Strategic Sourcing in Banking - A Framework

The banking landscape in Europe and Germany has a polypolistic market structure with an average vertical range of integration of 80%, implying high process redundancies. Accumulating processes for standardized products is one way to achieve efficiency improvements. “Smart sourcing” can change the production mix of banks lead to a concentration of processes. A challenge is the lack of consistent frameworks for the banking industry to systematically support the sourcing decision process. In this paper, drawing on the resource based view and transaction cost economics it is shown that, in addition to a make or buy decision, co-operation between competitors should be included into a sourcing analysis as the third alternative. To support the decision on making, buying or sharing an activity, a quantitative analysis of each activity of the banking value chain is necessary. We propose an analysis framework based on a generic banking value chain. Since the recent literature mostly focuses only on the outsourcers’ case, a formalized model is developed to consider both the objective function of the out- and the insourcer. Since the market might restrict sourcing options, as there may be no providers of relevant activities, it can be shown that “sharing” as part of a co-opetition concept instead of buy or make can be a way to break up the value chain. The framework thus supports decision makers to approach an optimal degree of vertical integration for both market sides

Strategy of UUS BTN Post SPIN OFF with Scenario Planning Approach

The research objective is to build a strategy UUS BTN post spin off in order to reach sustainability growth. Tools used to formulate the strategi is scenario planning after analyzing external & internal factors thru environmental scanning and research methods used are study literature, stakeholder's in depth interview and secondary data published. The outcome of scenario planning will be used for strategic action necessary due to the one that is recommended for UUS BTN’s strategy post spin off. The objective of UUS BTN post spin off strategy is using scenario generation to help planners to influence and enhance the quality of strategic planning. From in depth interview, it is obvious, the expectation of parent bank after spin off, which are two things UUS need to concern namely: achieving better performance with the status BUS, than still UUS status and process of internal consolidation of post spin-off takes place smoothly. As an early warning signal, the sinergi UUS BTN has with Bank BTN is not optimal yet. Bank BTN’s network in cooperation with PT. Pos Indonesia with on line real time outlets at the Post Office branches through out Indonesia, as much as 2,728 units, none if it has  sharia services. Other than that, based on the results of a survey conducted by the Bureau of Research Infobank PingFans put KPR BTN top position with index 2,743 (Infobank, 2012:11), meanwhile for KPR iB, KPR BTN iB does not count at, eventhough for the realization FLPP 2010-2011, according to data from Kemenpera is the largest supplier, with 114,235 units valued at Rp 3.81 trillion, followed by KPR BTN iB 6,184 units worth Rp 222.32 billion (Clipping Housing, 2012). Limitation of this in depth interview research method needs to be continued by Delphi method as it was a preliminary research.Keywords: strategy, spin off, Islamic banking, scenario plannin

Drivers and Inhibitors for Outsourcing Financial Processes - A Comparative Survey of Economies of Scale, Scope, and Skill

Economies of scale, scope, and skill are known to be major drivers or inhibitors for outsourcing business processes but they may play different roles for outsourcing primary or secondary processes. In this paper, based on two empirical surveys with Fortune 1,000 non-banks and Fortune 500 banks in Germany, a comparative analysis reveals different appreciation of (the impact of) economies of scale, scope, and skill by managers responsible for outsourcing financial processes in non-banks and banks. Consistent with the theory, economies of scale and skill are identified as drivers for outsourcing business processes while economies of scope represent an inhibitor. Overall, Chief Credit Officers estimate scale and skill effects due to outsourcing to be higher than non-bank Chief Financial Officers do. Furthermore, economies of scope, which inhibit selective sourcing, are evaluated as being less problematic. As a result, Chief Credit Officers are more likely to outsource (parts of) their - primary - financial processes. The surveys also suggest that quite in contrast to common perception German banks are on the verge of industrialization and modularization

Next Generation Outsourcing – A Research Agenda Guided By Practice

Over the last decades outsourcing has established itself as widely accepted management practice. Information systems researchers have spent considerable effort in studying the outsourcing phenomenon and theorizing about it. Through the interaction between research and practice, as well as through own experiences, industry managers underwent a noticeable learning curve. This poses the question: is research still up to date or do we need to think about the next stage, a form of next generation outsourcing? To investigate this issue, expert interviews with thirteen sourcing managers from different industries have been conducted. The aim was to learn about the state of outsourcing management in practice and to identify what the new topics are which keep outsourcing managers awake at night. The basis for the structured interviews was a thorough analysis of the outsourcing literature. Building on these the interviewees were asked to discuss their experiences and to highlight current issues of concern. We identified four emerging topics which call for further research: (1) Multi-vendor Outsourcing and Sourcing Networks, (2) Cloud Computing and its implications for outsourcing, (3) Risk Management of Outsourcing, and (4) Methods to bridge the Offshoring gap

The Challenges of Inter-Organizational Business Process Design - A Research Agenda

Given the increasing importance of value chain collaboration, business processes need to be more closely aligned across organizational boundaries. Hence, business process modeling and design have to be enhanced and extended to cope with inter-organizational business relationships. Among the challenges that arise are interdependencies between internal and external processes, different process logic and terminology, missing clarification of responsibilities and confidentiality issues. This paper analyzes existing approaches to business process modeling, workflow management and B2B standardization with regard to the specific requirements concerning inter-organizational business process design. It extracts the relevant concepts addressing these requirements and draws up an agenda for further research

The Impact of Service-Oriented Architecture on Business Networkability

Increased networking among firms has become a competitive necessity in many industries and the ability to efficiently establish, operate and dissolve business relationships has become a competitive advantage. The degree of this networkability is influenced by several factors, such as organizational structure, business processes, people and culture, but also information systems. In fact, current technological developments aim at the efficient and flexible orchestration of standardized modules, referred to as services. Past research has analyzed networkability primarily qualitatively without providing a specific perspective on the concept of service-oriented architecture (SOA) which has only emerged on a broad scale since the beginning of this century. This paper is a first attempt to investigate the impact of SOA on the notion of business networkability. It is assumed that the ability to flexibly link business services among business partners also positively influences the firm’s networkability. Empirical evidence will be provided from the financial industry which is currently undergoing a strong vertical disintegration. The results show a moderate, but nevertheless significant impact

TRANSFORMATION TOWARDS CUSTOMER-ORIENTED SERVICE ARCHITECTURES IN THE FINANCIAL INDUSTRY

The financial industry is in midst of a global transformation. Drivers for this are changes in customer behaviour, disruptive power of information technology and changes in the industry structure itself. These developments have the potential to shift the financial industry towards a customer-oriented financial market infrastructure and force banks to become more customer-oriented. The research presented here applies an integrated approach on service-oriented architectures (SOA) which combines a business and technological view on services and thus contributes to the emerging field of service science. The paper develops a customer-oriented service architecture model for banks and analyzes the impact of future banking sales and distribution by a quantitative survey. Data was collected from 25 banks in the German-speaking area. The empirical results of hypotheses testing indicate that banks have only started to restructure their existing architectures, but will not be customer-oriented in 2015. However, first tendencies show that banks concentrate on the extension of core competencies in e-channels to better and more cost efficiently serve their customers. Nevertheless, the developments planned until 2015 neglect necessary enhancements of banks` service architectures such as the inte-gration of value added services from external service providers or the centralization of processes in all customer-facing services

Schwerpunkt-Report über das Jahr ... / Wirtschaftsinformatik und Informationswirtschaft / Fachbereich Wirtschaftswissenschaften

Im Zentrum des Schwerpunktes stehen die Beschreibung, Erklärung und Gestaltung von Informationserstellungs- und -verarbeitungsprozessen, insbesondere soweit sie durch moderne Informations- und Kommunikationstechniken unterstützt werden. Diese Prozesse dienen zum einen der unmittelbaren Bedürfnisbefriedigung durch Information sowie zum anderen der Koordination physischer Wertschöpfung. Die schnelle Fortentwicklung der IuK-Systeme sowie die rasante Verbreitung ihrer Nutzung führen vielfach zu tief greifenden Veränderungen der Geschäftsabläufe und darüber hinaus des gesellschaftlichen Lebens. Aufgabe des Schwerpunktes ist hierbei, die Nutzenpotenziale neuer Informations- und Kommunikationstechniken sowie deren Anwendung insbesondere in Wirtschaft und Verwaltung zu analysieren und eigene Gestaltungsvorschläge zu unterbreiten. Dies gilt auch für die Gestaltung und Auswahl der institutionellen Rahmenbedingungen von Informationserstellungs- und - verarbeitungsprozessen