- The attraction to LINE, HomeConnect, and Quick Credit

While some of these metrics are not quantitative, the impact on DBS’s ability to create disruptive innovation is significant. Additionally, greater market success is not a requirement to disruptive innovation. In the future, DBS will have other valid comparison to look at once it gains traction and can reevaluate its position and goals.

- What are the critical success factors that help to transform business executives from “technology idiots” to “digital warriors”? Use evidence from the case to support your arguments.

The primary factors used to accomplish transformation from digital idiot to digital warrior are increased efficiency in feedback mechanisms, cross-organizational collaboration, centralized decision making, flatter organization – especially between senior executives and the top, organization wide access to the business, informed decisions, data that makes sense, and a clearly articulated vision that people in the organization believe in. One of the foundational examples of this is that Gupta had a strong vision to become the ‘Asia Bank of Choice’ and he successfully backed this vision up with action and communication (Kien, Soh, Weill, & Chong, 20115). Gupta infiltrated DBS with data that supported the correct path to his vision - digitalization and a plan to undergo a digital transformation. He combined tech with business by appointing Gledhill and creating T&O, he created internal think tanks, he collected Big Data, he drove organizational decisions with the data instead of following the industry, he invested in collaborative technology and gave everyone a voice, DBS launched new products and has over 1,000 other test pilots going, a technological roadmap was created and distributed, and most importantly he created a link for people in the organization to join their old way of doing business with the new way of doing business by applying the new technology vision to the traditional vision of customer touchpoints.

- Going forward, what should be the next steps in DBS’ digitization strategy? Where should the bank direct its technology investment dollars? Answer this in the context of Weinman's digital disciplines.

First I recommend that DBS identifies its new core competencies in the digitalized space and eliminate products that are complementary and have niche rivals. An example of this are any products that compete directly with PayPal. PayPal is a non-traditional firm that directly competes with a small group of DBS products. Entering into a JV with PayPal would free resources and capital that DBS can use on products and spaces that make sense to its core competencies. Another example would be for DBS to work with a firm like Realtor.com and integrate its HomeConnect product with its product. It could also work with Realtor.com to provide DBS’s creativity and solutions to improve Realtor.com’s current products. This could be by way of acquisition or a JV.

I recommend that DBS make customer touchpoints the focal point of its new vision through technological innovation. An excellent example of this is the Consultant Stations in bank branches. Hiding the technology “behind the counter” eliminates that feeling of not being the center of attention that customers long for. Given that DBS’s primary stakeholder emphasis is its customer, this is an important tactic because it can give customers the illusion that they are being serviced by super humans. Another example of this would be to create a platform that customers could send a text and receive their balance. This would eliminate ATM visits to check balances in some cases, create a pre-connection to DBS by providing technology to check balances prior to their ATM visit, engage customers with multiple technologies (ATM’s are a form of technology), create the image of a tech savvy bank, provide convenience, and it fits in its core competencies. The idea is not to get rid of customer touchpoints, but to digitalize them and DBS can transform the competition through this tactic.

- How can DBS stay at the forefront of banking innovation to become the Asian Bank of Choice of the future? See the table below for Christensen's list of strategic responses possible for incumbent firms in dynamic industries. Which choice is best for DBS?

The best strategic response for DBS is co-opting. “Beyond putting our money where our mouth is, the key to change is one of mindset. We have to shift from legacy to new ways of engagement” stated Gupta (Bupta, 2014). He points out that competitors have a head start because DBS has been “sidetracked” with factors related to the economic crisis. If DBS can reinvent the rules of competition in its industry through M&A and innovation, it will have an upper hand on its competitors through the strengthening of its operations, becoming a global expert by offering IP and data, will enhance is scalability, and keep customers as the focal point in a digitalized world. The key will be to choose where it innovates and where it acquires.

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Works Cited

Bupta,