Professional Documents
Culture Documents
Presentation Agenda
Market Positioning
Overview
Global HR
Customizing & Implementing Relationship Care Programs Annual Employee Maintenance Training
IT Support
Implications
Overview Globalizing HR
Finance
Implementation
Enhancing IT Implications
2
Overview
Globalizing HR
Enhancing IT
Implications
Business Model: Credit/Debit Card, small but many transactions, connected to banks (not vertically integrated)
Overview
Globalizing HR
Enhancing IT
Implications
Key Issues
Current Constraints Large, Powerful Competitors New Substitutes Entering the Market (via New Technologies)
How does AMEX leverage new Core Competency technologies to further connect with its clients?
Overview
Globalizing HR
Enhancing IT
Implications
Competitive Advantage
Current Constraints Large, Powerful Competitors New Substitutes Entering the Market (via New Technologies)
AMEX is viewed as a high quality credit card service provider for the affluent
Core Competency Continual strategic investment in HR & IT infrastructure to maintain market position
Overview
Globalizing HR
Enhancing IT
Implications
Operations
Human Resources
Information Technology
Marketing
Finance
Overview
Globalizing HR
Enhancing IT
Implications
Operations
Human Resources
Information Technology
Marketing
Finance
Globalizing HR
Enhancing IT
These strategies will allow AMEX to continually connect to customers on a deeper level globally, and position itself favorably in the future
Overview Globalizing HR Enhancing IT Implications
8
Strategy Overview
Globalizing HR
Enhancing IT
Globalizing HR
Enhancing IT
10
Employee Empowerment
Employee Development
Provides performance based promotion and incentives programs Recognition is given to high achieving employees Defying industry norms, employee turnover has decreased by half as a result of valuing our employees American Express is able to have a much lower industry norm
Implications
11
Lower Attrition
Overview
Globalizing HR
Enhancing IT
7%
7%
7%
6%
6%
8%
9%
North America
Western Europe
Asia Pacific
North America
Western Europe
Asia Pacific
Source: Euromonitor
The highest area of projected growth in High Net Worth Individuals is in the Asia Pacific Since this is American Expresss target market, AMEX needs to establish its customer service there
Enhancing IT Implications
12
Overview
Globalizing HR
How
Apply Relationship Care model to international countries customize employee training programs to fit distinct culture and products
Analyze survey results for initial program. Structure specific project to tailor country preferences
Implement initial project. Constantly survey employee happiness and RTF ratio
13
Overview
Globalizing HR
Enhancing IT
Implications
% Satisfied
75%
42%
3. Office Policies
4. Career Development 5. Recognition
35%
35%
53%
6. Environment
Source: Asian Academy of Management Journal
43%
Overview
Globalizing HR
How
Potential Classes Required Annually: 1. Manager Review 2. One New Class 3. One Review Class True Customer Concerns Objectives: 1. Current Conversation Points 2. Never Offend
New Technologies
Current Topics Religious Neutrality
Overview
Globalizing HR
Enhancing IT
Implications
15
Globalizing HR
Enhancing IT
16
42 24 18 10 7
5%
4% 3% 2% 1% 0%
Financial Services Insurance Healthcare Primary Production Retail
Other
Overview
Globalizing HR
Enhancing IT
Implications
Objective
Ensure AMEX customer experiences are as robust online as they are offline, everywhere in the world
Why
20% of customers contact a company through email Younger customers are online more, especially the Millennial Generation
How
Integrating Call Centers with Social media Recommend a Friend Program via Facebook
Overview
Globalizing HR
Enhancing IT
Implications
18
Well Call You Back at a convenient time! No Talking to an Automated Machine No Waiting
Overview
Globalizing HR
Enhancing IT
Implications
19
Overview
Globalizing HR
Enhancing IT
Implications
20
Overview
Globalizing HR
Enhancing IT
Implications
21
Pay-per-use billing dramatically reduces upfront costs Lower upfront IT costs Easier to scale-out Enterprises can seamlessly scale their services to meet seasonal client demand
Cloud computing can provide an almost immediate access to hardware resources Faster time to market Creation of new value drivers Cloud computing can lower IT barriers to innovation and increase interoperability between disjoint technologies
Source: McKinsey
Overview
Globalizing HR
Enhancing IT
Implications
22
Approx 10-15% of headcount can be reduced by migrating capacity over to cloud servers Labor reduction stems from facilities and IT Administrator
Total FTEs 1704
505
673
Client Services
DB Admin Desk Top Support Facilities
20 8
87 87
Help Desk
IT Administrator Management Quality Assurance Real Estate Telecommunication
Total starting FTE Source: McKinsey 1 1
-15% 1448
53 53
40 40
116 116
Overview
Globalizing HR
1) Select right partner Select based on screening criteria Partners: Google, Zoho, & Windows Azure
Overview
2) Staggered migration Plan migration phases and contingencies Launch pilot program with off-site support
Globalizing HR Enhancing IT
3) Synchronize globally Link up with global offices Ensure technical support 24/7
Implications
24
Cost Savings
Overview
Globalizing HR
Enhancing IT
Implications
25
18,208
2009
Status Quo
2011F
RC Global
2013F
Recommend
2015F
Cloud Computing
Strategy yields positive NPV & 7.0% CAGR to adjusted operating profits
26
Overview
Globalizing HR
Enhancing IT
Implications
Implementing Growth
Globalization of HR Take Employee Survey
Overview
Globalizing HR
Enhancing IT
Implications
27
Apply Basic Relationship Care Model but Modified for Cultural and Social Sensitivities
29
Slide Navigator
Overview 1) Cover Slide 2) Presentation Agenda 3) AMEX Market Position 4) AMEX Marketing Position 2/2 5) Identifying Key Issues 6) Leveraging on Unique Resources 7) Strategy Alignment with Vision 8) Strategy Alignment with Vision 2/2 Enhancing IT 17) Social Media Focus 18) Spotlight Shone on IT Spending Quality 19)American Express Calls the Client 20) Recommend-a-Friend on Social Media 21) Recommend-a-Friend on Social Media 2/2 22) Strong Drivers Present for Cloud Computing 23) Cost Suppression Derived from Cloud Computing 24) Executing in 3 Simple Steps 25) Positive Impacts of Cloud Computing 26) Contributing to the Bottom Line 27) Implementing Growth 28) Conclusion slide Backup Slides 31) Background 32) Industry Snapshot of AMEX 33) Risk Mitigation for Cloud Computing 34) Cloud Computing More Expensive than Data Centers 35) Screening Criteria for Private Cloud Partners 36) Financials for RC Global and Recommend a Friend 37) Financials for Cloud Computing and Summary 38) Sensitivity Analysis: RC Global and Recommend a Friend 39) Sensitivity Analysis: Cloud Computing 40) US Payment Trends 41) Methods of Contacting Customer Service 42) Emarketer: Support for Social Media Integration 43) Investing in Web 2.0 and Social Media 44) Investing in Web 2.0 and Social Media 2/2
Globalizing HR 11) Relationship Care Made a Positive Impact 12) Relationship Care Needs to be International 13) Implementing Relationship Care Globally 13) Applying in the Context of India 14) Maintain Up-to-Date Training
Overview
Globalizing HR
Enhancing IT
Implications
30
Background
2005: Jim Bush identifies erosion of customer service
2008: American Express records revenues of $28.4 billions (3% increase from 2007) 2009: Revenues fall due to tough economic times
Happy Employees
Happy Customers
Increased Revenues
Overview
Globalizing HR
Enhancing IT
Implications
31
Overview
Globalizing HR
Enhancing IT
Implications
32
Financial
Current cloud computing offerings are not cost-effective compared to large enterprise data centres
Procure multiple quotations to obtain competitive rates from vendors Perform cost-benefit analysis, ignoring sunk costs and factoring in cost declination Adopt private encrypted cloud servers for AMEX proprietary usage
Technical
Security and reliability concerns will have to be mitigated and applications rearchitected Business perceptions of increased IT flexibility and effectiveness will have to be properly managed The IT supply and demand organizations will have to adapt to function in a cloudcentric world
Operations
Organizational
Migration to cloud server to span over 6 months for IT department to increase familiarity exposure
Overview
Globalizing HR
Enhancing IT
Implications
33
Overview
Globalizing HR
Enhancing IT
Implications
34
1. Since when is the company offering cloud services? 2. Is the company making profits? If does, since when is the company profitable? 3. Is there a 24/7 technical support available? Are there any hidden costs associated with the provided support? What exactly includes the technical support? What is the number of support techs on the support team? 4. Is the provided Cloud service reliable and secure? What compliance and controls the service implies? 5. What technologies are used by the companys service support? 6. Are you required to sign up a long-term contract for the service? Does the sign-up process involve any setup costs? 7. Are there any discounts for large volume usage? If, so, which are those volume levels? 8. Is it required a minimum monthly spend? 9. Does the service have a free trial period? 10. Is mobile access enabled with the service?
Overview
Globalizing HR
Enhancing IT
Implications
35
Overview
Globalizing HR
Enhancing IT
Implications
36
Overview
Globalizing HR
Enhancing IT
Implications
37
31.60% 4.60%
5.60%
Increase in % of Cardholder Acq (Strat Recommend Friend)
37.60% 8647.7
9312.6 9977.4 10642 11307 11972 12637
21838
22567 23296 24025 24754 25482 26211
19640
20358 21076 21794 22513 23231 23949
17442
18149 18856 19564 20271 20979 21686
15243
15940 16637 17334 18030 18727 19424
13045
13731 14417 15103 15789 16475 17162
10846
11522 12197 12873 13548 14224 14899
Overview
Globalizing HR
Enhancing IT
Implications
38
16%
17%
615
589
528
503
442
418
356
332
270
247
183
161
97
76
Overview
Globalizing HR
Enhancing IT
Implications
39
US Payment Trends
Overview
Globalizing HR
Enhancing IT
Implications
40
Overview
Globalizing HR
Enhancing IT
Implications
41
Overview
Globalizing HR
Enhancing IT
Implications
42
Overview
Globalizing HR
Enhancing IT
Implications
43
Overview
Globalizing HR
Enhancing IT
Implications
44