The case illustrates how Ping An can anticipate digital trends such as cloud computing and evolve from its core business to expand to new areas. Ping An began by selling property and casualty insurance but soon expanded to banking and financial services. The firm then invested heavily in I.T. development in order to take part in the Internet economy, focusing on five verticals: financial services, healthcare, automobiles, real estate and smart cities. In the five verticals, Ping An incubated 11 independent technology affiliates that dwarfed a valuation of $70 billion. By 2020, 3 companies were publicly traded as independent entities. Ping An was no longer a financial institution, instead, it had become a “finance + technology” and a “finance + ecosystem” company. While so many financial institutions and other traditional businesses always talk about digitization and transformation, but the progress is pretty slow. Ping An is in a very different place. The Ping An case is interesting both from a Chinese and a global perspective. As a firmly rooted Chinese firm, Ping An embodies the rise of a traditional company that learned to harness new technologies and compete with China’s pure technology players. From a global perspective, Ping An offers lessons in how to develop an ecosystem of technology affiliates: the firm has developed a set of best practices for incubating, funding and collaborating with spin-offs.
Ping An: How a Chinese insurance firm became a tech giant (A)
Summary
The case illustrates how Ping An can anticipate digital trends such as cloud computing and evolve from its core business to expand to new areas. Pi...
Best-selling
Case Study
Reference
IMD-7-2138
Copyright
©2020
Copyright owner
IMD Copyright
Organization
Ping An Insurance
Industry
Finance and Insurance
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Ping An: How a Chinese insurance firm became a tech giant (B)
Summary
While Ping An is so successful to transform and reinvent itself to a tech giant, it discovered the demand of small and medium sized financial insti...
Reference
IMD-7-2243
Copyright
©2020
Copyright owner
IMD Copyright
Organization
Ping An Insurance
Industry
Finance and Insurance
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Ping An: How a Chinese insurance firm became a tech giant (C)
Summary
Case (C) is about Autohome, which is the only unicorn Ping An acquired, rather than built from the ground up. After acquisition by Ping An, Autohom...
Reference
IMD-7-2244
Copyright
©2020
Copyright owner
IMD Copyright
Organization
Ping An Insurance
Industry
Finance and Insurance
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
IG4 Capital: Private equity with a purpose
Summary
SEPTEMBER 2023, SÃO PAULO (BRAZIL). Gustavo Buffara was painstakingly putting the finishing touches on the IG4 Private Equity Fund III presentation. Co-founded by Gustavo in 2016, IG4 Capital had grown to become a leading force in private equity in Latin America with a unique value proposition that focused on private equity special situations. With 52 professionals worldwide across seven offices (in São Paulo, London, Lima, Madrid, Bogotá, Washington, DC and Santiago), the firm was now heading to manage some $1.7 billion, with more than $1.1 billion invested in special situations over recent years. What made Gustavo particularly proud was the fact that the firm was able to operate not only under the highest sustainability standards, as an early signatory of the Principles for Responsible Investment (PRI), but also as a fully certified B Corp, a first in emerging market private equity. IG4’s portfolio companies now generated more than $2 billion of turnover with around 20,000 employees in different countries across Latin America, and many of them had achieved or were on their way to their own B Corp certifications. Could a Cerberus-inspired special situations strategy, often perceived as brutal, be adapted to a more culturally sensitive, developing-market equivalent, with clearer environmental, social and governance (ESG) integration? In other words, could “vulture capital” be turned into “culture capital”? The value proposition resonated with investors, and the track record of IG4 Funds I and II were now solid pillars upon which to build. But what else could the company do to ensure that its private equity investments in different segments, with a deep ESG toolbox, would help establish sustainable capitalism in the Latin American region? What else should it consider doing to reaffirm its ESG credentials even further?
Reference
IMD-7-2545
Copyright
©2024
Copyright owner
IMD Copyright
Organization
IG4 Capital Partners
Industry
Finance and Insurance, Private Equity
Available Languages
English
Contact
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NTT at a crossroads (A): Quest for growth
Summary
NTT Corporation, Japan’s information and communication technologies (ICT) leader since 1953, was the first to commercialize internet usage on mobile phones in the 1990s, which resulted in NTT achieving much success in Japan. However, by the end of the 2000s, Japan faced challenges with an aging population and a stagnant economy. Recognizing disruption in the ICT sector, CEO Satoshi Miura understood the need for the dominant players in the ICT industry to integrate emerging business domains beyond their existing frameworks. To secure leading global positions in ICT and the new paradigm of cloud computing, Miura needed to make strategic choices to revive growth. Case A provides information on NTT, its rivals, the global market and cloud computing disruptions. The case ends with NTT’s CEO exploring strategic growth options to prepare NTT for the future.
Reference
IMD-7-2351
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Nippon Telegraph and Telephone
Industry
Services, Telecommunications;Information Technology
Available Languages
English
Contact
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NTT at a crossroads (B): Mapping growth options
Summary
Building on NTT (A), the case starts with NTT’s CEO having narrowed down strategic growth options with the board to prepare NTT for the future. Past international investments in AT&T Wireless and KPN to tap into foreign markets had resulted in billion $ write offs and stopped international acquisitions. However, after reviewing the disruptive changes facing the ICT industry and considering the shareholders’ views, CEO Miura committed to internationalization. The B case details NTT’s growth strategy focused on internationalization, while considering the need for new capabilities and technologies. It provides more insights into NTT, its opportunities and the Japanese experience with M&As and ends with Miura’s determination to quickly grow through international expansion to prepare NTT for the future.
Reference
IMD-7-2352
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Nippon Telegraph and Telephone
Industry
Services, Telecommunications;Information Technology
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Feeding the dragon: Revisiting ChemChina’s acquisition of Syngenta
Summary
Basel (Switzerland), March 2024. The acquisition of Syngenta by ChemChina in 2017 was a major event for the agricultural industry and, with a price tag of $43 billion, the largest ever foreign acquisition by a Chinese firm. A number of issues were flagged by analysts as key concerns, including governance, post deal integration, culture conflicts and a lack of synergies. With hindsight, were those concerns valid or had they failed to capture the overarching rationale for the Syngenta deal? Why did the Syngenta board support the transaction when so many other western firms rejected such approaches? More remarkable even was the fact that the CEO brought in to manage the complex acquisition, Eric Fyrwald, was still in place seven years after the transaction, an inordinately long tenure for a chief executive in any setting. What were the keys to this remarkable longevity? How did Eric manage to combine these two hugely different entities into an even more formidable giant? What did it take to balance the cultural sensitivities of Swiss and Chinese shareholders and managers? Could lessons be learned for other executives put in charge of complex, multicultural, transformational acquisitions? The success rate of M&A transactions was notoriously poor: What made this such a different animal?
Reference
IMD-7-2577
Copyright
©2024
Copyright owner
IMD Copyright
Industry
Food Production, Agriculture;Food Production, Agricultural Services
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Red Alert: Is China's recent export growth so exceptional that foreign officials & corporate executives should be losing sleep?
Summary
This year China has been repeatedly accused of resorting to export-led growth (as if that were a crime), flooding world markets with goods, and exacerbating trade tensions. In this briefing I provide a measured, evidence-based review of recent Chi...
Copyright
©2024
Copyright owner
External Copyright
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Are Chinese exports causing a protectionist backlash? Is it time to switch sourcing to ASEAN?
Summary
The trade policy stance of foreign governments to China’s goods exports is reviewed here. A balanced approach is taken—examining new import reforms facilitating sourcing from China as well as new import curbs. Further perspective is provided by co...
Copyright
©2024
Copyright owner
External Copyright
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
DBS (A): “Damn bloody slow” to best digital bank in the world
Summary
Since becoming DBS Bank’s CEO in 2009, Piyush Gupta led its transformation to become a standard setter globally for digitalization and customer centricity in financial services. This transformation started with fixing the basics (2009-2014), in which DBS implemented consistent systems and processes across the bank and used five-day process improvement events to fix customer journeys. DBS then began benchmarking with tech leaders (2014 onwards), which led it to build a middleware layer on top of its core banking platform to allow it to develop and launch new products rapidly, implement straight-through processing so that most transactions could be completed digitally and instantly, and move data and applications to the cloud. The next phase of the transformation was two-in-a-box (2018 onwards). DBS reorganized its businesses and key functions into 33 platforms to become more agile. Platforms were organized based on key businesses or key shared or support functions. Each platform was co-led by a business lead and a technology lead who were empowered to do what was required to achieve the desired outcomes. As Gupta looked back in early 2021, he was pleased with the progress that DBS had made since 2009. At the same time, he knew there was no room for complacency. This was especially true in Singapore where its two major local competitors had upped their game, and the government had issued digital banking licenses to potentially formidable new competitors. The bank’s executive committee resolved to do whatever was necessary to further enhance the bank’s customer centricity. It considered the three classical avenues for doing so: organizing around customer segments, implementing new ways of working using agile teams and a horizontal organization and focusing on culture and principles. Making the right choice would be crucial to the bank’s continued success.
Reference
IMD-7-2633
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Development Bank of Singapore
Industry
Finance and Insurance, Banking
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
DBS (B): Managing through customer journeys
Summary
To stay ahead of competitors, DBS knew it needed to continue to innovate and improve customer centricity. To do so, it decided to move to a horizontal organizational structure, an approach it named Managing Through Journeys (MtJs). This involved bringing together representatives from all functions that touched the customer journey from the beginning to the end. This would allow DBS to deliver a more seamless and integrated customer experience. The bank introduced a few pilot MtJs in 2021. By 2024, more than 60 MtJs were in operation, accounting for over 60% of the bank’s revenues. The MtJs had nine elements, which collectively led to a new way of working. Three foundational elements provided the initial momentum and specified how to measure impact. These were performance cells, cross-functional teams focused on a specific product or customer segment; performance management architecture, which specified the common set of KPIs for each performance cell; and performance development and compensation, which enabled MtJ members to be evaluated and rewarded for their contributions. Six interconnected elements created a flywheel effect for continuous improvement. These were the value map and control tower, which mapped the relationship between levers, drivers and outcomes; customer obsession, which drove customer research; experimentation using a structured approach; artificial intelligence/machine learning to create faster feedback loops; innovation using a structured approach to accelerate the ideation and production process; and workflow workbench which ensured information flowed seamlessly across all performance cell members. The move to MtJs allowed DBS to stay on top of the customer service rankings in Singapore’s banking sector The operational improvements from the bank’s transformation improved the bank’s business performance significantly. The bank’s leadership knew that keeping the customer front of mind would need to be an ongoing priority.
Reference
IMD-7-2634
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Development Bank of Singapore
Industry
Finance and Insurance, Banking
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
How to shift managers’ focus from short-term profit to long-term social impact
Summary
Engaging long-term institutional investors and financial analysts can curb excesses of managerial short-termism and boost corporate social performance, argue Stephen Smulowitz, Didier Cossin, and Abraham Hongze Lu.
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What pension funds could learn from Yale
Summary
Pension funds can unlock the potential of venture capital by adapting the successful endowment model, managing risks and illiquidity for long-term growth and stability.
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Research Information & Knowledge Hub for additional information on IMD publications