Business Model : Building Blocks
Discuss about the Business Model Canvas Of Amp Financial Services.
Amp is a financial service based organization which has its operations in New Zealand and Australia. The organization is mainly known in the industry for providing different types of services and products related to financial services. The different products that are offered by the organization mainly include, savings accounts and home loans. The headquarter of the organization is located in Sydney, Australia. AMP has also received one of the largest shareholder registrations and most of the shareholders of the organization have their base in New Zealand and Australia (Loans, retirement & education, 2018). The report will be based on the analysis of business model canvas of the organization and the risks that are being faced by the company.
1. Customer segments
The customer segments of the organization are mainly based on the retail and the corporate customers or depositors. The corporate and retail borrowers of AMP are also a part of the customer segment of the company. The customer segments thereby consist of both the borrowers and the depositors of the bank.
The key partners of AMP financial services are those who are able to provide assistance to the company for services and products that it offers to the customers. The partners in this case are mainly, the investment partners, regulatory agencies and the technology vendors as well. These partners help the company to design its products in an effective manner (Aversa et al., 2015).
The major value proposition of the AMP financial services is based on the interest rates that it offers to the customers. The lower interest rates are provided for deposit based products and high rates of interest are provided for the loan based products of the organization (Fritscher & Pigneur, 2014).
The major activities which are thereby performed by the organization in order to fulfil the needs and demands of the customers include, branch operations, IT operations and the call centre based operations. These activities of AMP financial services are able to develop the services which are to be provided to the customers (Dudin et al., 2015).
The different effective channels of AMP Financial services which play an important part in the services of the organization include, the branches of the bank, call centres, internet services, mobile devices. The channels are required by the organization for the purpose of providing appropriate services (Ghezzi et al., 2015).
Interrelationships
The most important revenues streams that are significant for the proper operations of AMP Financial services are based on the ways by which the organization can develop a sustainable manner. The major income of the organization is gained from the interests that are gained from customers. The fees that are paid by the customers based in various service is also a part of the revenues streams (Gonçalves & da Silva, 2017).
The cost structure of the organization is thereby based on the interest based expenses that are required to be maintained by AMP financial services. The costs of the company related to the channels costs are a part of the cost structure that is created by AMP financial services (Joyce & Paquin, 2016).
The major resources of AMP financial services are thereby related to the IT infrastructure and the physical infrastructure of the organization. The loan based assets that have been gained by AMP financial services are important resources of the company in the environment in which it operates (Plenter et al., 2017).
The relationships which are created with the customers play a major role in the successful operations of the organizations. AMP Financial services is able to operate in the industry in an effective manner with the help of personal assistance that is provided to them. The automation based activities of the organization are also important for the efficient services that can be provided to the customers with great speed (Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016).
The different building blocks of the business model canvas are interrelated with each other which is helpful for the successful operations and effective services which are provided to the customers. The partners of AMP Financial services are helpful in providing the appropriate services and products to the customers. The activities that are performed by the organization are important factors which affect the different customer segments of the company. Value proposition of the company is significant for AMP financial services to serve the customers in an effective manner. The channels of distribution of the AMP financial services are helpful in creating effective customer relationships (Vargas, Calva & Camacho, 2015). The cost structure of AMP financial services helps in deciding the products that can be developed for the customers. The costs are helpful in deciding the amount of revenues that need to be gained by the company in order to operate in the financial industry in a sustainable manner.
Critical Success Factors
The factors which have been helpful for AMP financial services for the purpose of gaining success in the industry are related to the creation of an effective salesforce which is necessary across different channels. The consistent experience that has been provided by the company to the customers have played an important in providing appropriate services to the customers of AMP financial services. The company has been able to gain various market shaping capabilities which has helped AMP financial services to lead the financial service industry. The organization has found new and innovative ways to delight the customers and providing effortless experiences (Zolnowski & Böhmann, 2014).
The success of AMP is based on the ways by which the company is able to disrupt the industry with the help of innovative services. The implementation of technologies has been the most important activity that has been a reason behind the success of AMP financial services. The organization has created effective partnerships with organizations like, Salesforce for the purpose of making the work process smarter and faster in nature. Innovation has thereby been a critical success factor for AMP financial services (Vargas, Calva & Camacho, 2015).
The major risk that can be faced by AMP financial services is based on the ways by which the company is able to gain the trust of the customers in the area of its operations. The financial services which are provided to the customers are totally based on the security based issues. The data of the customers need to be kept secure by the organization so that they are able to serve them in an effective manner. The security based threats faced by the customers can cause a lack of customers for the organization in the financial market (Zolnowski & Böhmann, 2014). The customers thereby need to be protected from the issues that can be faced by them in the different operations. The service quality needs to be effectively maintained by AMP financial services so that it is able to maintain its position in the industry. The financial industry needs to face some extra risks due to the changes that constantly take place in the external environment. The organization thereby needs to mitigate these risks in order to operate in the financial industry.
The changes which need to be made in the business model mainly includes, the changes in the number of partners of the organization and further improve its channels as well. The alliances that are made by AMP Financial Services need to be effective enough to attract new customers towards the organization in an effective manner. The website of the organization needs to be improved so that the customers are able to gain more services and their needs can be fulfilled as well. The reviews that are provided by the customers on the website can thereby act as an effective source of information for the organization so that it can improve the products and the service offerings as well (Toro-Jarrín, Ponce-Jaramillo & Güemes-Castorena, 2016). The promotional activities of AMP financial services need to be improved so that the company is able to create more awareness about its services and products among the customers.
Downside Risks
Conclusion
The report can be concluded by stating that the building blocks of the business model of AMP financial services was able to depict that the organization needs to improve its operations so that it is able to create a position in the market. The company needs to mitigate the risks that have been faced in the industry in order to stay profitable in the financial industry. The company can thereby improve the business model in such a manner which will help in providing competition to the other financial organizations.
- Improvement of services provided to the customers.
- Understanding the changes that have taken place in the external environment.
- The growth of the financial market of Australia can help the company to increase its profitability.
- Trying to provide the best services to customers in order to attract them towards the organization.
References
Aversa, P., Haefliger, S., Rossi, A., & Baden-Fuller, C. (2015). From business model to business modelling: Modularity and manipulation. In Business models and modelling (pp. 151-185). Emerald Group Publishing Limited.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative business model canvas in the system of effective budgeting.
Fritscher, B., & Pigneur, Y. (2014, July). Visualizing business model evolution with the business model canvas: Concept and tool. In Business Informatics (CBI), 2014 IEEE 16th Conference on (Vol. 1, pp. 151-158). IEEE.
Fritscher, B., & Pigneur, Y. (2015, July). Extending the Business Model Canvas: A Dynamic Perspective. In Proc. International Symposium on Business Modeling and Software Design (Vol. 5, pp. 86-96).
Ghezzi, A., Cavallaro, A., Rangone, A., & Balocco, R. (2015, April). A Comparative Study on the Impact of Business Model Design & Lean Startup Approach versus Traditional Business Plan on Mobile Startups Performance. In ICEIS (3) (pp. 196-203).
Gonçalves, R. F., & da Silva, M. T. (2017, March). System Thinking and Business Model Canvas for Collaborative Business Models Design. In Advances in Production Management Systems. Initiatives for a Sustainable World: IFIP WG 5.7 International Conference, APMS 2016, Iguassu Falls, Brazil, September 3-7, 2016, Revised Selected Papers(Vol. 488, p. 461). Springer.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Loans, H., retirement, S., & education, N. (2018). AMP Personal Banking – Accounts, Super, Home Loans & Insurance | AMP. Retrieved from https://www.amp.com.au/
Plenter, F., Fielt, E., Hoffen, M., Chasin, F., & Rosemann, M. (2017). Repainting the business model canvas for peer-to-peer sharing and collaborative consumption.
Toro-Jarrín, M. A., Ponce-Jaramillo, I. E., & Güemes-Castorena, D. (2016). Methodology for the of building process integration of Business Model Canvas and Technological Roadmap. Technological Forecasting and Social Change, 110, 213-225.
Vargas, I. S., Calva, A. L. G., & Camacho, J. H. (2015). Business model canvas. Ciencia Huasteca Boletín Científico de la Escuela Superior de Huejutla, 3(5).
Zolnowski, A., & Böhmann, T. (2014). Formative evaluation of business model representations-The service business model canvas.
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