Javier Busquets

Orchestrating Smart Business Network dynamics for innovation

This paper proposes the concept of Orchestrating Smart Business Networks (SBN) as a managerial function that shapes structural dynamics for innovation. On the basis of commitment, as one way to exert power, and dynamic capacities, the suggested managerial function can develop a path of efficiency towards innovation by managing the SBNs structural dynamics, the network boundaries and digital platforms. The networks centripetal and centrifugal forces are used as the units of analysis, and this managerial function is then tested with empirical results obtained from a case study.

Discovery Paths: Exploring Emergence and it Evolutionary Design in Cross-Border M&As - Analysing Grupo Santander's Acquisition of Abbey (2004–2009)

In this paper, we present the notion of discovery paths stemming from our study of the M&A between Grupo Santander (GS) and Abbey (2004–2009), in which the resulting synergies after the merger were 35% better than expected. In fact, GS achieved a unique level of efficiency in 2012 in the banking industry, which we consider a sign of radical novelty. During the M&A, the GS management decided to apply its customer-centric model through the transfer of the information and communication technology (ICT) platform Partenón. This unusual decision led to the endogenisation of critical ICT functions to scale up this model to Abbey. In the paper, we argue that while some steps that lead to synergies can be planned in advance, other essential variations are only learned and discovered during the M&A process itself, thus leading to emergent synergies. In the model presented, a discovery path explains the firm’s evolution by sets of variations in the strategic interaction between the organisation and technology. These variations led to new design principles resulting from problem solving and modularity, which in turn led to (1) economies of scale and scope, (2) hybrid structures combining ICT and organisational knowledge domains that generate efficiency through fast integrations, and (3) organisational morphogenesis – that is, the creation of new organs such as ICT factories – which generates efficiency by avoiding diseconomies of scale by encapsulating the inherent complexity of technology and provides increasing returns.

Multiasistencia: transforming the digital ecosystem

Multiasistencia was an ecosystem in 2017 managing a network-based service called the “Comprehensive Claim Management Service” (CCMS). The firm offered home repair services to its 100 Corporate Clients (Financial Institutions and Insurance Companies) which attended to some 8 Million end customers, managing a network of some 6.000 Trade Professionals (SME and self-employee). The service was supported by an advanced digital platform to coordinate all actions in that ecosystem. The case shows the challenges of digitalization, namely (1) new digital entrants, (2) the Smart Home trends, (3) the digital effects on banking, and (4) the demand of personalization. Those strategic changes lead to Multiasistencia to create a Digital Hub to manage Big Data so placing students on the managerial situation to decide priorities in business model, processes, and new ways to grow.

Banco Sabadell acquires Banco CAM: leveraging a cloud computing strategy

In a deep financial crisis in Spain, Banco Sabadell won a competitive bid to acquire Banco CAM for the price of €1. The President of Banco Sabadell Josep Oliu announced at a press conference on the 8 December 2012 that BCAM, a similar size to its acquirer, must be integrated in less than 1 year. Banco Sabadell management expected €331 million in synergies from 2012 to 2014. The case focuses on Miquel Montes, the new CEO in Banco CAM, and his team; Federico Rodriguez, new Chief Operations Officer; and Carles Abarca, new Chief Information Officer. Banco Sabadell had developed a cloud computing architecture never tested before in mergers and acquisitions (M&A). Despite Sabadell management’s strong and proven experience of M&As, there were risks associated with the benefits. Students need to understand both in order to understand how to plan in such situations.

SANTANDER ACQUIRES ABBEY: THE JACK PROJECT

The case, ‘Santander Acquires Abbey: The Jack Project’, applies a general strategic management focus to an analysis of the ‘Jack Project’, the Spanish banking groups IT centric project to acquire Abbey. The case focuses on José María Fuster, chief information officer (CIO) and his perspective in leveraging IT to integrate Abbey. The following issues are explored: (1) the value of IT; (2) the generation of synergies in M&A; and (3) the prioritisation of IT-related options comparing two different realities. At the end of the case, students will examine how Partenón, Grupo Santanders core IT system, leveraged this acquisition and made an impact on the banks long-term market position.