Digital Transformation in Corporate Banking: Toward a Blended Service Model
An introduction to the article: "Digital Transformation in Corporate Banking: Toward a Blended Service Model" by Gergely Lóska and Juha Uotila
https://cmr.berkeley.edu/2024/05/66-3...
California Management Review
Volume 66, Issue 3
https://cmr.berkeley.edu/browse/issue...
Digital technologies challenge incumbent firms to rethink their established approaches to customer relationships. This article examines how a corporate bank reconfigured its relationship-oriented business model to benefit from digital transformation. The case analysis reveals a gradual transition toward a blended service model that first replaces, then complements, and finally augments physical with digital in increasingly complex customer interactions. While replacing and complementing human-enabled services with digital offerings are necessary steps of the digital transition, the associated competitive advantages are perceived as unlikely to endure. In contrast, augmenting human-enabled services with sophisticated digital technologies holds the potential for sustainable competitive advantage.