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Case study Company name: Bank of America -- Credit Card & e-Commerce Services
| Last updated: 22 Apr 2004 |
IBM Business Consulting Services helped Bank of America's card services division identify US$40 million of simplification and cost savings projects over two years using a component-based business model methodology to identify opportunities to eliminate redundancies, consolidate systems/applications and rationalise duplicate processes. |
Business need Within Bank of America's Card Services and e-Commerce division, there were several fragmented strategies and IT architectures in place. These needed to be consolidated and simplified in order to streamline the business area and provide better and faster response to customer demand. The scope of the IT strategy and architecture realignment project needed to include all consumer card segments (including military, school, airlines, etc.), ATM cards and services, and e-commerce. Any solution also needed to use the bank's six sigma framework. |
Key challenges Bank of America Card Services faced two major business challenges: the high costs of, and the long lead time of launching new services. Rapid growth had resulted in a complex and disconnected IT infrastructure. Their senior management directive was to create a new architecture to help the company get new products to market quicker and with less money, while supporting and extending customers' relationships with the bank. |
Solution IBM On Demand Business IBM Business Consulting Services built a component business model (CBM) of the Card Services business, providing a tight linkage between business and technology objectives. The CBM mapped the bank's technology to its business objectives, identified priorities for transformation and helped create the new supporting IT architecture. |
Results Along with a business-aligned technology investment strategy, Card Services has a number of highly leveraged business and technology investment opportunities designed to give disproportionate returns and capable of being self-funding. Card Services also has a multi-generational plan to manage parallel developments, while ensuring regular, integrated delivery of benefits to fund the ongoing migration. |
Customer information | Bank of America -- Credit Card & e-Commerce Services | | Bank of America is one of the largest banks in the U.S., boasting more than 4,200 locations covering 21 states and the District of Columbia. Bank of America is also a leader in online banking, with more than three million people, paying 6.4 million bills valued at US$1.9 billion, each month on line. The company's Global Corporate and Investment Banking group has offices in 30 countries serving clients in more than 150 countries, with associates in major business centers in the Americas, Europe and Asia. Bank of America is one of the world's top 10 credit card issuers. |
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