• Summary of the case

• Advantages and disadvantages of implementing a strong Internet presence versus a fine-grained network of physical branches?

• Can Nykredit replace their heterogeneous IT with a dedicated ERP system?

• What are the key requirements and technologies for building the new IT infrastructure at Nykredit?

• How can tracking the company’s web site be used by Nykredit to get new insights on customer behavior?

Summary of the case

Summary of the case Business Areas

Nykredit A/S(2001)

Real estate investor companyNykredit Ejendomme A/S

Real estate broker chainNykredit Mægler A/S

Retail BankNykredit Bank A/S

Insurance Company Nykredit Østifterne Forsikring A/S

Summary of the case Objective

Nykredit Group was to become an internationally competitive Danish financial institution by virtue of qualified employees, up-to-date services, an extensive product range and innovative distribution channels.

Summary of the caseSituation

Nykredit strategy (2001)How to distribute services? Which channels to communicate with customers?

Increase Call center activity + stronger web presence?

Open up more fhysical offices (Did already have 48 offices)

Summary of the caseChoice of channels to communicate with customers

Real estate agents

48 offices Increase Call center activity + stronger web presence

Cross functional sales support (The insurance salesman can provide support for traditional bank products)

Summary of the caseChallenges

A change in the information systems (excisting systems designed to service one specific function)- Would the Nykredit Data Center be able to build the needed IT-infrastructure.

Customer relations (customer needs to be treated equally well, independent of channel)

Corporate culture (customer might also need insurance, a loan etc. Not only think of customers as mortgage customer)

New organizational structure ( Customers no longer the property of one specific regional office)

Advantages and disadvantages of implementing a strong Internet presence versus a fine-grained network of physical

branches?

Advantages and disadvantages of implementing a strong Internet presence versus a fine-grained network of physical branches?

Advantages

Increased effectiveness

Better costumer service FlexibilitySegmentationPersonalized experience

Advantages and disadvantages of implementing a strong Internet presence versus a fine-grained network of physical branches?

Disadvantages

Industry customers demand high level of trust

High starting costs

Advantages and disadvantages of implementing a strong Internet presence versus a fine-grained network of physical branches?

Management challenges

Integration of technological development and business development

Project management planPrioritizing projectsTimely development of prioritized projectsManaging of IT infrastructure

Can Nykredit replace their heterogeneous IT with a dedicated ERP

system?

Can Nykredit replace their heterogeneous IT with a dedicated ERP system?

Nykredit’s situation:

1. Distributed infrastructure2. Many legacy systems designed for and optimized to support a

totally different business than the present3. Few developers and more are hard to find due to the old

technology used4. Small size banking and insurance but large mortgage-loan

department5. Difficult to establish a unified IT platform that offers

consistency

Can Nykredit replace their heterogeneous IT with a dedicated ERP system?

ERP (Enterprise Resource Planning) SystemsAdvantages

• Integration• Better Overview• Reduced Operating Costs• Coherent work-flow between

departments• Module based system• Secure

Disadvantages

• Startup costs• Time of deployment• Data Migration• Long ROI

Can Nykredit replace their heterogeneous IT with a dedicated ERP system?

What did similar companies do in this situation?

DanskeBank: implemented a full SAP & ERP system in 2008ING: same history, global company - ERP + SAP solution from IBM in 2011Standard Bank South Africa: mainly the same history, dreams of becoming global – ERP + SAP solution started in 2004Deutsche Postbank: “Posterboy” for ERP and SAP since 2003

What are the key requirements and technologies for building the new IT

infrastructure at Nykredit?

What are the key requirements and technologies for building the new IT infrastructure at Nykredit?

• Multi channel structure• Overview of customer engagement across all

channels(customer profile)• Seamless and personalized customer experience• All services available trough one channel• The ITI should contend with the existing ITI

What are the key requirements and technologies for building the new IT infrastructure at Nykredit?

• Multi channel structure• Overview of customer engagement across all channels(customer profile)• Seamless and personalized customer experience• All services available trough one channel

What are the key requirements and technologies for building the new IT infrastructure at Nykredit?

• The ITI should contend with the existing ITI• Multi channel support

How can tracking the company’s web site be used by Nykredit to get new insights on customer behavior?

How can tracking the company’s web site be used by Nykredit to get new insights on customer behavior?

First of all, the website:

How can tracking the company’s web site be used by Nykredit to get new insights on customer behavior?

Google Analytics + Userflow:

Attention Heatmaps:

How can tracking the company’s web site be used by Nykredit to get new insights on customer behavior?

Heatmaps: Real tracking:

How can tracking the company’s web site be used by Nykredit to get new insights on customer behavior?

How can tracking the company’s web site be used by Nykredit to get new insights on customer behavior?

Thank you!