• What is Capital One’s business and who are their competitors?
• Provision of banking services
• Providing credit cards for consumers
• Continuous innovation of credit cards and banking
• Diversifying credit card contracts for consumers
• Provision of financial services to businesses and consumers
• Searching for new ways for bigger market share and more customer loyalty
• Offering online banking services and availing the tap-to-pay functionality on app

 

Competitors

• PayPal
• Square
• Android pay
• Apple pay
• American express
• Bank of America
• Chase
• Per the case study, what is one of their major strategies to grow profitably and compete?
• Provision of low credit rating cards to their customers
• Creation and offering diversified varieties of credit card contracts
• The use of customer data in creation of new credit programs
• Continuous testing and experimenting to innovatively extend product offering
• Distinguishing themselves by creating new product manufacturing model

 

Information Employed in the Capital One Credit Card Process	Sources of This Information
whether a customer will carry a balance or avoid financial charges or not	Ø  From transactional data from the customer’s bank accounts
Pattern of use	Ø  decision support system Ø  Point of sale
From where and what customers are buying	Ø  Point of sale data
Consumer demographics	Ø  Bank account information Ø  point of sale data
Customer credit risk/spending history	Ø  Point of sale data Ø  Credit history
The mode of credit payment	Ø  Bank transactions Ø  Online banking services

 

IM/IT Enabling Information System	Description
Decision Support System	Helpful in combining data in creating patterns of use and products
Expert System	Testing credit cards risk models
Enterprise-wide transaction processing systems	Important in capturing all customer transactions
Point of sale systems	Vital in capturing spending patterns and what customers are purchasing
Online banking systems	Helpful in capturing customer payment history and credit payment/transactions
Customer Relationship Management system	Captures personal information and helps in customer support

 

 

Traditional Manufacturing Approach	Capital One’s Scientific Testing Approach
Identification of the specific requirements for a product/service	Aims at creating more sets of requirements
Aims at ensuring the existence of a willing customer base	Tests and experiments with product offerings to ascertain the interest of potential customers
Engages in designing a prototype	Aims to design and implement a variety of prototypes
Markets the product or service to target audience	Targets a smaller audience by tailoring a specific product
Uses market research and customer insight information	Uses a unique expert system during interactions with customers
Engages in reviews of product sales trends, customer satisfaction metrics hence very slow to revise or launch new products	Employs a continuous living process od testing, experimentation, and corporate learning hence quick to revise and launch new products