CapitolOne Case Homework Questions:

1) What is Capital One’s business and who are their competitors? (lists)
a) A financial institution that do credit card offering and it highly focused on the market research and customization of credit card use and information technology as well
b) It’s competitors are other large credit card companies, like BOA and American Express

2) Per the case study, what is one of their major strategies to grow profitably and compete? (list)
a) Develop I/T as its core business
b) Offer customized credit card based on customer research and new customer testing
c) Create a model for credit card risk assessment
d) Promote through mass-mail and f social media channels
e) Carried out 45,000 tests of their credit card risk model with new customers
f) Any one in the company could propose for the test
g) Thousands of credit card package options for customers to choose

3) How do they use information to implement their strategy? What kinds of information do they use and where does it come from? (table)

Information Employed in the Capital One Credit Card Process

Sources of This Information
Customer with good credit risk
From organization’s transaction processing systems
Demographic data
Transactional information generated by the existing Capital One credit card holders
Spending and payment history
Transactional information generated by the existing Capital One credit card holders
Levels of credit risk
Customer database/Payment history add as many rows as required….

4) List and describe the information technologies used to support their strategy? (table)

IM/IT Enabling Information System
Description
transaction processing systems capture each and every customer transaction documenting: how much was spent, where and when. capture data concerning payment history decision support system brings customer data and histories together from the firms various transaction systems to create a longitudinal view of patterns of use expert system store of knowledge of customer behavior provides call center personnel and Capital One consumer Web