| During the past 20 years, practical exploration and theoretical innovation in China's financial system reform have not only made the commercial banks change dramatically but also made important contributions to the development of domestic economy. However, undeniably, there are still many problems in China's banking management whose competitive power is not strong enough comparing with the foreign banks. With the constant development and reformation of monetary system, China's commercial bank meets a period of coexistence of opportunity and challenge especially after the end of transition period given by WTO. Foreign banks show their strong competitive power in market prolongation, originality innovation, service optimization after January 2007 when China's financial industry has basically opened up. China's commercial banks are faced with increasing competitions not only from domestic counterparts but also from foreign banks. Subordinate mortgage crisis starting from America last year has swiftly expanded into a global financial crisis in just one year. Faced with the impact of global financial crisis and the gradually increasing effect on the real economy,commercial banks of China undertake the task of supporting the economic revitalization, restructuring, and stimulating domestic demand as well as innovating and developing. China's commercial banks are required to establish and improve management system and operational mechanism in order to adapt to the economic development and market requirement.Based on the core competence theory, with the aid of the value chain analysis, this paper deconstructs commercial banks'complex business processes into a series of aspects of value creation links which are both independent and interactive. Meanwhile, it constructs a strategic framework about optimizing value creation in China's commercial banks. In the framework, through the analysis of their own internal resources, capabilities and external environment, commercial banks could determine their competitive advantage and competitive strategy. With combination of core competence theory and value chain theory, Researches on the value creation of commercial banks have an important theoretical value and practical significance on how to prove the ability of creating value and enhancing the core competence.This article is divided into 9 chapters, each chapter is as follows:Chapter 1: Introduction. It has elaborated the backgroud of this research subject combined with the changes of market environments and given the framework of ideas and content, as well as a summary of the innovations.Chapter 2: theory of value creation based on the core competence. In this chapter, the value chain of commercial banks is defined as: the value chain system consisted of series of activities relatively independent but interrelated in the economic and technical effects.Chapter 3: China's commercial banks'value creation research based on the core competence. After the SWOT analysis of commercial banks, several important principles and strategic framework are proposed which could optimize the value creation activities. The framework is divided into three levels: (1) determine competitive strategy according to the resource, capacity and environment; (2) determine "strategic links" through the value chain analysis; (3) implement the value chain management on each strategic link.Chapter 4 to chapter 9: In accordance with the definite strategic links, we elaborate the value creation theories, the characteristic appraisals, the value creation strategies and the cases on value chain's links. They are: Chapter 4: China's commercial banks'value creation based on the fund-raising; Chapter 5: China's commercial banks'value creation based on the use of funds; Chapter 6: China's commercial banks'value creation based on internal optimization; Chapter 7: China's commercial banks'value creation based on risk management; Chapter 8: China's commercial banks'value creation based on service innovation; Chapter 9: China's commercial banks'value creation based on derivative value chain.The value creation ability in fund-rising link is limited so that in this paper, activity-based cost analysis is proposed to improve it. The use of funds is the main source of bank profits and the core value creation link which can bring with cross-business growth. Through economic capital management, limited capital is allocated between all types of risks, all levels and various businesses so that the value of commercial banks is maximized.Balanced scorecard is used as theoretical analysis tool in the internal optimization link whose implementation frameworks include process reengineering, organizational restructuring, human resources, corporate culture, information technology and internal control.China's commercial banks should firstly carry out multidivisional structure in relatively independent business section and then comprehensively implement "matrix organizational structure" when the conditions are ripe.Risk management is an important safeguard measure. The corresponding value creation strategy is proposed on the credit risk, market risk and operational risk.In the service innovation link, the process of financial innovation should be combined with the implementation of CRM strategy and its core is exploring ,using integration and achievement of customers'value.Improving derivative value chain is an important means on searching for resources sharing, complementary, enhancing integrated service capacity and improving competitiveness. Commercial banks can also develop agency business, business outsourcing, factoring, fund custody business and other intermediary business.This study not only summarize, complement and complete the theory of value creation, its research ideas are innovative as well which have an extremely important theoretical value.Specifically, the innovations lie in: (1) to understand the strategic management and business activities from the perspective of value creation is totally new; (2) have built a new theory of value chain systems in commercial banks on the basis of Prahalad and Hamel's core competence theory and Porter's value chain theory. Meanwhile, we structured a more complete strategic analysis framework. (3)after detailed analysis of the principle of value creation, have proposed operational guidance suggestions on how to enhance the core competitiveness through optimization of value chain and integrating internal and external resources.This study has provided a practical path of enhancing the core competitiveness and optimizing the value chain management model in China's commercial banks which are of great significance on actively responding to market challenges and promoting China's commercial banking and financial industry.
|
PDF Full Text Request