Capital One: exploiting an information-based strategy

@article{Clemons1998CapitalOE,
  title={Capital One: exploiting an information-based strategy},
  author={Eric K. Clemons and Matt E. Thatcher},
  journal={Proceedings of the Thirty-First Hawaii International Conference on System Sciences},
  year={1998},
  volume={6},
  pages={311-320 vol.6}
}
  • E. Clemons, Matt E. Thatcher
  • Published 6 January 1998
  • Business
  • Proceedings of the Thirty-First Hawaii International Conference on System Sciences
Capital One has exploited an innovative approach to targeted marketing, based on customer profitability analysis, to achieve impressive performance as a leading credit card issuer. It is sustaining its advantage through investment in infrastructure and personnel, and through constantly improving its expertise through a practice known as test-and-learn. Moreover, it is attempting to generalize this information-based strategy to other industries. 

Figures and Tables from this paper

A Retrospective on Information, Strategy, and Economics: After 20 Years at HICSS, What Have We Learned about IT and Strategy?
  • E. Clemons
  • Economics
    2007 40th Annual Hawaii International Conference on System Sciences (HICSS'07)
  • 2007
In its twenty years the mini-track on information, strategy, and economics has made considerable progress in developing theory that can serve as the basis for decision-making when managers face
Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm Performance?
TLDR
Evidence that the effect of DDD on the productivity do not appear to be due to reverse causality is found, providing some of the first large scale data on the direct connection between data-driven decision making and firm performance.
Justifying information technology investments: balancing the need for speed of action with certainty before action
  • E. Clemons, B. Gu
  • Economics, Business
    36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the
  • 2003
TLDR
This work develops a general functional form for an investment decision that permits numerical computation of the value of an investment that enables the future deployment of a strategy under a range of conditions.
Justifying Contingent Information Technology Investments: Balancing the Need for Speed of Action with Certainty Before Action
TLDR
This paper requires high levels of strategic commitment to numerous projects, while simultaneously preserving the authors' flexibility and withholding commitment, and avoids restrictions of common option valuation models by providing a technique that is general enough to be used when the data required by common models are not available or the assumptions are not satisfied.
Improving strategic flexibility with information technologies: insights for firm performance in an emerging economy
TLDR
It is theorized that firms that use IT to support core competencies will experience improved strategic flexibility, which may enhance their performance, and that state-owned firms are less likely to apply IT applications to collect and analyse market information and thus surrender opportunities for achieving strategic flexibility and stronger firm performance.
Impacts of e-Commerce and Enhanced Information Endowments on Financial Services: A Quantitative Analysis of Transparency, Differential Pricing, and Disintermediation
Some implications of e-Commerce financial services firms are becoming clear. The web drives transparency, and increases the information endowment of all market participants. It is harder to
The Power of Patterns and Pattern Recognition When Developing Information-Based Strategy
TLDR
The six most frequently observed patterns identified here are: newly vulnerable markets experience opportunistic pickoff, transparency of product attributes increases informedness, enabling resonance marketing and increasing the benefits from offering truly differentiated products and services, and network-based advantages can form the basis of platformenvelopment strategies.
Understanding the Information-Based Transformation of Strategy and Society
TLDR
In this framework, a picture of the transformation of information-based strategy in the future is painted and three determinants for the modes of their operations of consumers, producers, markets, and society are examined.
Governance of the IT Function: Valuing Agility and Quality of Training, Cooperation and Communications
TLDR
Using NK simulation modeling, a tool developed for studying dynamic behavior successfully used in strategy and evolutionary economics research, controlled parameter-by-parameter experiments of alternative governance structures suggest that under most conditions IT does matter to the performance of the firm.
Hyper-differentiation strategies: delivering value, retaining profits
  • E. Clemons, B. Gu, R. Spitler
  • Business
    36th Annual Hawaii International Conference on System Sciences, 2003. Proceedings of the
  • 2003
TLDR
Information makes it possible to track the changes in behavior, preferences, demands, and desires of your best customers and serve them with precision, accuracy, and cost-effectiveness that competitors will never be able to match.
...
...

References

SHOWING 1-4 OF 4 REFERENCES
Segmentation, Differentiation, and Flexible Pricing: Experiences with Information Technology and Segment-Tailored Strategies
TLDR
Recent experience suggests that IT may enable firms to select from more finely tuned strategic options, and that it may require them to implement multiple strategies simultaneously, which will become increasingly crucial in industries with heterogeneous customers and with costs that vary widely across customers.
Market Dominance as a Precursor of Firms ’ Underperformance : Emerging Technologies and the Advantages of New Entrants ” , Journal of Management Information Systems , Fall , 1996
    “ Capitalizing on Credit Cards ”
    • Technology in Banking : Creating Value and Destroying Profits
    • 1995