Module 2: Readiness Assessment Measure

Muhammad Sule

Nexford University

BUS 6120 Introduction to Intrapreneurship and Innovation

Geoffrey Vanderpal

April 5th, 2024

Executive Summary

Edwards Deming once observed that there are two basic truths in life: first, that evolution is

unavoidable, and second, that people resist innovation. We must effectively carry out change so

that we can create new ideas, and to effectively execute change, we must be able to assess a

company's readiness for the change and understand how important timing is in the

implementation process.

This report's objective is to offer findings regarding the best method for assessing chorit Bank's

readiness to use sophisticated analytics and big data across the organization. I have utilized the

"Prepared, Set, Shift! Decision Making Tool" to help me choose the best method for assessing

the company's readiness with this purpose in mind.

Big Data and Advanced Analytics are the suggested innovation strategies of chorit Bank.

Because they provide services to hundreds of millions of customers, financial and banking

organizations are without any doubt the most highly data-driven businesses in the world

economy. Only by analyzing the data they gather from such consumers can financial institutions

truly listen to their clients and provide tailored financial products and services that will help them

(Valchev, 2021).

With this creative modification, our financial organization would be able to guarantee that

customers receive continuously tailored offerings and individualized experiences, which would

help them win the competition and emerge as the contemporary financial services leader. The

problem of how to understand the things consumers want and need is answered by the vast

amounts of information that are gathered across the various financial services channels (cash
withdrawals at ATMs, online as well as mobile payment transactions, use of electronic banking

services (mobile devices banking app, online banking, electronic wallets), IoT devices, customer

information acquired for Know Your Customer (KYC), biometric verification, etc.). After an

efficient collation, we are better able to serve our clients while continuing to be leaders in the

industry.

Benefits and Drawbacks

chorit Bank may now offer customized services to its clientele because of the improved

customization made feasible by cutting-edge analytics. Analysis of data may make it easier to

develop innovative financial strategies, which could improve the success of marketing

campaigns. Utilizing automation and data can reduce operating costs and dangers. Data can be

used to anticipate a variety of future events, risks, consumer decisions made via next-best-action

models, fraud, etc.

Huge database safety can be a worry because big data analytics, although useful in identifying

illicit activity, is vulnerable to certain security flaws. Implementation expenses are another

disadvantage; large data analysis is expensive.

Hiring technical experts with a focus on the analysis of large amounts of data is essential since

big data analytics is a complex process that requires a high level of technical knowledge to

execute.

To sum up, McKinsey estimates that data-driven decisions might save 15–20% of all marketing

expenses for banks. Big data appears to be a great method to minimize costs and generate

revenue through targeted marketing, especially because banks devote eight percent of their

expenditures on promotional activities. Big data may make it easier to identify challenges with
brand targeting, comprehend customer desires, and resolve existing problems. (2019, Tiwari).

Big data analysis has many advantages over disadvantages, which is why I strongly suggest that

our neighborhood commercial bank, chorit Bank, implement this approach right away.

A financial institution that uses data to inform its decisions would be better able to adjust in this

fast-paced age of advances in technology.

 References

McKinsey. (2015). Marketing & sales big data, analytics, and the future of marketing & sales.

https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Marketing

%20and%20Sales/Our%20Insights/EBook%20Big%20data%20analytics%20and%20the

%20future%20of%20marketing%20sales/Big-Data-eBook.ashx

Tiwari, R. (2019, June 23). Big Data in Banking industry — benefits and challenges. Medium.

https://medium.com/@rohittiwari_81808/big-data-in-banking-industry-benefits-and-

challenges-ea3e9d7361e

Valchev, M. (2021, January 25). 10 Innovations That Deliver the Digital Banking of the Future.

Default. https://www.softwaregroup.com/insights/blog/article/10-innovations-that-

deliver-the-digital-banking-of-the-future-today