All of these technologies had taken on immediate and urgent priority by Wincor-Nixdorf's customer base as many are finding a 67% reduction in costs of service when they transition form branches to self-service machines, and nearly a 99% reduction in costs from branches to Internet banking (Ho, Mallick, 2010). In other words the Wincor-Nixdorf customer base was learning very quickly how to translate the advanced technologies mentioned into massive cost reductions very quickly as they capitalized on their customers' needs for more convenient access to the Internet. Figure 2, Index of Banking Services Costs provides a relative ranking of the costs of delivering banking services. With Branch costs being the index of 100% compared to self-service machines at a 67% reduction in costs and Internet banking at a 99% reduction in costs, it is evident that the technologies are having a significant and rapid effect on banking costs.
Figure 2: Index of Banking Services Costs, 2003-2006
Sources: (Ho, Mallick, 2010) (Lin, Hu, Sung, 2005)
This aggressive level of cost reduction occurring in the banking industry is forcing a higher level of intrabank and interbank integration than has ever been the case in the past. This is putting software and systems integration engineering at the center of customer's priorities and leading to the commoditization of hardware alone (Ho, Mallick, 2010).
Analysis
Wincor-Nixdorf must transition from a hardware-centric mindset that seeks to find differentiation purely from one product generation to the next and must embrace a more solution-oriented mindset if they are going to survive these fundamental shifts in their customer base and the industry. Wincor-Nixdorf's hardware ethnocetricism makes the transition form a product feature-based development and selling strategy to a solution mindset extremely difficult (Bushrod, 2003). The cost reductions their customers expect that are attainable only through the development of real-time system integration to make self-service and Internet banking cost reductions possible force Wincor-Nixdorf to abandon the purely product-driven strategy and begin to evaluate software-based and network-based technologies (Lin, Hu, Sung, 2005).
Wincor-Nixdorf over time begins to see how the initial efforts to integrate their POS systems and platforms into banking systems begins to show positive Return on Invested Capital (ROIC) and Return on Investment (ROI) for global customers including Duetshe Bank and HSBC (Meyer, Wolf, 2002). In 2002 the global economy was in a recession, and the investments in Wincor-Nixdorf POS terminals that could integrate into a network helped these customers to attain profitability even in the midst of challenging economic times. Internally within Wincor-Nixdorf there had been debates relative to the strengths and weaknesses of selling more of a network-based POS solution vs. staying with the product strategy-based approach. The political faction within Wincor-Nixdorf that had concentrated on the solution selling imperative won the debate (Bushrod, 2003). As a result a proliferation of POS systems for vertical markets including retailing (Pepe, 2003) was put on a fast track for development. In conjunction with the acceleration of more solution-oriented product lines the senior management teams at Wincor-Nixdorf began to re-architect their messaging to be more service-dominant and less reliant just on products alone (O'Shaughnessy, O'Shaughnessy, 2009). To overcome the limitations in integration between banking and retail divisions, Wincor Nixdorf also started a professional services organization that would work with customers on their business process reengineering requirements (Bushrod, 2003). The development of the professional services organization then became the catalyst for Wincor Nixdorf to shift their internal mindset away from being so centered on products towards being more focused on integrated systems and solutions.
Customer relationships shifted from being focused purely on hardware sales to gaining a better understanding of the business problems customers faced. The shift from being inwardly focused on products and more on the business goals and objectives of their customers shifted the priorities internally within Wincor Nixdorf to valuing integration skill sets and intelligence (Damiano, 2008). Managing solutions became more critical than speeding through the next product generation and attempting to leapfrog competitors on features alone (Amato-McCoy, 2008). The focus had become how well the professional services organization could coordinate with the banking and retail product divisions to attain a suite of enterprise solutions for clients.
Wincor Nixdorf took years to make the transition from being product-centered to being solution-focused. The myriad of decisions that had to shift the company's product, services, selling and deployment models to being focused on...
Brand Management Nike Brand Management Nike's progression from selling tennis shoes out of the back of founder and CEO Phil Knight's car to one of the most respected and known brands globally initially began with naming the company after the Greek Goddess of victory. Transitioning from being Bleu Ribbon Sports to Nike also led to the company going public and gaining the necessary funds to finance growth and expansion. It was after
To conclude with, in terms of positioning, the BD brand is perceived as offering a dynamic, unconventional, imagination supporting experience, while the P.F.Chang brand is seen as a symbol for culinary harmony, qualitative services, and concern for the client's nutrition requests or needs. Another issue which aims to increase brand equity refers to the tools a company uses for gaining customers' loyalty. For example, BD invites clients to join Club Mongo
Disney Entertainment Connecting with Core Customers Disney is a world leader in understanding their target markets and uses advanced systems and innovative technologies to understand their consumer base on a level never before possible. Disney's overall value proposition target involves making experiences more memorable and accessible through innovative technology. Disney's primary strategic objective is to produce high-quality content through their entire product mix which includes a variety of brands that are used
Strategic Brand Management Event Management Company Building a brand is an extensive task that requires multiple important elements to be successful. It does not only involve branding the product/service a company provides, but also focuses on enhancing the image of the brand, developing brand by adding value to it and by improving it according to the dynamics of the markets. Brand development has been made crucial for the companies to flourish in
Product and Brand Management at Starbucks Product and Brand Management -- Analysis of Starbucks Starbucks (NASDAQ: SBUX) has one of the most recognized and perennially most popular bands recognized today. It also has one of the most loyal customer bases of any quick service restaurant (QSR) with the average visit per months of the most loyal customer segments averaging 16 or more (Starbucks Investor Relations, 2013). During a recent visit to a
Companies that have invested in defending their brand and managing the customer experience outside of their website have seen great returns. Within the travel industry, for example, companies such as InterContinental Hotels Group and Royal Caribbean Cruises have both extended their reach to manage the customer experience on partner sites with a very high degree of success. In each instance, their efforts have resulted in an improvement in the
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now