Tip: Remember that your examples need to differentiate one service from the other.

Provide one example of both a potential advantage and a possible risk to CIBC of using:

(i) Infrastructure-as-a-Service (IaaS) Advantage: Risk:

(ii) Platform-as-a-Service (PaaS) Advantage: Risk:

(iii) Software-as-a-Service (SaaS) Advantage: Risk:

The Background and the Problem Canadian Imperial Bank of Commerce (CIBC) is the fifth largest bank by total assets in Canada. CIBC (www.cibc.com) was formed on June 1, 1961 as a result of the merger of two chartered Canadian banks: Canadian Bank of Commerce (est. 1867) and the Imperial Bank of Canada (est. 1875). Despite being an old institution, CIBC has a history of embracing technology. For instance, it was the first Canadian bank to introduce a 24-hour cash dispenser in 1969 and the first to offer automated telephone banking in 1992. In addition, CIBC was the first among the five large Canadian banks to introduce an app for mobile barking and to offer e Deposit. In early 2010, CIBC realized that to be successful in the financial services industry, it needs to up its digital innovation even further. The industry was, and still is, facing numerous threats from startups and established players like Apple and Google that are luring away customers from traditional banks by providing more convenient payment and banking options. Such options are especially appealing to millennials, 71 percent of whom would rather go to the dentist than to hear from their bank and 33 percent believe that in five years they will not need a bank. In fact, 73 percent of millennials are more excited about a financial product from companies like Google Inc. and PayPal IIoldings Inc. and a third are open to switching banks in the next 90 days. Digital Solutions To address the concerns and to enable nimble responses to the technologically evolving environment, CIBC decided to undergo a digital transformation. So, unlike the common practice in many banks, CIBC did not want to run the digital channel as only one service channel alongside branches, ATMs, and telephone banking. However, maintaining a high level of digital engagement requires continuous innovation. Although such inning not new to CIBC, the bank knew that it needed a dedicated effort to succeed in the digital channel. One project that had a particularly positive impact on CIBC's endeavour to attain digital transformation was Live Labs. Located in Toronto's MaRS Discovery District, CIBC Live Labs, an innovation and digital technology centre, strives to build, test, and launch digital solutions to enhance customers' experience. Some of their must successful solutions released to date are: Apple watch banking app: CIBC was the first Canadian bank to launch a mobile banking Apple Watch App that enables customers to check their balance and transactions, transfer funds between accounts, locate a CIBC branch or ATM, etc. CIBC Hello Home: This is a new iOS app that makes mortgage applications easier and more convenient. The app allows users to apply, negotiate, track, and receive approval of their mortgage from their iPhone. Natural language voice search for mobile banking: This is an in-app voice command that allows users of the CIBC mobile banking app to access various features and to explore products with a simple voice prompt. For instance, if a user says "send money," a list of options, such as e-transfers, is presented. Results CIBC's efforts did not go unnoticed. In 2016, CIBC earned the highest overall score in the Forrester Research Canadian mobile functionality benchmark. According to the Forrester Research report, CIBC stands out by supporting diverse mobile touch-points and excelling at marketing and sales with features such as pre-approved offers and pre-filled applications in the mobile app. Subsequently, in March 2017, CIBC was recognized as the leader in mobile banking services and experience in Canada by Surviscor. Surviscor is a North American firm specializing in the analysis and ranking of Canadian digital customer experiences provided by service firms. CIBC also won the prestigious award of IT World Canada Digital Transformation in 2017 mainly as a result of its launch of CIBC Live Labs. In terms of return on investment (ROI), before embarking on its digital transformation, CIBC's sales from its digital channels made up 2 percent or less of its revenue. This number increased to 12 percent in three years after the bank engaged in digital transformation. The bank also saw a growth in digital transactions to 85 percent of day-to-day banking. In addition, CIBC's sales of digital products and services increased from 250,000 units in 2014 to 1.1 million units in 2017. Sources: Compiled from "Inside CIBC's Award-Winning Digital Transformation Strategy, * CIBC Online Banking, April 17, 2019; The Economist Intelligence Unit, 2019: The Year of Digital Decisions," The Economist, 2019: "CIBC Innovation Bariking Lilunches lo Serve North American Companies," PRNewswire, January 8, 2018; E. Wood, "CHECO Targets Tech-Savvy Businesses with New Innovation Banking Arm." IT'Business.ca, January 8, 2018; "Relail Banking Vulnerability Study," , 2018; J. Horn, "CTBC, Then and Now." Strategy, September 22, 2017; D. Bradbury, "CTBC Takes Digital Transformation to the Bank;" IT World Canada, June 14, 2017; "Excellence in Digital Transformation Recognized, " ITBusiness.ca, June 14, 2017; E. Wond, "Live Labs Illustrates CIBC's Commitment to Digital Transformation," ITBusiness.ca, May 11, 2017, J. Mamous, "Is This the Most Innovative Digital Bank in North America? The Financial Brand, April 7, 2017: "How CIBC Is Winning the Mobile Banking Competition," Future Digital Finance, 2017; J. Castaldo, "CIBC CEO Victor Dodig on Banking's Tech Revolution, Canadian Business, January 14, 2016; "There's No Slowing Down Millennials-Capitalizing on a Crowing and Influcntial Concretion," First Data, 2016; C. Pellcgrini, "How One of Canuda's Oldest Banks Is Acting Like a Young Tech Company: 'We're Becoming Coolcr,** Financial Post, August 21, 2015