Group PresentationGroup 2Manchester Business School

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IS Strategy and Enterprise Systems

World’s only functional Egg!

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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

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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

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IT Strategy

• Internet-only – the only business model

• Customer Communication – e-mail, phone or web

• Store Amounts of Data (e.g. emails, customer information)

• Data Recovery in acceptable short time

• Real-time information

IT and Business Strategies

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Alignment of Business and IT

IT and Business Strategies

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Egg’s Competitors

IT as Competitive Advantage

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• Barclays PLC

• HSBC Holdings PLC

• ING Direct UK

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IT as Competitive Advantage

IT as Competitive Advantage

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• 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

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IT as Competitive Advantage

IT as Competitive Advantage

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• 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.

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Measuring Costs and Benefits of IS

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• 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

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Balanced Scorecard for IS

Measuring Costs and Benefits of IS

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• Four perspectives: user orientation, business value, internal processes, and future readiness

Source: The balanced scorecard: a foundation for the strategicmanagement of information systems

Maris Martinsons, Robert Davison , Dennis Tse

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Building a Balanced IS scorecard:

Measuring Costs and Benefits of IS

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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

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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

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Future Developments in Technology impacting on business strategy

Future developments

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• 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

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Future Developments in Technology impacting on business strategy

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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

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Future Developments in Technology impacting on business strategy

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• 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 ?

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