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Recently named one of
the world's top banks
With Australia’s largest banking customer base (13 million customers), Commonwealth Bank of Australia leads in both household deposits and home lending. To become an even greater customer-centric bank, Commonwealth is transforming their transactional banking system and supply chain management processes with solutions from SAP.
Commonwealth Bank of Australia (CBA)
AU$700 billion (Assets)
Accenture, SAP Consulting
Service, Sales, Finance, Procurement, Information Technology
SAP MaxAttention, Ariba Products, Ariba Network, Ariba Supplier Management
With transactions processed on large-capacity mainframe applications – some unchanged since the 1960s – and clusters of heterogeneous supporting systems added over time, the bank’s technology and operations had become unmanageably complex. That’s why CBA sought a flexible, scalable, and efficient IT platform to drive simplicity, customer-centricity, and profitable growth.
Furthermore, the bank’s increasing global expansion was challenging its ability to effectively manage relationships with suppliers, customers, and financial partners. Procurement faced several challenges, including indirect sourcing, disparate guidelines, limited reporting, and high numbers of low-value suppliers.
DBBL turned to SAP and its Mobile Banking solution. DBBL once again revolutionized Bangladesh’s banking, and helped create a new business model for economic growth. Rural parts of the country lack financial payment infrastructure, and DBBL could not reach all would-be customers through typical bank branches. Dutch-Bangla Bank Limited sought out technology to enable them to create a mobile banking service.
Why Ariba was the right choice for CommBank
On the procurement side, the software CommBank had been using was reaching its end of life, prompting the bank to investigate new solutions. Because of CommBank’s global growth and need for international suppliers, the bank selected Ariba On-Demand and the Ariba Supplier Network for its global sourcing and its ability to extend the bank’s processes to vendors and suppliers with cloud-based efficiency.
A team from SAP Consulting and Accenture implemented a combination of the best of CommBank’s, SAP’s, and Accenture’s methodologies. The project specified each of the deliverable types to be produced by each work stream for each phase of the program. And SAP Max Attention was involved from the start for scalability, performance, and reliability.
The Ariba solution and its customizable modules represented multiple opportunities for improvement. Besides giving CommBank the ability to manage purchasing outside its own firewall, the bank now has the ability to take advantage of real-time pricing. With help from SAP, CommBank is learning how to drill down into the new data it’s gathering to gain even greater business insight.
The SAP Banking Services implementation has helped CommBank bring new products to market 75% faster. The streamlined system has helped reduce customer queries by 15%, and branch network processing errors by 30%. Accordingly, customer satisfaction since the implementation has increased by 10%. CommBank has also gained the flexibility to test-launch new banking products on a limited scale, modify features based on consumer responses, and then perform a complete launch of a customer-tested offer in just weeks.
Getting a much clearer picture
On the procurement side, the Ariba implementation has given CommBank greater visibility into their supply chain. Previously, fewer than 10% of the bank’s supplier contracts were centrally stored. Today, all contracts are centrally stored for the top 90% of suppliers. CommBank has also rationalized their supplier base, reducing the number of suppliers by 70%.
Exceeding our goal
CommBank has fundamentally changed their customer interactions. The SAP Banking Services platform enables immediate account opening and servicing fulfillment, with greater transparency on transactions as they occur. A 360-degree view of customers increases efficiency, and enhanced customer analytics are driving more focused marketing campaigns.
Procurement has changed fundamentally, too. A key driver of CommBank’s implementation was ease of use. Easy integration enabled rapid internal adoption of the Ariba solutions and it extends the bank’s systems to suppliers, allowing CommBank to share processes and collaborate with trading partners more easily. Additionally, executive dashboards and infographics supplied by the Ariba solution provide high-level information about performance and compliance. Drill-down capabilities enable vendor-level spending insight.
While CommBank’s Core Banking Platform services are now available to Australian customers, rollout to offshore regions and Asia Pacific is next. The bank also plans to deliver business and retail lending via SAP Loans Management, taking product innovation to the next level with bundling, customer-centric pricing, sweeping and pooling facilities.
We’ve got more work to do…
With Ariba solutions, CommBank plans to continue refining procurement by integrating savings estimates into budget forecasts and by leveraging their increased buying power. The procurement department is also continuing to build bridges that connect it to the business units, further integrating procurement as a strategic business function.