Ted Friedman, research vice president, US, Gartner, says that

today organisations want more transparency in the way they

conduct their business. "BI helps them to allocate their
resources in an efficient manner. It also provides them insights
to identify opportunities for business growth and that’s the
reason why BI is very hot," he explains.

As per an IDC report, the Indian BI software market is slated

to grow at a CAGR of 35.9 percent. (Source: IDC's India BI Software
Market Report)
Revolutionary Changes In Banking Sector

Electronic Home Banking

Business Online Banking
Anywhere Banking
Telebanking
Electronic Fund
Electronic SMS Banking
Clearing
Transfer
Services

ATMs
Credit & Debit cards Internet
Banking

Online Remittances Electronic

eTax
Stores online Bill Payment
 What is our focus on-

Competitive strategies in Banking Sector

CRM
Various softwares and tools used
for gaining competitive advantage
BI
How we gain advantage in this competitive
world--

Data
Leveraging
Are Banks using IT tools

}
CORE BANKING SOFTWARE $ 37.5 billion on
HARDWARES Global Basis
SERVICES
Source: Tower
Group Report

}
BFSI CONTINUES TO BE
THE LARGEST VERTICAL 1997 $68.3 bn. of $ 326.8 bn
AND DRIVER FOR 2008 $261.7 bn. of 1010.4 bn
Source: Nasscom-McKinsey
SOFTWARE REVENUES study on Global Software
Business
 Softwares used in Industry
Company hired for Software Beneficiary Software
Project Solutions
i-Flex Flexcube Syndicate Bank

Infosys Finacle National Commercial Bank of Jamaica CRM products

Finacle eChannels Internet
Banking for
retail
customers
Finacle eCorporate Internet
Banking for
corporate
customers
Polaris Citigroup , ; Commerzbank and UBS Customized
Warburg in Europe; and NEC, Hitachi
and Shinsei in Japan. solutions.

Oracle FLEXCUBE lending, leasing

Universal Banking and mortgage
lifecycle
Public banks strategies
BETTER LATE THAN
NEVER
ALM CRM

CIMS HRM

Decision
Making

EXAMPLE: Swarnamukhi Public Bank Limited, During recession-Based

on the past data , the regional manager of the bank tries to estimate the
chances of certain proportion of loan takers, who will not make payments.
Bank in focus-SBI
Largest and
oldest bank
in India

 All branches computerized in 1990s

 In 2002, SBI began the largest implementation of a centralized core system.
 Tata Consultancy Services chosen to customize the software, implement the

new core system, and provide ongoing operational support for its centralized
information technology.
 Initially only 3300 branches planned but expanded the project and covered

all of its more than 14600 branches.

 The SBI has achieved its goal of offering its full range of products and

services to all its branches and customers, spreading economic growth to

rural areas and providing financial inclusion for all of India's citizens.
 What is our goal??

Increasing Branch staff

Simplifying Enhancing competitiveness
customer to focus on
process for
satisfaction and sales and
employees Improved process efficiency
convenience marketing
Report Coverage
 The implementation of the Tata Consultancy Services (TCS)
BaNCS Core Banking at the State Bank of India
 Unlike private-sector banks, SBI has a dual role of earning a
profit and expanding banking services to the population
throughout India.
 During the 1990s, the Indian economy began a period of rapid
growth as the country's low labor costs, intellectual capital,
and improving telecommunications technology allowed India
to offer its commercial services on a global basis.

Task-The overall effort included the conversion of

approximately 140 million accounts held at 14,600
domestic branches of SBI and its affiliate banks.
 Something special for someone special

Launch of new products and services for corporates:

The banks trade finance solutions, called EXIMBILLS,
were intended to handle trade finance transactions
efficiently and enhance the range of services provided to
corporate and network branches.
 Selling Involves Marketing
Segregating &
Targeting
existing high
value
customers,
cross sales of
othe products

Setting up call
centres and
outbound
sales force to
secure new
customers

Selling
Product

 Database marketing to pursue large and medium sized

corporate, government and trade finance customers.
• Changing outdated front and back end processes to modern
 Changing Bank’s Face Needs Changing
Organization Structure
To overcome the intense competition from private and foreign
banks, SBI planned a major organizational restructuring exercise.
The key aspects involved--
 Redesigning of branches,
Providing alternate channels,
Focus on a lean structure and
Technological up gradation.

A business process reengineering (BPR) team was constituted in

June 2003 with McKinsey & Company as consultants. The BPR's
basic goal was to create an operating architecture that would
facilitate service delivery of international standards.
ICICI Bank
Introduction
 Distinguished itself as a pioneer in Indian banking community.

 ICICI rapidly adopted innovative business practices and

technologies.

 Second largest bank in terms of assets: ability to harness

business information to support CRM initiatives.
IT backbone of ICICI
Data Warehousing
Combi Tera Syb
nation
data
of
PL/SQL as
ase
and
BTEQ data IQ
scriptin
g,
ware bas
proprie hous ed
tary ing
technol
platf dat
ogy for
ETL. orm a
Applications
◦ Finacle Core Banking
◦ FinnOne Retail Loans System (Nucleus Technologies)
◦ CTL Prime Cards Processing System(Card Tech Ltd.)
◦ SAP
◦ Internet banking (Infosys)
◦ Customer relationship Management (Infosys)
Datacenter availability and data protection
◦ Veritas NetBackup
Strategic utilization of IT infrastructure

Business Intelligence
◦ SAS Enterprise Intelligence Platform: SAS ETL server,
Enterprise BI Server, Enterprise Miner and SAS Text miner.
◦ Scales upwards and outwards
◦ Can talk to all existing data sources as well as integrate
several applications.
◦ ‘Single version of truth’
 Data mining
 Uses variety of techniques to find hidden patterns and relationships in
large pools of data
 To analyze data in order to gain knowledge about the behavior
patterns of customers.

Taps the existing customer base by Cross

selling and Personalized product
 For ICICI bank account holder, special offers for new services like
Home loans, Car loans, Credit cards, Personal Loans etc. are
provided.
 Tailor-made mobile banking offerings
Catalyzing Cross-sell

Internet Call 500 Outlets 1005 ATMs

Banking Centers

Customized cross-selling
by leveraging relationships, brand and
technology

Fixed deposits Bonds Life insurance Health insurance

Power Pay Consumer loans Auto & home Credit & debit
loans cards
Knowledge management
ICICI Universe
Provided platform for access to basic necessary activities on
intranet.
Wise Guy
KM Portal encompassing a variety of sections including:
document management.
news inside and outside the organization;
digital resources such as trade and news journals, research
reports, maps, directories, currency and time calculators.
information on the various business groups and group
companies, complete employee information;.
and, interactive sections such as discussion forums, query
boards, book reviews, online quizzes, the rewards and
recognition scheme .
I generation KM
Creating processes to capture, codify and organize
knowledge for retrieval.
Voluntary use of portal.
II generation KM
Knowledge flows more important than knowledge
Encourage participation by rewards and recognition
III generation KM
Easing the creation of new knowledge, innovation and
improving performance
Outlined principles of action for employees to actively
share knowledge and seek out collegues’ expertise.
The fruits…
 Won 2009 Brandon Hall Excellence in Learning Award
 won the Most Admired Knowledge Enterprises (MAKE)
India 2009 Award. ICICI Bank won the first place in
"Maximizing Enterprise Intellectual Capital" category,
October 28, 2009
 ICICI Bank Mobile Banking was adjudged "Best Bank Award
for Initiatives in Mobile Payments and Banking" by IDRBT
 the runner's up position in Gartner Business Intelligence
and Excellence Award for Asia Pacific for its Business
Intelligence functions.
 the Best Cash Management Bank in India award for the
second year in a row
 won the second prize in the Six Sigma Excellence Awards,
conducted by Indian Statistical institute, Bangalore
Analysis of private and public banks
This analysis is to measure the employees' awareness,
perception, and the level of satisfaction with regard to IT
Services offered by the Indian public and private sector banks in
the Jaipur city. The study has divided into four major segments.
 Information technology strategic advances.
 Technological know-how and organizational capacity.
 Decision making process.

Private banks are well ahead but because of competition and

awareness ,public banks are also providing virtual banking
services through better IT infrastructure.
Reference: A Comparative Study of Computerisation in Public and Private
Sector Banks
* Sourabh Sharma ** K.S. Thakur
Information Technologies Strategic
advantag es
Knowing the Information Technology used by your competition

Conclusion: This factor is more or less common for all the banks.
In UTI bank around 71 percent employees are aware of IT used
by the competitors whereas in SBI bank around 70 employees are
aware about the IT used by the competitor.
Instituting a technology watch in order to change rapidly your
Information Technology when necessary

Conclusion: Here we can see some difference between the

data of private and public sector banks. We can easily say that
SBI bank is ahead in order to change their technology
whenever it needed. All private banks are also very conscious
about this change in technology.
Ensuring that your choice of Information Technology follows the
evolution of your environment

Conclusion: This factor is also more or less common for all

the banks. Here the maximum employees of SBI bank think
that the choice of IT follows the evolution of their work
environment.
Technological know-how and organizational
capacity.
Mastering current Information Technology products

Conclusion: This factor shows that private bank employees are

far ahead to operate current IT products. Around 69% of UTI
employees and 67% of ICICI employees have mastering in
current information technology product whereas SBI & SBBJ
employees are less efficient to operate current technology
Being considered as a leader in Information Technology usage

Conclusion: Here again the private banks are ahead than public
sector banks. As we can see that around 70% ICICI bank
employees consider themselves as a leader in IT usage
whereas PNB has the least figure with around 60% for the
same.
Development of a technological culture in your firm

Conclusion: This data also indicate about the awareness of

private banks in development of a technological culture. Around
75% of ICICI bank employees are in favour of development of
technological culture in bank whereas only 64% employees of
SBBJ bank are in favour of the same.
Having the ability to effectively identify and fill your needs in
Information Technology.

Conclusion: Again public sector banks are ahead on the ability

to effectively identify and fill your needs in Information
Technology. SBI bank has the highest percentage with around
77 whereas HDFC has the lowest score with 65 percent.
Strategic planning of information systems in relation to the
organization's business objectives.

Conclusion: Private banks give more concentration on

organization’s business objectives while planning the
information system. Around 71% of ICICI bank employees
are agree with it where as for SBI it is only 54%.
Mastering the technology presently in use in your organization

Conclusion: Above figure says that private bank employees are

using present technology in a very efficient manner. Around
74% of ICICI employees are having mastering on the
technology presently in use whereas only 55% of PNB
employees are agreeing for the same.
Decision Making Process
Choosing Information Technology related to the strategic
orientation of your firm.

Conclusion: Both public and private sector banks are

choosing Information Technology related to the strategic
orientation of their firm. But again the private banks are bit
ahead. Around 68% employees of ICICI bank are agreeing
whereas 61% of SBBJ are in favour.
Knowing the impact that IT will have on the different functions
of your bank

Conclusion: this factor is also more or less common in public

and private sector banks. Around 72% employees of ICICI
know the impact that IT will have on the different functions of
their bank whereas for SBBJ it is around 68%.
Evaluating potential problems related with the implementation of
a new system.

Conclusion: Private sector banks are ahead in evaluating

potential problems related with the implementation of a new
system.
Knowing the results of a financial feasibility study before the
acquisition of IT.

Conclusion: Here also the private bank employees are far

ahead. Around 76% employees of ICICI bank know the results
of a financial feasibility study before the acquisition of IT
whereas for PNB it’s around 55%.
Identification of possible sources of resistance to change before
implementation

Conclusion: As per the above data the private sector banks are
ahead in identifying the possible source of resistance to
change before implementation.
 The computerisation in banks has increased to their
productivity and profitability.
 Results show that ICICI Bank is found to be efficient in all
indicators.
 ICICI Bank has been the leader in IT introduction and
adoption.
 ICICI Bank initiated internet banking services in the year
1997.This was followed by HDFC Bank, Indusind Bank,
Federal Bank, Citibank and ABN AMRO.
 Nearly 70% of ICICI Bank transactions take place
electronically, resulting in lower cost of transactions, high
productivity and better profitability. Private Banks are the
early adopter of technology and took more IT initiative than
public sector banks.
video