Artificial Intelligence as an Enabling Tool for the Development of Dynamic Capabilities in the Banking Industry

2020 ◽  
Vol 16 (3) ◽  
pp. 20-33
Author(s):  
Cristina Gallego-Gomez ◽  
Carmen De-Pablos-Heredero
Keyword(s):  
Artificial Intelligence ◽  
Value Chain ◽  
Credit Card ◽  
Dynamic Capabilities ◽  
Business Models ◽  
Financial Industry ◽  
Resource Based View ◽  
Managerial Skills ◽  
International Banks ◽  
Speed Up

Banks are investing in artificial intelligence (AI) to develop more innovative business models in order to face competition. The main objective of this paper consists in analyzing bank experiences when they introduce AI from the theory of dynamic capabilities and the resource-based view approach. Documentary research enables the description of experiences in three companies from the financial industry. It has been considered of interest to include different international experiences. For that reason, a firm providing debit and credit card services has been included, MasterCard, along with international banks such as Royal Bank of Scotland and Caixa Bank. Results show that AI enables firms to promote new relationships with customers, detect their needs or experiences, and adapt the service given by firms to be more competitive. AI also allows them to speed up responses to customers answers and doubts through its value chain. This research also shows that the proper implementation of AI permits a reconfiguration of traditional banking scenario. Detection, absorption, integration, and innovation are capabilities that allow these firms to build the managerial skills oriented to save costs, increase efficiency, and be more competitive.

What drives the disintegration of the loan origination value chain in the banking business

2015 ◽  
Vol 21 (2) ◽  
pp. 288-311
Author(s):  
Enzo Scannella
Keyword(s):  
Vertical Integration ◽  
Value Chain ◽  
Business Models ◽  
Transaction Cost Economics ◽  
Bank Lending ◽  
Bank Loan ◽  
Resource Based View ◽  
Content Type ◽  
Vertical Disintegration ◽  
Banking Business

Purpose – The purpose of this paper is to analyze the vertical disintegration of the bank loan origination value chain. This paper conducts a study on the credit information market from the perspective of the bank’s decision to vertically disintegrate the loan origination value chain. The main aim is to identify the relevant drivers of the decision to vertically disintegrate the credit assessment phase in the lending business. Design/methodology/approach – Transaction cost economics and information asymmetry are the typical perspectives of analysis of the vertical scope of business value chains. Findings – This paper argues that in order to capture the drivers underlying the dynamic evolution of the vertical scope of bank loan origination business models, the above perspectives must be combined and integrated further with a resource-based view and the modularity perspective. Combining managerial and financial perspectives, this paper offers an examination of the drivers of vertical disintegration in the lending value chain and, specifically, in the credit assessment phase. Originality/value – Although the existence of substantial research on value chain vertical integration/disintegration in the literature, none has directly focussed on the credit assessment value chain. It leaves a gap that the paper aims to overcome. The value chain disintegration has deep managerial and financial implications at firm and industry levels, and the comprehension of the rational underlying it is critical to maintaining competitive business model configurations in the bank lending industry.

scholarly journals Evaluating the impact of AI on insurance: The four emerging AI- and data-driven business models

2019 ◽  
Vol 1 ◽  
pp. 15 ◽  
Author(s):  
Alex Zarifis ◽  
Christopher P. Holland ◽  
Alistair Milne
Keyword(s):  
Artificial Intelligence ◽  
Value Chain ◽  
Business Models ◽  
Data Driven ◽  
Insurance Companies ◽  
Customer Base ◽  
Insurance Sector ◽  
The Third ◽  
The Impact ◽  
The Way

The increasing capabilities of artificial intelligence (AI) are changing the way organizations operate and interact with users both internally and externally. The insurance sector is currently using AI in several ways but its potential to disrupt insurance is not clear. This research evaluated the implementation of AI-led automation in 20 insurance companies. The findings indicate four business models (BM) emerging: In the first model the insurer takes a smaller part of the value chain allowing others with superior AI and data to take a larger part. In the second model the insurer keeps the same model and value chain but uses AI to improve effectiveness. In the third model the insurer adapts their model to fully utilize AI and seek new sources of data and customers. Lastly in the fourth model a technology focused company uses their existing AI prowess, superior data and extensive customer base, and adds insurance provision.

scholarly journals AI MSK clinical applications: spine imaging

2021 ◽  
Author(s):  
Florian A. Huber ◽  
Roman Guggenberger
Keyword(s):  
Artificial Intelligence ◽  
Clinical Application ◽  
Value Chain ◽  
Clinical Applications ◽  
Status Quo ◽  
Use Cases ◽  
Musculoskeletal Imaging ◽  
Future Perspective ◽  
Spine Imaging ◽  
The Status

AbstractRecent investigations have focused on the clinical application of artificial intelligence (AI) for tasks specifically addressing the musculoskeletal imaging routine. Several AI applications have been dedicated to optimizing the radiology value chain in spine imaging, independent from modality or specific application. This review aims to summarize the status quo and future perspective regarding utilization of AI for spine imaging. First, the basics of AI concepts are clarified. Second, the different tasks and use cases for AI applications in spine imaging are discussed and illustrated by examples. Finally, the authors of this review present their personal perception of AI in daily imaging and discuss future chances and challenges that come along with AI-based solutions.

scholarly journals Customers’ Intentions to Switch to Internet-Only Banks: Perspective of the Push-Pull-Mooring Model

2021 ◽  
Vol 13 (14) ◽  
pp. 8062
Author(s):  
Cheolho Yoon ◽  
Dongsup Lim
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Information Technologies ◽  
Business Models ◽  
Internet Banking ◽  
Equation Modeling ◽  
Research Model ◽  
Financial Industry ◽  
Banking Services ◽  
New Business

The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.

scholarly journals Net-zero emission vehicles shift and equitable ownership in low-income households and communities: why responsible and circularity business models are essential

2021 ◽  
Vol 2 (1) ◽  
Author(s):  
Nana O. Bonsu
Keyword(s):  
Air Pollution ◽  
Low Income ◽  
Value Chain ◽  
Business Models ◽  
Industrial Revolution ◽  
Technological Development ◽  
Middle Income ◽  
Net Zero ◽  
Zero Emission ◽  
The Uk

AbstractThe UK Plan for a Green Industrial Revolution aims to ban petrol and diesel cars by 2030 and transition to electric vehicles (EVs). Current business models for EV ownership and the transition to net-net zero emissions are not working for households in the lowest income brackets. However, low-income communities bear the brunt of environmental and health illnesses from transport air pollution caused by those living in relatively more affluent areas. Importantly, achieving equitable EV ownership amongst low-and middle-income households and driving policy goals towards environmental injustice of air pollution and net-zero emissions would require responsible and circular business models. Such consumer-focused business models address an EV subscription via low-income household tax rebates, an EV battery value-chain circularity, locally-driven new battery technological development, including EV manufacturing tax rebates and socially innovative mechanisms. This brief communication emphasises that consumer-led business models following net-zero emission vehicles shift and decisions must ensure positive-sum outcomes. And must focus not only on profits and competitiveness but also on people, planet, prosperity and partnership co-benefits.

scholarly journals The Role of Social Enterprise Hybrid Business Models in Inclusive Value Chain Development

2021 ◽  
Vol 13 (2) ◽  
pp. 499
Author(s):  
Bob Doherty ◽  
Pichawadee Kittipanya-Ngam
Keyword(s):  
Business Model ◽  
Value Chain ◽  
Social Impact ◽  
Business Models ◽  
Rural Poverty ◽  
Sustainable Business ◽  
Middle Income ◽  
Low Middle Income Countries ◽  
Development Literature ◽  
Hybrid Organisations

This study contributes to the growing interest in hybrid organisations, sustainable business models and inclusive value chain development (IVCD). Recent work has identified that of some 570 million farmers in the world, more than 475 million farmers are smallholders in low-middle-income countries experiencing increasing food insecurity and rural poverty. Research argues that there is a lack of research that provides work on appropriate solutions for smallholders. This paper answers this call by a qualitative study of ten case studies, which draws on hybrid organising, sustainable business model and IVCD research to identify the novel business model characteristics that hybrid organisations use to create and manage more inclusive value chains for smallholders. These hybrid organisations are designed to create a value proposition that delivers sustainability upgrading for smallholders via both product, process and governance upgrades, empowers smallholders to achieve development goals and creates multiple value for social impact. We therefore identify the important characteristics of the hybrid business model to provide appropriate solutions for smallholders and overcome the challenges identified in the inclusive value chain development literature.

Suppliers in the privatised UK wastewater market and their possible moves towards integrated solutions

Water Policy ◽  
2006 ◽  
Vol 8 (6) ◽  
pp. 559-572 ◽  
Author(s):  
Charlotta Windahl
Keyword(s):  
Value Chain ◽  
Support Services ◽  
System Integration ◽  
Business Models ◽  
Spare Parts ◽  
New Business ◽  
Water Companies ◽  
The Uk ◽  
New Business Models ◽  
New Strategies

An increasing number of companies in the capital goods industry are turning towards new strategies where the focus is to add value for customers by providing integrated solutions (combining products and services), instead of selling components, spare parts and support services. These new strategies represent moves in the value chain and create a need for new business models as well as new competencies. In this paper, the fairly new concept of integrated solutions is explored in the context of a privatised industry. The findings are based on empirical case studies carried out at two companies supplying products and services to the UK wastewater industry. In the UK, both water companies and their suppliers are influenced by economic and environmental regulations, an increased focus on cost, and outsourcing. On one hand, the two manufacturers have increased their competence with respect to system integration and operational services – competencies for supplying integrated solutions. On the other hand, a fragmented and vertically structured market with a multitude of different actors increases the distance between the water companies and the manufacturers. In addition, the division of the industry into a capital and operational side complicates the coordination between new sales and services.

The future of the Internet of Things: toward heterarchical ecosystems and service business models

2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin
Keyword(s):  
Internet Of Things ◽  
Business Model ◽  
Value Chain ◽  
Large Scale ◽  
Business Models ◽  
The Internet ◽  
Content Type ◽  
Industry Collaboration ◽  
New Business ◽  
The Internet Of Things

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.

Building (or not building) dynamic capabilities: the case of Italian subsidiaries in China and India

2018 ◽  
Vol 26 (4) ◽  
pp. 337-360 ◽  
Author(s):  
Giuseppe Tattara
Keyword(s):  
Value Chain ◽  
Multinational Enterprises ◽  
Dynamic Capabilities ◽  
Case Study Research ◽  
Business Strategies ◽  
Future Research ◽  
Capability Development ◽  
Regional Effect ◽  
Content Type ◽  
Capability Building

Purpose The purpose of this paper is to examine the process of capability building at subsidiary level and the forces preventing such process. The paper discusses and tests three propositions governing this process. Design/methodology/approach This research is based on multiple case studies. A case study research is most useful when addressing issues about which little prior theory has been developed or empirical evidence collected. Findings Subsidiaries in Asia operate in a way substantially different from those in the West. Specifically what ways do market specificities in Asian economies serve to either inhibit or positively encourage the development of a subsidiary? What are the circumstances which could induce subsidiaries to outsource production? Research limitations/implications Future research should explore the regional effect on MNE subsidiary types and different flexibilities exhibited in the value chain. What are the specific aspects (macro and micro) that explain variations of business strategies at subsidiary levelboth over time and between countries? Practical implications Multinational enterprises (MNEs) should be aware of the strong potential for capability development at the subsidiary level. This increased awareness ought to induce consideration in MNEs about how best to encourage such know capability development and how to leverage these capabilities for a better MNE performance. Social implications Managers who knew the host country languages and culture, and have outward-looking attitudes, are in advantageous positions to learn about new opportunities. Originality/value The paper offers empirical insights into the state and drivers of subsidiary performance in Asia. Specifically it shows how neglect of external conditions can act to open people’s eyes and foster a capability-building process within subsidiaries.

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