LoBue: Real Resources: Success Story: E-Commerce

SUCCESS STORY: E-COMMERCE

CLIENT:	Consumer Credit Corporation of Major National Bank
DIVISION:	E-commerce
CONTACT:	President
MAJOR FUNCTIONS:	Internet Auto Finance and Lease

SITUATION
The client asked LoBue to assist in the development of an E-commerce auto financing capability on a new consumer auto web site. They needed assistance in the design of a financing processing center and information regarding the requirements and costs associated with its implementation.

LoBue was asked to:

Develop recommended processes and supporting systems to create an E-commerce fulfillment center.
Analyze the company's legacy systems structure, compare it against a proposed system, and develop a map that could be utilized to implement the integrated technology. This map would also be utilized to estimate costs associated with these requirements.
Develop a cost benefit analysis to compare current bank operations utilized during the development of this on line product, and the proposed costs associated with the fully operational processing center.
Develop a detailed project plan encompassing both technology development and full center implementation.

The business environment was one of urgency, due to the unique challenges in designing a financing operation in an E-commerce environment compared to the bank's more traditional auto financing process:

Response needs to be almost instantaneous.
Need to be able to function in a totally remote mode, with no physical contact.
Need alternate means of documentation.
Requires seamless coordination with the auto and ancillary sales functions.

The client also looked to LoBue to supply the necessary information to develop the request for funding from the parent bank. In addition to the financial benefits of the proposed project, the presentation showed the importance and critical timing issues essential to the success of the processing center and the E-commerce venture.

LOBUE RECOMMENDATIONS
Recommendations included consolidation of like job functions, the elimination of job functions that could be replaced by the utilization of electronic communication tools, and efficiencies created by the implementation of enhanced technology. The effect of the project recommendations was the creation of an E-commerce specialist who could perform multiple tasks previously spread across multiple jobs.

REAL RESULTS
In addition to recommended cost savings in excess of $15 million annually, the project resulted in the development of a complete project plan, including a technology map, that allowed the client to deliver a detailed proposal, including estimated costs and timing required for completion, to the head of its division.