1. Group Presentation Group 2 Manchester Business School www.mbs.ac.uk IS Strategy and Enterprise Systems

2. World’s only functional Egg! www.mbs.ac.uk

3. www.company.com Introduction “hatched” in year 1998 “One of the largest Internet-only banks in the world”- Hoovers Capsule Main Services: Mortgages Personal Loans Individual savings accounts Unit trusts Travel insurance Mutual funds Other financial products www.mbs.ac.uk

4. www.company.com Business Strategy Establish a massive online presence as fast as possible and offer one-stop shop for banking Attract internet-enabled customers, provide easy access to a range of financial and non-financial services Increase diversity of products to expand its customer base Thrive for better customer experience through technological advancements IT and Business Strategies www.mbs.ac.uk

5. www.company.com IT Strategy Internet-only – the only business model Customer Communication – e-mail, phone or web Store Amounts of Data (e.g. emails, customer information) Data Recovery in acceptable short time Real-time information IT and Business Strategies www.mbs.ac.uk

6. www.company.com Alignment of Business and IT IT and Business Strategies www.mbs.ac.uk

7. www.company.com Egg’s Competitors IT as Competitive Advantage www.mbs.ac.uk Barclays PLC HSBC Holdings PLC ING Direct UK

8. www.company.com IT as Competitive Advantage www.mbs.ac.uk ICT in Egg is an integrated part of the business model and not an add-on Egg is saving an estimated 50p for each Pin posted across the internet Egg Money Manager – Service which no other bank offers SoA as a foundation for all business processes Joined hands with majors in software and finance solution providers such as IBM, EMC, Sun Microsystems, SQS, CDC

9. www.company.com IT as Competitive Advantage www.mbs.ac.uk Blaze adviser system: allows organizations to execute transactions quickly, and provides the agility and flexibility to adapt decision strategies as business strategies change Zopa: is an online exchange that allows borrowers and lenders to deal with each other on terms of their own choosing via the internet. Enterprise feedback Management(EFM):provides an online reporting platform to business users.

10. www.company.com Measuring Costs and Benefits of IS www.mbs.ac.uk Many Traditional approaches of investment analysis techniques like Return on Investment, Net present Value, Payback Period exists, however those are inappropriate considering the uniqueness of IS projects. Information Economics? Balanced IS scorecard can be the foundation for a strategic IS management system provided that certain development guidelines are followed, appropriate metrics are identified, and key implementation obstacles are overcome Measuring Costs and Benefits of IS

11. www.company.com Balanced Scorecard for IS Measuring Costs and Benefits of IS www.mbs.ac.uk Four perspectives: user orientation, business value, internal processes, and future readiness Source: The balanced scorecard: a foundation for the strategic management of information systems Maris Martinsons, Robert Davison, Dennis Tse

12. www.company.com Building a Balanced IS scorecard: Measuring Costs and Benefits of IS www.mbs.ac.uk 1. Create awareness about the concept 2. Collect and analyze data 3. Clearly define the company-specific objectives and goals of the IS 4. Develop the preliminary balanced IS scorecard 5. Revise it on basis of feedback 6. Achieve a Consensus 7. Communicate the scorecard to all stakeholders

13. www.company.com Measuring Costs: Total Cost of Ownership Balanced Scorecard for IS Acquisition Cost (Hardware and Software) Operations Cost(Maintenance, training etc) Long term Costs( Upgrades, Replacements) Measuring Costs and Benefits of IS www.mbs.ac.uk

14. www.company.com Future Developments in Technology impacting on business strategy Future developments www.mbs.ac.uk Development in Credit Check and Fraud Detection Technology New advances in digital services could allow Egg to evaluate credit risk Allow Egg to evaluate its credit back book for potential fraud Adoption of Digital Documents and Digital Signatures. This would allow Egg to reduce its carbon footprint and further streamline its business operations

15. www.company.com Future Developments in Technology impacting on business strategy www.mbs.ac.uk Future developments Future Modifications to PCI-DSS Standard will impact on the technology. New standards may result in the enforcement of technology changes Advancement in Mobile Technology New marketing opportunities New services for existing clients

16. www.company.com Future Developments in Technology impacting on business strategy www.mbs.ac.uk Egg already utilizes online banking that also allows other card issuers and bank accounts to shown Additional bank and card issuers could be brought onboard Allow more flexible payments and transfers to take place Egg as a business are regulated by the FSA who will require electronic reporting More streamlined reporting methods Lower manpower requirements Future developments

17. Questions ? www.mbs.ac.uk