Complete 5 page APA formatted essay: Australian commonwealth Bank.Download file to see previous pages... The Commonwealth Bank was founded as per Commonwealth Bank Act during 1911 and finally, it star

Complete 5 page APA formatted essay: Australian commonwealth Bank.

The Commonwealth Bank was founded as per Commonwealth Bank Act during 1911 and finally, it started operations since 1912. This bank is also one of the oldest and the most trusted banks offered a number of corporate and retail financial services. After the rapid development of globalisation and international trade, the bank experienced very rapid growth and currently, there are 800,000 shareholders are associated with the banks with 52,000 employees in the global market place (Commonwealth Bank Group-1, 2011). Australian Commonwealth Bank basically, offers three types of banking and other financial services for the personal, business and corporate. The financial service is one the most important sectors for the growth of economies as the financial institutions offers major necessary financial assistance to the population and industry of the economy. Like the other manufacturing and technology industries, the research and development is also important for the financial services sectors. In financial services, it is easier to develop a product but its viability is always questionable. Moreover, ineffective financial products are harmful for the entire economy. for example, the mortgage backed securities were one of the prime factors which had led to bring the U.S. mortgage crisis. Therefore, the financial institutions should develop their research and development process for innovating viable and effective financial product and services (Financial Services Innovation Centre, 2009). One the key factors for the success of Australian Commonwealth Bank is its innovative operational and product development process. The bank has realized the necessity of the innovation for gaining a sustainable competitive advantage in the global competitions. Innovation requires necessary resources including infrastructure and skilled employees. The banks is financial very stable and has invested significantly to acquired necessary physical resources for infrastructural and technological development. Besides, its intangible resources like innovative and highly skilled employees are also vital determinants for innovations in the organisation (Commonwealth Bank of Australia, 2008, p.6-7). The following diagram depicts the structure of Australian Commonwealth Bank that plays a key role in managing the innovation within the organisation. Figure 1: Value Chain Element of Australian Commonwealth Bank (Source: Commonwealth Bank of Australia, 2008, p.7) This bank has been constantly trying to bring innovative products and services to increase the value of its services and its business. Recently, the banks have brought a number of innovative process, services and products signifying the better business performance. During 2010, it has launched a number of successful products and services and some of them are listed below. Introduced Core Banking by 10 million accounts. Launched a savings product with high interest bearing, called GoalSaver. Brought in the new premium products like Diamond Awards credit card. Better and user friendly technological development has led to increase its netbank users by 20%. Net banking trough mobile device has also been upgraded. It has also brought many new developments and expansion in its School Banking programme for increasing financial literacy. Due to such successful product and process innovation, it has become of the pioneer in customer service satisfaction.