Session 2 - RBC Mobile Wallet
Terms tested:
- Digital Platofmr
- What is a digital platform?
- What kinds of disruptions happen for digital platforms?
A platform is a structure that enables interactions between two or more distinct groups and sets the rules by which they interact.
A digital platform is a platform that uses digital technologies to scale, automate, and govern interactions among participants.
Bitcoin counts as a digital platform.. all blockchains are
Platform Disruption refers to situations where a platform-based business model fundamentally reshapes an industry by:
- connecting multiple sides
- Leveraging network effects
- Shifting competition from products to ecosystems
- Changing value capture, governance, and control patterns — dramatically
Classic Disruption refers to situations where a new entrant introduces a simpler, more affordable, or more accessible product or service that eventually displaces established competitors.
Could a disruption be both platform and classic disruption? Yes.
Everything is innovative, but disruptive innovation is another extreme. Always make your judgement. Just like how Platform and Classic disruption is on a range.
So is Mobile Wallet disruptive innovation? I don’t think it’s even a disruption. They are innovative, but are not disruptive.
- They improve convenience, speed, and user experience, but largely build on existing payment infrastructure (same value chain)
Organized Definitions
Archive
Platform Disruption
In our Netflix–Blockbuster discussion, we examined why incumbents often miss disruptive threats. What we did not explore in depth is how multiple potential disruptors and competing technologies often emerge at the same time. In fast-changing industries, firms are not only challenged to adapt quickly—they must also choose which technological path to bet on. Picking the wrong direction can be as costly as moving too slowly.
This brings us to our second case, set in 2012, when RBC is preparing to launch a mobile payment wallet built on the industry-standard SIM-based model. Just as the bank is ready to sign with telecom partners, an internal team reveals a promising cloud-based alternative—a solution that could deliver better security and customer experience but requires RBC to break from industry norms.
The RBC case offers a powerful lens for examining how incumbents navigate emerging technologies, ecosystem pressures, and the strategic uncertainty of choosing the “right” future.
Case: RBC Mobile Wallet (9B16E008)Download RBC Mobile Wallet (9B16E008)
Now that you have read the case, consider the following case questions and bring your answers to class.
| Case Preparation Questions: 1. What is a mobile wallet, and what competing technological models exist? 2. In the mobile payment ecosystem, who holds the real power – banks, telecom carriers, payment networks, device makers, or merchants – and how might RBC shift that balance? 3. Is the mobile wallet, especially RBC Secure Cloud, a disruptive innovation? Why or why not? |