SkandiaBanken business model

Skandiabanken is an informal working environment in terms of hierarchy, but we have to understand on the other hand that the way information was distributed in the company was extremely formal to make sure that they were accessible. Information was also updated each week. Moreover , innovation and action were reinforced by a management team that expected mistakes to happen. They are really focusing on the Customers feedback ( collect, organize, maintain customer information).

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As you can see we have not been obviously able to give you any details for the suppliers due to the field of the company: Services ( no production, no needs of raw material) in the banking market provided via internet. We have here to emphasize the point that in the digital firm such as Skandiabanken the competitive forces model needs modification. The traditional Porter model assumes a relatively static industry environment; relatively clear-cut industry boundaries; and a relatively stable set of suppliers, substitutes, and customers.

Instead of participating in a single industry, today’s firms are much more aware that they participate in “industry sets” , multiple related industries that consumers can choose from to obtain a product or services. Skandiabanken as an efficient Internet banking will however have to face to an intense competitive rivalry. Model that highlights the primary or support activities that add a margin of value to a firm’s products or services where information systems can best be applied to achieve a competitive advantage.

Primary activities are the activities most likely related to the production and distribution of a firm’s products or services. Support activities are the activities that make the delivery of a firm’s primary activities possible. Consist of the organization’s infrastructure, human resources, technology, and procurement. Turning on Skandiabanken case now, you could identify that the value chain of Skandiabanken has to be modified and the traditional value chain has to be updated to the market it belongs to. We have to take into account that today we will talk more very often of a “value web”.

To concluded with the environment of Skandiabanken we have to understand that they are on a special market which is providing banking services and products, the only way to deal with them is Internet and Telephone, therefore that is why in the value chain the activity where they cannot afford to be inefficient is the sales ; marketing and the customer services. Skandiabanken has to develop a strong relationship of confidence if they want to gain customers who are not worried to let their money be managed by some people that they did not meet.

A business model is an abstraction of what an enterprise is and how the enterprise delivers a product or service (Bank = only financial services), showing how the enterprise creates wealth. The unbundling of information from traditional value chain channels is having a disruptive effect on old business models and is creating new business models as well. In the past, in financial service business, people wishing to purchase stocks or bonds had to pay high commission to full-service brokers such as Merrill Lynch.

Individual investors relied on these firms both to execute their trading transactions and to provide them with investment information. It was difficult for individual investors to obtain stock quotes, charts, investment news, historical data, investment advice, and other financial information on their own. Such information can be found now in abundance on the web, and investors can use financial Web sites to place their own trade directly for very small transaction fees.

SkandiaBanken’s e-business model was based on three principles to guide value creation for the customer and the company. The SkandiaBanken’system quality is based not only to link all of its databases and systems into one integrated structure but also to add new databases or remove old ones quickly and easily. In example Skandiabanken became the first bank in Europe to develop an application link for telephone-activated pop-up screens in the call centre, greatly increasing customer service.

A call centre monitoring system helped to reduce down time, increase efficiency, and raise service levels to among the highest in the banking industry. Developing the application switchboard allowed SkandiaBanken, to interface directly with the existing banking industry infrastructure, eliminating the need for banking middleman and reducing cost though streamlined information processes Skandiabanken also created an auto dealer portal to move dealer to the internet. The portal provided information that would help dealers perform their jobs better.

SkandiaBanken began an education program, teaching them how to use the internet and access SkandiaBanken’s Website and often also install software for them. First of all we would like to give a definition of organizational culture which is the set of fundamental assumptions about what products the organization should produce, how and where it should produce them, and for whom they should be produced. Skandiabanken has a special management, and organizational structure and culture.