Introduction to digital disruption
Discuss about the Artificial Intelligence System to Predict Quality.
Disruption is although a negative word but digital disruption is the ability of doing things differently and creating a new market with existing product. According to McQuivey (2013) digital disruption is the change which occurs when new technology and business model impact the existing service and product. Digital disruption can create a temporary impact on the existing business however that leads to sustainable development. In the age of technological advancement where industries are striving to gain sustainable competitive advantages, digital disruption can be a game changer. Truly it is a game changer as companies which are not ready with their strategic plans can be under pressure from digital disruption. Digital disruption is evident in almost every industry type however banking sector is leading this trend. ANZ Australia which is the third largest bank by market capitalisation in Australia has been selected for the study. This report helps with the identification of the digital disruption in this bank and recommend suitable plan which can help to overcome digital disruption in the best way. All the recommendations which have been given in this reports aims to guide ANZ Bank through the right path to deal with digital disruption and using it is the most appropriate manner. This further enables a customer centric approach for the Bank in near future.
There are different challenges which ANZ bank is facing due to technological disruption within the banking system. Banking system of ANZ is at the midst of the disruption era. The global banking system is changing due to technological disruption and it is often challenging for ANZ to keep up with those changes (Lindgren, 2013). The first thing which needs to be considered is how ANZ bank can deal with the digital disruption however most of the time management fails to do that. As a result the banking system of ANZ is struggling to cope with the digital disruption. The biggest technological changes what majority of global bank is looking “Engagement of Advisor tool”. This can help banking system with advice process. The functionality of this Adviser tool is to help customers by answering their financial query. In the initial stage this tool will observe questions which can be raised by either customer or financial adviser and then solve their query. However the banking system of ANZ is still in a situation where they could not find the right strategy to implement this service. This is hindering their system from growth and gradually the bank is losing its competitiveness due to technological disruption. In this regards, the existing Work Centred Analysis along with the proposed Work Centred analysis for ANZ bank Australia are given below
Challenges faced by ANZ bank
Artificial Intelligence has the biggest contribution in modern technological advancement and has emerging need in organisational development. Artificial Intelligence is needed to improve the current customer service status of ANZ Bank. Some of the benefits which can be gained by implementing Artificial intelligence in the system are
- System can perform their task automatically with the help of Artificial Intelligence
- Bank will be able to offer fast service to the customer (Castelli, Manzoni & Popovi?, 2016)
- Better banking system can be developed with by providing online banking facility
- Customer data can be protected and retrieved whenever it is needed
- Automated machine will allow customer with self help banking facility
- Customers data can be protected with the help of Artificial intelligence
The goal of ANZ bank is to provide the world class baking service to customer without wasting their time. ANZ Bank is planning to come up with a complete digital banking solution for customers. The challenges which ANZ Bank can face with Artificial Intelligence are proper implementation and application of artificial Intelligence by internal employees for introducing the best banking service within Australia.
There are multiple processes which can be followed by ANZ bank to move effectively with digital disruption. These recommendations will not only bring positive changes within the banking system but also reduce chances of any negative impact due to sudden digital disruptions. Some of the recommendations are
Configuration of Strategy for AI: The modern age banking system needs to ensure that they deliver the right service by measuring the right output (Schiller & Kenworthy, 2017). First and foremost, ANZ Bank needs to prepare a plan which covers all the aspects which need improvement. For instance, ANZ Bank needs to come up with Automated Advisor Tool which is also known as chatbot across the globe. Therefore, Artificial Intelligence should be implemented to develop the right Advisor tool for both customers and financial advisors.
Human resources planning: ANZ Bank needs to consider the impact of digital disruption on their employees. It is natural, that employees will consume time to get accustomed with the new technology. Thus it is extremely important for the bank to perform a test which can help the HR management to understand the skill and competencies of their existing employees (Cascio, 2018). With this scanning process HR managers of ANZ Bank will be able to identify the existing capabilities of their resources and those capable resources can be utilised for implementation of Artificial Intelligence. Therefore, it is highly recommended for ANZ bank to identify the gap between the current knowledge with the required talent for the implementation. This will ensure that ANZ Bank will be able to take the right measure to reduce the knowledge gap.
Integration AI and Innovation: Beside identification of knowledge gap, it is essential for the company to promote an innovative work culture so that the Bank can deal with any digital disruption and use it for innovation (Meier, 2016). It is highly essential for the Bank to understand their point of focus to ensure that most profitable part of the business is benefitted through digital disruption. Keeping a clear vision is essential to utilised digital disruption in a positive manner.
Artificial Intelligence and its implementation
Investment: This recommendation is made regarding investment for the new technology. It is the responsibility of the managers to ensure that the right amount of investment is done at the right time (Gotze, Northcott & Schuster, 2016). All expenses should be taken under consideration before planning to invest for the Artificial intelligence. It is essential to ensure that the operational cost or the investment cost for this new technology is not more than the periodical profit of the bank. management need to consider the fact that the investment is not just done to develop the new technology but to improve quality of service.
Customer centric approach: Finally it is recommended for the management to change their tradition banking process with the help of technological advancement and put customer at the centre of process. Making the changes in the business process is not enough until it fits the need of customers (Lievesley et al., 2017).
Conclusions
The original purpose of this study was to find the problem area in ANZ Bank and how Digital Disruption can affect the whole banking process. ANZ Bank is capable of providing various financial services to customers. However with the help of the WCA model it can be found that a change is required in the existing business process to for the effective involvement of digital disruption. These business changes are identification of need and implementation of the Artificial Intelligence so that patience can be provided with Automated Advising tool. In this regard various recommendations have been made for ANZ bank. These recommendations include bringing adequate innovation at the Bank, identification of knowledge gap and right investment for the new technology.
|
Factor |
Concerned People |
Duration |
|
There is a need of training for the existing employees so that digital disruption can be dealt in the right manner. |
Training manager and HRMD |
2 moths |
|
Bank need to perform a research on the type of questions customer and financial advisors ask from bank. These information need to be included in the system to minimize the limitation of the new Advisor Tool |
. Technical manager, Personal banker |
3 months |
|
Predefined set of skill, knowledge and intelligence is required for the implementation of the new technology |
IT managers are responsible for this |
3 to 4 months |
References
Cascio, W. (2018). Managing human resources. McGraw-Hill Education.
Castelli, M., Manzoni, L., & Popovi?, A. (2016). An artificial intelligence system to predict quality of service in banking organizations. Computational intelligence and neuroscience, 2016.
Gilbert, R. J. (2015). E-books: A tale of digital disruption. Journal of Economic Perspectives, 29(3), 165-84.
Gotze, U., Northcott, D., & Schuster, P. (2016). INVESTMENT APPRAISAL. SPRINGER-VERLAG BERLIN AN.
Lievesley, M., O’Leary, D., Whitehead, C., Hewitt, I., McPherson, N., & Annal, C. (2017). How Industrial Design Supports a Customer?Centric Innovation Approach in a Technology?Centric Business Environment. Design management Journal, 12(1), 15-27.
Lindgren, S. (2013). New noise: A cultural sociology of digital disruption. Peter Lang Publishing Group.
McQuivey, J. (2013). Digital disruption: Unleashing the next wave of innovation.
Meier, D. (2016). Integration Of Ai And Or Techniques In Constraint Programming For Combinatorial Optimization Problem. Integration, 1, 4.
Schiller, P. L., & Kenworthy, J. R. (2017). An introduction to sustainable transportation: Policy, planning and implementation. Routledge.
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