Keyur Final Dec18,,2011

8/2/2019 Keyur Final Dec18,,2011

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Gandhi nagar,

Majestic bus depot 1 to 5 varraj bus red colour 335 E spice garden

kalashipalam

Introduction

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to

receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the

private sector, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The

bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered

office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank

in January 19951.

The Banks mission is to be a World Class Indian Bank, benchmarking itself against

international standards and best practices in terms of product offerings, technology, service

levels, risk management and audit and compliance. The objective is to continue building sound

customer franchises across distinct businesses so as to be a preferred provider of banking

services for its target retail and wholesale customer segments, and to achieve a healthy growth in

profitability, consistent with the Banks risk appetite2.

The Banks business strategy3

emphasizes the following :

Develop innovative products and services that attract its targeted customers and address

inefficiencies in the Indian financial sector;

1www.hdfcbank.com

2Annual Report 2010

3HDFC Bank Limited Annual Report 2010


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Increase its market share in Indias expanding banking and financial services industry by

following a disciplined growth strategy focusing on balancing quality and volume growth while

delivering high quality customer service;

Leverage its technology platform and open scalable systems to deliver more products to more

customers and to control operating costs;

Maintain high standards for asset quality through disciplined credit risk management;

Continue to develop products and services that reduce its cost of funds.

Q.1 What role Information, Communication and knowledge play in gaining

competitive advantage for a business?

Theoretical context

In the world that rich of information, too much information has become a problem for

management level in many companies. With flooded of information, it would be hard to extract

the intelligence from those data and it would be even harder to make use of those information in

the proper way.

The growing service sector and the banking segment calls for ever increasing need to shape and

mould consumer satisfaction .Changes in customer expectations need to be monitored. This

directly enhances the need for efficient and strategic information management.

With the increased globalization and proliferation of banking service providers, many companies

in the banking industry are beginning to recognize the importance of the information in decision

making regarding the retaining of existing customer, rather than attracting new one.

Therefore, business intelligence has become a wide spread concept that allows corporate to get

more insight customer profiles. Together with business intelligence, data warehouse serves as a

foundation to integrate customer information from proprietary database to the integrated

analytical database which provides the customer single view.


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Sources of info for campaign management in HDFC Bank

The organized information and its relative management over periods of time has become crucial

for the service organizations to compete in the market .Our area of study in HDFC Bank

(campaign management) also harps on the same logic.

The HDFC banks ever --on 24/7 information systems capture the information from these

sources :

Bank Accounts Centralised info base ATM transactions Credit Card Transactions Net banking Tele Call usage


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The various products of HDFC Bank

The internal sources of information like the financial statements, balance sheets, taxation

statements , the consumer database and internal MIS statements do vary as per their level of

reliability and credibility.

The external sources of information for the HDFC Bank include the research on the financial

sector and industry by independent research groups, councils and strategy groups as well as the

media. Still another viable sources include RBI publications, government studies and

international sectorial studies.

The other sources include the information and policy perspective gained by senior management

by virtue of their participation in government committees and councils as well as industry think

tanks, international relations advisory councils and meetings. The media linkages are another

vital source of valuable information regarding financial guidelines, areas of taxation as well as

revenue generation and trends in consumer spending and payment mechanisms.


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Communication-theoretical context

Communication is only one of mans multifarious daily activities but it is without doubt the one

he indulges in most, the one he cannot exist without, the one that ensures his personal andcollective progress. In short, communication is mans most important activity

4.

Barnard recognised the importance of communication in management, saying, In an exhaustive

theory of organization, communication would occupy a central place, because the structure,

extensiveness, and scope of the organization are almost entirely determined by communication

techniques5

.

Effective communication is important for both managerial and organizational success (Dawson,

1996; Kreitner and Kinicki, 1995). It can be witnessed from the viewpoint where employees

collaborate, interact, and engage with others in ways which help them understand the importance

and meaning of the engagement and achieve certain goals (Barker and Camarata, 1998; Pace and

Faules, 1989). The content of communication refers to the message that is transmitted or what

is said (Mohr and Nevin, 1990: p. 39). It can be either verbal or non-verbal, intentional or

unintentional. Shelby (1998) points out that the content in the message is considered the central

part of the communication.

4Fourie, H.P. (1977) Communication by Objectives. Johannesburg: McGraw-Hill.

5Barnard, C. (1938) The Functions of the Executive. Cambridge: Harvard University Press.


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Source: Kreitner, R. & Kinicki, A. (1995). Organizational Behavior. Third Edition. Irwin.

Communication flows in HDFC

The communication flow ,basically the direction and scope of digital information regarding

banking accounts is more and so centralised in nature. The spikes model guide the network

orientation.

The decision makers at the corporate level, motivates and supports operating managers to

communicate. They help upgrade their communication skills and show that communicating is

important, but have to do it by showing and encouraging, not by edict.

Viable communication counts for an increase in not only individual receptiveness but alsoorganizational change preparedness (Sinetar, 1988). It is axiomatic that good communication has

become an essential component in successful change (McGill, 1996). Amidst this complex IT

environment , automation gaps in business processes, are sorted out as customer service issues.

The customer is kept abreast visa the active use of SMS alerts, e mailers, ATM personalisation

and, Net banking as well as deposit slip customisation .On the whole the initiatives across the

customer centric campaigns revolves around the personalisation, speed of transactions and

intention to route most transactions across non branch interactions.


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Source: Kreitner, R. & Kinicki, A. (1995). Organizational Behavior. Third Edition. Irwin.

Knowledge Theoretical context

Knowledge is a justified personal belief that increases an individuals capacity to take effective

action6 . Action in this context refers to physical skills and competencies, cognitive/intellectual

activity or both. It is described as information combined with experience, context, interpretation

and reflection, and valuable information in action7 .

Knowledge is a dynamic human process of justifying personal belief towards the truth .

Knowledge is defined as a set of structural connectivity patterns8. The term structural

connectivity patterns allows the inclusion of knowledge on different collective levels(individual and organizational).

6Nonaka, I. (1994). A Dynamic Theory of Organizational Knowledge Creation, Organization Science, 5 (1): 14 -37.

7Davenport, H. T., De Long, D. W., Beers, M. C. (1998). Successful Knowledge Management Projects, Sloan

Management Review, 39 (2): 43-58.8Meyer, B., Sugiyama, K. (2007). The Concept of Knowledge in KM: a Dimensional Model, Journal of Knowledge

Management, 11 (1): 17-35.


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The knowledge transfer process involves the transmission of knowledge from the initial location

to where it is needed and is applied. It is considered as an important facet of knowledge

management. Some scholars have argued that it provides a firm grounding for developing a

sustainable competitive edge in a business environment characterized by high levels of

turbulence and innovation

9

.

There is a growing realization that knowledge transfer is critical to knowledge creation,

organizational learning and performance achievement10 .The strategic exercise more often

involves data mining and extensive deployment of business intelligence tactics and tools.

Knowledge in HDFC

Data represents raw numbers, objective facts and observations. It has no context and is not

directly meaningful11

. Information is the result of placing data within a meaningful context. It

can be conceived as processed data with relevance and purpose12

. Knowledge is something more

than information13. It is validated and authenticated information that is ready to apply to

decisions and actions14 . Knowledge involves the processing, creation or use of information in

the mind of the individual.

Business Intelligence development seems to be the key priority. Various software and

information technology based suites and packages are being incorporated to aid knowledge

management in the HDFC Bank. Oracle FLEXCUBE Core Banking helps banks overcome the

challenges of intense competition, reduced margins, and increased customer expectations by

creating a unique competitive advantage built upon improved profitability and an extended

customer reach.

9Argote, L., Ingram, P. (2000). Knowledge Transfer: A Basic for CompetitiveAdvantage in Firms, Organizational

Behavior and Human Decision Processes, 82 (1): 150-169.10Bartol, K. M., Srivastava, A. (2002). Encourage Knowledge Sharing: The Role ofOrganizational Reward Systems,

Journal of Leadership and Organizational Studies, 9 (1): 64-77.11

Zack, M. H. (1999b). Developing Knowledge Strategy, California Management Review, 41 (3): 125-145.12

Chennamaneni, A. (2006). Determinants of Knowledge Sharing Behaviors: Developing and Testing an Integrated

Theoretical Model,13

Greiner, M. E., Bhmann, T., Krcmar, H. (2007). A Strategy for Knowledge Management, Journal of Knowledge

Management, 11 (6): 3-15.14

Alavi, M., Leidner, D. E. (2001). Review: Knowledge Management and Knowledge Management Systems:

Conceptual Foundations and Research Issues, MIS Quarterly, 25 (1): 107-136.


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Multiple delivery channel support, including branches, ATMs, point-of sale terminals, call

centers, mobile devices, and internet banking. The Security management covers the application

and role-based access across the key centralized, decentralized, and combination deployments.

Banks like the HDFC Bank , have realized for some time that focusing on the customer is an

important if not crucial determinant of their success. By offering solutions to manage customer

information more effectively, integrate and coordinate multiple delivery channels, improve the

efficiency of core processes driving the business and leverage relevant opportunities to cross-sell

other products and services.

Q2 What managers are doing to improve decision making by using

information and knowledge internally and externally to improve decision

making and taking?

Decision Making

According to Martin and Moldoveanu , the twentieth century is the history of the struggle

between capital and labour15. Economically, in the 1950s and 1960s in Western countries16,

everyone was a Keynesian, a social democrat, a social Christian democrat or some shade of

Marxist.

Either way, it was more about the state, be it laissez faire or interventionist, than the worker. This

has changed with the advent of the knowledge-worker leading to the knowledge economy. The

knowledge economy17

has entirely different characteristics than those economies that came

before it. America and the world have changed dramatically in the closing decades of the 20th

century18. The industrial order of the 20th century is rapidly yielding to the new economy of

the 21st century.

15MacIntyre, S., (1977). British Labour, Marxism and Working Class Apathy in the Nineteen Twenties. The Historical

Journal. Vol. 20. No. 2. pp 479-49616

George, S., (1999). A Short History of Neo-Liberalism: Twenty Years of Elite Economics and Emerging

Opportunities for Structural Change. Global Economy 101.17

Skyrme, D. J. (2000). Knowledge Horizons. The Present and the Promise of Knowledge Management.

Butterworth Heinman. ISBN 0-7506-7247-1. pp 307-32318

PPI (2008). About the Third Way.


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Online databases

Domestic planning

Promotion

Product/price management

Public information

International planning

Distribution

Cost management

Intelligent marketing

information systems

How to provide immediateconter-information against false accusations

like syringes in Diet-Pepsi case?

How to replicate the success ofPepsi's Mexican marketing in

other Latin Americn countries?

How efficient would the snack-foodchannel be in distributing Pepsi soft

drinks in Europe?

How cost-efficient are thepromotions-distributions of Pepsi

products in global markets?

Keyword: Asia and drink mix

How to get information on researchworks about Asian drink-mix market?

How to increase sales of Pepsiproducts in the recession-hitstagnant domestic market?

How to position Allsport againstGatorade and Powerade in the

isotonic beverages market?

How should Pepsi increase itssales volume by discount pricingor by increasing its product lines?

Diagram showing the relevance of information systems for decision making

Types of Decision Making in HDFC Bank

HDFC Bank has its own specific business information needs.

The prime decisions made at HDFC Bank can be classified as those related with the financial

product life cycle ,consumer relations and loyalty , generating the transaction and loan based

business from across the retail and institutional clients .

On the HR perspective, manpower management and award of compensation as well as timely

appraisal is absolutely essential .Yet on the operational aspects, the six sigma based operational

efficiency needs to be maintained across the branch network, ATM and merchant points of sale

and all other viable consumer touch points. Similarly on the strategic perspective ,the business

trends needs to be decoded for future profitability.


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The various decision support systems are here in the diagram :

In addition, the bank emphasizes that corporate management needs business information about:

1) the situation or facts which relate to the organization or the business environment,

2) Quantitative and qualitative objectives,

3) Methods or means and factors by which the mode of operation of an organization can be

changed to match objectives.


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HDFC has classified business information under four headings:

1. Organization-specific information, e.g. general information about an organization, business

activities, and key success factors.

2. Industry-specific information, e.g. information about supply and demand situations and

change processes in the industry.

3. General knowledge of the business environment; e.g. demographical, physical, international,

legislative, political, economic, technological, social environment, and cultural information.

General knowledge often relates to matters which organizations cannot have affect, but which

have an influence on e.g. the entire industry.

4. Information related to a single organization or unit.

Types Of Information And Knowledge

The best option is to built up an information bank for timely action and effective monitoring. A

primary concern is managers seeking of information and knowledge in the process of


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formulating strategic objectives, framing product and technology plans, making investment

decisions, monitoring on-going results, and adjusting allocations of resources to reflect changing

opportunities and results. This process involves selectively consuming information and

knowledge and generating the guidance to be pursued by the whole enterprise.

Diagram showing the key inter linkages between marketing and other functional departments

Managers spend large portions of their time taking the pulse of their organization and pursuing

remediation of various palpitations such as revenue shortfalls, inventory overstocks, and

unhappy customers and employees. This often leaves little time for gaining understanding and

skill in best practices available from external sources. A critical insight concerns the time-

relevance of information.


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Diagram showing the Time perspective of information needs

It is apparent that both quantitative and qualitative business information is needed for successful

decision-making. On the basis of the levels of information, business information can also be

categorized into data, information, knowledge, and intelligence.

Types of Information used in HDFC Bank for Decision Making

Information has always been at the centre of military and business operations throughout history

and will continue to be so. Due to its complicated nature, there is always some uncertainty in a

business environment about where the friendly and enemy forces are, what capabilities and

intentions they have, and other things of this nature.

In order to prevail against this uncertainty, leaders from the top to bottom levels need to gain

information about the enemy and the market space. Only with timely and accurate information

can a decision maker consistently come up with the correct action.


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The other significant sources include the managements expertise ,the published industry

research, RBI directions ,BASEL norms, International practices ,BIS standards, monetary policy

initiatives, International risk management trends .

The best possible source from our observation regarding the consumer is the real time

information regarding the transaction, their nature as well as the quantum of these transaction.

Such an information indeed plays a vital role in the successful and effective campaign

management across the branch network.

Suggestion to Improve Decision Making & Taking

Today, goods and services include embedded IT components. The wide spectrum of different IT

infrastructure and other IT services impact greatly to the effectiveness and efficiency of the

processes carried out in enterprises. Every IT based decision making arrangement carries risks.Data encryption methodology needs to transform . Privacy of the consumer needs to be

honoured.

Information interface and compatibility and synchronisation is absolutely essential for data

mining. Along with this cross checking of information and timely updating of consumer

information is equally important.


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Question 3: What are the strategies to increase personal networking to widen

Employees Involvement in the decision-making process?

Personal Networking

Networking is all about forming the right connections across the social paradigm. The ultimate

purpose is to achieve more of what you are looking for, either directly or indirectly. The people

(consumers) possess the worlds stock of money, knowledge and the interests. The most

significant part in developing the network is the communication.

The communication is in turn based on strategic identification of segments, niches and the right

people or the consumers. The social connect or the social interaction is facilitated by this core

knowledge. In order to strengthen and develop the network, employees also need to be

empowered and engaged in the decision making process.

The role of personal connections in the market search may also change as markets mature.

Similarly the role of personnel participation of crucial stakeholders in the organisation, the

governmental authorities, bank regulator as well as consumer research cells can also not be under

estimated. In a nutshell vertical and horizontal personal networking across the organisation is

vital for effective decision making in long and short term perspective.

HDFC Banks Strategies to Increase Personal Networking & Improve Decision Making of

Employees

The various stakeholders in HDFC Banks case include the Board of directors, the middle

management as well as the operational executive .The managements participation across the

organisation is and would play a vital role in organisational success. Employee engagement

focuses more on how psychological experiences of work and work contexts of employeesinfluence them in presenting or absenting themselves during task performance.


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Engagement is about creating opportunities for employees to connect with their colleagues,

managers and wider organisation. It is also about creating an environment where employees are

motivated to want to connect with their work and really care about doing a good job19

.

DAprixs (1982) managers communication model is extensively used to improve

communication between the manager and employee by focusing on what it is that employees

want and need to be satisfied on the job.

Diagram showing role of communication in decision making and facilitating employee engagement

The efforts to establish contact with those who identify and develop business relations leads one

to the strategic managers on one side and the operational management on the other side. Relation

building is worked out as two prong strategy in HDFC Banks concern .Finance being a service

industry harps on personnel relations which in turn transform into business leverages. On the

same lines, the personnel bankers, wealth managers as well as the sales managers turn out the

organisational vision into reality. This section of management in turn depends to a large extent

on meaningful updated information.

19British Report on Engaging for Success


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Suggestion to Improve Personal Networking of Employees

Information edge cannot be ignored. The access to information is far more vital .More than that

the decoding tools and their understanding is far more significant.

Consistent Training is often suggested as the remedy for the overall improvement oforganisational culture and behavioural aspects. Liasioning and gifting budget for establishing and

nurturing the mutual beneficial relationship with the persons who matter in governmental

decision making complex.

Policy committee participation to reform and transform financial system is often advocated for

strategic perspective.

Essential audit is often devised and compliance to corporate governance is suggested for long

term gains.

RBI and governmental compliance is equally relevant in this scenario.

Question 4: Develop a communication process to improve the decision making

and organizational knowledge for your chosen organisation.

Communication

The notion of social integration20mechanisms to account for a firms ability to assimilate and

transform novel knowledge.

20


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Diagram showing the information absorption cycle

Communication in HDFC Bank

The existing processes focus on IT based and non IT based methods of communication with in

the organisation. The non IT based information sharing mechanisms depend on extensive

necessary paper work or the essential documentation to secure the banks and consumers

interests with regard to hard earned money. The IT based information sharing mechanisms

depend on highly secure 128 bit encrypted data communication networks with end to end

connectivity.

Impact of Communication on Decision Making & Organizational Knowledge

The availability of real time information is crucial to the sound decision making across the

organisation. In contrast to mass-mediated channels, interpersonal channels provide rapid and

continuous feedback and are therefore more capable of providing transactional, response

dependent communication, thereby effecting persuasion .

Properly designed and used, information systems can improve the competitive advantage for an

organisation in many ways.


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As evident the seamless and secure integration across these various channels of communication

and data capture is absolutely essential .

Diagram showing effectiveness of various channels of communication

As goes a saying that nothing is perfect, similar is the case here .The integration is evident in

different perspective with different segments. For the organisation it is the data security and

integration, yet for the consumer it is unified or integrated financial marketplace creation, with

ICT linkages across the various transacting parties, data networks and databases along with

integration across clearing and settlement systems as well as across the telecom SMS network for

SMS alerts.

The other areas of concern include access rights, reference data, transaction life cycles, central

bank money, corporate actions, securities financing and key legal and regulatory considerations.

Sufficient balance availability, sufficient liquidity for real time gross settlements need effective

monitoring. Customisation and digitalization in this digital age needs to be facilitated.


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Suggestion to Improve Communication Channel in HDFC Bank

The various suggestions include maintenance of simplicity despite the complex IT networks. The

adoption of ICT based communication system improves the banks image and leads to a wider,

faster and more efficient market. It has also made work easier and more interesting, improves the

competitive edge of banks, improves relationship with customers and assists in solving basic

operational and planning problems.

Yet the priorities do not end here. The fool proof updating of data is one such effort. Non

duplication of data is also desired. Cross linkages across the data are required. Disaster

preparedness is also expected.Personal interviews, field visits and questionnaires can be used to

collect information.

The automation can be carried forward beyond the areas of cheque clearing, automated payment

channels like the ATM .

Not everybody is willing to say that technologies and the use of Internet only provide benefits. In

fact it could also lead to difficulties in the case of relationship building toward customers in the

matter of lack of social interactions.

Trustworthiness of data can come under question. The four conditions have been related to

qualitative data in order to label it trustworthy. These measures are credibility, transferability,

dependability and conformability .


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Diagram to show various information management perspectives

Question 5: What role Knowledge Management plays in managing

organisation strategically?

Knowledge Management encourages organizations to create and use knowledge continuously

for innovation and enhancement of services, products, and operations. Simultaneously, it also

aims to improve the quality, content, value, and transferability of individual and group

knowledge within an organization21

. The adoption of advanced data communication technology

is important to enable an organization to access useful knowledge from anywhere in the network.

However, some of the KM approaches range from industrial specific, theoretical, to procedure-

wise, for example, the re-distributed KM framework is developed to manage organizational help

21Mentzas, G., Aposolou, D., Young, R., & Abecker, A. (2001). Knowledge networking: A holistic solution for

leveraging corporate knowledge. Journal of Knowledge Management, 5(1), 94-106.


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desk knowledge22

. Another example is the integrative framework that establishes an effective

knowledge transfer process within an organization23

.

These designs are incapable of cooperating in the current distributed knowledge environment,

particularly areas that deal with organizational knowledge. Generally the approaches are

customized to suit individual organizational KM strategies and business requirements without

consideration of system interoperability. The lack of interoperability means heterogeneous

KMSs from different organizations are not able to communicate, cooperate, exchange, and reuse

knowledge with one another.

Knowledge ManagementHDFC Bank

The knowledge management24

can either be an operational tool or a strategically focussed

management tool. Knowledge management25

can also be described from an operationperspective stating the importance of knowledge management as a prerequisite for higher

productivity and flexibility.

HDFC Bank as a firm26 need to step back and carefully think about the capabilities critical to

sustaining their competitive advantages in their core businesses, commenting on the importance

of aligning their knowledge management and organisational learning strategies.

The organisational capabilities27

rather than served markets should become the basis for the

firm determining its long term strategy, driven by innovation and intensity and diversity of

competition.The proprietary knowledge28

creates a comparative advantage for the firm. The

22Leung, N. K. Y., & Lau, S. K. (2006). Relieving the overloaded help desk: A knowledge management approach.

Communications of International Information Management Association (CIIMA), 6(2), 87-98 .23

Goh, S. (2002). Managing effective knowledge transfer: An integrative framework and some practice

implications. Journal of Knowledge Management, 6(1), 23-30.24

Martensson, M., (2000). A Critical Review of Knowledge Management as a Management Tool. Journal of

Knowledge Management. Vol. 4. No. 3, pp 204-216. MCB University Press. ISSN 1367-3270.25Wijnhoven, F., (2003). Operational Knowledge Management: Identification of Knowledge Objects, Operation

Methods, and Goals and Means for the Support Function. The Journal of the Operational Research Society, Vol. 54,

No. 2, Special Issue: Knowledge Management and intellectual Capital, pp. 194-203 .26

Law, C.C.H., Ngai, E.W.T., (2007). An Empirical Study of the Effects of KnowledgeSharing and Learning Behaviours

on Firm Performance. Expert Systems with Applications 34. pp 2342-2349.27

Grant, R.M., (1996). Toward a Knowledge-Based Theory of the Firm. Strategic Management Journal. Vol. 17. pp.

109-122.28

Cyert, R.M., Kumar, P., Williams, J.R., (1993). Information, Market Imperfections and Strategy. Strategic

Management Journal, Vol. 14, Special Issue: Organisations, Decision Making and Strategy, pp. 47-58.


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knowledge29

being an essential resource for a firm to retain sustainable competitive advantage.

After all, all the organisations learn, whether they consciously choose to or not30

.

In HDFC Bank , knowledge is acquired by experience, studies and training. It is transformed into

information at the same moment as it is articulated (verbal or textual) within a conceptual

context. Also the tacit knowledge which is rooted into actions, procedures, ideas, values and

emotions; is tapped extensively .

Finally the Knowledge is created through interactions between tacit and explicit knowledge, the

interaction is called Knowledge conversion. The knowledge conversion is said to be the very

core of the knowledge-process . This conversion has four modes: Socialization, Externalization,

Combination and Internalization.The basic idea is that the knowledge needs to be very carefullycodified and stored within a database.Personalization is the second of the main strategies ,wherethere is knowledge management through direct person-to-person interaction .

The shared context of knowledge creation lies within the interaction among the individuals or

between individuals and their environment. The process of transferring created and stored

knowledge between people is usually referred to as learning. These mechanisms may change

over time, what we can say is a form of learning. Argyris and Schn distinguish between what

they call single and double-loop learning in organizations. Learning through participation is the

widely used method in the HDFC Bank.

Information Systems in HDFC Bank that aid Knowledge Management

The information system in HDFC Bank is more and so driven by the IT and seeks to evolve as a

participative one . In context of HDFC Bank , men prefer to innovate themselves, while women

prefer to innovate together with other customers and the companies employees. There are also

small differences of the preferences of the question depending on the level of education the

employees have.

29Choi, B., Poon, S.K., Davis, J.G., ( 2006). Effects of Knowledge Management Strategy on Organisational

Performance: A Complementarity Theory-Based Approach. The International Journal of Management Science 36.

pp 235-251.30

Kim, D.H., (1993). The Link Between Individual and Organisational Learning. Sloan Management Review. Vol. 35.

No. 1. pp 37-50.


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Network Considerations

The various information systems can be considered as :

Bank Accounts Centralised info base ATM transactions Credit Card Transactions Net banking


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Intranet Tele Call usage

Impact of Knowledge Management on Strategic Management of HDFC Bank

Knowledge is what you can do . In this profession knowledge is very important. Experience is

just about how one is planning the system on an architect-level, but it is only knowledge when it

comes to the development. The change is in the environment. The customized approach to

withdrawing money at the ATM s , personalized deposit slips, bill utility as well as more trust of

bank account holders, clearly underlines the growing strategic emphasis of in-house knowledge

management .

Conclusion

HDFC bank needed to be able to analyse customer data, and derive patterns to base decisions

regarding its customer interactions. While the bank had the data required to make decisions,

collecting and analysing this was a lengthy and cumbersome process. It was stored in disparate

sourceseach application had its own database and the task of compiling and analysing this was

left to the MIS departmenttaking them 10-15 days at an averageto complete. In addition,

this system was inflexible and scalability was a key concern .

The on-going integration along with strategic knowledge management is surely going to help the

HDFC Bank in developing and retaining an edge over the other banks.


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Keyur Final Dec18,,2011

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Transcript of Keyur Final Dec18,,2011