Organizational Strategy and Innovation in Banking

• Main Authors: Long Kung Liu, 劉龍光
• Other Authors: Ming-Je Tang
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/84289429280355468828

碩士 === 臺灣大學 === 財務金融組 === 95 === The banking industry is facing major changes in the 21 century. The changes include the banking consolidation from merger and acquisition, diversification of the banking products and the proliferation of the sales channel such as internet banking. Taiwanese banking industry is facing severe external environment. It faces slim margin of the interest spread, over-banking, credit card crisis and changing regulation. The banks at Taiwan have to adapt and adjust themselves for survival and growth. This report is focusing on the Taiwanese banks organization strategy over the past years and future development. Organization design is based on the corporate strategy and culture. Taiwanese banks’ organization transformation shows that the management style of the industry has changed from community-type, stable and bureaucratic oriented to aggressive, marketing and service oriented. But there are problems derived from the transformation. The card crisis is a good example. The Taiwanese banking organizations have been changed from branch-oriented to strategic business unit (SBU) oriented. This report analyzes the transformation of the Taiwanese bank organization and presented their strength and weakness. Then, this report presents an innovative organization design based on the customer centric concept which is considered to be a more powerful and flexible organizational design for the new banking era. In the 21 century knowledge based economy, the key success factors are not in capital, land or labor, it is talent. The corporate leaders have to redesign their organization based on market mechanism in order to develop talent, manage knowledge and build performance measurement. When a well-developed organization design is in place, the bank will gain a persistent competitive advantage, raise the reward and reduce the risk from the external environment.