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Citibank Case Analysis How Does Case Study

Citibank's strategic intent is to convert its traditional money management business into an e-business framework. How does Citibank transform its traditional assets into digital assets? What issues, if any, do you envision that Citibank must overcome in order for the implementation to be successful?

Inherent in the plans to convert its traditional money management business into an e-business framework are broader implications of disintermediating part of the value chain in commercial banking at that point in the industry's lifecycle (Andal-Ancion, Cartwright, Yip, 2003). Citibank relies on its intensive level of business process expertise, combined with its knowledge of it systems to transition from being purely focused on multichannel strategies that include personalized to also include more advanced insights and services for its core customer base of enterprise and MNCs globally. At one point in the case study, the MNCs are growing so impatient with the progress of the banking industry they begin to form their own consortium and begin to create their own trading and order management hub. If this had occurred the fragmentation of the industry would have led to a drastic drop in Return on Invested Capital, based on analysis of the case using Dr. Michael Porters' concepts on competition (Porter, 2001).

Citibank continues its journey from traditional money management business into an e-business framework, relying on its process expertise to gain trust from its corporate customers. The transition from traditional assets to digital assets is driven by the overriding vision of creating a centralized order management hub that can manage more complex transactions and financial workflows. For Citibank, the new medium exchange is the expertise to manage complex processes that involve large amounts of currency for its MNC, globally-based clients. This transition from traditional to digital assets begins to gather momentum when Citibank begins to realize that it can function as a disintermediator of the market (Andal-Ancion, Cartwright, Yip, 2003). Once...

Citibank relies on its partners including Oracle, CommerceOne, SAP AG, Wisdom Technologies and Bolero.net to create the unifying technologies to make this occur. The transition from traditional money management to e-business framework is disintermediating in nature and serves to show how process-based innovation can completely redefine an entire business model (Andal-Ancion, Cartwright, Yip, 2003). Citibank had to accomplish this in order to stay relevant to its customers over the long-term.
References

Angela Andal-Ancion, Phillip a Cartwright, & George S. Yip. (2003). The digital transformation of traditional business. MIT Sloan Management Review, 44(4), 34-41.

Bamrara, a., & Kala, S.. (2009). Secure Electronic Banking: Threats and Solutions. ASBM Journal of Management, 2(1), 209-221.

Chuang, C., & Hu, F.. (2010). Exploring Customers' Perceptions of E-banking Service. Journal of Global Business Issues, 4(2), 37-42.

Devi, P., & Malarvizhi, V.. (2010). Customers' Perception of E-Banking: Factor Analysis. IUP Journal of Management Research, 9(6), 7-19.

Michael E. Porter. (2001, March). Strategy and the Internet. Harvard Business Review, 79(3), 62-78.

Rui Sousa, & Christopher a. Voss. (2009). The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation. International Journal of Operations & Production Management, 29(8), 834-864.

Safeena, R., Abdullah,, & Date, H.. (2010). Customer Perspectives on E-business Value: Case Study on Internet Banking. Journal of Internet Banking and Commerce, 15(1), 1-13.

Uppal, R., & Chawla, R.. (2009). E-Delivery Channel-Based Banking Services: An Empirical Study. IUP Journal of Management Research, 8(7), 7-33.

Kenneth B. Yap, David H. Wong, Claire Loh, & Randall Bak. (2010). Offline and online banking - where to draw…

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References

Angela Andal-Ancion, Phillip a Cartwright, & George S. Yip. (2003). The digital transformation of traditional business. MIT Sloan Management Review, 44(4), 34-41.

Bamrara, a., & Kala, S.. (2009). Secure Electronic Banking: Threats and Solutions. ASBM Journal of Management, 2(1), 209-221.

Chuang, C., & Hu, F.. (2010). Exploring Customers' Perceptions of E-banking Service. Journal of Global Business Issues, 4(2), 37-42.

Devi, P., & Malarvizhi, V.. (2010). Customers' Perception of E-Banking: Factor Analysis. IUP Journal of Management Research, 9(6), 7-19.
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