Use case: Determine growth potential
The use case is based on a strategy project that is to improve consumer banking at Sample DB. The models used in the use case are located in the Sample DB demo database.
Let us assume Sample DB management is dissatisfied with the sales result in retail banking. To identify growth potential, they decide to set up a strategy project. The objective of the strategy project is to determine possible growth potential and define measures to exploit this potential.
The use case includes the following steps:
First, the project team analyzes the UMG financial services business model. Thus, the team gains a better understanding of UMG's position in the market and its relationship with partners and customers.
In this context, management wants to find out more about the financial services business segments. It turns out that the credit and leasing business in the Youngsters area has only a very small market share.
Since the credit business in the Youngsters area is an attractive segment for UMG, management decides to perform a strategy analysis.
To find out what is not going well and needs to be improved, the strategy project team runs a SWOT analysis.
The analysis results show:
UMG is not really aware of Youngsters needs.
UMG products are not popular with young persons, while they are in high demand in the 30+ market.
Based on these results, the project team is requested to determine strategy optimizations. The question by management is: What needs to be done in order to increase the consumer banking market share in the Youngsters segment by 30 %?
The project team revises the critical success factors suitable for making UMG a dominant enterprise in the Youngsters market.
The comparison with competitors identifies a discrepancy in terms of product placement and distribution channels.
The project team defines strategic objectives that are supposed to lead to the targeted growth and the increased market share.
This requires an optimization of these three facets of product attractiveness:
Price
Marketing
Innovations
Based on these data, management requests details on the underlying strategies. Therefore, the project team uses a cause-and-effect diagram to create a strategy map to serve as the basis for strategy implementation.
The project team now needs to take care of two things in parallel: Define actions, such as initiatives, programs, and projects in order to improve the UMG strategy target status, as well as specify the method of measuring action development using KPIs to be able to inform management about the process.
Thus, the project team creates strategies in a strategy diagram based on strategic objectives and records details in a strategy allocation diagram.
UMG launches a Facebook campaign targeting consumer banking in order to boost its popularity in the Youngsters segment.
Now the project team determines the KPIs in a KPI allocation diagram, which will help management to measure the success of the Facebook campaign. All management reports will be based on these KPIs.
Management now has a scenario describing how to increase the market share in the Youngsters segment, and providing a tool for defining strategic actions and carrying out success monitoring.
Management decides to launch the campaign in the winter of 2011. To do this, starting November 1, all required resources are released from other tasks.