Key Strategies for Winning in the New Economy. Vance Williams LaVelle Senior Vice President, Chase One Chase Plaza, 14th Floor New York, NY 10081 212-552-7557 firstname.lastname@example.org May 1, 2000. Topics for Discussion. Emerging Trends New Customer-centric Business Models
Winning in the New Economy
Vance Williams LaVelle
Senior Vice President, Chase
One Chase Plaza, 14th Floor
New York, NY 10081
May 1, 2000
Source: Bear Stearns & Co.
Increasing information and choice
Simplify daily life
End-to-end convenience and speed
Reliable customer service
29% of on-line users and >50% of all on-line transactions
Consumer demand is causing change….
…CREATE DEMAND for SIMPLIFICATION
Source: Andersen, Yankelovich, McKinsey
Price complexity Price transparency
Limited alternatives Choice
Broad Segmentation Customer Personalization
Physical Speed Virtual Speed
Meaningful entry Low entry
New business models have emerged making it possible to earn higher returns by delivering more broadly on customer intentions.
Customer Managed Relationship
Customer Relationship Management
In migrating from a product-driven to a customer relationship management business model, superior customer insight capability is imperative to deliver relevant offers.
The Customer Relationship Management model is quickly giving way to a new model where the customer is in the driver’s seat.
Innovative players are forging a new business model by forming strategic alliances to better meet customer needs.
includes development, bounty fees & royalties
= New revenue sources
“The difference between products and services blurs to the point that the distinction is a trap.
Winners provide an offer that is both product and service simultaneously.” 1
1 Source: Blur, Stan Davis and Christopher Meyer
To measure the customer experience and continually build the brand, determine the most important events for high value customers and take appropriate actions.Acting on Opportunity
Event Opportunity Tailored
Tracking Stream Communication
“Imbedded Customer Intelligence”
… And challenge traditional businesses to build new capabilities for information intensive marketing.
Traditional businesses have similar goals to the emerging business systems, yet their reliance on customer information may vary.
Increase market basket and customer value
while optimizing the cost to serve and service quality
More frequently the right offer is delivered in near real time
through the preferred channel
Translating customer information into insights that are actionable
Creating rules-based decisions to action learning
Integrating business processes and systems to deploy tailored offers and communications
Measuring effectiveness in rapid cycle to quickly learn and deploy new insight
Traditional businesses use three main organizational structures for eBusiness.
eBusiness Organizational Structures
Organizations must be more nimble to effectively operate in a rapidly changing environment.
As the Chief Information Officer and Chief Technology Officer roles morph to meet the needs of the new business systems...
Assume business model adoption is organic. Facets of organizations will be quicker to migrate.
This may lead to information and infrastructure challenges due to lack of parity in a multi-business enterprise as new standards and supporting architecture continuously evolve.
Build simply and quickly — Identify the projects that require the least effort to implement and provide the greatest payback