Student: Stanley

Innovation case analysis. refer to attachment for details. topic is segway

BUSI 740 Assignment 1 (A1) TEAM ASSIGNMENT: “INNOVATION” CASE ANALYSIS A1. Student teams will be assigned a case involving a global corporation grappling with a significant and complex problem associated with the external environment that requires an innovative solution. Students will serve as consultants to this global corporation and will provide a detailed report that: (a) Clearly identifies and describes the problem(s) in detail (N1O1); (b) Includes an external analysis of the firm’s operating environment (S1O1) with the integration of alternative/divergent (e.g., global/multi-cultural) perspectives (I1O1); (c) Discusses strategic alternatives (S1O3); (d) Presents a plan that implements an innovative and feasible solution (I1O2); and (e) Justifies the feasibility of the solution and recognizes consequences that might arise (I1O3). Overall expectations: The paper should be either posted in BB or sent via email, 6-8 pages, 1.5-spaced, titled, and proofread carefully. Fonts should be set at 11-point in Arial or Calibri. Papers are due on the designated date; technical difficulties are not acceptable excuses for failure to hand in a paper on time. To avoid such common problems, you should proofread the final draft of your paper well before the paper is due. Absence and/or excuses on the day a paper is due are not acceptable. Plagiarism will not be tolerated. Remember that plagiarism consists of representing the words and/or ideas of another as your own. If you use someone else’s ideas, be sure to cite your sources carefully and distinguish his or her thoughts from your own. If you use someone else’s words, be sure to place them in quotation marks and cite your sources. See the most recent edition (the 7th) of the MLA Handbook for Writers of Research Papers for guidance on citing sources and other technical matters (Can be found in the NYIT online library). Please let me know if you would like to submit prior to Turnitin to check your paper. I am also happy to read your paper in advance and provide input. Deliverables: A1 Report A1 Presentation 1 Running Head: LEADERSHIP IN TECHNOLOGY: ROYAL BANK OF CANADA Leadership in Technology: Royal Bank of Canada Student name Student number New York Institute of Technology Date 2 Running Head: LEADERSHIP IN TECHNOLOGY: ROYAL BANK OF CANADA Technology in the marketplace In today’s world, technological innovation is one of the most important factors contributing to sustainability of the organization in the ever-changing market. The most prominent technological development of the 21st century was the development of the internet has led to the era of digitization. The organizations that have successfully integrated digitization to their business models are thriving today. Therefore, to facilitate growth, it is important for an organization such as Royal Bank of Canada (RBC) to ensure adaptability and integration of the technological innovation available in the marketplace quickly, efficiently and effectively. The innovations that are currently in the limelight to shape the future are: Artificial Intelligence (AI), Robotics, Augmented Reality and Blockchain. Artificial Intelligence (AI) is the study and design of intelligent agents, where, an intelligent agent is a system that perceives its environment and takes actions which maximizes its chances of success (ScienceDaily, n.a). It deals with providing ability to the machines to behave like humans. AI facilitates speech recognition and learning and providing sufficient knowledge to the machines to develop planning and problem-solving abilities (Technopedia, n.a). therefore, the machines will have the ability to perform tasks without having the involvement of human. AI has the capability to transform every industry as it can achieve superhuman performance in numerous activities. Till date the major advances in AI took place in perception and cognition. Examples of AI include voice recognition capabilities such as think Siri, Alexia, and Google Assistant; data analysis for trading decisions on Wall Street; Amazons use of machine learning to make product recommendations to the customers; data analytics to improve online advertisement placement etc. (Brynjolfsson & Mcafee, n.a). Next, robotics deals with use of robots as substitutes or humans to perform human actions. Third, Augmented reality is a computer-generated image of the real-world environments. Finally, the blockchain is a network of computers that contain information (distributed electronic ledgers) that is not monitored by a central authority and cannot be manipulated or changed by a person (Investopedia, n.a). Currently the blockchain environment contains an open electronic ledger that keeps all the information related to cryptocurrencies such as Bitcoins, Ethereum etc. Although it is mainly used to verify transactions using cryptocurrencies, it can be also used to digitize, code and insert any document in the blockchain. Blockchain makes every unit of currency unique and traceable. When a computer is connected to the blockchain network, the computer gets access to all the information available in the blockchain. Recently, banks have started to look at the blockchain technology for processing trades, transferring funds and making transactions faster than the traditional system. The Commonwealth Bank of Australia and Wells Fargo & Co. was the first banks to complete a blockchain transaction in October 24 2016 (Investopedia, n.a). 3 Running Head: LEADERSHIP IN TECHNOLOGY: ROYAL BANK OF CANADA Innovation at Royal Bank of Canada (RBC) Royal Bank of Canada is the largest bank is Canada, having a market capitalization of 114.5 billion, serving 16 million clients with 80,000 employees (Royal Bank of Canada, 2017). It has five segments: Personal & Commercial Banking, Capital Markets, Wealth Management, Insurance, Investor & Treasury Services (Royal Bank of Canada, 2017). Across these five segments innovation is a major factor contributing to RBC’s success. RBC’s leaders consider technology and innovation as transformative, therefore they take proactive measures in adopting next generation technology. They have transformed into a digitally-enabled relationship bank that believes that presence in digital platform can ensure exceptional, secure and convenient customer services (Adler, 2017). Dave McKay, the President and CEO of RBC, is supporting Canada’s innovation ecosystem through transformational technologies such as artificial intelligence and blockchain (McKay, n.d). As a result, RBC focuses on building new business models across their platforms that facilitates integration and development of such innovation. In February 2017 McKay announced that RBC wants to spend a significant portion of their innovation budget (at least 40%) on emerging technologies like AI and Blockchain (BNN, 2017) . He believes that AI can help convert deep raw data into knowledge which then turns into value for the organization. He states that the Blockchain Technology is important for RBC as it would create a distributed ledger that would establish a record keeping system that allows participants to interact with each other globally without the involvement of third parties. It would help move money efficiently and keep record of who holds it. It tends to improve the speed of payments, reduce complexity and lower costs. To make the technology fully functional, RBC proposes constant monitoring is essential with regards to operational efficiency and security. RBC has developed a shadow ledger that allows monitoring of the payments between Canada and US in real-time and it is currently being tested to determine its operational efficiency and security. The customer loyalty program, RBC Rewards, is the first program that RBC is going to offer via the Blockchain (Adler, 2017). Continuous innovation is at the heart of RBC and therefore has several innovation labs. They have labs in Toronto, London, Luxembourg, New York and Orlando, with the latest opening in Silicon Valley last year. Recently, the Global Asset Management (GAM) has announced an innovation lab for facilitating in-house technological developments. An investment of $20 million would be made over the course of 5 years. Damon Williams, CEO of RBC GAM said, “The culture of RBC Global Asset Management revolves around innovation, continual learning and harnessing the power of human and 4 Running Head: LEADERSHIP IN TECHNOLOGY: ROYAL BANK OF CANADA machine. Our new Innovation Lab is a reflection of this philosophy” (Zubairi, 2017). Moreover, the Vice President of Innovation at RBC Gabriel Woo believes that it is necessarily to form partnership with firms developing emerging technologies to shape the future of financial offerings, and therefore, RBC has acquired Wiser Investments, a Toronto-based FinTech firm, to support the development of the innovation lab (Zubairi, 2017). RBC has established Borealis AI, an Institute of Research that facilitates research in machine learning in collaboration with other research facilities (Royal Bank of Canada, 2017). This facility conducts both pure research and applied research to support the transformational technology ecosystem (Adler, 2017). They have invested in research facilities as they believe in helping communities prosper, and they strongly believe that by developing research facilities they can make Canada more technologically advanced and innovative, which in turn will help them prosper. They have launched NOMI Insight and NOMI Find & Save, which are mobile apps based on artificial intelligence, that monitors customer’s account to identify trends, unusual activities, possible saving opportunities (RBC Newsroom, 2017). This uses predictive analytics and non-linear data to help the customers to manage their individual cash flows, looks at retirement and looks at shock events to make future predictions that was not possible before using linear data sets (Adler, 2017). Moreover, RBC is using machine learning to facilitate sales and trading opportunities in Capital Markets (for electronic trading, establishing different algorithm for electronic trading, using massive data sets to make predictions about the market). They are using NORA, a pilot program to help Wealth Management team; allowing customers to make payments using Siri voice commands (Royal Bank of Canada, 2017). Furthermore, RBC has developed an online platform that connects customers with Mutual Fund advisors using live video and real-time dashboard called MyAdvisor. They want to develop even more sophisticated face-to-face video banking feature to enable their business customers to connect digitally with RBC (Zubairi, 2017). In the year 2016, RBC won awards in the Euromoney Private Banking and Wealth Management Survey 2016. They have obtained the first ranking in two technology related awards amongst Canadian Banks. The awards are: "Innovative Technology – Client Experience" and "Innovative Technology – Back Office Systems." This shows that RBC is the most innovative bank in Canada. Conclusion 5 Running Head: LEADERSHIP IN TECHNOLOGY: ROYAL BANK OF CANADA Based on the above information we can say that Royal Bank of Canada has not only have been proactively engaged in the adoption of technological advancements with regards to the current market trends that include digital platforms such as Mobile Banking, but also actively developing methodology for integrating AI, Robotics and Blockchain technologies to ensure a superior customer experience. They have developed a culture to manifest innovation at the center of its business segments to cope up with the ever-changing technological environment. They believe in developing an ecosystem that develops and implements technological innovations in Canada, which in turn they can use to their advantage to provide superior services in all business segments. RBC does not want to move away from their core areas of business but still they want to have a foothold in the technological field. Therefore, they have been partnering with and investing in small technology start-ups as well as Fintech companies, especially in the fields of AI (predictive analytics, data analytics, reinforcement technology etc.) and Blockchain, so that they can leverage the technologies developed to provide real-time services to the customers. The value that the technology and innovation is going to add is quite extensive. For instance, RBC’s portfolio managers can have great advantages by using AI and Predictive analytics to improve the quality of investment in assets. Before, such analysis was based on a lot of assumptions and they would use static data, or all historic data obtained at a particular point in time. So, the outcome of the analysis was biased to a certain extent, which eventually increases the level of risks. Now, they can use real-time non-linear data on the assets and predict outcomes whose accuracy would increase exponentially compared to the current process of linear or multi-factor data analysis. The use of real-time non-linear data tends to reduce the risks associated tremendously, thereby increasing the value of investments. To sum up, it can be said that the actions of RBC leaders with regards to technological innovation helps RBC to come up with innovative approaches that help transform knowledge into value, that leads to exceptional customer experience. This in turn translates into maximization of shareholder’s wealth, which is the objective of any organization to ensure long-term sustainability. Therefore, they should continue to nurture their culture of integrating innovation into their business to ensure continuity of their business. References McKay, D. (n.d). RBC. Retrieved from: http://www.rbc.com/newsroom/executive-biographies/david-i-mckay.html. 6 Running Head: LEADERSHIP IN TECHNOLOGY: ROYAL BANK OF CANADA RBC Newsroom, (2017, August 28). RBC first bank in Canada to offer clients personalized digital financial insights & a fully-automated savings service through the award-winning RBC Mobile app. Retrieved from: http://www.rbc.com/newsroom/news/2017/20170828-nomi.html. Zubairi, A. (2017, June 29). RBC’s Global Asset Management Invests $20 Million To Establish In-House Innovation Lab. Retrieved From: https://betakit.com/rbcs-global-asset-management-invests-20-million-to-establish-in-house-innovation-lab/ Adler, S. (2017, September 28). Reuters Newsmaker: Big banks embrace tech. Retrieved From: https://www.reuters.com/video/2017/09/29/reuters-newsmaker-big-banks-embrace-tech?videoId=372631566&videoChannel=117754. Royal Bank of Canada (2017). RBC 2017 Annual Report. Retrieved From: http://annualreports.rbc.com/ar2017/ BNN. (2017, January 25). RBC wants 40% of total technology budget devoted to innovation. Retrieved From: https://www.bnn.ca/rbc-targets-40-of-total-technology-spend-for-innovation-1.657739 Technopedia. (n.a). Artificial Intelligence. Retrieved From: https://www.techopedia.com /definition/190/artificial-intelligence-ai Investopedia. (n.a). Blockchain. Retrieved From: https://www.investopedia.com/terms/b/ blockchain.asp Brynjolfsson, E. & Mcafee, A. (n.a). The Business of Artificial Intelligence. Retrieved From: https://hbr.org/cover-story/2017/07/the-business-of-artificial-intelligence RBC Newsroom, (2016, February 10). RBC wins top awards for innovation in global private banking and wealth management survey. Retrieved From: http://www.rbc.com/newsroom/news/2016/20160210-innovation-award.html ScienceDaily. (n.a). Artificial Intelligence. Retrieved From: https://www.sciencedaily.com/terms/artificial_intelligence.htm

Budget: $10.00

Due on: April 29, 2020 00:00

Posted: 5 months ago.

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