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    Devry
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Category > Programming Posted 19 May 2017 My Price 9.00

Industrial and Commercial Bank of China (ICBC)

READ THE ENTIRE POST BEFORE EXCEPTING

DO NOT USE ANSWERS FOUND ON OTHER PAPERS HERE ON COURSE HERO

Please see the two attach files, this is for a data warehousing class. 

The file called "assignment 1" has questions related to data warehousing.
For some of the questions you will have to refer to the case study PDF file called "China Case study"

Please tell me if this is a topic and a paper you are very knowledgeable in and if you can do this.

The deadline is quite close. I will only except high-quality work and if the work is very high-quality I will give a tip

Thanks

 

Industrial and Commercial Bank of China (ICBC) Employs Models to Reconfigure Its Branch NetworkThe Industrial and Commercial Bank of China (ICBC) has more than 16,000 branches and serves over 230million individual customers and 3.6 mil- lion corporate clients. Its daily financial transactions total about$180 million. It is also the largest pub- licly traded. bank in the world in terms of market capitalization,deposit volume, and profitability. To stay competitive and increase profitability, ICBC was faced with thechallenge to quickly adapt tothe fast-paced economic growth, urbanization, and increase in personal wealthof the Chinese. Changes had to be implemented in over 300 cities with high variability in customer behaviorand financial status. Obviously, the nature of the challenges in s1,1ch ahuge economy meant that a large-scale optimization solution had to be developed to locate branches in the right places, with the right services,to serve the right customers.With their existing method, ICBC used todecide where to open new branches through a scoring model inwhich different variables with varying weight were used as inputs. Some of the variables were customerflow, number of residential house- holds, and number of competitors in the intended geographic region.This method was deficient in determining the customer distribution of a geo- graphic area. The existingmethod was also unable to optimize the distribution of bank branches in the branch network. With supportfrom IBM, a branch reconfiguration (BR) tool was developed. Inputs for the BR system were in three parts:a.Geographic data with 83 different categoriesb.Demographic and economic data with 22 dif- ferent categoriesc.Branch transactions and performance data consisted of more than 60 million transaction records each dayThese three inputs helped generate accurate customer distribution for each area and, hence, helped the bankoptimize its branch network. The BR system consisted of a market potential calculation model, a branchnetwork optimization model, and a branch site evaluation model.In the market potential model, thecustomer volume and value is measured based on input data a nd expert knowledge. For instance, expertknowledge would help determine if personal income should be weighted more than gross domesticproduct (GDP). The geographic areas are also demarcated into cells, and the preference of one cell overthe other is determined. In the branch network optimization model, mixed integer programming is usedto locate branches in candidate cells so that they cover the largest market potential areas. In the branchsite evaluation model, the value for establishing bank branches at specific locations is determined.Since 2006, the development of the BR has been improved through an iterative process. ICBC's branchreconfiguration tool has increased deposits by $21.2 billion since its inception.This increase in deposit isbecause the bank can now reach more customers with the right services by use of its optimization tool. Ina specific example; when BR was implemented in Suzhou in 2010, deposits increased to $13.67 billion froman initial levelof $7.56 billion in 2007. Hence, the BR tool assisted in an increase of deposits to the tuneof $6.11 billion between 2007 and 2010. This project was selected as a finalist in the Edelman Competition2011, which is run by INFORMS to promote actual applications of management science/operations researchmodels.What We Can Learn from This Application CaseMany organizations in the world are now embracing analytical techniques to stay competitive and achieve growth.Many organizations provide consulting solutions to the businesses in employing prescriptive analytical solutions. It isequally important to have proactive decision makers in the organizations who are aware of the changingeconomic environment as well as the advancements in the field of analytics to ensure that appropriatemodels are employed:This case shows an example of geographic market segmentation and customerbehavioral segmentation techniques to isolate the profitability of customers and employ optimizationtechniques to locate the branches that deliver high profitability in each of the geographic segment.Source:X. Wanget al. "Branch Reconfiguration Practice Through Operations Research in Industrial andCommercial Bank of China,"Interfaces,January/February'20li, Vol. 42, No.1;pp. 33--44; DOI;i0.1287/inte.1110.0614

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Status NEW Posted 19 May 2017 07:05 AM My Price 9.00

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