Group Presentation Group 2 Manchester Business School IS Strategy and Enterprise Systems

World’s only functional Egg!

Introduction “hatched” in year 1998 “One of the largest Internet-only banks in the world”- Hoovers Capsule Main Services: Mortgages Personal Loans Individual savings accounts Unit trusts Travel insurance Mutual funds Other financial products

Business Strategy Establish a massive online presence as fast as possible and offer one-stop shop for banking Attract internet-enabled customers, provide easy access to a range of financial and non-financial services Increase diversity of products to expand its customer base Thrive for better customer experience through technological advancements IT and Business Strategies

IT Strategy Internet-only – the only business model Customer Communication – , phone or web Store Amounts of Data (e.g. s, customer information) Data Recovery in acceptable short time Real-time information IT and Business Strategies

Alignment of Business and IT IT and Business Strategies

Egg’s Competitors IT as Competitive Advantage Barclays PLC HSBC Holdings PLC ING Direct UK

IT as Competitive Advantage ICT in Egg is an integrated part of the business model and not an add-on Egg is saving an estimated 50p for each Pin posted across the internet Egg Money Manager – Service which no other bank offers SoA as a foundation for all business processes Joined hands with majors in software and finance solution providers such as IBM, EMC, Sun Microsystems, SQS, CDC

IT as Competitive Advantage Blaze adviser system: allows organizations to execute transactions quickly, and provides the agility and flexibility to adapt decision strategies as business strategies change Zopa: is an online exchange that allows borrowers and lenders to deal with each other on terms of their own choosing via the internet. Enterprise feedback Management(EFM):provides an online reporting platform to business users.

Measuring Costs and Benefits of IS Many Traditional approaches of investment analysis techniques like Return on Investment, Net present Value, Payback Period exists, however those are inappropriate considering the uniqueness of IS projects. Information Economics? Balanced IS scorecard can be the foundation for a strategic IS management system provided that certain development guidelines are followed, appropriate metrics are identified, and key implementation obstacles are overcome Measuring Costs and Benefits of IS

Balanced Scorecard for IS Measuring Costs and Benefits of IS Four perspectives: user orientation, business value, internal processes, and future readiness Source: The balanced scorecard: a foundation for the strategic management of information systems Maris Martinsons, Robert Davison, Dennis Tse

Building a Balanced IS scorecard: Measuring Costs and Benefits of IS 1. Create awareness about the concept 2. Collect and analyze data 3. Clearly define the company-specific objectives and goals of the IS 4. Develop the preliminary balanced IS scorecard 5. Revise it on basis of feedback 6. Achieve a Consensus 7. Communicate the scorecard to all stakeholders

Measuring Costs: Total Cost of Ownership Balanced Scorecard for IS Acquisition Cost (Hardware and Software) Operations Cost(Maintenance, training etc) Long term Costs( Upgrades, Replacements) Measuring Costs and Benefits of IS

Future Developments in Technology impacting on business strategy Future developments Development in Credit Check and Fraud Detection Technology New advances in digital services could allow Egg to evaluate credit risk Allow Egg to evaluate its credit back book for potential fraud Adoption of Digital Documents and Digital Signatures. This would allow Egg to reduce its carbon footprint and further streamline its business operations

Future Developments in Technology impacting on business strategy Future developments Future Modifications to PCI-DSS Standard will impact on the technology. New standards may result in the enforcement of technology changes Advancement in Mobile Technology New marketing opportunities New services for existing clients

Future Developments in Technology impacting on business strategy Egg already utilizes online banking that also allows other card issuers and bank accounts to shown Additional bank and card issuers could be brought onboard Allow more flexible payments and transfers to take place Egg as a business are regulated by the FSA who will require electronic reporting More streamlined reporting methods Lower manpower requirements Future developments

Questions ?