CEC - A Grade Assignments

Creating Entrepreneurial Change July 2021 CIM Membership-12357842
Contents
Task 01
1.a. Background of the Organization ...................................................................................................... 6

1.a.1. Organization Name ................................................................................................................... 6
1.a.2. Type of the Organization........................................................................................................... 6
1.a.3. Size of the Organization ............................................................................................................ 6
1.a.4. Stakeholders.............................................................................................................................. 6
1.a.5. Range of Products & Services & Customer Segment ................................................................ 6
1.a.6. Main Competitors ..................................................................................................................... 7
1.a.7. Rational For Selecting Theme – Customer Loyalty ................................................................... 7
1.b. Macro Environmental evaluation of Sampath Bank PLC. ................................................................ 8
................................................................................................................................................................ 8
1.c. Disruptive innovations ................................................................................................................... 11
1.c.1. The Concept of Disruptive Innovations ................................................................................... 11
1.c.2. Analysis of innovation with competitors................................................................................. 12
Task 02
2.a. Innovation Audit of Sampath Bank to Analysis the Capability for Innovation to developing &
managing change for achieving customer loyalty ................................................................................ 15
2.b. Evaluation of entrepreneurial approaches to enhance customer acquisition .............................. 16
2.b.1. Proposed Innovations ............................................................................................................. 16
2.b.2. Effectuation approach ............................................................................................................ 16
2.b.3. Kaizen Approach ..................................................................................................................... 18
2.b.4. Lean management Approach .................................................................................................. 19
2.b.5. Horizon scanning..................................................................................................................... 20
2.b.6. Mind Map................................................................................................................................ 21
Task 03
3.a. Value propositions canvases of two innovations for adding value and increasing loyalty............ 23
Innovation 01: Just Click easy loan app ............................................................................................ 23
Innovation 02: Pay & Win reward system ........................................................................................ 24
3.b. Measurement techniques to measure the potential impact of the innovations within Sampath
bank PLC ................................................................................................................................................ 26
3.b.1. Balance scorecard ................................................................................................................... 26
3.b.2. Cost Benefit analysis ............................................................................................................... 27
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3.c. Change management strategy for improving the innovation culture of Sampath bank PLC ........ 27
3.c.1. FSA Framework ....................................................................................................................... 27
3.c.2. Kotter’s eight step model of change ....................................................................................... 27
3.c.3. Internal resource analysis ....................................................................................................... 28
3.c.4. Capability analysis ................................................................................................................... 29
3.c.5. Risk Analysis ............................................................................................................................ 29
3.c.6. Potential benefits & barriers to implement the strategy........................................................ 29
3.c.7. Time Plan & Budget for the Proposed Innovation .................................................................. 30
References ............................................................................................................................................ 31
Appendices............................................................................................................................................ 35
Appendix 01: Competitor Analysis .................................................................................................... 35
Appendix 02: PESTEL analysis ........................................................................................................... 36
Appendix 03: Internet usage in Sri Lanka ......................................................................................... 37
Appendix 04: Online purchases, pay bills online & online transactions in Sri Lanka as a percentage
of population..................................................................................................................................... 38
Appendix 05: Internet & mobile based payment systems................................................................ 39
Appendix 06: Industry analysis ......................................................................................................... 40
Appendix 07: McKinsey’s 7S framework........................................................................................... 42
Appendix 08: Proposed Innovation 01.............................................................................................. 44
Appendix 09: Proposed Innovations 02 ............................................................................................ 45
Appendix 10: Force field analysis...................................................................................................... 47
Appendix 11: Porters Five Force Analysis ......................................................................................... 48
Appendix 12: Stakeholder mapping .................................................................................................. 49
Appendix 13: Customer Persona ...................................................................................................... 50
List of Figures
Figure 1.1: Profit ………………………………………………………………………………………………………………………………5

Figure 1.2: Total Assets ….…………………………………………………………………………………………………………………5
Figure 1.3: Composition of Total income…...………………………………………………………………………………………5
Figure 1.4: Stakeholders (Source: Annual report, 2020)........................................................................ 6
Figure 1.5: Total Assets LKR Bn ………………...………………………………………………………………………………………5
Figure 1.6: Types of Innovations ........................................................................................................... 11
Figure 1.7: Disruptive Innovation Model .............................................................................................. 11
Figure 2.1: Effectuation in action .......................................................................................................... 18
Figure 2.2: Kaizen Principles ................................................................................................................. 19
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Figure 2.3: Lean management of SM .................................................................................................... 20

Figure 2.4: Mind map ............................................................................................................................ 21
Figure 3.1: 5M model ............................................................................................................................ 28
Figure 3.2: Potential benefits & barriers............................................................................................... 29
List of Tables
Table 1.1: Range of products & services & relevant customer segment ................................................ 6
Table 1.2: analysis of theme selection .................................................................................................... 7
Table 1.3: Macro Environmental evaluation of Sampath Bank PLC ..................................................... 10
Table 1.4: Analysis of innovation with competitors ............................................................................. 13
Table 2.1: McKinsey 7-S Model ............................................................................................................. 16
Table 2.2: Proposed innovation ............................................................................................................ 16
Table 2.3: Principles of effectuation approach ..................................................................................... 17
Table 2.4: Steps of Kaizen approach ..................................................................................................... 18
Table 2.5: Kaizen Principles................................................................................................................... 19
Table 2.6: Stages of horizon scanning ................................................................................................... 21
Table 3.1: Value propositions canvas for Just Click easy loan mobile app ........................................... 25
Table 3.2: Value propositions canvas for Pay & Win reward system ................................................... 25
Table 3.3: Balance score card ............................................................................................................... 26
Table 3.4: Cost benefit analysis ............................................................................................................ 27
Table 3.5: FSA framework ..................................................................................................................... 27
Table 3.6: Kotter’s eight step model of change .................................................................................... 28
Table 3.7: Capability analysis ................................................................................................................ 29
Table 3.8: Risk Analysis ......................................................................................................................... 29
Table 3.9: Time Plan & Budget for the Proposed Innovation ............................................................... 30
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Briefing Paper
To: Senior Management Team
From: Marketing Consultant
Date: 29th June 2021
Aim: To provide a brief knowledge about the company background
Sampath Bank, the impact of macro environment with & a perspective
of current status of disruptive innovations with a critical assessment
with competitors.
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1.a. Background of the Organization

1.a.1. Organization Name: Sampath Bank PLC
1.a.2. Type of the Organization: Sampath Bank is one of the leading commercial banks in Sri Lanka
which has listed in Colombo Stock Exchange as a listed company & commenced to incorporate in Sri
Lanka on 10th March 1986 with a value of “creating a learning culture that promotes individual &
organizational development as well as promoting innovation & value for customers”.
1.a.3. Size of the Organization:

Figure 1.1: Profit Figure 1.2: Total asstes Figure 1.3: Composition of
Total income
15 12 12 11 1,500 1,110 8.50%
962
10 8 Billions 1,000 795 914
18.30%
Billions
5 500
0 0
2017 2018 2019 2020 2017 2018 2019 2020 73.20%
Year Year
Net interest income
Source: Annual report, 2020 Source: Annual report, 2020
Net fee & commission income
Key Indicator 2019 2020 Key Indicator 2019 2020
ATMs 423 445 Employees 4,134 4,048 Trading investment & other
CDMs 429 465 Investment in IT (Mn) 248 199 income
Branches 229 229 Brand value (Mn) 25,847 28,645 Source: Annual report, 2020
1.a.4. Stakeholders (Appendix 12)

Employees
Internal
Customers Shareholders Community Regulatory Suppliers and Media

and Other Bodies Service Providers
Investors
External
Figure 1.4: Stakeholders (Source: Annual report,

2020)
1.a.5. Range of Products & Services & Customer Segment (Appendix 13)
Product or Offers Customer segment
Service category
Current a/c, savings, term deposits, foreign currency a/cs, loans, Individual customers
leasing, a/cs for professionals, pawning, agent banking, cards, and small-to medium-
foreign remittance, relationship banking, digital/electronic banking sized enterprises
Consumer Banking safety lockers, clubs & societies a/c, entrepreneur development
Large corporates,
Financing, international trade, digital banking, cash management, financial institutions and
corporate investment multinational companies
Corporate Banking
Spot Contracts, Treasury Bills, Forward Exchange Contracts,
Treasury Bonds, Repo & Reverse Repo Corporate customers
with foreign exchange
Treasury products and services
Table 1.1: Range of products & services & relevant customer segment
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1.a.6. Main Competitors: The highest portion of the market Figure 1.5:Total Assets LKR Bn
is owned by the two of state banks of Sri Lanka (BOC-26% & BOC
Peoples Bank-19%). Commercial bank has the 3rd largest 3% PB
market share with 15% which is the highest among the COM
2%
private banks. Sampath bank owns 10% & the 5th major player 4%
5% HNB
in the market. (Appenidx 01, 11)
5% 26% SAMP
Top 1000 Most
Brand Fitch
Competitor banks in Valuable NDB
Rating Rating 10%
Bank the world Brand –SL
2021 2021 SEY
2020 2021
11% 19%
BOC 847 53.9 Bn AAA+ AA- DFCC
HNB 872 23.1 Bn AA AA- 15%
Commercial 878 43.6 Bn AAA- AA- NTB
People’s Bank 931 44.7 Bn AAA- AA- PAB
Sampath Bank 955 24.2 Bn AA+ AA-
Source: KPMG report, 2020
1.a.7. Rational For Selecting Theme – Customer Loyalty
Rate on
Type Evaluation
importance
Customers are sensitive to price, rates and margins. Due to the
ceiling imposed by the CBSL the competitive advantage over rates is
no longer there for any bank. In addition, as a dynamic industry,
banking sector is undergoing a rapid & radical transformation. With
the higher competition & similar characteristics involve with the
Customer players in the industry, the customers can switch to another service HIGH
Loyalty provider with a minimum cost. Therefore, the best way is to make
the customers more loyal to the bank while focusing on their rapidly
changing need for convenience and safety. Because, customer
retention is a crucial area of study in the field of relationship
marketing that is mainly concerned with keeping customers in the
long term.
Two government banks in the industry are the big players in
acquiring new customers with the stability and government backup.
Customer MODERATE
Being a private bank acquiring is a costly process. Since SB is mainly
Acquisition
catering to the Gen-Z and professionals the bank has already
captured majority of the target segment.
SB is known for innovations and NPD. They are mainly focusing the
Gen-Z who are convenience seekers and tech savvy. All their recent
development such as igift app, chatbot, cash-in-a-flash, QR payment
New Product
etc. With this, SB adjudged ‘most innovative bank of the year’ at MODERATE
/ Service
Technnovation Awards 2019. But any of launched innovations can
Development
be copied by the competitors any soon. And this has become a
commonly used strategy of most companies that, concentrate on
different types of innovations.
SB is currently having a spread of 45% (102) of their branches in
Western Province where as Uva province has only 4% (09) of the
total network. This shows the unequal distribution of resources MODERATE
New Markets
based on where the target market is located. Therefore, no much
opportunity to reach out to the rural areas where the profitability is
less.
Table 1.2: analysis of theme selection
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1.b. Macro Environmental evaluation of Sampath Bank PLC.

As per the macro environment evaluation on PESTEL analysis (Appendix 02), Technological and
Political factors were identified as most influential to SB during the past 5 years. (Appendix 06)
Aspect Impact
• According to the world statistics, the
Technological technological use of the population is
environment remained increasing. This has a direct
impact on banking sector as well.
According to Digital Sri Lanka report by
Hootsuite, the Internet users in Sri Lanka
indicated a continuous improvement
(Appendix 03).
Source: Digital Sri Lanka, 2016,17,18,19,20,21
• The internet penetration in Sri Lanka indicates 7.9% development from 2020
Increased internet to 2021 January from 47% to 50.8% and there is a 44% development from
users. 2016 to 2021.
Development of
internet
• However, by 2018, 2% from the Sri Lankan population made online
penetration
purchases, paid bills online and made online transactions. Even by 2021 it
has increased only up to 6.2% and shows a potential to grow (Appendix 04).
Mobile & Internet Banking
• According to the CBSL, the
internet-based payments 80,000.00
systems & mobile phone 60,000.00
Less involvement in
banking in Sri Lanka has a
online purchases, 40,000.00
considerable growth in volumes
pal bills online & 20,000.00
and no of users during past five
online transaction
years. This is an excellent 0.00
opportunity for the banking 2017 2018 2019 2020
industry (Appendix 05).
Mobile phone banking (Volume '000)
• Most of the people prefer to do Internet banking
all their day today functions with Source: CBSL, 2020
Growth in online &
their mobile phones. The number of mobile connections in Sri Lanka in
mobile payment
January 2021 was equivalent to 141.7% of the total population (Digital Sri
systems
Lanka, 2020).
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• According to a research Microsoft & IDC (2019), they have predicted how
will be the artificial intelligence making Sri Lanka ready for the future. They
forecasted further improvements of at least 1.8 times in the three-year
horizon, with the biggest jump expected in accelerated innovation and
Use of AI competitiveness.
AI enables a more natural communication between consumers and banks via

writing, conversations and gestures (Thowfeek, et al., 2020).
Economic • According to
Environment CBSL (2020),
during the nine
months ending
September
2020, global &
domestic
economy spilled
over financial
Economic sector. Drop in
uncertainties demand due to
mobility
restrictions and Source: CBSL, 2020
decline in
production due
to interruptions in the global supply chains resulted in falling commodity
prices during this period. As an overall image, the downturn of any industry
demand has a direct or indirect impact on banking sector. World uncertainty
& word pandemic uncertainty indices, indicates the highest level with Covid
19 over few decades.
• SB has indicated the pandemic with high Level of Materiality to the Bank &
High Level of Materiality to Stakeholders. Global & local economic
Weaker business slowdown resulting
prospects for banks in weaker business Source: CBSL, 2020
with global & local prospects for the
economic SME sector (SB
downturn Annual report,
2020).
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• With such kind of a pandemic all the

economic variables such as exchange
rate, inflation, economic growth, &
interest rate begin to fluctuate. As an
Impact on example, during 2020 the exchange
economic variables rate indicated more fluctuations & it
(Exchange rate, mid of the year recorded the highest
Inflation) exchange rate & it has a direct impact
on banking sector.
• The inflation rate, change in the CCPI
measured on an annual average basis
remained unchanged at 4.6% in
Source: SB Annual report, 2020
Source: CBSL, 2020
Pressure of
government
regulations on
economic factors
December 2020 for the third consecutive month. This was due to the price
increased of consumer goods. This has an indirect impact on the banking
sector. Because, with this, consumer savings gradually decrease & loan &
leasing installments are missed by them.
• With the government-led economic stimulus package and interest caps
introduced by the regulator bringing pressure on the Bank’s Net Interest
Margins (NIM), in 2020 the Bank registered a NIM of 3.3% which was 116
basis points lower than the year 2019.
Table 1.3: Macro Environmental evaluation of Sampath Bank PLC
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1.c. Disruptive innovations

1.c.1. The Concept of Disruptive Innovations
Disruptive innovations are innovations that create a new market and finally disrupting a traditional
existing market and value network, displacing established market-leaders, products and alliances
(V.D.Silva, 2019). The basic framework for innovation approaches can be explained through the
following Markets-and Technology Framework (Figure 1.6) model by Henderson and Clark (1990).
Figure 1.6: Types of Innovations
Figure 1.7: Disruptive Innovation Model
NEW
Architectural DISRUPTIVE
MARKET
INCREMENTAL RADICAL
EXISTING
EXISTIN NEW
G
TECHNOLOGY
Example: Steel Mini Mills
“Mini mills” dramatically disrupted the steel industry once dominated by the great integrated steel
companies of the 20th century. Traditional steel companies at the time manufactured a wide range of
steel qualities. They made low margins on cheap rebar, but also produced sheet steel and thicker
structural steel used to make cars and equipment, which they then sold at a much higher margin.
Then came the mini mill. Small companies found a way to melt down scrap metal recycled from cars
and manufacturing waste, which was up to 20% cheaper than what the integrated mills were
spending. But the metal product was poor quality, suited for rebar but not cars.
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1.c.2. Analysis of innovation with competitors

Sampath Bank People’s Bank
Virtual Teller Machine Commercial Bank
QR based payment Waves
VTM system
Competitor
Type of
Disruptive Innovation Radical Innovation Architectural Innovation
Innovation
Description With the partnership of A contactless payment A tool of managing the
the Department for method that, bank account/s & doing
Registration of Persons, SB performing the transactions through the
facilitate customer payment via scanning a mobile phone (People’s
identification and QR (Quick Response) Bank, 2021). This is
verification through the code. performed with an app.
DRP interface by Ability to register any Provide additional
enhancing KYC process payment card originate services related to
(Know Your Customer). any payment by cheque, pawning,
This enabled SB to scanning a LANKA QR at pension calculator, &
onboard customers any merchant location. payment services.
digitally without any Can sign in on multiple
physical visit Sampath mobile phones.
Bank, 2021). (Commercial Bank,
2021)
Impact to the Consumers become more With the remaining Awards for the best
Industry comfortable with this pandemic situation, a digital bank & the best
specially, in this pandemic payment system mobile banking app were
situation. Because not without using money won by the People’s
need a finger print or pin on hand is very bank (The world finance
number to do transactions effective. With the magazine, 2021).
with the teller machine. feature of awareness According to the records
And it can be considered as about the status & of mobile banking apps,
a teller machine with confirmation of the the most downloaded
higher level of security. transaction, customers finance app is People’s
With the remaining health are not reluctant to use Wave. With this,
restrictions, this can be this. Because they can customers can do all the
considered as a vital confirm the status of payments, fund
technological solution & the transaction. In transfers, & banking
will be very useful during addition, the bank related tasks from
the pandemic & be provides a number of anywhere without visit
sustainable with the offers to encourage the branch physically.
innovative features. customers to use QR
Appropriate with disable code payments.
people as well.
Risk Technological downturn QR payments are not In online platforms the
may cause to break all the still widely spread in Sri risk of cyber-crimes is
transaction processes. Lanka. highly involve &
customers are more
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Customer may reluctant to Risk of frauds with fake reluctant to involve in

visit the virtual teller QR codes. online payment
machines (need to Most of the merchants methods.
physically visit). are not clearly aware Although the number of
Need of a technologically about QR payments & a app downloads is higher
savvy staff. smaller number of the number of active
merchants have users is less than it.
registered with this. Sudden system failures.
Success or Success Success Success
Failure
Rating 5/3 2/5 4/5
Table 1.4: Analysis of innovation with competitors
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Briefing Paper
Aim: To provide an insight of the SB’s readiness to change with
the innovations for enhancing customer loyalty.
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2.a. Innovation Audit of Sampath Bank to Analysis the Capability for Innovation to developing
& managing change for achieving customer loyalty
To learn from the past successes and failures, need to understand how they came about & how should
they in future to be success (Chiesa , et al., 1996). McKinsey’s 7S framework (Appendix 07) support to
measure the organizational capabilities for innovations.
Critical analysis Current Desired

Factor Elaboration
rating rating
Through the All the values
organizational maintain by SB
core values all provide a better
the environment from
stakeholders innovations.
are The organizational
benefitted. A culture provides a
tall & broad customer focus
organizational platform in
Culture structure can increasing customer 7/10 9/10
be identified. loyalty. With the
Created a comprehensive flow
learning of the structure,
culture. Consider the principles of ethics and considerable delays
integrity as the basis of good governance. are possible due to
Endorses a culture that respects equality passing longer layers.
among all. Performance driven
culture supports the
business strategy.
Integrated into the business strategy to achieve With the currently
stakeholder deliverables. Continuous and ongoing using strategy SB was
monitoring to take account of changes in the able to gain critical
operating environment. Realign the Bank’s strategy position in the
to drive and sustain business and find new and market. The
innovative ways of doing businesses. ATM & CDM strategies make the
are maintained as the major physical channels in bank strong with
connecting customers to the bank. Digitalization & customer loyalty
innovations because the SB’s
are ability of quickly
considered adopting to any
Agility 8/10 9/10
as the right dynamic situation
directions provide any of an
in the option to customers
pandemic. as innovations.
And
encourage
towards
online &
mobile
banking. Long term strategy to transform three
core areas: Business, Technology and People.
A participative
decision making will
The directors are independent. Non-Executive
be benefitted in
Leadership Directors, ensuring more autonomy. Less 7/10 9/10
creating customers
opportunity for lower-level ideas.
more loyal to the
company, because
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the ideas generate

from every level
rather than current.
The skills, expertise
and commitment of
Team Sampath that
enables the Bank to
Employees with higher level of skills & capabilities. implement its
Skills Continuous training (172,900 training hours in strategy and achieve 8/10 9/10
2020). Excellent talent acquisition & management. corporate objectives.
Skilled or satisfied
employees are the
base of enhance
customer loyalty.
Consistently high
system uptime and
high resilience of
core systems create a
ISO 27001 Certified Information Security System.
positive impact on
Microsoft 365 “Vidvan” - Learning Management
the Bank’s reputation
System. AI-based data analytics system to deepen
and enhance brand
the complaint analysis mechanism at the Customer
Resources equity & customer 7/10 9/10
Care Centre. Implementing a digital archiving
loyalty. Wider
system to record and store customer/ office data.
customer service
The staff consists with 4048 of employees.
with effective
Advanced technology. Iland-wide branch network.
employees & branch
network. Digital
workforce drive for
innovations.
Table 2.1: McKinsey 7-S Model
Conclusion: With regard to the table 2.1, SB is compatible with an innovation focused culture,
resources & business strategies to enhance the customer loyalty through innovations.
2.b. Evaluation of entrepreneurial approaches to enhance customer acquisition
2.b.1. Proposed Innovations
Innovation Description
Customers can fulfill all the requirements for obtaining a loan. (Appendix 08)
Features: no branch visits, no paper works, no guarantors, no need to get effort
Just Click easy loan app for obtain a crib report separately, shorten timelines, reduce cost, a short &
simple process. With the delivered convenience SB can increase customer
loyalty.
This is proceeded with the amount of the payment done by the customer
through QR. Based on the payment amount, customer can earn points & use
Pay & Win reward system
the point with their digital wallet. (Appendix 09) The delivered motivation will
develop customer loyalty.
Table 2.2: Proposed innovation
2.b.2. Effectuation approach
Dr. Saras Sarasvathy's theory of Effectuation (2001) assumes that identity is a given and relative stable
precondition of the entrepreneurial process that support the entrepreneur in ordering preferences in
the process of effectuating resources, stakeholder commitment (Nielsen & Lassen, 2012).
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Principle Description Evaluation with proposed innovations Rate

& impact on customer loyalty (1-5)
Bird in hand - SB is a leading commercial With the available resources & 4
start with your bank in Sri Lanka. Provides an capabilities such as digital workforce &
means extensive financial service to a technology SB is strong enough to launch
range of stakeholders. SB is Just click & with the historical story there
the pioneer in most of is a higher level of possibility of
innovations in Sri Lankan developing a loyal customer base. SB is
banking sector. capable in encouraging customers to
involve with Pay & Win to enhance their
loyalty towards the bank.
Affordable Achievements drive to long With the nature of accepting upcoming 3
lose - focus on term. Profitability will be challenges SB is strong with change the
the downside negative at the beginning. unpredictable causes which can be occur
risk. Non-forecasted costs may be with above innovations & the bank
raised. should be ready with future challenges to
keep the customers satisfied.
Lemonade - As a result of current More involvement in advertise heavily is 4
leverage pandemic, customers will required to make customers loyal with
contingencies become more technology these innovations. Should share the
seeking & familiar with correct guidance with a clear image
technology. More investment through credible sources become a must.
in technology from the bank With a strong & closer customer
side. interaction, SB can get feedback easily &
should improve with them.
Patchwork All sections with the bank SB is highly depending on current 5
Quilt - form reviewed and tested their partnerships. However, with the
partnerships. business continuity plans on a strategical advancements, SB should try
regular basis to ensure risk for new partnerships to enhance the
management and current status. Most probably new
adaptability. Continue directions will bring more competition to
collaborative partnerships protect & increase the current loyal
with existing parties. customer base.
Pilot in plane - SB always experience the Even though SB is how strong with the 3
control the advantage of leader in initial internal sources, the external
future. deployment with the power of environment is highly uncertain.
controlling the internal Therefore, SB should have a big focus on
factors. those aspects of the environment which
are, at least to a certain degree, within
the control.
Table 2.3: Principles of effectuation approach
Conclusion: SB should have more concern on affordable lose & can improve with lemonade. As well as through
partnership (patchwork quilt) SB can achieve more loyalty from customers because, it is capable for launch
both innovations.
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Figure 2.1: Effectuation in action
2.b.3. Kaizen Approach

The kaizen strategy is based on the process of gradual change bringing improvements to all area of
management and production (Wittenberg, 1994).
Step Critical evaluation to increase customer loyalty

Get Employees are the driving point of this innovational changes. SB should provide enough
employees encouragements to motivate the employees to contribute to the changes with innovation
involved & get their feedback for further improvements of customer loyalty.
Gather a list of Using widespread feedback from all employees, gather a list of problems and potential
problems opportunities. There will be internal issues such as app credential logins, budget issues &
lead time for processing of loans as well as gaps in current processes and customer service
ratings.
Encourage Continuous discussions will be required to overcome the potential problems. Employees
solutions and are the ideal party who can identify the problems with customers as well as they come up
choose an idea with the best solutions. SB can develop a specific team to identify the problems & come-up
with continuous solutions to maintain the customer loyalty.
Test the SB can follow several steps to test the solutions before the final implementation to mitigate
solution the potential risks & failures. Can follow a method like pilot test.
Regularly A regular monitoring & analyzing process should be maintained. Through gathering &
measure and analyzing accurate statistics can be measured the performance of the proposed solutions.
analyze the As well as real customer experience will help to measure the impact on customer loyalty.
results
Standardize If the solutions are match with the organizational goal & strategy, SB can adopt it & move
to next step. Process or policy should be documented, circulated and be communicated
regularly to the staff. Continuous improvements should be taken place.
Repeat on an With continuous improvements, the process with all steps should be repeated with an
ongoing basis ongoing basis in order to increase customer loyalty.
Table 2.4: Steps of Kaizen approach
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Figure 2.2: Kaizen Principles
Principle Implications in customer loyalty of SB Rating

Should identify the correct audience & create value for them. 4
Know your
Ex: A-householders – Convenience in pay for essentials & other bills
customer
B-SMEs – Easy access to a credible loan
SB should use current resources with a minimum level of waste. 3
Let it flow Ex: manage waste in branch utilities with less customer visits.
Reduce paper work through online loan service.
Partnership with third parties to get the best value & gibe the advantage to 4
Go to Gemba customers with improving customer interaction to ensure their satisfaction &
make them loyal.
Motivate employees of all levels to accept and engaged in implementing the 5
Empower people established goals. SB already continue a wider range of training series for
employees.
Continuous evaluations should be progressed & based on the feedback future 4
Be transparent
changes should be taken place.
Table 2.5: Kaizen Principles
Conclusion: SB should ready with all the critical areas within the organization to achieve more success
from the proposed innovations with ability of managing potential waste & empowering human
resources toward it which allow to increase customer loyalty.
2.b.4. Lean management Approach

According to Sobek, Durward & Lang, (2010): “Lean is an approach to operations management that
considers any resource expended that does not add value to the end customer to be waste.
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Figure 2.3: Lean management of SM
Conclusion: SB should understand the challenges with customer demand & serve them with a proper
& accurate estimation & improvement of integrated functions which are capable to develop customer
loyalty.
2.b.5. Horizon scanning
Horizon scanning is the practice of monitoring the business environment, and tracking the changes in
the environment that could have an impact on individual businesses (Brown, 2007).
With the outbreak of Covid-19 customers have to restrict in their typical behaviours.
There is a huge technological revolution in the banking sector.
The competition become high extensive.
Input People become more convenience seeking. Ex: Highly involve in online & mobile base
payments.
Customers are more concern on health care conditions & have to follow different instructions
towards it such as maintaining distance
Number of challenges rise with the changing regular systems due to the covid-19. Follow
health instructions of government.
A higher concern requires on maintaining customer relationships with relate to their financial
Foresight
requirements.
All the players in the sector try to provide brilliant service with technology driven experience.
Issues raised with engaging staff physically.
Output Allow the customers to connect with their financial matters through online.
20 | P a g e
Reduce physical visits by customers & provide more convenience with new technological
systems.
Support customers to avoid activities that risk with the pandemic.
Encourage customers to involve in QR payment systems to be safe from the pandemic.
Strategy Support customers who required financial support in this period with health-related
mechanism & make them convenience.
Table 2.6: Stages of horizon scanning
2.b.6. Mind Map
Figure 2.4: Mind map
Conclusion
Based on the evaluation of entrepreneurial approaches and idea generation techniques, SB is capable
with implementing the innovations of Just Click easy loan system & Pay & Win reward system &
through that, SB can enhance the customer loyalty towards the bank. The mind map provides a clear
image about it.
21 | P a g e
Briefing Paper
Aim: To provide an insight of the most appropriate innovation
with suitable measurements & change management strategies
that can be implemented to achieve customer loyalty through
innovations.
22 | P a g e
3.a. Value propositions canvases of two innovations for adding value and increasing loyalty
Innovation 01: Just Click easy loan app
Value
Customer
GAINS
Mobile Finger distance
GAIN Urgent credit
application holds service requirements
CREATOR
Simple processes with Security Queless process
shortcuts protection
Feel of Quick service
Crib facility in convenience convenience
manner High
accessibility
Easy & No physical
Authentication via online
transparency visits
Fintech related strategic

Just Click Long-term Convenience JOBS
partnerships
easy loan PRODUCTS
relationships in loan
app & SERVICES process
Friendly service Legal barriers with new
rules & regulations
Trust
Confidence protection
Documentary
Virtual experience activities
Possibility to frauds PAINS
PAIN RELIEVERS
Flexible terms & conditions
Lack of confidence
100% guaranteed Adherence to legal standards
verification Lack of proper
financial advisory
Biometric authentication
Risk management service
Risk of Covid 19
23 | P a g e
Innovation 02: Pay & Win reward system
Value
Customer
GAINS
Wide array of Pay without
GAIN Safe from Covid-19
health plans cash
requirements
CREATOR
Advanced customer service Increase cashless payment
Feel of Encouragement
Can earn through payments
Satisfied in convenience
Vital for both customers shopping

Higher level of Motivation
& merchandisers to stay safe
transparency
Transparency in
Pay & Proper track & monitoring of Encouragement JOBS
transactions
Win PRODUCTS health indicators to QR payments
reward & SERVICES relationships
system Better awareness from the bank Unfamiliarity & less
awareness
Trust
Deep monitoring
Suspicious
activities
Fraud avoidance Possibility to frauds PAINS
PAIN RELIEVERS
systems
Privacy
100% transparency Technological support 24X7
standards Technological issues
Adherence to data security
Safe from Covid-19
Risk of Covid 19
24 | P a g e
Innovation 01: Just Click easy loan app

Customer Description Value Description
Customer requirements on urgent Mobile application with a simple
credits will be satisfied. A queless process will make the customer
process & quick service will simplify more convenient. Availability of Crib
the procedure. Current customers are facility with the app is vital &
Gains Gain creator
convenience seeking & not prefer in authentication via online is critical.
visit physically with the remaining Fintech related strategic
situation. partnerships will provides effective
service.
Legal barriers with new rules & The identified pains can be
regulations, Trust, Documentary, overcome through Friendly service,
Possibility to frauds are the major Confidence protection, Virtual
pains of this. Lack of confidence, Lack Pain experience, Flexible terms &
Pains
of proper financial advisory, Risk of relievers conditions, 100% guaranteed
Covid 19 also remain. verification, Adherence to legal
standards, Risk management
service, Biometric authentication
Convenience in loan process Products & Launch Just Click easy loan app
Jobs
services
Table 3.1: Value propositions canvas for Just Click easy loan mobile app
Innovation 02: Pay & Win reward system
Customer Description Value Description

With the current situation use of cash With the payment customer can
become very risk. Although QR earn rewards & this is an advanced
payment systems are available as a customer service. Both customers &
solution for this, customers are not merchandisers are benefited.
Gains tended to use it because feel of Gain creator Transparency in transaction is
suspicious on transparency. Therefore, highly protected. Customers will be
a better motivation & encouragement satisfied with shopping.
is required to persuade customers
toward this.
Most of the customers are unfamiliar Better awareness from bank, Deep
with this & lack of awareness. monitoring, Fraud avoidance
Possibility in frauds & technological systems, Adherence to data
issues will discourage the customers. Pain security will deliver an
Pains
relievers encouragement to customers.
Technological support within 24
hours, 100% transparency will
overcome such pains.
Encouragement to QR payments Products & Pay & Win reward system
Jobs
services
Table 3.2: Value propositions canvas for Pay & Win reward system
25 | P a g e
3.b. Measurement techniques to measure the potential impact of the innovations within
Sampath bank PLC
3.b.1. Balance scorecard
Rating
Dimension Objectives Measurements Target 1-5
A B
Financial Survival Profit margin Increase by 25% in 2025 4 2
Financial Growth ROI Reach up to 20% of market 4 3
Financial share in 2025
Investor satisfaction Dividend per share Increase by 10% annually 3 3
Growth in Revenue Leverage ratio Increase by 10% in 2024 5 4
Customer retention Customer Reach 4 of 5 points of CSAT 3 3
satisfaction
New customer Number of Increase the number of 4 3
acquisition subscriptions subscribers by 10% in 2023
increased
Customer Number of reviews Reach 4 stars from 5 3 3
Customer
engagement
Engagement with Customer adoption Build over 50% of customer 4 4
technology adaptation rate to the product
Customer Number of positive Increase customer 4 4
satisfaction reviews recommendation of the
service
Excellent customer Number of key Increase the key customer 4 5
service customers increased base by 15%
Increase innovations New product or Increase by 12% in 2024 4 3
& creativity service revenue
Increased customer Performance of Increase KPI by 25% 5 4
Internal
service front-end employees
Business
Improved Reduce service error Reduce down to 5% 4 3
operational rate
efficiency
Employee Customer positive 75% positive feedback 3 4
engagement feedback
Responsive rate Request fulfilment Response within 24 hours 4 3
time
Improved employee Increase of employee Increase by 15% 5 4
capabilities productivity
Training of New ideas generated AT least five new products or 3 3
employees towards by employees services per year
Learning &
innovations
Growth
Satisfied employees Deduction of Reduce down to 10% 4 4
employee turnover
Developed skills & Revenue per Increase the total number of 4 3
strategic thinking employee transactions by 10% in 2025
Total 74 66
Table 3.3: Balance score card
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3.b.2. Cost Benefit analysis (Appendix 10)
Cost Rate Benefits Rate

(1-5) (1-5)
Cost of research & development 4 Increase customer satisfaction 4
Training & development of employees 4 New customer acquisition 3
Investment on new technologies 4 Increase customer loyalty 4
Cost of establishing new systems 3 Advantage in the competition 3
Cost on hiring experts 2 Reduce customer complaints 3
Risk of failures 3 Increase efficiency 3
Increasing operating cost 4 Enhance accuracy 4
Cost on purchasing new equipment 3 Increase profitability 3
Accurate information as it is always
Collaboration with partnerships 2 3
connected to the system and the internet
Cost of marketing & promotions 2 Increase customer retention 4
Maintenance cost 3 Eliminate human errors 2
Table 3.4: Cost benefit analysis
3.c. Change management strategy for improving the innovation culture of Sampath bank PLC
Just Click easy loan mobile app has selected to continue the task furthermore. Because it was
identified as the mostly required innovation with related to the current situation & customer needs
to enhance customer loyalty.
3.c.1. FSA Framework
Suitability With the current situation due to the Covid-19 pandemic all the factors in the
business environment enable banking to move ahead with virtual banking with
assistant with external parties such as Crib & merchandisers. The proposed two
innovations addressed the innovational changed essential in current financial
environment.
Feasibility With the current financial position non-financial resources of the bank, SB is capable
in implementing proposed innovations. The advanced technology with SB will
support to expand with this & can be partner with technology experts. SB is already
acting as a key pillar of innovations.
Acceptability With the impact of Covid-19, the demand for online & mobile become increased.
The current legal, social, & business environment will adopt to these two
innovations easily because they are prominent options with most of the current
issues.
Table 3.5: FSA framework
3.c.2. Kotter’s eight step model of change
Factor Impact
Create sense of Making internal employees & shareholders about the urgency of this
Urgency technological innovations & keep the aware about what will be the outcome if
this not implemented. The related changes should be communicated from top
level to the bottom line accurately. SB should highlight the requirement for the
proposed two innovations as a solution for the increasing demand & need of the
audience with the outbreak of Covid-19 link with enhancing customer loyalty.
27 | P a g e
Forming a Leadership with developed skills is essential & a separate innovation driven team
powerful with is required with completing specific tasks. Identify the most influential
coalition people in the organization and use them to convince the other employees about
the internal innovation changes. They can bring out the feedback of other
employees for the attention of the management. SB can make prepare with a
technology focused & digitally enhanced team.
Creating a A clear & well-defined vision should be established with relevant to the proposed
vision for changes & a better image about the changes should be delivered through this.
change This should focus on solving the emerged requirements.
Communicating Once successfully established the vision, it should be communicated throughout
the vision the organization & to all the stakeholders. Continuous delivery of the message
will enhance the reminding the message in the customer mind & remain Longley.
Enable action Different barriers such as investment requirements, technological restrictions,
by removing government rules & regulations, & health concerns have to mitigate through
barriers strong systematic strategies. SB is capable for this with the skilled labour force &
other internal resources & facilities.
Creating short Along with short term targets, SB can adopt the changes regularly. With different
term wins short-term tactics such as reward system for employees for their achievements
in these changes this can be implemented.
Build on SB should focus on continuous improvements with the changes & a regular
change monitoring system is required to evaluate the process & change with the
feedback.
Anchoring new With a proper implementation of the changes a continuous training &
changes development should be take place. SB should create a culture with “Just click” &
“Pay & Win”.
Table 3.6: Kotter’s eight step model of change
3.c.3. Internal resource analysis
Man
4048 of employees
with 42.7 of
average training
hours. Digitally
enforced &
responsible team. Materials
Money Technologically
Consisted with advanced systems,
wider investment developed
plans & high infastructures,
market budget tactful marketing
5M tools.
Methods Machinery
Fomulated equipments with
strategies wich developed
necessary to size technology.
opportunities, Islandwide branch
mitigate risk & network with
continue the value upgraded
creation process machineries.
Figure 3.1: 5M model
28 | P a g e
3.c.4. Capability analysis

Island wide branch network, reputed brand image, expanded self-banking
Resources systems (ATM, CDM), strong financial status with higher level of investment,
professionally qualified, highly experienced and loyal employees.
Technological advancements in automating processes internally, financial
Capabilities
capability to make large investments, digitally savvy & well-trained employees.
Core- Technology adopted culture, market leadership as a first mover, featured
competencies leadership with a better guidance.
Table 3.7: Capability analysis
3.c.5. Risk Analysis
Risk Description Impact
Failing to meet required quality & scheduling requirements. Potential
Operation errors with technological environment. Difficulties in identifying &
L
Risk preparing required skills & capabilities. Potential risk of not being align
to the correct technological implementations.
Commercial Risk of failing to attract targeted customers into the expected extent.
& reputation Customer’s reluctant to adopt with new services. Potential risk of M
risk damaging to the reputation due to the operational failures.
Cyber-attacks can be identified one of the biggest risks involved in the
banking sector. Increased threat from hackers and malware to the data
Technological
of all the users of the mobile application. Number of claims can go up, H
risk
thus manual scrutiny may require before the final approval of such
claims.
Table 3.8: Risk Analysis
3.c.6. Potential benefits & barriers to implement the strategy
Figure 3.2: Potential benefits & barriers
29 | P a g e
3.c.7. Time Plan & Budget for the Proposed Innovation

PROJECT TIMELINE & BUDGET
Time Period : Two years Total Budget : 19725000 LKR
Task Budget LKR Year 2022 Year 2023

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Opportunity Recognition 750,000
Market analysis
Feasibility Analysis
Stakeholder Analysis
Analysis on customer
profile
Target audience
Strategy planing
Data Collection 275,000
Development of phase 400,000
Tet 1st campaign 1,000,000
Review
Replan
Plan 2nd campaign 1,200,000
Implement 2nd campaign
Review & report
Approval from the director
board
Build awareness throughout
the company 350,000
Training & developments 200,000
Marketing Plan
Development 600,000
Launch the Plan 10,000,000
Promotion campaigns 950,000
Contnous Monitoring &
Progressing 1,500,000
Feedback
Continous Development 2,500,000
19,725,000
Table 3.9: Time Plan & Budget for the Proposed Innovation
30 | P a g e
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Appendices
Appendix 01: Competitor Analysis
Factor BOC PB COM HNB SAMP NDB SEYB DFCC NTB PABC
Total assets (LKR Bn) 2,680.70 1,978.90 1,543.60 1,169.80 1,005.30 562.10 526.10 435.20 342.90 163.70
Number of Branches 646 741 287 252 229 113 173 139 96 64
ATMs 773 776 906 780 446 215 135 11
161 73
CDMs 433 285 250 124 465 70 52 62
Number of Employees 8479 >5000 5057 4386 4048 2892 3251 2072 2832 1629
Gross NPL 5.4% 3.6% 5.4% 6.4% 7.0% 5.4% 6.8% 4.9% 6.6% 5.9%
Return On Equity 4.0% 1.4% 5.3% 3.6% 3.6% 7.2% 3.6% 3.0% 5.1% 6.6%
Return On Asset 0.2% 0.1% 0.6% 0.4% 0.4% 0.4% 0.5% 0.3% 0.5% 0.6%
1- Effective tax rate 64.6% 40.0% 56.5% 58.1% 59.0% 58.1% 52.1% 53.0% 50.8% 50.4%
Pre ROA 0.4% 0.2% 1.0% 0.7% 0.7% 0.9% 0.6% 0.6% 1.0% 1.1%
Contribution to Assets 1.0% 0.5% 1.7% 1.5% 1.5% 1.4% 1.1% 1.0% 1.3% 1.6%
Operation income to Assets 1.6% 1.5% 2.8% 2.4% 2.4% 2.5% 2.4% 1.9% 2.8% 3.0%
Net Inc to Asset 1.2% 1.2% 1.8% 2.0% 1.8% 1.6% 1.8% 1.4% 2.0% 2.4%
Non-Inc to Asset 0.4% 0.3% 1.1% 0.5% 0.7% 0.7% 0.6% 0.5% 0.8% 0.6%
Cost to income 39.9% 63.0% 38.6% 40.5% 40.5% 41.7% 36.2% 52.6% 45.9% 47.4%
Implement to Asset 0.6% 0.4% 0.7% 0.8% 0.8% 0.8% 0.6% 0.5% 0.4% 0.4%
Leverage = Asset/Equity 17.59 20.34 9.19 9.4 9.4 13.26 11.35 8.75 10.53 11.49
Return On Equity - Annualized 8.0% 2.8% 10.6% 7.2% 7.6% 14.4% 7.2% 6.0% 10.2% 13.1%
Figure 1.5:Total Assets LKR Bn
BOC PB
2%
3%
4% COM HNB
5%
26%
5%
SAMP NDB
10%
SEY DFCC
11% 19%
15% NTB PAB
Source: KPMG report, 2020
35 | P a g e
Appendix 02: PESTEL analysis

Environment Drivers Impact
Stability of Sri Lankan banks will be affected by the inconsistent
Inconsistent policies
regulatory policies of the government.
Uncertainties in political status of the country draw off the
Political Uncertainty country's sovereign ratings down & it will impact on the local
Political
banks to raise debt capital.
Increase the astricting financial conditions in banking sector.
Government’s debt
Will impact on different terms in banks like interest rate,
burden
inflation.
Fluctuations in
The factors like inflation, interest rate, economic growth &
operating
regulatory requirements are influence on the efficiency of the
environmental
banks.
factors
Economic Economic growth Will impact on the demand & supply for the loans & deposits.
Macroeconomic The negative macroeconomic factors are challenges to the
conditions banking sector in Sri Lanka.
Tax adjustments &
The adverse impact of tax adjustments & international
international
commodity prices makes the lending profits dropped.
commodity prices
People always behave according to their perception. They think

Perception & the
how they should behave on the way how will others think. The
behaviour
perception influences their adoption to the technology.
Social Attitudes towards The decisions of the people are driven by their attitudes. Increase
innovations the acceptance towards new products & services.
Individual adoption Change easily with the diverse environment factors
With the technology the quality of the service can be increased

Service quality like increasing accessibility, responsiveness, communication,
reliability & attentiveness.
Fintech Innovation Emerging markets are catching up quickly
Traditional leaders face more difficulties in maintaining the
Tech groups
market share
Technological
Unpredictable
Possibilities to growth
trajectory
Allow customers to manage their finance without walking
Mobile Apps
physically. Increase digital penetration.
Widening access More adoption to the technology

Green bargaining Protect natural resources and competitiveness of firms.
Environment
practices Environment protection & satisfying stakeholders.
36 | P a g e
Legal structures Provide a temporary relief, raise risk for banks in long term
Favourable rules & regulations help to uplift the performance of
Rules & regulations
the banking industry.
Legal
Acts Eg: Payment and Settlement Systems Act No 28 of 2005
Appendix 03: Internet usage in Sri Lanka
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Appendix 04: Online purchases, pay bills online & online transactions in Sri Lanka as a percentage
of population
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Appendix 05: Internet & mobile based payment systems (CBSL, 2020)
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Appendix 06: Industry analysis

The banking industry in Sri Lanka is consisted with licensed commercial banks (25) & licensed
specialized banks (6) & plays a vital role in Sri Lankan financial system as they are engaged in provision
of liquidity to the entire economy, while transforming the risk characteristics of assets CBSL, 2020).
According to CBSL, the banking sector Figure i: Credit quality
exhibited a deterioration in credit quality
during the period of nine months which
ended in September 2020 despite the
moratorium being in effect and making the
classification of loans under the
moratorium frozen for several months.
With this time period, the large bank
contributed to the financial needs of
government & state-owned enterprises.
The drag on the economy was reflected in
the domestic banking sector, with weak
results in 2020. Gross loans and advances
increased by just 0.7% Quarter-on-Quarter
(QoQ) in the period, with contractions in
credit extended to the private sector in May and June 2020, contributing towards this performance
(KPMG, 2020).
Key performance & highlights in banking sector, Sri Lanka
Factor 2019 2020 Change

Total Assets (LKR Bn) 11,901.5 13,367.8 12.3%
Net Profit (LKR Bn) 51.3 59.0 14.9%
Core Capital Ratio 13.5% 13.1% 0.3%
Total Capital Ratio 16.7% 16.4% 0.2%
Net Interest Margin (NIM) (%) 3.6% 3.2% 0.4%
Non-Performing Loan Ratio 4.8% 5.4% 0.6%
Return on Equity 10.1% 10.4% 0.4%
Cost to Income Ratio 78.3% 76.6% 1.7%
Return on Assets 1.4% 1.3% 0.1%
Liquidity Ratio 31.3% 35.9% 4.7%
Credit to Deposit Ratio 87.4% 86.5% 0.9%
Table i: Key performance & highlights in banking sector, Sri Lanka
According to CBSL, A considerable downturns can be identified within the Sri Lankan banking sector
in the pandemic period. The credit to deposit ratio was indicated a continuous decline in the last nine
months in 2020 (Figure 2). However, as an overall image, the deposit ratio indicated a growth on that
time (Figure03). Total deposits grew 13.6% YoY to reach LKR 9.9 Tn as at end-June 2020, with domestic
and foreign currency deposits growing 14.0% and 11.2%, respectively. Deposit growth was 8.5%
between end-2019 and end-June 2020. Deposits increased to 81.6% of total sector liabilities at end-
June 2020, the highest level recorded since 2014, indicating the sector’s increased reliance on deposits
(KPMG, 2021).
40 | P a g e
Figure ii: Credit to Deposit Ratio Figure iii: Growth in deposits
Figure iv: Deposit growth (CBSL,

2020)
With the outbreak of Covid-19, most of the banks had to change their regular work procedures &
follow a challengeable adoption strategy for it. As a result of this banks trend to ensure their service
and support are maintained for customers in difficult times even, excluding from regular basis. Many
banks have therefore continued to physically staff both cheque and wire operations, but on a reduced
basis with perhaps 25 percent of the normal workforce onsite at any one time, and with new policies
and procedures introduced to balance operational effectiveness with safety requirements.
As well as all the banks are encouraged their customers to move to online banking methods.
Essentially, the fraudster’s objective is to reroute a due payment to another bank account. Such fraud
may originate externally by a deceitful individual or business, or it may be committed by an employee
within the victim organization. The preferred method used by external fraudsters is fake emails and
social engineering to impersonate a supplier.
41 | P a g e
Appendix 07: McKinsey’s 7S framework

Critical analysis Current Desired
Factor Elaboration
rating rating
Integrated into the bank business strategy to With the currently
achieve stakeholder deliverables. Continuous and using strategy Keells
ongoing monitoring to take account of changes in was able to gain
the operating environment. Realigning the Bank’s critical position in the
strategy to drive and sustain business and find new market. The
and innovative ways of doing businesses. The key strategies make the
enablers are financial stability & profitability in bank strong with
creating stakeholder values. ATM & CDM are customer loyalty
maintained as the major physical channels in because the SB’s
connecting customers to the bank. Digitalization & ability of quickly
innovations are considered as the right directions in adopting to any
the pandemic. Selected branches being kept open dynamic situation
Strategy for a limited number of hours in order to provide any of an 8/10 9/10
accommodate supplier payments and customs duty option to customers.
settlements etc. And encourage towards online & Therefore, they are
mobile being loyal because
banking. SB support to easily
long term change with the
strategy to situation.
transform
three core
areas:
Business,
Technology
and People.
A tall & broad organizational structure can be With the
identified. The organization structure flows from the comprehensive flow
Board of of the structure,
Directors considerable delays
cascading are possible due to
down to passing longer layers.
employee
level. The
Bank’s
Structure 6/10 8/10
governance
structure
establishes
the
fundamental
relationships
between the
Board, its committees, management, shareholders
and other stakeholders.
ISO 27001 Certified Information Security System. Consistently high
Microsoft 365 was implemented to enable system uptime and
employees to manage their work streams remotely high resilience of core
via business communication systems. “Vidvan” - systems create a
Systems Learning Management System. AI-based data positive impact on the 7/10 9/10
analytics system to deepen the complaint analysis Bank’s reputation and
mechanism at the Customer Care Centre. enhance brand equity
Implementing a digital archiving system to record & enhancing
and store customer/ office data. customer loyalty.
42 | P a g e
Through the organizational core values all the All the values
stakeholders are benefitted. maintain by SB
provide a better
environment from
innovations.
The organizational
culture provides a
Shared customer focus
platform in increasing 7/10 9/10
values
customer loyalty.
The directors are independent Non-Executive A participative style

Directors, ensuring more autonomy. Less will be benefitted in
opportunity for lower-level ideas. The leadership creating customers
style not allows all to be participated in critical more loyal to the
Style 7/10 9/10
decision makings process. company, because
the ideas generate
from every level
rather than current.
The staff consists with 4048 of employees. - Staff With the
members are given access to the management to organizational
voice their concerns through the Whistle Blowing support on the staff
Policy and the Grievance Handling Procedure. less tend to leave the
job. The employee
Staff retention rate is 98% 7/10 9/10
(Annual report, 2020).
This allows employees
to make satisfied
customers & make
them loyal.
Employees with higher level of skills & capabilities. The skills, expertise
Continuous training (172,900 training hours in and commitment of
2020). Excellent talent acquisition & management. Team Sampath that
Skills enables the Bank to 8/10 9/10
implement its
strategy and achieve
corporate objectives.
43 | P a g e
Appendix 08: Proposed Innovation 01

Innovation 01: Just Click Loan service
Currently, most of organizations, as well households experience a huge problem in their economic
status. An increasing demand for loans can be identified with the pandemic of Covid-19. But currently
most of the banking services are unavailable due to the travel restrictions & other government
regulations. In traditional system, to apply for a loan people should complete a series of steps & have
to visit bank several times & other institutions as well. With this situation, customers are disappointed
with their financial requirements.
As a solution for this SB can introduce an online loan system. Through this, customers can fulfill all the
requirements for obtaining a loan.
Features:
- No branch visits
- No paper works.
- No guarantors.
- No need to get effort for obtain a crib report separately.
- Shorten timelines.
- Reduce cost.
- A short & simple process.
The only thing customer has to follow as the initiate step of this is download the just click loan app &
then they can follow the loan process. A simple process has to follow for this service & it is more
convenient than the traditional process. Less document requirement is special for customers who are
with very busy schedules.
The documents should handover with the loan application,

• Copy of NIC.
• Pay slip/ salary confirmation
• Bank statements & billing proof
To submit these documents, the customer should not visit the branch. They can use soft copy of these
& send it via E-mail. As well as with the link of SB with crib customers can complete the requirement
of clearance from crib through this app itself.
44 | P a g e
Figure v: Innovation 01 (Author generated diagram for Just click loan service)
Appendix 09: Proposed Innovations 02

Innovation 02: Pay & Win - Reward system with QR payments
With the remaining risk of transaction through cash, most of the people are reluctant to use cash in
hand. Most of the commercial banks already introduced QR payment systems as a solution for this.
But the issue is, very least number of customers use this. As an encouragement to use QR payment
system, SB can introduce a reward system.
This is proceeded with the amount of the payment done by the customer. Based on the payment
amount, customer can earn points & use the point with their digital wallet.
45 | P a g e
As well as this kind of reward system can be considered as a driving factor of customer loyalty.
Figure vi: Innovation 01 (Author generated diagram for Pay & Win reward system)
46 | P a g e
Appendix 10: Force field analysis
DRIVERS Rate Rate RESISTORS
Changing nature of consumer behaviour
Just Click easy loan system & Pay & Win reward system
towards digital native environment 9 Less IT literate customers, tech adverse customers,
7 elderly and/or disable customers might not be able to
utilize
Growing adoption towards mobility &
developed customer expceience 8 6 Legal barriers with rules & regulations
Innovations raised as a way of winning

8 Tendency to get fraudulent claim requests from bogus
competition with developments of digital 8
customers
systems
6 Disruptions of workflow within the industry
Improvements in artificial intelligence &
9
machine learning
New technologies are more expensive & need high
7
Challenges within the industry & increasing 7 maintenance cost
new trends
Investors need convincing as innovation can be
9 8
Facilitates to adapt to changes expensive.
Ability to have multiple layers of authentication 7
Facilitates to engage with customers and

6 Drivers Resistors Gap
convince them
62 77.5% 42 70% 20 7.5%
47 | P a g e
Appendix 11: Porters Five Force Analysis

Force Drivers Description Impact
The requirement of higher level of capitalization
offers a considerable barrier to enter banking sector.
It needs higher level of credibility & strong level of
Barriers to
brand presence required. As well as with the impact H
entry
of external factors such as political & legal status of
the country has make a huge cost towards entering
Threat of new
to the market.
entrance
Economies of Firms can gain the economies of scale through
M
scale operate with group of companies.
As a service, the banking industry is more concerned
Concern on about the quality of the service they offer. Therefore,
M
quality to being success the new entrants have to focus on
the quality of the products &it is not easy.
The buyers in the banking industry in Sri Lanka is
Number of much higher. Because any of a person in Sri Lanka
M
buyers may have a relationship with a bank for any type of a
Bargaining purpose.
power of Response of The selected customer segment is highly responsive.
buyers the Due to that, they highly concern on the benefits & H
customers costs from the seller.
Switching Customers can switch to another service provider
H
cost easily with less cost.
The banking industry does not suffer any real threat
of substitutes as far as deposits or withdrawals;
however, insurances, mutual funds, and fixed income
Threat of
Propensity to securities are some of the many banking services that
substitute M
substitute are also offered by non-banking companies. Buyer
products
propensity to substitute is high. Relative price
performance of substitutes. Switching cost of shifting
among substitutes is low.
With the current technological & functional
enhancements, firms have to highly depend on third
Nature of parties. Capital suppliers are many in the banking
Bargaining L
suppliers industry & cannot bargain strongly.
power of
The power of suppliers is heavily focused on the
suppliers
market & it fluctuated between medium to high.
Nature of the Most of the suppliers provide products & services in
M
products same features such as same price, same quality.
Intensive competition from private sector (Com Bank
Number of & HNB) as well as government sector (BOC & People’s
H
competitors Bank) involve in the market. 24 licensed commercial
Rivalry banks & 6 specialized banks
among Diversity of The service offered by the competitors is more similar
M
existing competitors & highly immitigable.
competitors Industry is more quality & cost saving concern (Most
Industry of the competitors try to attract customers through
H
concentration their less prices such as low interest level for loans).
48 | P a g e
Quality All the key players in the market try to maintain a high
L
differences quality.
Companies with the organization intend to build an
Brand loyalty M
excellent brand loyalty.
Switching Switching cost remains low.
H
cost High level of exit barriers.
Appendix 12: Stakeholder mapping
High
Suppliers Customer
Employee
Shareholders
Interest
Media
Community
Low Power High
Stakeholder Analysis
Stakeholder Expectation Analysis P I

Employees Reduce the branch visits. Reduce customer direct contact.
Internal
Commitment to create a conducive environment for the

L H
employees to develop and reach their potential, both
professionally and personally.
Customers Healthier service environment with safety contacts, enhanced
security, quality products and services, affordability of products
H H
and services, ethical business practices, quality of customer
service, rewards on transactions.
Shareholders
Ensuring long-term shareholder value and upholding the rights of
& other
the shareholder and supporting a broader shareholder H H
investors
External
constituency to ensure their wealth maximization.

Suppliers &
service Striking the right balance between cost and quality and promoting
L H
providers ethical and transparent sourcing practices.
Community Working in tandem with global and local mandates which

safeguard the environment and promote community L L
empowerment.
49 | P a g e
Regulatory
bodies Ensure compliance with all legal and regulatory requirements. H L
Media
Communicate all the relevant information of the bank with other
H L
parties such as community.
Appendix 13: Customer Persona

Customer Persona for Just Click Easy loan app
Age: 35 Characteristic
Gender: Male s Impacted
From: Urban & suburban areas Highly price sensitive from Covid-
19 &
Income: Turnover 1 Mn
Highly technology focused requirement
of a bank
Ambitious Educated Reliable Highly concern about health matters loan is high
•The major objective is funding & growth. Technology

•Involve in a higher number of
transactions & the engagement is high. IT & Internet
•There are number of baking
relationships & the level of competition Software
is high.
Mobile apps
The interested products & services are Transactional, trade finance, and project
finance
50 | P a g e

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Creating Entrepreneurial Change July 2021 CIM Membership-12357842

1.a. Background of the Organization ...................................................................................................... 6

Figure 1.1: Profit ………………………………………………………………………………………………………………………………5

Figure 2.3: Lean management of SM .................................................................................................... 20

1.a. Background of the Organization

1.a.3. Size of the Organization:

1.a.4. Stakeholders (Appendix 12)

Customers Shareholders Community Regulatory Suppliers and Media

Figure 1.4: Stakeholders (Source: Annual report,

1.b. Macro Environmental evaluation of Sampath Bank PLC.

AI enables a more natural communication between consumers and banks via

• With such kind of a pandemic all the

Table 1.3: Macro Environmental evaluation of Sampath Bank PLC

1.c. Disruptive innovations

Example: Steel Mini Mills

1.c.2. Analysis of innovation with competitors

Customer may reluctant to Risk of frauds with fake reluctant to involve in

Critical analysis Current Desired

the ideas generate

Principle Description Evaluation with proposed innovations Rate

Figure 2.1: Effectuation in action

2.b.3. Kaizen Approach

Step Critical evaluation to increase customer loyalty

Figure 2.2: Kaizen Principles

Principle Implications in customer loyalty of SB Rating

2.b.4. Lean management Approach

Figure 2.3: Lean management of SM

Figure 2.4: Mind map

Fintech related strategic

Innovation 02: Pay & Win reward system

Vital for both customers shopping

Innovation 01: Just Click easy loan app

Customer Description Value Description

3.b.2. Cost Benefit analysis (Appendix 10)

Cost Rate Benefits Rate

Figure 3.1: 5M model

3.c.4. Capability analysis

Figure 3.2: Potential benefits & barriers

3.c.7. Time Plan & Budget for the Proposed Innovation

Task Budget LKR Year 2022 Year 2023

Bank, C., 2020. Commercial bank. [Online] Available at: https://commercialbank-stl.com/online-

Cdn.cse.lk. 2021. [online] Available at:

Central Bank of Sri Lanka (2020) Banking sector, Available at

Combank.lk. 2021. [online] Available at:

Dfcc.lk. 2021. [online] Available at: < https://s3-ap-southeast-1.amazonaws.com/dfcc.lk/wp-

Digital Sri Lanka 2021. [online] Available at: <https://www.sampath.lk/en/personal/electronic-

Disruptive innovation - https://www.researchgate.net/publication/215915528_ [Accessed 28 May

GSMA. 2018. The-Mobile-Economy-Global-2018. [ONLINE] Available at:

Hnb.net. 2021. [online] Available at:

NDB.lk. 2021. [online] Available at:

NTB.lk. 2021. [online] Available at: < https://www.nationstrust.com/images/pdf/annual-reports/ntb-

Managementstudyguide.com. 2020. Kotter's 8 Step Model of Change. [online] Available at:

Micro & macro environment - https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-

PABC.lk. 2021. [online] Available at: < https://www.pabcbank.com/wp-

Peoples bank. 2021. People’s Wave. [online] Available at: <https://www.peoplesbank.lk/peoples-

Seylan.lk. 2021. [online] Available at: <

Figure 1.5:Total Assets LKR Bn

15% NTB PAB

Source: KPMG report, 2020