Running Head: STRATEGIC PLAN 1
Strategic Plan
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STRATEGIC PLAN 2
1.0 Executive Summary
Banking industry employs artificial intelligence technologies in link with business canvas
model to improve customer experiences. Artificial intelligence which aligns with business
canvas model includes emotional capturing cameras, video-conferencing tools, chatbot options
as well as cardless withdrawals. This report seeks to describe Westpac bank relating to artificial
intelligence application in the context of business canvas model.
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Table of Contents
1.0 Executive Summary...............................................................................................................................2
2.0 Application of AI in BCM within Banking Industry.............................................................................4
2.1Business Model Canvas...................................................................................................................... 4
2.2 Artificial Intelligence in BMC...........................................................................................................5
2.3 AI Application in BMC Software within Banking Industry...............................................................6
2.4 Application of BMC with AI technologies in Westpac Bank............................................................7
3.0 AI based Technological Trends in Westpac Bank.................................................................................8
4.0 Business Model Alignment with Value Proposition..............................................................................9
5.0 Recommendation and Conclusion.........................................................................................................9
6.0 References........................................................................................................................................... 11
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2.0 Application of AI in BCM within Banking Industry
2.1Business Model Canvas
Yves Pigneur and Alexander Osterwalder developed BMC tool, which comprises of
powerful strategy element. BMC indicates organization value represented in the graphic style of
a number of business variables. It refers a development based strategic tool for new and
developing businesses as well as already established organizations. In fact, it focuses on business
information systems particularly on important information required by top managers to make
long-term decisions (Avonson, Liang & Turban, 2005 p.34). The model incorporated nine
categorical tools referred as organizational building blocks. The 9 building blocks include;
Value propositions
Key activities
Customer relations
Key resources
Key partners
Revenue streams
Customer segments
Channels
Cost structure
This model helps in making clear and informed decisions which result in improved
productivity of the organization. Additionally, a technological breakthrough has enhanced BMC
software development, which enables organizations to handle operations digitally with simplified
and more accurate results (Bahrammirzaee, 2010 p.1166). This facilitates good decisions making
of realistic objectives and goals in a firm and supports expansion and diversification.
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2.2 Artificial Intelligence in BMC
The BMC software adopts the artificial intelligence concept in handling its complex
operations. It applies cognitive service management through digital automation decision-making
endeavors. This technology reinforces increased productivity and performance of an organization
because it involves no wastage of resources as well as eliminates error thereby improving
accuracy (Eletter, Yaseen & Elrefae, 2010 p.27). The BMC software employs human-based
intelligence in driving essential operations of the business while eliminating human-related
errors, which results in optimal efficiency.
BMC software represents the future of enterprise prosperity with increased efficiency. IT
has become a fundamental requirement in organizational management. Additionally, its
application can handle changing customer expectation as well as meet requirements in the
dynamic business environment. In this depth, BMC seeks to execute artificial intelligence
perceptions by integrating and embracing cognitive concepts in technology that establishes
intelligence-based organizations (Korbicz et al, 2012 p.26). BMC tools that apply artificial
intelligence concept includes delivering omnichannel experiences, transforming agent
understandings with cognitive IT practices as well as nurturing innovation via intelligence
solicitations.
BMC application of artificial intelligence results in delivery of omnichannel experiences
which lead to human productivity. Intelligence based options in handling workplace
undertakings revolutionize centric experiences that nurture available creativity, innovations, and
inventions. Evidently, workplace centric experiences support intelligence concerned with
predictive analysis that yields accurate and fast results. Moreover, it reinforces conversational
factors, which improves understanding on virtual agents inquiries (Fethi & Pasiouras, 2010
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p.190). Besides, centric experiences nurture personalized customer and workforce-based
undertakings such as Chabot, which timely provides targeted and relevant information. The
software provides a developer-based platform for incorporating that accept artificial intelligence
options relating to the business nature and scope. In this regard, it accepts out-of-box
intelligence, flexibility, as well as evolutionary options. Therefore, it accepts developer options
in any context as well as improving existing applications such as minimizing operational risks.
2.3 AI Application in BMC Software within Banking Industry
Currently, financial and banking organizations are undergoing dramatic transformation
by revolutionizing business model canvas that employs artificial intelligence technology concept.
In fact, international banks face stiff competition from the financial organization, which has
already incorporated the entire system. This creates pressure for other banks to incorporate these
banking endeavors, which improves efficiency in handling entire operations. Moreover, the
industry advancement eliminates banking based challenges, which position banks in a
competitive edge, acquisition of a wider market share, and remaining relevant in the banking
industry. BMC software and tools enable achievement of efficiency, AI tools help in the
provision of innovative services (Michalski, Corbonell & Mitchell, 2013 p.48). The
incorporation of the two options helps to prevent financial losses arising from human errors as
well as managing cost reduction advantages with improved accuracy and eliminated resource
wastages. Moreover, it enhances the optimal application of available resources such as labor and
financial resources.
Evidently, most of the international banks apply online-based strategies such as website
and social media hurdle to interact with customers as well as delivery of banking services.
However, current statistics indicate that only 7% of entire banking products and services are
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digital, which requires online delivery system (Moradi et al, 2011 p.12). In this regard, BMC
tools incorporation with AI technologies aims at developing 75% digital banking products to
meet current internet user’s expectations in the near future. Additionally, AI part of the BMC
should foresee online security system for all online banking delivery information. It should
employ security-based protocols to prevent potential cyber insecurities.
2.4 Application of BMC with AI technologies in Westpac Bank
Customer relation tool on BMC has helped Westpac Bank in the provision of the best
customer experience in the banking industry of Australia. In this regard, the bank focuses on
customer relationship management positioning the bank in an excellent retail service delivery
within the banking industry. To meet this industry requirement, the bank has employed digital
face-to-face service delivery system including video conferencing options. The bank employs AI
technologies to detect online customers requiring video-conferencing services, which directs the
needs to the customer care person on duty (Muhtaroglu et al, 2013 p.35). In this regard, AI
technologies such as emotion detection cameras are put in place to ensure video delivery services
are undertaking free of moods and emotions. Therefore, the bank has incorporated AI
technologies cooperate with BMC tools to enhance efficient customer service delivery.
Evidently, the video conferencing platform increased its enrolled up to 3million customer.
Value proposition tools of BMC which employs AI technologies includes convenient
ATM withdrawals as well as cardless ATM withdraw via getting cash services and emergency
cash options. This helps to attract customers from other customers due to the eliminated ATM
card charges required in cash withdrawals (Osterwalder & Pignuer, 2010 p.368). Through this
means, Westpac has gained a minimum of $18m. Evidently, this technology requires the
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application of AI tools which scans clients picture and capture thumbprints to establish the
particular owner of a bank account to allow service delivery via cardless means.
Westpac Bank seeks to apply chatbot AI tool to meet channel requirements by the BMC
business model. This channel will help to respond to customer’s grievances and questions. This
will help to correct relevant data concerning the bank’s service delivery system as well as
customer product expectations (Paul & Kourouche, 2008 p.270). This will meet BMC model and
AI tools requirement, which yields improved efficiency concerning banking endeavors.
3.0 AI based Technological Trends in Westpac Bank
Westpac bank has incorporated digital banking in its banking endeavors such as ATM
based withdraws cardless withdrawals, and video conferencing options. This equips the bank at a
competitive edge, which has facilitated Westpac’s success in the previous years. This success
characterizes the bank’s operations that provides 24/7 customer services. Additionally, the bank
has improved customer segments tool through increasing its branches all over Nigeria as well as
the rest of the international banking market (Sathye, 2002 p.50). The branches employ video
conferencing platform as a communication tool to its new and prospective customers all over the
world. This marks the biggest and best banking innovation that seeks to personalize customer
services. This indicates that the bank is committed to improving customer management.
Westpac banks capitalize technology strategy on meeting best customer experience.
Evidently, women and younger generation indicate a higher percentage of embracing Westpac
technologies. In this regard, 30% of women and under youths under 30 years employ
smartphone-based banking endeavors (Korbicz et al, 2012). In fact, online banking users indicate
that banking through Smartphone saves time and money resources, easy management of money
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as well as ensure bankers are informed on entire banking undertakings. Therefore, Westpac bank
employs best banking package via AI technologies to meet BMC requirements in improving
customer experience.
4.0 Business Model Alignment with Value Proposition
Identifying customer segments helps to determine target customers to develop automatic
obligation on customers in buying the product or services. Evidently, most of the online-based
customers of Westpac’s services include women and youths ranging from 30 years of age and
below (Sathye, 2002 p.55). This indicates that men are reluctant to meet current technological
base banking services. Therefore, the bank requires capitalizing on both youth and women as
their target customers. However, it requires establishing technological strategies, which favors
men’s interests and preferences.
Westpac bank established various service inventions fashioned to improve onboard
customer requiring service. Evidently, customers enjoy expensive transaction banking endeavors,
which the bank incorporated. This strategy relies on customers based knowledge and expectation
on value for their money (Fethi & Pasiouras, 2010 p.197). Apparently, the expensive banking
relationships require simplicity and easy for the entire customers. The best strategy that conforms
to simple and convenient banking methods requires Smartphone as well as a computer system
with internet access. This gives customers empowerment in self-service undertakings. Moreover,
it embraces privacy and security advantages associated with self-service.
5.0 Recommendation and Conclusion
Business Canvas model supports the application of artificial intelligence in banking
endeavors. Examples of recent artificial intelligence tools, which are compatible with business
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canvas model include video-conferencing, moods-centric cameras, cardless withdrawal
technologies as well as robot’s service delivery. These technological elements have enhanced the
current success of Westpac bank in Australia. Additionally, they support customer management
options as well as conform to the modern dynamic economic environment. Therefore, artificial
intelligence marks the basis of modern business prosperity particularly in a service industry such
as banking. Finally, the banks should apply chatbot technologies, which aim at capturing
important data from customers such as complaints, tastes, and preferences that are important in
improving customer experience.
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6.0 References
Aronson, J.E., Liang, T.P. and Turban, E., 2005. Decision support systems and intelligent
systems. Pearson Prentice-Hall.
Bahrammirzaee, A., 2010. A comparative survey of artificial intelligence applications in finance:
artificial neural networks, expert system, and hybrid intelligent systems. Neural
Computing and Applications, 19(8), pp.1165-1195.
Eletter, S.F., Yaseen, S.G. and Elrefae, G.A., 2010. Neuro-based artificial intelligence model for
loan decisions. American Journal of Economics and Business Administration, 2(1), p.27.
Korbicz, J., Koscielny, J.M., Kowalczuk, Z., and Cholewa, W. eds., 2012. Fault diagnosis:
models, artificial intelligence, applications. Springer Science & Business Media.
Fethi, M.D. and Pasiouras, F., 2010. Assessing bank efficiency and performance with operational
research and artificial intelligence techniques: A survey. European journal of operational
research, 204(2), pp.189-198.
Michalski, R.S., Carbonell, J.G. and Mitchell, T.M. eds., 2013. Machine learning: An artificial
intelligence approach. Springer Science & Business Media.
Moradi-Motlagh, A., Saleh, A.S., Abdekhodaee, A., and Ektesabi, M., 2011. Efficiency,
effectiveness, and risk in Australian banking industry. World Review of Business
Research, 1(3), pp.1-12.
Muhtaroglu, F.C.P., Demir, S., Obali, M. and Girgin, C., 2013, October. Business model canvas
perspective on big data applications. In Big Data, 2013 IEEE International Conference
on (pp. 32-37). IEEE.
Osterwalder, A. and Pigneur, Y., 2010. Business model canvas. Self-published. Last.
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Paul, S. and Kourouche, K., 2008. Regulatory policy and the efficiency of the banking sector in
Australia. Australian economic review, 41(3), pp.260-271.
Sathye, M., 2002. Measuring productivity changes in Australian banking: an application of
Malmquist indices. Managerial Finance, 28(9), pp.48-59.
