WELLS FARGO

ONLINE FINANCIAL SERVICES

Cherith Minnis Gerri McCann Amer Dalain Saif-ul Chowdhury

Management of Electronic Commerce

MIS 6453

9th June 2005

ARKANSAS | STATE | UNIVERSITY INSTRUCTOR: DR. KELLY FISH

WELLS FARGO ONLINE FINANCIAL SERVICES BUSINESS MODEL

Value Cluster

Market Space Offering

Resource System Financial Model

WELLS FARGO OFS BUSINESS MODEL Value Proposition / Cluster

Target Segments

Key Benefits Offered

Unique Capabilities

Value Proposition

38 Years Old

Household Income 75k-100k

Heavy Borrower

Online Account Access and Bill Pay, Transfer Funds Conduct Stock and Bond Trades

First e-Banking Products

Internet and Branch Banking

Nontraditional Delivery Channels Excellent Customer Service

Carry High Balance

24/7 Service Hours

Tech-Support, Phone-Support, and EmailAgent

Wells Fargo OFS Provides Innovative Banking, Focusing on Creating a Customer Driven Convenient Service

WELLS FARGO OFS Egg Diagram

Budgeting Important of Savings Maintain Good Credit Investment Start Small Business

Banking Loans & Credit Investment Insurance Financial Planning Business Solutions & Services

Ideas and Information

NEED RECOGNITION PRODUCTS PLANS & OFFERINGS

A/C Review Bill Pay & Funds Transfer Stocks and Bonds Credit & Borrowing Insurance Offerings

Online / Market Space Offering

EDUCATION ON BANKING

Wells Fargo Online Banking POST-SALE Process EVALUATION OF

SUPPORT ALTERNATIVES

Education Using Quick Books Employee benefits Tools & Calculators New Business

Online and Paper Monthly Statement Email/Phone Service

PURCHAS E DECISIONS

Product fees Product description Services availability and timeliness

Transaction Sites Online Security 24 / 7 Hours Service

WELLS FARGO OFS Resource System

Life Insurance Partner Business Innovativ e Custome r Service New Product Lines Auto & Home
Security

Technology

Email Agent, Tech Support

Loan Products

Educatio n

Banking Products

Online Knowledge
Safety Investment Products

Acquisition

Lower Cost & Service

Online & Branch Access

Pioneer in Online Banking

Telephone

Cost Management Customer Service 24 / 7 Hours

= Core Benefits = Capabilities

Multiple Contact Points

Online

Call Center s

Stores

Branche s

= Activities & Assets

WELLS FARGO OFS

Financial / Revenue Model

Transaction Fees Third-Party Alliances Rate of Returns on Loan

BALANCED SCORECARD

Why the OFS needed a Balanced Scorecard ?

Traditional Financial Measures Mislead Strategy

Balance Between Finance, Operations, Human Resources, and Growth

BALANCED SCORECARD

How the Balanced Scorecard Changed the Culture in Wells Fargo ?

Measurable and Manageable Strategy

Focus on Maintaining Skilled Human Resources

BALANCED SCORECARD

How the Balanced Scorecard Helped to Communicate Strategy ?

Aligning All Actions to Goals and Placing Limitation on Measures

Measurement Utilized to Achieve Goals

BALANCED SCORECARD Increase Revenue per Customer

Learning & Growth Internal Customer Financial

Enhanced OFS

Focus Profitable Modules Squeeze/Shutdown Burden Modules

Value Proposition

MAXIMIZE PROFIT

1. More Services Thru One Delivery 2. Cost of Delivery Remain Fixed 3. Facilitate Purchase 4. Promote Up sell

Increase Functionality

Continue Dev.

Reduce Transaction Errors

Deploy Scorecard

Increase Security

Objectives and Measures Increase Revenue per Customer

BSC Perspective Financial Objectives Revenue per Customer Measures -Number of services purchased by an average customer -Revenue per transaction -Cost of transaction -Average number of performed per session/call transaction

Customer

More Services Via One Delivery

Internal Process

Reduce Transaction Errors

- Percentage of erroneous transaction - Average cost of fixing and error - Number of human errors per month

BALANCED SCORECARD Reduce Cost per Customer

Learning & Growth Internal Customer Financial

Enhanced OFS

Expand E-Options

Value Proposition 1. Online Enrollment

REDUCE COST

Increase Functionality

Customer Acquisition Via Mergers

2. Making Banking Convenient 3. Offer Better Services

Continue Dev.

Automated Call Centers

Increase Agents Productivity

Deploy Scorecard

Objectives and Measures Reduce Cost per Customer

BSC Perspective Financial

Objectives
Cost per Customer

Measures
-Cost Per Transaction -Cost per service call -Call length -Numbers of service call

Customer

Convenient Services - The percentage of transactions / services performed online among all transaction/services. - Transaction time Automating the Call Center -The percentage of services that are automated among all services. - Number of Customer representatives

Internal Process

WELLS FARGO ONLINE FINANCIAL SERVICES

. Thank You .

ANY QUESTIONS ?