Capital One - Case Study - Management Information Systems PDF

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1) The business of Captain One is described bellow  A US based bank that specializes in credit cards, and lone.  USPS forth-largest customer.  Established the mass marketing of credit card.  Low credit card interest rate being offered.  Identifying profitable customers.  High investment in information technology. Capital One’s competitors are:  Chase Freedom Finance Services.  MasterCard Incorporated.  American Express  Bank of America Corporation.  Discover.  Citi Bank. 2) Capital One’s strategies to grow and compete are the flowing:  Use of advance technology at the business core.  Offering different product lines to new groups of people.  Use of data analysis to track the profitable customers.  Taking high risk by offering credit cards to people with bad credit score.  Extracts as much as information needed about its customers.  High quality information management system,  Identifying new technology available in the market and using it for effective business.  They also do a lot of Testing. 3) Information used by Capital one are the following:  Gathering basic demographic data about its customers.  It can pin point and predict information by the use of its information technology.  Apart from demographic data it also invests in gathering other kind of information, like credit check.  Constant monitoring of its information technology and evaluation.  Analyzing its existing customer database. The sources of information are the flowing:  Phone Directories.  Credit card checking agencies.  Post office data base  Retail outlets like “life style”  DSS and KMS systems.  TPS system.  CRM system 4) The flowing is the information technology being used: Information Technology

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Post office data base Credit Card Checking agents Retail outlets DSS and KMS system CRM system TPS system

Information like customer name, address, telephone number. Credit History, history of purchase Interests of the customer, activities they take part in. Analyze the customer’s data, pinpoint business customers information. Understand customers better, keeping a track on their activities. Process customer transaction, opportunity to analysis their purchase history.

5) The flowing tells us about Capital One’s notion of a scientific test:  Random order of Match the claim offer split the difference rate or rejects the offer, when a customer called.  Accounts being upgraded or closed.  Calculating if the customer has potential profit when they call.  Launching intensive testes, such as click stream.  The system also refines its pitches and tested ad strategies after identifying possible mistakes  Identifying that credit cards are the currency of the Web, promising to eclipse all other forms of payment The following are the approaches more traditional manufacturing companies might use:  Other card companies paying top dollar to lock up prime advertising slots on Internet portals  Lending money with no real repayment plan indicated to pay the credit card company back  Offering credit cards with a “one size fits all” service and offering high interest rates much of the time  Targeting the low risk high reward customers  Not taking on customers with high credit risk or questionable terms of repayment...