Reference no: EM132404745
1. How would you characterize Bank of America's new system for new developing service s? Focus on its process, organization, management, and culture.
The used a highly skilled innovation and development team which was genius. The team created a prototype center at the North Carolina headquarters which was good use for practicing experiments. This set the stage for further experimentation and realized this needed to be in a live environment. With this they were able to test in different branches which was able to reduce the effect of noise. They wanted to make sure the variable they were testing was the actual cause and effect. The experiment was aimed to new service concepts. They were looking to increase customer satisfaction and perspective and to grow revenue. They settled on Atlanta since it was a wealthier neighborhood, they had advanced communications infrastructure, their market was stable and headquarters was nearby.
2. Compare Bank of America's approach to other product development systems. What are the differences? What are the similarities? Does it matter if it is a product of service that is being developed?
Washington Mutual (WAMU) had as similar product development. They opened up some experimental branches. They had a pilot called Occasio. There was a concierge at the front entrance and several sales representatives carrying mobile handheld computer devices that answered customer questions. Strategically placed tellers. They had play areas for children, while the parents were able to bank. This brought in twice as much checking accounts compared to other branches. I feel the only The similarities with Bank of America was there was a host at the front door, freestanding low kiosks, for associates to perform transactions. Bank of America had T.V.s to pass the time, they had an investment bar and complimentary coffee. I do not believe it matters if it is a product of service since you can learn from the experiment that may build a new product of service. You can never design a service in a laboratory, compared to a real environment.
3. What is the role of experimentation? How can companies maximize their learning from experimentation?
Experimenting plays a role in testing theories, and provide a base of knowledge. You may learn from this and find out there are other theories you may need to test.
Without experimenting there would be no new innovations. This experiment was to use virtual tellers, video monitors for financial and innovational news. They used computer stations to upload as hosting areas. They went to an area where it was close to Headquarters in case they needed the mother ship a more experienced branch. Companies maximize their learning from experiments, which inherent nature is packed with risks and should focus on changes. Which one can explore to learn new things and exploit challenges.
4. Decision point: Should Butler and Brady accept ten additional bank branches into its experimentation portfolio? Why or why not? Please be prepared to discuss your specific plans on how they should respond to senior management's offer.
This is a tricky question, it depends on factors, like is there more money available to budget for these extra additional bank branches. Do we have the staff to experiment with? We need to train to experiment with these ideas. On the other hand you do not want to say no to this, because it shows you are not capable of branching out and this is not what we want to show. This maybe an overwhelming project that is not given enough resources or tools for them to devise.
These are my answer and wanting a review in the answers
The 4 questions needed to be answered after reading the bank of American article by Stefan Thomke. review date October 28, 2002.
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