tag:blogger.com,1999:blog-79039493155975698352024-02-20T14:49:17.949+01:00The maven's circleA maven (also mavin or mayvin) is an expert in a particular field, usually one who is self-appointed and who seeks to pass his knowledge on to others.roberto dadda e lucio vollarohttp://www.blogger.com/profile/17582142277913206164noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-7903949315597569835.post-30856806145347587592007-08-24T16:43:00.000+01:002010-08-16T07:12:53.644+01:00 <P CLASS="western" STYLE="margin-bottom: 0in"><FONT FACE="Arial, sans-serif"><FONT COLOR="#000000"><B><FONT SIZE=4 STYLE="font-size: 13pt">Digitally Deficient CMOs Need Not Apply</FONT></B><FONT SIZE=2><BR><BR>August 24, 2007 <BR></FONT></FONT><FONT COLOR="#0000ff">How to Ramp Up Your Online Smarts Fast</FONT><FONT SIZE=2><FONT COLOR="#000000"><BR><BR>With digital media and marketing budgets growing at a compound rate of more than 20% annually, what steps are you taking as a CMO to build and develop your personal brand in an increasingly digital and integrated world? <BR><BR>We are seeing that a surprisingly high percentage of CMOs are not compatible with the fast-arriving digital-marketing world, and this may explain the short average tenure that makes this the highest-risk C-level position. <BR><BR>In many instances, CMOs lack the professional experience to integrate the digital channel and new media with traditional off-line media and marketing strategies. They often don't have the direct marketing, analytic/segmentation and customer-relationship-management-consultative skills to lead integrated media and marketing programs, combining general advertising, branding, direct, promotion, PR and digital elements. <BR><BR>So what does this mean to your personal brand, if you are a CMO looking to the future? <BR><BR><B>Here are the top five things you need to do now:</B> </FONT></FONT></FONT> </P> <OL> <LI><P CLASS="western" STYLE="margin-top: 0.19in; margin-bottom: 0in"> <FONT FACE="Arial, sans-serif"><FONT SIZE=2>Immerse yourself in direct marketing, CRM and database/analytics, so you can manage your personal transition from a mass marketer to a one-to-one marketer.</FONT></FONT></P> <LI><P CLASS="western" STYLE="margin-bottom: 0in"><FONT FACE="Arial, sans-serif"><FONT SIZE=2>Immerse yourself in the internet and understand best practices in website design, e-mail marketing and e-commerce (online sales and lead generation), both within your industry sector and in other sectors. </FONT></FONT> </P> <LI><P CLASS="western" STYLE="margin-bottom: 0in"><FONT FACE="Arial, sans-serif"><FONT SIZE=2>Learn everything about new media, including search-engine marketing and optimization tools, because these are becoming drivers of future integrated-marketing and media efforts. </FONT></FONT> </P> <LI><P CLASS="western" STYLE="margin-bottom: 0in"><FONT FACE="Arial, sans-serif"><FONT SIZE=2>Do a deep dive in mobile marketing -- the iPhone and other mobile devices are the future communication hubs for receiving just-in-time communications and incentives -- at the point of sale. The mobile phone is also rapidly becoming a payment system where funds can be automatically transferred at the point of sale. </FONT></FONT> </P> <LI><P CLASS="western" STYLE="margin-bottom: 0.19in"><FONT FACE="Arial, sans-serif"><FONT SIZE=2>Hire people at the VP levels and below with different skill sets -- for example, more engineers with Ph.D.s -- people who understand the numbers, who focus on ROI. In other words, surround yourself with VPs who have the relevant skills in database/analytics, online marketing/new media or e-commerce that you may be lacking. Then learn from them.</FONT></FONT></P> </OL> <P CLASS="western" STYLE="margin-bottom: 0in">We are moving toward a marketing world that is driven by a direct-marketing opt-in, predictive modeling and tracking approach. Marketing in the future will not be about the masses but about understanding micro-segments of customers and using tools that enable marketing to get more granular and take campaigns to a one-to-one level. <BR><BR>We are living through the death of traditional brand management. Consumers are taking away less from brand advertising and more from customer experience. What this means is that marketing, advertising and communication processes are changing quickly and CMOs need to change their core competencies quickly to remain relevant in the digital world. <BR><BR>Unlike marketing campaigns that take six months to develop and then remain in the marketplace for a long period, integrated marketing campaigns are being created in less than half the time, and in many instances, the online elements are being changed and optimized in real time. The ability of a CMO to think on her feet, and react quickly and nimbly, has never been more apparent or more important. <BR><BR><BR> </P> <P CLASS="western" STYLE="margin-bottom: 0in"><BR> </P> Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-58978589837465359232007-06-25T07:44:00.001+01:002007-06-25T07:44:31.009+01:00<H3 CLASS=entry-header> Banking Business goes back to the Branch Offices </H3> <DIV CLASS=entry-content> <DIV CLASS=entry-body> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Reading an interesting interview to the Barclays Bank's CEO - John Varley - about "Banking Business goes back to the Branch Offices" I would like to draw some considerations.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Mr John Varley was saying:</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Clients want services from the Branches AND the Internet AND the Telephone, non services from the Branches OR the Internet OR the Telephone. Clients should be free to choose to do banking operations at 2:00am in his home from his PC or at 10:00am in the Branch. It is not possible to think only to “cost cutting”, we have to go towards the Clients’ needs.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Therefore if the <STRONG STYLE="">New</STRONG> Banking Business Model is “Client-centric”, as Mr John Varley was suggesting, with the main target to increase “market” penetration getting <STRONG STYLE="">new</STRONG> Clients, there is the need for “a more effective retail model & transformation of branches” and the Banking Information Systems have to be re-designed.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">In fact existing Banking Information Systems were <EM STYLE="">“technology driven”</EM> and designed to support the <STRONG STYLE=""><EM STYLE="">Old</EM></STRONG><EM STYLE=""> </EM>Banking Business Model that was “Product-centric”, focused to<SPAN STYLE=""> </SPAN>“cost cutting”,<SPAN STYLE=""> </SPAN>non taking risks, and increasing revenue, via cross selling, on the existing Clients.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The new Banking Information Systems will be designed placing the Client’s needs at the centre instead of putting at the centre the Clients’ operations needs (technical forms).</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Many information about the Client in the Old Banking Information System were hidden in the procedures and not in a unique Customer File.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">So the in the <STRONG STYLE="">New</STRONG> Banking Information System the Customer Information File will contain whatever it is conceivable about the Client:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Client’s risk profile,</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Problems the Client had working with the Bank, and how and when the Bank has solved those issues</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Client’s claims</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Client’s profitability (gross and net) </SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Basel 2 it is not only a matter of reporting to ECB information about the Bank’s capital allocation, but a guide for the Bank to re-orient its activities toward a less risky category of Clientele.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Based on the <STRONG STYLE="">New</STRONG> Banking Business Model, aimed at creating a competitive edge for a Retail Bank, the <STRONG STYLE="">values</STRONG> <STRONG STYLE="">disciplines</STRONG> are:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=square> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN FACE="Times New Roman"><EM STYLE=""><SPAN LANG=EN-GB>Product leadership</SPAN></EM><SPAN LANG=EN-GB>: offering superior innovation, image, and performance in their market</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN FACE="Times New Roman"><EM STYLE=""><SPAN LANG=EN-GB>Customer intimacy: </SPAN></EM><SPAN LANG=EN-GB>offering expert advice and customization along with products and services to ensure the customer’s success</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN FACE="Times New Roman"><EM STYLE=""><SPAN LANG=EN-GB>Operational excellence:</SPAN></EM><SPAN LANG=EN-GB> offering the best combination of low price, reliability, and ease of purchase in their markets.</SPAN></SPAN> </LI> </UL> <P> <SPAN LANG=EN-GB STYLE="FONT-SIZE:12pt;FONT-FAMILY:'Times New Roman'"><BR CLEAR=all STYLE=page-break-before:always> </SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">And the <STRONG STYLE="">New</STRONG> Banking Information Systems areas:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN FACE="Times New Roman"><U><SPAN LANG=EN-GB>Multi-channel</SPAN></U><SPAN LANG=EN-GB>: where “n” information could be delivered to Clients in “n” ways</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN FACE="Times New Roman"><U><SPAN LANG=EN-GB>Business Intelligence</SPAN></U><SPAN LANG=EN-GB>: Intelligence of all information about:</SPAN></SPAN> <UL STYLE=MARGIN-TOP:0cm TYPE=circle> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Client both internal and external </SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">a periodic Customers Survey</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">a periodic Employees Survey</SPAN></SPAN> </LI> </UL> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN FACE="Times New Roman"><U><SPAN LANG=EN-GB>Risk Model</SPAN></U><SPAN LANG=EN-GB>: create information to manage the risks (market, credit, and operational) to all levels from when the Client opens his account, and through all his transactional life in the Bank</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Hoping that these considerations are of any interest I am waiting to share ideas about the <STRONG STYLE="">New</STRONG> way of doing Retail Banking facilitated by the new technologies and by the emerging solutions.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <P> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Lucio Vollaro</SPAN></SPAN> </P> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> </DIV> </DIV>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-74026554693280529292007-06-25T07:44:00.000+01:002007-06-25T07:44:03.612+01:00<H3 class=entry-header>Large European Retail Banks are concentrating their TLC infrastructure</H3> <DIV class=entry-content> <DIV class=entry-body> <P>During the month of May I've visited many European Large Retail Banks and I've gathered that there is a common strategy of centralizing TLC shared services.</P> <P>I've noticed that successful European Large Retail Banks are investing in:</P> <OL> <LI><STRONG>Product leadership: </STRONG>creating many standard, high quality, global products, with a very short time-to-market to surprise and win competitors <LI><STRONG>Customer intimacy: </STRONG>customer insight, product knowledge, sales focus, facilities <LI><STRONG>Operational excellence: </STRONG>offering the best combination of low price, reliability, and ease of purchase in their market</LI></OL> <P>Therefore the objectives of Shared Services centralizations are:</P> <OL> <LI>TLC cost reduction: global contract with a supplier to reduce costs <LI>Productivity increase: build TLC infrastructures that allow Large Banks to operate better and cheaper <LI>Business development: to create innovative products utilizing the new TLC technologies</LI></OL> <P>Moreover the "sourcing" strategy becomes a "core competency" for the European Large Banks, in fact:</P> <OL> <LI>Sourcing is not just a function through moving from category purchases to managed services <LI>Focused Supplier Model approach - work with world class providers of scale managed services <LI>Significant investment in supplier relationship management as majority of spend and key services are in long term relationships</LI></OL> <P>Partnerships with TLC suppliers is based on Governing shared services for <STRONG>Value</STRONG> that is:</P> <OL> <LI>Focus the Retail Bank's Business Units on: Customers and External Markets and Profit <LI>Focus the Shared Services on: Optimizing supply to meet demand and "best in class" sourcing strategy</LI></OL> <P>In summary my findings are:</P> <OL> <LI>CIOs are not a key factor for development anymore, Banking Business Leader are! <LI>TLC should be run as a business <LI>"Cross-pollination is the "key"- get <U>Business people</U> into Technology AND <U>Technology people</U> into the Business</LI></OL> <P>Measurement for a successful Shared Services Organization is to be recognised as a "value added" partner - to the Business"</P> <P>Any idea and comment is welcomed.</P> <P>Lucio Vollaro</P></DIV></DIV>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-89861832077114619812007-06-25T07:43:00.000+01:002007-06-25T07:43:30.226+01:00<DIV CLASS=entry-body> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN STYLE=FONT-SIZE:1.4em><STRONG><FONT SIZE=5>Making VoIP/Broad Band Matter:</FONT></STRONG></SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN STYLE=FONT-SIZE:1.4em><STRONG><FONT SIZE=5>Defining & Delivering Business Value</FONT></STRONG></SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <FONT SIZE=5></FONT><SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"><FONT SIZE=5></FONT></SPAN> </P> </SPAN> <P> <FONT SIZE=5></FONT> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Last week I’ve met a Large Italian Banking Group’s CIO and discussed about TLC’s<SPAN STYLE=""> </SPAN>Operations’ (Automation and Management) implications since the Bank fully migrated into VoIP and Broad Band.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">This discussion was about key issues for the Bank, and – between the lines-the evolving role of its TLC department in the future.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">The theme of the discussion was TLC infrastructure redesign, in fact:</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Production centres’ (data centres, server farms) operations, infrastructure duplication logic have to be re-architected</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Communication logic between Production Centres have to be re-thought</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Way of Integration<SPAN STYLE=""> </SPAN>re-defined</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">TLC are becoming more and a more a neuralgic element for the Bank’s information system: the problematic that before were distributed in the periphery of the Bank (branch offices), now are centralized.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Therefore there is a need to create a robust TLC architecture.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">TLC are becoming dominant and they need a platform to control and manage the services delivered to the Bank.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">But in the discussion came out clear that the Bank needs a TLC Business Partner for the big task of redesigning its TLC architecture, and help the Banks’ TLC Operations in the automation and management of its activities.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">The key value for Bank is to be able to de-couple its TLC infrastructure from its TLC services delivered to the Bank.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Two nagging questions kept repeating in this discussion:</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">1. What is the “Governance” role for the Bank’s TLC department</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">2. What is the “House keeping” role for the Bank’s TLC Business Partner?</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Let’s probe both these questions</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">The “Governance” role of the Bank’s TLC department</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">So how important, really, is to keep a strong TLC “governance” in the Bank?</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">In a word: Very.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Here there are two evidences from the IDC world. </SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">First, from IDC Europe’s 2005 ICT Forum in Paris where Frank Gens, IDC Senior VP Research, in his speech was saying that “success of a Leading Bank’s Business Strategy fully relies in its automation & execution” capability. <A HREF=http://blogs.idc.com/ie/?p=56>See IDC eXchange blog</A>.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">A second indicator is the Governance definition given at the IDC Italy’s Innovation Forum. </SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <BLOCKQUOTE DIR=ltr> <P CLASS=MsoPlainText DIR=ltr STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Governance is the Bank’s TLC organization capability to execute the Bank’s strategy communicating to the Bank’s TLC Business Partner: </SPAN></SPAN><SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">provisioning needs and verifying relevant SLAs.</SPAN></SPAN> </P> </BLOCKQUOTE> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">The Bank’s TLC department should then link TLC value to “metrics” that “matter” to the Bank Business Leaders like:</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Human Capital: employee churn rate; time-to-productivity</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Customer Care: customer retention, after-sale revenue</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Performance Management: customer satisfaction, employees satisfaction, productivity, growth & innovation, financial results</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Branch Operations: Sales/m2 </SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Sales&Marketing: Sales productivity, channel profitability, promotion effectiveness</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Innovation: product “hit” rate, development cycle</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Production: product quality, product variability</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Supply Chain: perfect order rate, inventory level</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Financial Management: cash-to-cash cycle, working capital</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Risk Management: operation risks, market risks, credit risks</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Compliance: Sarbanes-Oxley, IT control efficacy</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">So that they can talk to the Bank’s Business Leaders and CEOs in term of TLC services that “matter” to them.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">The “House keeping” role of the Bank’s TLC Business Partner</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">From what said earlier, we can also affirm that the success of a Leading Bank’s TLC Operations fully relies on its “automation & management” capability.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">The Bank cannot do and manage this change alone, it needs a solid TLC Business Partner able to accompany the Bank into this process of de-coupling TLC infrastructure from the services so that the management of the TLC environment could become more feasible.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Therefore the Bank’s TLC Business Partner should be capable to:</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Evolve its Role: from supplier (of hw/sw, maintenance & installation services) to TLC Business Partner. The TLC Business Partner should develop better Account Management skills to create/develop/cultivate a solid and profitable relationship with the customer; offer insights about “best practices”; develop infrastructure solutions to present to customer to help him in its decision process. TLC Business Partner should be able to create a Program Management Office that allows the management of Third Party players (even if they are their competitor).</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">* Address its Investments: to be able to buy customer (hw/sw) assets, develop an infrastructure service where knowledge of all applications affecting information (Information Lifecycle Management: a Bank’s asset) are managed by a small team that could provide useful information to the customer in the area of application development as well as opportunity for rationalization.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">So how important, really, is TLC Business Partner’s “house keeping” role to the Bank?</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">In a word: Very.</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Courier New">Something to say?</SPAN></SPAN> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoPlainText STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""> <P> <SPAN FACE="Courier New"></SPAN> </P> </SPAN> <P> </P> </DIV>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-49450954624684823492007-06-25T07:42:00.000+01:002007-06-25T07:42:04.940+01:00<DIV CLASS=entry> <H3 CLASS=entry-header> ICT for Little Giants </H3> <DIV CLASS=entry-content> <DIV CLASS=entry-body> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman"><STRONG><SPAN STYLE=FONT-SIZE:1.2em><U><FONT SIZE=5>ICT Technology for "Little Giants</FONT></U></SPAN></STRONG></SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman"><STRONG><U><FONT SIZE=5></FONT></U></STRONG></SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Nowhere is the consolidation of the banking industry more evident than in the cash management sector – more corporates are operating globally so they need global cash management solutions – in terms of the global market, there are four dominant players (JP Morgan, HSBC, Citigroup, and Deutsche Bank). There are also a number of mainly European and US players that still harbour the ambitions of joining this "VIP magic circle" (Abn Amro, Bank of America, and BNP Paribas) – the banks that lie outside of the magic VIP circle:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <UL STYLE=MARGIN-TOP:0cm TYPE=circle> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Some banks will maintain global ambitions</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The other banks, the Little Giants, will just concentrate on having a regional/niche focus. The sub-contracting play is an increasingly prevalent one that benefits the small regional players<SPAN STYLE=""> </SPAN>that no longer have the shoulder the expense of either creating or maintaining<SPAN STYLE=""> </SPAN>the technology to keep up with demand and regulatory compliance. They will also no longer have to battle against these behemoths when competing for business in their local market. These global banks are quite "superficial" thet think in term of "products", in many countries the regional banks think in term of "relationship with the Territory" and to become Little Giants they will probably have to learn to work with the big banks on a distributor basis.</SPAN></SPAN> </LI> </UL> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Technology’s little giants</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">If economies of scale were always available, then IBM would have dominated over Microsoft. However, Bill Gates recognised that integrated circuits had, at any given technology level, some very real diseconomies of scale. Technologies have optimal operating ranges. Up to certain limits they work extremely well and cost effectively. Beyond those limits, it takes ever-increasing amounts of energy and cost to achieve a further unit of output. The success of the minicomputer and desktop PCs followed from this fact. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">In reality we have many different technologies and when we combine them we have many different optimal operating ranges where we can achieve effective competitive advantage. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Smaller banks can compete effectively with giants by recognising that their problems being smaller can often be solved more cost effectively using smart technology. The Skipton Building Society moved its banking systems to Microsoft Wintel platforms and achieved technology unit costs much lower than its larger rivals still using IBM mainframes. Similarly some banks are moving onto Unix and Linux and achieving real advantages over traditional technologies. There are limits for effective Unix and Linux deployment. These limits are rising and may soon be able to address even the largest scale problems, but in recent years, smaller banks have been able to do some things at lower price points than their larger competitors because the large dwarves had a large scale, complex problem and extremely narrow margins, while the small giants had problems that were well within the optimal operating ranges of current technology. I believe that the Banca Popolare di Milano is a good example of this, which has innovated with Linux more rapidly than other larger banks, just as the Banca Populare di Bergamo (now part of BPU) did 10 years earlier with Unix and Oracle. It is a pity Rondelli did not mention them.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">While I agree that technology will continue to drive economies of scale and outsourcing in general, smart sourcing with smart technology is the way forward: some in house, some outsourcing with different players, and always with the optimal technologies to achieve the best price performance. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Virtual Value Chains</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Another important dynamic is the virtualization of the value chain. We are moving here way beyond the simple division of the world into suppliers and distributors into the multi-dimensional world of cyberspace, where commerce travels on the information highway. We can find opportunities for aggregation along the entire value chain. Technology means we can link up these suppliers into a distributed value chain of networked, white label suppliers and still give a coherent, unified brand image at the end of it. Like the Microsoft Windows interface, it is quite easy to understand and use, but quite complex to construct behind the scenes.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Portfolio management, custody, securitization and stock lending can all be split off from asset management and provided by separate entities. Trade routing and order management can be separated from brokerage, as can research and market data. Risk management, collections and even product processing itself can be split off from a mortgage business or credit cards. This has created enormous opportunities for local giants to gain niche market advantage in particular value chain steps. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Moreover the virtual value chain extends to the virtual customer. Instead of selling to private individuals, banks need to think about selling to friends and family or to role categories and affinity groups, with customer incentives to promote cross selling. Banks need to personalize products for children, single parents, pensioners/ grandparents, twinkies (two incomes, no kids), yuppies (young, upwardly mobile professionals), farmers, lawyers, doctors, even peripatetic politicians, etc. In the corporate world, the virtual customer is the whole supply chain or the vertical market sector, and both should be targeted, especially in the SME world. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">By reconfiguring the value chain, aggregating key steps, exploiting smart technology sourcing, targeting virtual customer communities and leveraging their community assets, while exploiting their own market knowledge to the full, small, agile players can gain real competitive advantage</SPAN><A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html#_ftn1 NAME=_ftnref1 STYLE=""><SPAN CLASS=MsoFootnoteReference><SPAN STYLE=""><SPAN CLASS=MsoFootnoteReference><SPAN LANG=EN-GB STYLE="FONT-SIZE:12pt;FONT-FAMILY:'Times New Roman'"><FONT COLOR=#800080>[1]</FONT></SPAN></SPAN></SPAN></SPAN></A><SPAN FACE="Times New Roman"> in the new economy. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Economics of Knowledge</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">In a world of rapid change, the real challenge is not technology but how to manage knowledge and digital assets, including intellectual property. Building on market insight into old risks and new opportunities, promoting rapid technology transfer and time to market, patenting and exploiting intellectual property, leveraging the knowledge of aggregation and customer access, these are all examples of knowledge management. While technology is often described as the driver, the underlying economics are often really driven by the cost of mobilizing and delivering knowledge. Since knowledge is usually represented as information, technology is the infrastructure for the associated processing and delivery. However, if we focus too much on technology and not enough on knowledge then we will miss a fascinating piece of the action. Building new value chains is really about knowledge engineering. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">We can say that information is data structured to answer a question and that knowledge is information being applied to solve a human problem. Usually that knowledge is in people’s heads when they take decisions. However, it can also be seen to be present in computer systems. The systems know where to go and what to do next. Unfortunately, in the past most of this knowledge was “embedded in the code” and quite fixed. It was implicit in the software programs and not held as data, which is more accessible, and thus can be shared and processed. Now, modern business process management systems are starting to embody all of the process rules in data tables, where they can be used both to drive the software and to help solve other problems, including error diagnosis and recovery, operational risk management, optimal costing, best execution decisions, etc.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">When Rondelli talks about the cultural revolution of the Hausbank, he is tackling one set of knowledge management problems. When some banks chose Microsoft for their core-banking platform, they did so because they realised that ease of programming and the wealth of low cost skills, read “knowledge”, in the market place would all impact on time to market, which had real value. When the EU issues directives like Basel II and MiFID, which require banks to know their customers and build risk or best execution models with market data to justify their actions, they are forcing banks to publish and record their corporate knowledge. These are all prime knowledge management issues. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Globalization and Multi-channel Mobility</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Finally, while Rondelli mentions globalization in the context of bank consolidation, outsourcing and SME competition, he does not highlight one immediate and significant impact, the need for multi-channel mobility for companies and private clients. Multinational corporations have long had to deal with this, but relied often on fixed line telecommunications to established offices. For SMEs mobility is also becoming important, but the infrastructure is just not there. Portable mobility solutions are now becoming increasingly important in this sector as well. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The Italian SME market place used to depend on local knowledge for their supply chains and regional or global knowledge via marketing intermediaries for their distribution. Physical presence and personal contacts were critical. Now, small companies need a much broader range of knowledge in order to survive: technology knowledge, product knowledge, financial knowledge, supply-chain knowledge, distribution chain knowledge, risk management etc. Moreover, the SME entrepreneurs are having personally to travel more, doing deals and adapting to more complex <EM>virtual</EM> supply chains.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Banks can intermediate in these value chains in many new ways: electronic billing, micro payments, output factoring, treasury and payment management, financial value chain support etc. They can design once-off derivative or structured finance products to meet the specific risk hedging needs of particular projects. They can even manage the accounting and payments between clusters of SMEs working together in these value chains, reducing SME costs, speeding up the velocity of money and providing intermediation to the rich world of global finance. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">However, most importantly banks need to provide their own sales staff and their SME clients with mobility solutions that allow them to build up e-trust and manage their affairs on the hoof.<SPAN STYLE=""> </SPAN>SMEs have limited connectivity to the outside world because of their size. Nevertheless, they still need to be able to manage the business while travelling and optimize the use of every trip. They also need to leverage their distributed supply chains for the knowledge and global contacts they represent. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Therefore, multi-channel access to their banks and mobility support will be key success factors for the new Hausbanken. While the biggest players will probably want to build their own multi-channel solutions, smaller players with fewer challenges of scale, should be able to maintain cost performance parity through smart sourcing. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> </P> </STRONG> <P> </P> <P> <STRONG></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Extending the Rondelli Argument</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">In summary, we can extend the Rondelli thesis for smaller banks as follows:</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <TABLE BORDER=1 CELLPADDING=0 CELLSPACING=0 CLASS=MsoNormalTable STYLE="BORDER-RIGHT:medium none;BORDER-TOP:medium none;BORDER-LEFT:medium none;BORDER-BOTTOM:medium none;border-collapse:collapse"> <TBODY> <TR STYLE=HEIGHT:14.75pt> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;BORDER-TOP:navy 1pt solid;PADDING-LEFT:5.4pt;BACKGROUND:navy;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;HEIGHT:14.75pt" VALIGN=top WIDTH=149> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=COLOR:white><SPAN FACE="Times New Roman">Small Bank</SPAN></SPAN></STRONG> </P> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=COLOR:white><SPAN FACE="Times New Roman">Strategic Focus</SPAN></SPAN></STRONG> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;BORDER-TOP:navy 1pt solid;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;BACKGROUND:navy;PADDING-BOTTOM:0cm;WIDTH:169.15pt;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;HEIGHT:14.75pt" VALIGN=top WIDTH=226> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=COLOR:white><SPAN FACE="Times New Roman">Key Driver</SPAN></SPAN></STRONG> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;BORDER-TOP:navy 1pt solid;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;BACKGROUND:navy;PADDING-BOTTOM:0cm;WIDTH:161.9pt;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;HEIGHT:14.75pt" VALIGN=top WIDTH=216> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=COLOR:white><SPAN FACE="Times New Roman">Key Differentiator</SPAN></SPAN></STRONG> </P> </TD> </TR> <TR STYLE=""> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=149> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Production</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:169.15pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=226> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Industrialization & Virtual Value Chains:<SPAN STYLE=""> </SPAN>greater emphasis on third party products and outsourcing</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:161.9pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=216> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Smart Sourcing & Technology</SPAN></SPAN> </P> </TD> </TR> <TR STYLE=""> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=149> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Distribution</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:169.15pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=226> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Supermarket- One stop shop and Virtual Customers</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:161.9pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=216> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Knowledge Management and Multi-channel Mobility</SPAN></SPAN> </P> </TD> </TR> <TR STYLE=""> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=149> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Value Proposition</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:169.15pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=226> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Customer Intimacy and SME Hausbank Relationships with mainly a Retail Focus</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:161.9pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=216> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Market insight and agility</SPAN></SPAN> </P> </TD> </TR> </TBODY> </TABLE> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">For larger banks the thesis becomes:</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <TABLE BORDER=1 CELLPADDING=0 CELLSPACING=0 CLASS=MsoNormalTable STYLE="BORDER-RIGHT:medium none;BORDER-TOP:medium none;BORDER-LEFT:medium none;BORDER-BOTTOM:medium none;border-collapse:collapse"> <TBODY> <TR STYLE=HEIGHT:14.75pt> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;BORDER-TOP:navy 1pt solid;PADDING-LEFT:5.4pt;BACKGROUND:navy;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;HEIGHT:14.75pt" VALIGN=top WIDTH=149> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=COLOR:white><SPAN FACE="Times New Roman">Large Bank Strategic Focus</SPAN></SPAN></STRONG> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;BORDER-TOP:navy 1pt solid;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;BACKGROUND:navy;PADDING-BOTTOM:0cm;WIDTH:169.15pt;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;HEIGHT:14.75pt" VALIGN=top WIDTH=226> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=COLOR:white><SPAN FACE="Times New Roman">Key Driver</SPAN></SPAN></STRONG> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;BORDER-TOP:navy 1pt solid;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;BACKGROUND:navy;PADDING-BOTTOM:0cm;WIDTH:161.9pt;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;HEIGHT:14.75pt" VALIGN=top WIDTH=216> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=COLOR:white><SPAN FACE="Times New Roman">Key Differentiator</SPAN></SPAN></STRONG> </P> </TD> </TR> <TR STYLE=""> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=149> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Production</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:169.15pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=226> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Industrialization & Virtual Value Chains: greater emphasis on insourcing</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:161.9pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=216> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Smart Sourcing & Technology, Knowledge Management</SPAN></SPAN> </P> </TD> </TR> <TR STYLE=""> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=149> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Distribution</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:169.15pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=226> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Supermarket- One stop shop,</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Third party partnerships and Virtual Customers</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:161.9pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=216> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Knowledge Management and Multi-channel Mobility</SPAN></SPAN> </P> </TD> </TR> <TR STYLE=""> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;PADDING-BOTTOM:0cm;BORDER-LEFT:navy 1pt solid;WIDTH:111.75pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=149> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Value Proposition</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:169.15pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=226> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Operational efficiency, Product Leadership/ Innovation with a mixed Retail/ Corporate/ Institutional focus</SPAN></SPAN> </P> </TD> <TD STYLE="BORDER-RIGHT:navy 1pt solid;PADDING-RIGHT:5.4pt;PADDING-LEFT:5.4pt;border-left-COLOR:#ece9d8;PADDING-BOTTOM:0cm;WIDTH:161.9pt;border-top-COLOR:#ece9d8;PADDING-TOP:0cm;BORDER-BOTTOM:navy 1pt solid;BACKGROUND-COLOR:transparent" VALIGN=top WIDTH=216> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Market insight with global reach</SPAN></SPAN> </P> </TD> </TR> </TBODY> </TABLE> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">This gives a much broader view of both the challenges and opportunities facing the various contenders. Naturally there are many more issues than these, but I think it gives a good framework for strategy development. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Conclusion</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Rondelli addressed many interesting issues in his talk. However, he also raised a number of questions. Adaptation to one’s environment is key. Enormous change is taking place. Banks will need to have a rich and deep understanding of their place in the world in order to compete successfully. In this paper I have tried to illustrate a few more factors that they should take into account, in order to build a strategic framework that can meet the rapidly changing needs of banks large and small in the 21<SUP>st</SUP> century. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB></SPAN> <DIV STYLE=""> <SPAN FACE="Times New Roman"> <HR ALIGN=left STYLE=FONT-SIZE:0.6em WIDTH=33%> </SPAN> <DIV STYLE=""> <P CLASS=MsoFootnoteText STYLE="MARGIN:0cm 0cm 0pt"> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html#_ftnref1 NAME=_ftn1 STYLE=""><SPAN CLASS=MsoFootnoteReference><SPAN LANG=EN-GB><SPAN STYLE=""><SPAN CLASS=MsoFootnoteReference><SPAN LANG=EN-GB STYLE="FONT-SIZE:12pt;FONT-FAMILY:'Times New Roman'"><FONT COLOR=#800080>[1]</FONT></SPAN></SPAN></SPAN></SPAN></SPAN></A><SPAN LANG=EN-GB><SPAN FACE="Times New Roman"> The virtualization concept also plays an important role in the “on demand” computer utility, which is coming to dominate technology architectures, but this takes us too far away from our main business focus. </SPAN></SPAN> </P> </DIV> </DIV> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> </DIV> </DIV> <P CLASS=entry-footer> <SPAN CLASS=post-footers>August 26, 2006 in <A HREF=http://mavencircle.typepad.com/my_weblog/match_ict_demandsupply/index.html>Needs: ICT demand-side</A> </SPAN><SPAN CLASS=separator>|</SPAN> <A CLASS=permalink HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html><FONT COLOR=#800080>Permalink</FONT></A> </P> </DIV> <DIV CLASS=trackbacks> <A></A> <H3 CLASS=trackbacks-header> TrackBack </H3> <DIV CLASS=trackbacks-info> <P> TrackBack URL for this entry:<BR> http://www.typepad.com/t/trackback/5795749 </P> <P> Listed below are links to weblogs that reference <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html><FONT COLOR=#800080>ICT for Little Giants</FONT></A>: </P> </DIV> <DIV CLASS=trackbacks-content> </DIV> </DIV> <A></A> <DIV CLASS=comments> <H3 CLASS=comments-header> Comments </H3> <DIV CLASS=comments-content> <A></A> <DIV CLASS=comment> <DIV CLASS=comment-content> <P> if outsorcing will be key for smaller local banks, they need to rethink their approach anyway. Both small and large banks come from a "product" driven culture, hence the need for small "local" players to create strong intimacy and branding with their customers.<BR> Leaving aside the technology this seems to me quite a challenge anyway. </P> </DIV> <P CLASS=comment-footer> Posted by: <A HREF=mailto:christian.delange@mobedia.it REL=nofollow>chris</A> | <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html#comment-21818439><FONT COLOR=#800080>September 01, 2006 at 11:12 AM</FONT></A> </P> </DIV> <A></A> <DIV CLASS=comment> <DIV CLASS=comment-content> <P> Excellent analysis. Key for survival will be a clear strategic focus on the question which business will I (= the bank) do with which customer by using which technological means?Looking at the German experience there is profitable room for everybody as long as a clear strategy is followed through and "the me too" factor is reduced. To achieve this outsourcing of parts of the "production" will be a success factor to reduce costs by achieving a pay per use mode. </P> </DIV> <P CLASS=comment-footer> Posted by: <A HREF=http://www.typepad.com/t/comments?__mode=red&id=21899024 REL=nofollow TARGET=_blank TITLE=http://www.t-systems.com>Dr. Berthold Kaib</A> | <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html#comment-21899024><FONT COLOR=#800080>September 03, 2006 at 06:24 PM</FONT></A> </P> </DIV> <A></A> <DIV CLASS=comment> <DIV CLASS=comment-content> <P> “We can say that information is data structured to answer a question and that knowledge is information being applied to solve a human problem. Usually that knowledge is in people’s heads when they take decisions.” : fully agree, managers are the key point and the good managers with the right method in their mind, are the real asset of companies, banks included. </P> </DIV> <P CLASS=comment-footer> Posted by: <A HREF=mailto:pabenecc@tin.it REL=nofollow>pb</A> | <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html#comment-22223891><FONT COLOR=#800080>September 10, 2006 at 04:52 PM</FONT></A> </P> </DIV> </DIV> </DIV> <FORM ACTION=http://www.typepad.com/t/comments METHOD=post><INPUT NAME=entry_id TYPE=hidden VALUE=12395735> <DIV CLASS=comments-open> <H2 CLASS=comments-open-header> Post a comment </H2> <DIV CLASS=comments-open-content> <P STYLE=DISPLAY:block> If you have a TypeKey or TypePad account, please <A HREF=http://www.typepad.com/t/comments?__mode=signin_redir&entry_id=12395735>Sign In</A> </P> <P STYLE=""> You are currently signed in as <SPAN>(nobody)</SPAN>. <A HREF=http://www.typepad.com/t/comments?__mode=signout&entry_id=12395735>Sign Out</A> </P> <DIV> <P> <LABEL>Name:</LABEL> <INPUT NAME=author SIZE=30> </P> <P> <LABEL>Email Address:</LABEL> <INPUT NAME=email SIZE=30> </P> <P> <LABEL>URL:</LABEL> <INPUT NAME=url SIZE=30> </P> <P> <LABEL><INPUT NAME=bakecookie TYPE=checkbox VALUE=1> Remember personal info?</LABEL> </P> </DIV> <P> <LABEL>Comments:</LABEL> </P> </DIV> <DIV CLASS=comments-open-footer> <INPUT NAME=preview TYPE=submit VALUE= Preview > <INPUT NAME=post TYPE=submit VALUE= Post > </DIV> </DIV> </FORM> <DIV> <DIV CLASS=pkg> <DIV CLASS="module-photo module"> <DIV CLASS=module-content> <IMG ALT="My Photo" SRC=http://mavencircle.typepad.com/autori.jpg> </DIV> </DIV> <DIV CLASS="module-about module"> <H2 CLASS=module-header> <A HREF=http://mavencircle.typepad.com/about.html>About</A> </H2> </DIV> <DIV CLASS="module-archives module"> <H2 CLASS=module-header> Recent Posts </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html>Banking Consoldation</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html><FONT COLOR=#800080>ICT for Little Giants</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/large_dwarfs_an.html>Large Dwarves and Small Giants</A> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-syndicate module"> <DIV CLASS=module-content> <A HREF=http://mavencircle.typepad.com/my_weblog/index.rdf>Subscribe to this blog's feed</A> </DIV> </DIV> <DIV CLASS="module-powered module"> <DIV CLASS=module-content> Powered by <A HREF=http://www.typepad.com/t/app/track?poweredby TITLE=TypePad>TypePad</A> </DIV> </DIV> <DIV CLASS="module-typelist module"> <H2 CLASS=module-header> Author's web sistes </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://pensiericontromano.vnunet.it/>Pensieri contromano</A><BR> <LI CLASS=module-list-item> <A HREF=http://www.robertodadda.com/>Roberto Dadda</A><BR> <LI CLASS=module-list-item> <A HREF=http://www.civi-international.com/>CIVI International</A><BR> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-typelist module"> <H2 CLASS=module-header> Suggested readings </H2> <DIV CLASS="typelist-thumbnailed module-content"> <UL CLASS=module-list> <LI CLASS=module-list-item> <DIV CLASS=typelist-thumbnail> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0967711118/1n9867a-20><IMG ALT="James P. 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Frank: How to Get Your Point Across in 30 Seconds or Less</A> </P> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-categories module"> <H2 CLASS=module-header> Categories </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/tlc_demandside/index.html>Availabilities: ICT supply-side</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/consumer/index.html>Consumer</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/markets/index.html>Markets</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/match_ict_demandsupply/index.html>Needs: ICT demand-side</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/periscope_on_technologies_/index.html>Periscope on technologies </A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/relationship_capital/index.html>Relationship capital</A> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-calendar module"> <H2 CLASS=module-header> September 2006 </H2> <DIV CLASS=module-content> <TABLE SUMMARY="Monthly calendar with links to each day's posts"> <TBODY> <TR> <TH> Sun </TH> <TH> Mon </TH> <TH> Tue </TH> <TH> Wed </TH> <TH> Thu </TH> <TH> Fri </TH> <TH> Sat </TH> </TR> <TR> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> 1 </TD> <TD> 2 </TD> </TR> <TR> <TD> 3 </TD> <TD> 4 </TD> <TD> 5 </TD> <TD> 6 </TD> <TD> 7 </TD> <TD> 8 </TD> <TD> 9 </TD> </TR> <TR> <TD> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html>10</A> </TD> <TD> 11 </TD> <TD> 12 </TD> <TD> 13 </TD> <TD> 14 </TD> <TD> 15 </TD> <TD> 16 </TD> </TR> <TR> <TD> 17 </TD> <TD> 18 </TD> <TD> 19 </TD> <TD> 20 </TD> <TD> 21 </TD> <TD> 22 </TD> <TD> 23 </TD> </TR> <TR> <TD> 24 </TD> <TD> 25 </TD> <TD> 26 </TD> <TD> 27 </TD> <TD> 28 </TD> <TD> 29 </TD> <TD> 30 </TD> </TR> </TBODY> </TABLE> </DIV> </DIV> </DIV> </DIV> <IMG ALT="" HEIGHT=1 SRC=http://www.typepad.com/t/stats?blog_id=350082&page=http%3A//mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html&referrer=http%3A//www.typepad.com/t/app/weblog/post%3F__mode%3Dedit_entry%26id%3D12395735%26blog_id%3D350082 STYLE="" WIDTH=1>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-50119305665672939162007-06-25T07:41:00.000+01:002007-06-25T07:41:32.817+01:00<DIV CLASS=entry-content> <DIV CLASS=entry-body> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=FONT-SIZE:14pt><SPAN FACE="Times New Roman">The Future of the Popular Banks in Italy: </SPAN></SPAN></STRONG> </P> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-GB STYLE=FONT-SIZE:14pt><SPAN FACE="Times New Roman">A universal battle of large dwarves and small giants</SPAN></SPAN></STRONG> </P> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">In October 2004 Lucio Rondelli, the former head of Unicredit, gave a talk to a study group of Italian Popular Banks on the future of their industry given the momentous changes taking place.</SPAN><SPAN FACE="Times New Roman"> He spoke amusingly of the national banking leaders, whom he characterized as “large dwarves”, and the much smaller Popular Banks, whom he described as<SPAN STYLE=""> </SPAN>“small giants”. His memorable characterization deserves a wider audience. It is equally applicable across Europe and opens up an interesting debate on how different types of banks should respond to their fast changing environment. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <BLOCKQUOTE DIR=ltr> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman"><EM>The explosion of merges and takeovers is relatively new to world banking, with a strong increase in the level of concentration. Various factors lie beneath the phenomenon: the process of updating the banking sector rulebook; the integration of markets; as well as a new range of services with advanced computerized technology. Even Italy is going the same way. However, major Italian banking groups remain too small in the European panorama: this “dwarfism” reflects the characteristics of the economic structure of the country, based upon relatively small enterprises. In order to command an adequate level of international competitiveness, we need a “cultural revolution”; to rethink the credit system which has until now financed family capitalism.</EM></SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><EM></EM></SPAN> </P> </BLOCKQUOTE> <P CLASS=MsoNormal DIR=ltr STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <STRONG><SPAN STYLE=FONT-SIZE:1.2em><FONT SIZE=5>My commentary:</FONT></SPAN></STRONG> </P> <P CLASS=MsoNormal DIR=ltr STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <STRONG><FONT SIZE=5></FONT></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <FONT SIZE=5></FONT> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Introduction</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The Rondelli thesis is first presented in summary and then further analysed and extended as a contribution to the debate. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The Rondelli Thesis</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Rondelli’s thesis involves several interesting ideas; each is described and then followed by my own comment:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The concentration process at European or global level still has a long way to run, both in terms of the concentration of assets and liabilities and the physical size of the players: this is a fairly obvious observation</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The large Italian banks are still dwarves at European level and need to look at cross border consolidation and place greater emphasis on investment banking and corporate finance in order to compete in this broader context: hence the Unicredit – HVB deal in 2005</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The Italian banking sector is the product of the Italian corporate institutional environment based on SME success: this is an important point</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">However, the Italian SME world itself is having to adapt to globalization and so the banks too will have to adapt with them. The old arrangements will no longer work: this is Rondelli’s “challenge”</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The Popular Banks too have seen consolidation, and a few have become relatively “little giants” in their own territories by virtue of the granularity of their local distribution networks: the concept of the “little giant” as an ideal type is perhaps Rondelli’s key contribution </SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Notwithstanding their absolute size, as a group, the Popular Banks have been quite successful in terms of market share. Rondelli attributes this mainly to their local roots and customer knowledge especially of their SME clients: of course, here he is just repeating the standard explanation; however understanding what “local roots” really means is the hard bit. </SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The historical trends underlying this process Rondelli sees as being:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Deregulation and reregulation</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">European integration and globalization</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Technology</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">He sees technology as being particularly important, and the economies of scale as being crucial to deploying technology successfully in the banking context. However, he warns that size alone does not determine success, and even suggests that size could undermine the traditional success factors of the Popular Banks by distancing them from their roots and bureaucratizing their flexible customer relationships. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Thus, for the future of the Popular Banks, Rondelli recommends 3 strategic initiatives:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">To achieve economies of scale against the large players: joint ventures and outsourcing of IT and services including product factories</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">To give them strength in negotiation with commodity product and services suppliers, banks should focus on supermarket style distribution, leveraging their customer assets. In other words they should deliberately broaden the product base by buying in, and thereby broaden their customer relationships to achieve economies of scope and share of wallet</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">To build barriers to entry in their market, the Popular Banks need to become a <STRONG>Hausbank</STRONG> to their SME clients, helping the latter to adapt strategically to the forces of globalization. He says that this will take a “cultural revolution” but will deepen their customer relationships</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt 18pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Comment</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">I would not disagree with any of this analysis. The <STRONG>need for economies of scale and scope</STRONG> that I describe as part of the “industrialization” of banking</SPAN><SPAN FACE="Times New Roman">. They are the essence of the current transformation of the industry and many useful ideas can flow from this insight. It should be noted however that industrialization is much more than just selective sourcing. It includes for example the notions of end-to-end automation of processes (STP), the construction of regional or global, multi-entity, enterprise hubs, the close coupling of rules-based business process and content management, the development of database driven exception based banking, quantitative quality management and achieving a true “factory mentality”. These will all have a huge impact on small banks, and Rondelli could usefully have described the tensions between some of these concepts and the historically personalized approach of the Popular Banks. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Rondelli’s concept of the <STRONG>“Hausbank”</STRONG> is also an interesting application of another well known concept, namely, that of customer assets in the information economy</SPAN><SPAN FACE="Times New Roman">. In a networked world the concept of community is important, and “stickiness”, the preference of community members to return to a web site or other cyberspace meeting place, helps us to understand community dynamics. In this characterization the physical branch should be seen as just one dimension of cyberspace, alongside the cyber cafes, call centres, and other virtual meeting places. In this multi-dimensional world, there is real value in building a coherent, i.e. sticky, community with some shared values and preferences, and then to become its customer advocate: you aggregate your customer knowledge and access in order to acquire tradable customer “assets” that can be exchanged in the global virtual markets. Of course, Rondelli does not resort to the cyberspace vocabulary, but the logic of what he says is very similar. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">However, while there is nothing wrong with the analysis, there is also nothing really new in it either. All of these concepts were discussed and debated in the late 1990s, when we all started travelling down the “information highway”, a sadly forgotten piece of jargon, which got at the nub of many important issues</SPAN><SPAN FACE="Times New Roman">. In the intervening years of course, banks have now started to put these concepts into practice and success stories are starting to circulate. That is real progress of course. Nevertheless, I felt that Rondelli should have gone further and offered some new insights. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">For example, he might have pointed out that in the new economy there are<STRONG> 4 key value propositions</STRONG> for banks:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Customer intimacy</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Product leadership</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Price leadership</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Market knowledge and insight</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The first three propositions are also well known and have been much debated. I think, however, it is useful to distinguish between product leadership and market knowledge and insight. The asset manager with the best performing funds may have a standard “product”, but he gains excellence by knowing the market better in order to generate higher returns. Similarly the ace brokers and corporate finance teams often have a better product only insofar as they have a better <EM>reputation</EM> for market intelligence and contacts, that allow them to deliver the results that create real added value, rather than for offering a different “product” per se, which is more about delivery issues: i.e. packaging, pricing and servicing. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Now with this value framework Rondelli might have pointed out that for product leadership and operational efficiency you need technology and, other things being equal, economies of scale and scope. These value propositions in the end have become the natural preserve of the larger players. However, the Popular Banks can still flourish by focusing more on <STRONG>customer intimacy</STRONG> with their traditional SME and family relationships, and better local market knowledge and insight. They know their customer in order both to personalize their service to his needs as well as to sell that knowledge in the market. In this sense they become small, local giants. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Of course they can also compete on price and innovation by using smart sourcing or smart technology as we describe below. However, they differentiate themselves by their <STRONG>customer focus and relevant knowledge</STRONG>. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">In any case, I repeat: Rondelli’s analysis is very robust and I would not disagree with any of it. However, he does not really go far enough and has missed out many key points, which are extremely important for practical decision-making. </SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Technology too has its own “little giants”, local optima, which can be leveraged by the Popular Banks in their contest with the larger players. </SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Virtualization of the value chain and the customer too will be key to success: this goes way beyond the split between production and distribution and gives many new opportunities for niche markets, which smaller, more agile banks can often capture</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The economics of knowledge management is the real driver of change</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Globalization and multi-channel mobility are now becoming crucially important in the multi-dimensional world of cyberspace.</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Rondelli notes that size alone does not determine success, but he never really explains why not. He admits that his argument would tend to suggest that everyone should try to grow, but warns of diminishing returns and hidden barriers. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <BLOCKQUOTE DIR=ltr> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman"><EM>If the universe were a pure continuum, and if we had reached the eventual steady end state, then economies of scale might become the dominant driver. However, the universe is quite a chaotic, dynamic set of galaxies, in constant motion and evolution. Energy may never be created out of nothing, but power is certainly generated by a constant churning of the energy-matter balance. Old stars die and new worlds are created in this constant universe of change. This astrophysical metaphor also applies to economics and finance</EM></SPAN></SPAN> </P> </BLOCKQUOTE> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Conclusion</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Rondelli addressed many interesting issues in his talk. However, he also raised a number of questions. Adaptation to one’s environment is key. Enormous change is taking place. Banks will need to have a rich and deep understanding of their place in the world in order to compete successfully. In this post I have tried to illustrate a few more factors that they should take into account, in order to build a strategic framework that can meet the rapidly changing needs of banks large and small in the 21<SUP>st</SUP> century. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Since the concept of Large Dwarfes and Small Giants is of European interest I would appreciate your ideas and comment on this important topic.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Lucio Vollaro</SPAN></SPAN> </P> </DIV> </DIV> <P CLASS=entry-footer> <SPAN CLASS=post-footers>August 12, 2006 in <A HREF=http://mavencircle.typepad.com/my_weblog/match_ict_demandsupply/index.html><FONT COLOR=#800080>Needs: ICT demand-side</FONT></A> </SPAN><SPAN CLASS=separator>|</SPAN> <A CLASS=permalink HREF=http://mavencircle.typepad.com/my_weblog/2006/08/large_dwarfs_an.html>Permalink</A> | <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/large_dwarfs_an.html#comments>Comments (1)</A> | <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/large_dwarfs_an.html#trackback>TrackBack (0)</A> </P> <DIV> <DIV CLASS=pkg> <DIV CLASS="module-photo module"> <DIV CLASS=module-content> <IMG ALT="My Photo" SRC=http://mavencircle.typepad.com/autori.jpg> </DIV> </DIV> <DIV CLASS="module-about module"> <H2 CLASS=module-header> <A HREF=http://mavencircle.typepad.com/about.html>About</A> </H2> </DIV> <DIV CLASS="module-archives module"> <H2 CLASS=module-header> Recent Posts </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html><FONT COLOR=#800080>Banking Consoldation</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html><FONT COLOR=#800080>ICT for Little Giants</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/large_dwarfs_an.html>Large Dwarves and Small Giants</A> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-syndicate module"> <DIV CLASS=module-content> <A HREF=http://mavencircle.typepad.com/my_weblog/index.rdf>Subscribe to this blog's feed</A> </DIV> </DIV> <DIV CLASS="module-powered module"> <DIV CLASS=module-content> Powered by <A HREF=http://www.typepad.com/t/app/track?poweredby TITLE=TypePad>TypePad</A> </DIV> </DIV> <DIV CLASS="module-typelist module"> <H2 CLASS=module-header> Author's web sistes </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://pensiericontromano.vnunet.it/>Pensieri contromano</A><BR> <LI CLASS=module-list-item> <A HREF=http://www.robertodadda.com/>Roberto Dadda</A><BR> <LI CLASS=module-list-item> <A HREF=http://www.civi-international.com/>CIVI International</A><BR> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-typelist module"> <H2 CLASS=module-header> Suggested readings </H2> <DIV CLASS="typelist-thumbnailed module-content"> <UL CLASS=module-list> <LI CLASS=module-list-item> <DIV CLASS=typelist-thumbnail> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0967711118/1n9867a-20><IMG ALT="James P. Masciarelli: PowerSkills : Building Top-Level Relationships for Bottom-Line Results" SRC=http://images.amazon.com/images/P/0967711118.01._SCTHUMBZZZ_.jpg></A> </DIV> <P CLASS=typelist-description> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0967711118/1n9867a-20>James P. Masciarelli: PowerSkills : Building Top-Level Relationships for Bottom-Line Results</A> </P> </LI> <LI CLASS=module-list-item> <DIV CLASS=typelist-thumbnail> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0671727524/1n9867a-20><IMG ALT="Milo O. Frank: How to Get Your Point Across in 30 Seconds or Less" SRC=http://images.amazon.com/images/P/0671727524.01._SCTHUMBZZZ_.gif></A> </DIV> <P CLASS=typelist-description> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0671727524/1n9867a-20>Milo O. Frank: How to Get Your Point Across in 30 Seconds or Less</A> </P> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-categories module"> <H2 CLASS=module-header> Categories </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/tlc_demandside/index.html><FONT COLOR=#800080>Availabilities: ICT supply-side</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/consumer/index.html><FONT COLOR=#800080>Consumer</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/markets/index.html>Markets</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/match_ict_demandsupply/index.html><FONT COLOR=#800080>Needs: ICT demand-side</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/periscope_on_technologies_/index.html>Periscope on technologies </A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/relationship_capital/index.html>Relationship capital</A> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-calendar module"> <H2 CLASS=module-header> September 2006 </H2> <DIV CLASS=module-content> <TABLE SUMMARY="Monthly calendar with links to each day's posts"> <TBODY> <TR> <TH> Sun </TH> <TH> Mon </TH> <TH> Tue </TH> <TH> Wed </TH> <TH> Thu </TH> <TH> Fri </TH> <TH> Sat </TH> </TR> <TR> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> 1 </TD> <TD> 2 </TD> </TR> <TR> <TD> 3 </TD> <TD> 4 </TD> <TD> 5 </TD> <TD> 6 </TD> <TD> 7 </TD> <TD> 8 </TD> <TD> 9 </TD> </TR> <TR> <TD> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html><FONT COLOR=#800080>10</FONT></A> </TD> <TD> 11 </TD> <TD> 12 </TD> <TD> 13 </TD> <TD> 14 </TD> <TD> 15 </TD> <TD> 16 </TD> </TR> <TR> <TD> 17 </TD> <TD> 18 </TD> <TD> 19 </TD> <TD> 20 </TD> <TD> 21 </TD> <TD> 22 </TD> <TD> 23 </TD> </TR> <TR> <TD> 24 </TD> <TD> 25 </TD> <TD> 26 </TD> <TD> 27 </TD> <TD> 28 </TD> <TD> 29 </TD> <TD> 30 </TD> </TR> </TBODY> </TABLE> </DIV> </DIV> </DIV> </DIV> <IMG ALT="" HEIGHT=1 SRC=http://www.typepad.com/t/stats?blog_id=350082&page=http%3A//mavencircle.typepad.com/my_weblog/match_ict_demandsupply/index.html&referrer=http%3A//mavencircle.typepad.com/my_weblog/tlc_demandside/index.html STYLE="" WIDTH=1>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-78073912893662141602007-06-25T07:38:00.001+01:002007-06-25T07:38:58.714+01:00<DIV CLASS=entry-content> <DIV CLASS=entry-body> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG><SPAN LANG=EN-US STYLE=FONT-SIZE:14pt><SPAN FACE="Times New Roman">Banking consolidation</SPAN></SPAN></STRONG> </P> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <STRONG> <P ALIGN=center CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:center"> <SPAN LANG=EN-US STYLE=FONT-SIZE:14pt></SPAN> </P> </STRONG> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">In a discussion with a President of a retail bank, territory focused, and with more than 4,000 branches came out that his bank is “condemned” to grow to reach the economy of scale needed to compete today.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">The bank lacks scale and competition, and they have failed to invest enough in technology or to cut the costs for their clients. </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Merger will have the scope:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">To cut costs at home</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Well placed to do deals abroad</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Could catalyze further mergers that would bring gains of their own</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">And, most of all, he claims that “instead to become a possible prey, he would like once in a while also to be the predator”</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Then he questioned me whether it is better for his bank to grow internally or externally (through acquisitions).</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">To grow only internally it takes too long and I do not think there is the time, but to grow externally there is not only the “conqueror” solution (to become either predator or prey), instead exists even the “affiliate” way to become a commercial entity with solid relationships with peer or larger banks.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Reading the article on The Economist (The alliance against Google- August12th) there is a similar debate about the merge between Microsoft and AOL to face Google superpower. Some thinks that if Microsoft will acquire AOL this would help Microsoft strategically. Others are not so sure, in fact they do not see a terribly good merger. There would be big cultural differences between a “media” company and a “software” firm.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Paul Saffo, a Silicon Valley analyst and a fellow of the Institute of the Future, a research group, thinks that any merger between groups with “big cultural differences”<SPAN STYLE=""> </SPAN>is a “grand dramatic gesture” that would only hasten their decline.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Big mergers also run <EM>counter </EM>to a number of other trends on the Internet today, which are collectively known as “Web 2.0”.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">“This is the age of mash-ups not mergers, open over closed” says Mr Saffo referring to the open Internet standards that allow users to combine, or “mash” services.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Another argument against full-blown mergers is that the bigger and more self-absorbed the established powers become, the less likely they are to spot new insurgences and innovations.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Then I would like to remind, <STRONG>Web 2.0</STRONG>, the new Internet trend<STRONG></STRONG></SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-GB STYLE=""><SPAN FACE="Times New Roman">The Web 2.0 lesson: <EM>leverage customer-self service and algorithmic data management to reach out to the entire web, to the edges and not just the center, to the long tail and not just the head.</EM></SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN STYLE=""><SPAN FACE="Times New Roman">This leads to the model of a </SPAN><A HREF=http://en.wikipedia.org/wiki/Dumb_network TITLE="Dumb network"><SPAN STYLE=COLOR:windowtext><SPAN FACE="Times New Roman">"dumb, minimal, network"</SPAN></SPAN></A><SPAN FACE="Times New Roman"> with smart terminals, a completely different model to the previous paradigm of the smart network with </SPAN><A HREF=http://en.wikipedia.org/wiki/Dumb_terminal TITLE="Dumb terminal"><SPAN STYLE=COLOR:windowtext><SPAN FACE="Times New Roman">dumb terminals</SPAN></SPAN></A><SPAN FACE="Times New Roman">. This paradigm shif will help implement new mash-up organizations.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN STYLE=""></SPAN> </P> </STRONG> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN STYLE=""><SPAN FACE="Times New Roman">Conclusion</SPAN></SPAN></STRONG> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN STYLE=""><SPAN FACE="Times New Roman">Here are the results of my thinking, based on following facts, to propose an answer to the retail bank’s President dilemma:</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN STYLE=""></SPAN> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-US><SPAN FACE="Times New Roman">Key issues</SPAN></SPAN></STRONG> <UL STYLE=MARGIN-TOP:0cm TYPE=circle> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Consolidation does not automatically equal success, larger banks, more products, higher profit or efficiencies. It can also mean losses and redundancies and statistics show that more than half of Financial Services’ M&A do not succeed</SPAN></SPAN> </LI> </UL> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-US><SPAN FACE="Times New Roman">Key findings</SPAN></SPAN></STRONG> <UL STYLE=MARGIN-TOP:0cm TYPE=circle> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">According to M&A experts, about 60% of M&A deals are unsuccessful because they approached the deal with overconfidence and instead of taking into account all the facts, they choose to purse their goal of global expansion (conqueror approach).</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Estimating the costs and benefits of merging with or acquiring a Financial Institution is a major problem particularly as combining different systems and corporate cultures can be difficult ad costly.</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">The key to a successful merger to take account of stakeholder interests: Employees need to know they will benefit as individuals, whilst shareholders need to understand the rationale of the deal.</SPAN></SPAN> </LI> </UL> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-US><SPAN FACE="Times New Roman">Web 2.0 and the New Collaborative technology</SPAN></SPAN></STRONG> <UL STYLE=MARGIN-TOP:0cm TYPE=circle> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">One of the most influential effects of collaborative technology is that they “push authority way out to the edge”.</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Organizations must be willing to push power to the edge.</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Leverage technology means that organizations must work from the “edges in” (not like the old approach from the “middle out”).</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">You push your sensing and your collaboration tools out to the edges of the organization.</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Your organization almost becomes an organic form where everything that’s touching the outside world is collecting and sifting information.</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">After empowering the people at the edge, organizations must create safety net systems in case activity spins out of control.</SPAN></SPAN> </LI> </UL> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Therefore to grow externally through <STRONG>Affiliations</STRONG> is another option to be considered and it is based on developing and managing good relationships with all the bank’s stakeholders either internally (employees) either externally (clients, shareholders, suppliers,…).</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Moreover, the now available <STRONG>New Collaborative Technology</STRONG> could help implement the new mash-ups based organization.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Your comments and ideas are welcomed</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US></SPAN> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Lucio Vollaro</SPAN></SPAN> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> <P> </P> </DIV> </DIV> <P CLASS=entry-footer> <SPAN CLASS=post-footers>September 10, 2006 in <A HREF=http://mavencircle.typepad.com/my_weblog/markets/index.html>Markets</A> </SPAN><SPAN CLASS=separator>|</SPAN> <A CLASS=permalink HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html><FONT COLOR=#800080>Permalink</FONT></A> </P> <DIV CLASS=trackbacks> <A></A> <H3 CLASS=trackbacks-header> TrackBack </H3> <DIV CLASS=trackbacks-info> <P> TrackBack URL for this entry:<BR> http://www.typepad.com/t/trackback/6006159 </P> <P> Listed below are links to weblogs that reference <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html><FONT COLOR=#800080>Banking Consoldation</FONT></A>: </P> </DIV> <DIV CLASS=trackbacks-content> </DIV> </DIV> <A></A> <DIV CLASS=comments> <H3 CLASS=comments-header> Comments </H3> <DIV CLASS=comments-content> <A></A> <DIV CLASS=comment> <DIV CLASS=comment-content> <P> In present days, there are strong interactions among goods selling, services selling and technologies.<BR> Technologies used for establishing correct and winning value chains, suitable to address each right market segment, must be known and understood: they are not only tools, they are parts of the business model.<BR> Those interactions need to use a method for selling, considering the business model in a wide sense, taking care of all the factors influencing the purchasing, from social aspects to individual features, to technology capability and so on.<BR> That is the present main paradigm for applying a winning business model to the “one person market segment”, as market is defining itself in the last years.<BR> Is it correct that some countries (e.g. USA, Japan, GB, France, Germany, etc) invested a lot in managers with “good” knowledge, in a “wide sense”? That now China is doing the same thing? Is the above mentioned investment the winning aspect for their success?<BR> </P> </DIV> <P CLASS=comment-footer> Posted by: <A HREF=mailto:pabenecc@tin.it REL=nofollow>pb</A> | <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html#comment-22226624><FONT COLOR=#800080>September 10, 2006 at 05:31 PM</FONT></A> </P> </DIV> </DIV> </DIV> <FORM ACTION=http://www.typepad.com/t/comments METHOD=post><INPUT NAME=entry_id TYPE=hidden VALUE=12734539> <DIV CLASS=comments-open> <H2 CLASS=comments-open-header> Post a comment </H2> <DIV CLASS=comments-open-content> <P STYLE=DISPLAY:block> If you have a TypeKey or TypePad account, please <A HREF=http://www.typepad.com/t/comments?__mode=signin_redir&entry_id=12734539>Sign In</A> </P> <P STYLE=""> You are currently signed in as <SPAN>(nobody)</SPAN>. <A HREF=http://www.typepad.com/t/comments?__mode=signout&entry_id=12734539>Sign Out</A> </P> <DIV> <P> <LABEL>Name:</LABEL> <INPUT NAME=author SIZE=30> </P> <P> <LABEL>Email Address:</LABEL> <INPUT NAME=email SIZE=30> </P> <P> <LABEL>URL:</LABEL> <INPUT NAME=url SIZE=30> </P> <P> <LABEL><INPUT NAME=bakecookie TYPE=checkbox VALUE=1> Remember personal info?</LABEL> </P> </DIV> <P> <LABEL>Comments:</LABEL> </P> </DIV> <DIV CLASS=comments-open-footer> <INPUT NAME=preview TYPE=submit VALUE= Preview > <INPUT NAME=post TYPE=submit VALUE= Post > </DIV> </DIV> </FORM> <DIV> <DIV CLASS=pkg> <DIV CLASS="module-photo module"> <DIV CLASS=module-content> <IMG ALT="My Photo" SRC=http://mavencircle.typepad.com/autori.jpg> </DIV> </DIV> <DIV CLASS="module-about module"> <H2 CLASS=module-header> <A HREF=http://mavencircle.typepad.com/about.html>About</A> </H2> </DIV> <DIV CLASS="module-archives module"> <H2 CLASS=module-header> Recent Posts </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html><FONT COLOR=#800080>Banking Consoldation</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/ict_for_little_.html><FONT COLOR=#800080>ICT for Little Giants</FONT></A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/08/large_dwarfs_an.html>Large Dwarves and Small Giants</A> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-syndicate module"> <DIV CLASS=module-content> <A HREF=http://mavencircle.typepad.com/my_weblog/index.rdf>Subscribe to this blog's feed</A> </DIV> </DIV> <DIV CLASS="module-powered module"> <DIV CLASS=module-content> Powered by <A HREF=http://www.typepad.com/t/app/track?poweredby TITLE=TypePad>TypePad</A> </DIV> </DIV> <DIV CLASS="module-typelist module"> <H2 CLASS=module-header> Author's web sistes </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://pensiericontromano.vnunet.it/>Pensieri contromano</A><BR> <LI CLASS=module-list-item> <A HREF=http://www.robertodadda.com/>Roberto Dadda</A><BR> <LI CLASS=module-list-item> <A HREF=http://www.civi-international.com/>CIVI International</A><BR> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-typelist module"> <H2 CLASS=module-header> Suggested readings </H2> <DIV CLASS="typelist-thumbnailed module-content"> <UL CLASS=module-list> <LI CLASS=module-list-item> <DIV CLASS=typelist-thumbnail> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0967711118/1n9867a-20><IMG ALT="James P. Masciarelli: PowerSkills : Building Top-Level Relationships for Bottom-Line Results" SRC=http://images.amazon.com/images/P/0967711118.01._SCTHUMBZZZ_.jpg></A> </DIV> <P CLASS=typelist-description> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0967711118/1n9867a-20>James P. Masciarelli: PowerSkills : Building Top-Level Relationships for Bottom-Line Results</A> </P> </LI> <LI CLASS=module-list-item> <DIV CLASS=typelist-thumbnail> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0671727524/1n9867a-20><IMG ALT="Milo O. Frank: How to Get Your Point Across in 30 Seconds or Less" SRC=http://images.amazon.com/images/P/0671727524.01._SCTHUMBZZZ_.gif></A> </DIV> <P CLASS=typelist-description> <A HREF=http://www.amazon.com/exec/obidos/ASIN/0671727524/1n9867a-20>Milo O. Frank: How to Get Your Point Across in 30 Seconds or Less</A> </P> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-categories module"> <H2 CLASS=module-header> Categories </H2> <DIV CLASS=module-content> <UL CLASS=module-list> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/tlc_demandside/index.html>Availabilities: ICT supply-side</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/consumer/index.html>Consumer</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/markets/index.html>Markets</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/match_ict_demandsupply/index.html>Needs: ICT demand-side</A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/periscope_on_technologies_/index.html>Periscope on technologies </A> <LI CLASS=module-list-item> <A HREF=http://mavencircle.typepad.com/my_weblog/relationship_capital/index.html>Relationship capital</A> </LI> </UL> </DIV> </DIV> <DIV CLASS="module-calendar module"> <H2 CLASS=module-header> September 2006 </H2> <DIV CLASS=module-content> <TABLE SUMMARY="Monthly calendar with links to each day's posts"> <TBODY> <TR> <TH> Sun </TH> <TH> Mon </TH> <TH> Tue </TH> <TH> Wed </TH> <TH> Thu </TH> <TH> Fri </TH> <TH> Sat </TH> </TR> <TR> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> </TD> <TD> 1 </TD> <TD> 2 </TD> </TR> <TR> <TD> 3 </TD> <TD> 4 </TD> <TD> 5 </TD> <TD> 6 </TD> <TD> 7 </TD> <TD> 8 </TD> <TD> 9 </TD> </TR> <TR> <TD> <A HREF=http://mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html><FONT COLOR=#800080>10</FONT></A> </TD> <TD> 11 </TD> <TD> 12 </TD> <TD> 13 </TD> <TD> 14 </TD> <TD> 15 </TD> <TD> 16 </TD> </TR> <TR> <TD> 17 </TD> <TD> 18 </TD> <TD> 19 </TD> <TD> 20 </TD> <TD> 21 </TD> <TD> 22 </TD> <TD> 23 </TD> </TR> <TR> <TD> 24 </TD> <TD> 25 </TD> <TD> 26 </TD> <TD> 27 </TD> <TD> 28 </TD> <TD> 29 </TD> <TD> 30 </TD> </TR> </TBODY> </TABLE> </DIV> </DIV> </DIV> </DIV> <IMG ALT="" HEIGHT=1 SRC=http://www.typepad.com/t/stats?blog_id=350082&page=http%3A//mavencircle.typepad.com/my_weblog/2006/09/banks_consoldat.html&referrer=http%3A//mavencircle.typepad.com/my_weblog/ STYLE="" WIDTH=1>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-85294762333158505832007-06-25T07:38:00.000+01:002007-06-25T07:38:17.653+01:00<H3 CLASS=entry-header> International Services </H3> <DIV CLASS=entry-content> <DIV CLASS=entry-body> <BLOCKQUOTE DIR=ltr> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">The services’ delocalization process is destined to grow.</SPAN></SPAN> </P> </BLOCKQUOTE> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">I read this important statement both from Gartner (</SPAN><A HREF=http://www.gartner.com/><SPAN FACE="Times New Roman">www.gartner.com</SPAN></A><SPAN FACE="Times New Roman">) and from UNCTAD (</SPAN><A HREF=http://www.unctad.org/><SPAN FACE="Times New Roman">www.unctad.org</SPAN></A><SPAN FACE="Times New Roman">) the United Nations Organization Conference on Trade and Development.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Then talking with a DB’s Top Officer I understand that Deutsche Bank has moved in India ½ of its Back Offices workplaces.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">I think that<STRONG> Global Operations</STRONG> have been a relevant theme for hundreds of years (e.g., Silk Route, Marco Polo,)</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Today leading International Banks understand the need to address both Product Repositioning and Cost Alignment<STRONG> </STRONG>through <STRONG>Integrated Global Operations</STRONG> strategies</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">But globalization demands <STRONG>New Operational Models</STRONG> (Demand Management, Manufacturing Sourcing, New Products Introduction, Global Logistics,..) given the new scale of operations and the increasing number of stakeholders playing intervening in value chains</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <STRONG><SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN></STRONG> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN FACE="Times New Roman"><STRONG><SPAN LANG=EN-US>Globally Integrated Banks </SPAN></STRONG><SPAN LANG=EN-US>are companies that fashion their strategy, management, and operations to both integrate production and deliver value to Clients internationally..</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">At the Integrated Global Operations-base there are the dramatic progresses of IT and TLC that has been made it possible by shared technologies and shared business standards.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Globally Integrated Banks are actively managing different operations, expertises, and capabilities to open the Bank up in multiple ways, allowing it to connect more intimately with Partners, Suppliers, and Customers and, most importantly, enabling it to engage in multi-faceted, collaborative Innovation</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Globalization trends are also changing the shape of <STRONG>Global R&D</STRONG> footprints.<BR> The long term health of European Banks will depend on the ability to create <STRONG>Global R&D-networks</STRONG> combined with cost-efficient<SPAN STYLE=""> </SPAN>operations from sourcing to distribution</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">As customers are demanding more innovative products, international Banks are already investing in Global R&D, and will accelerate the investment pace.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">In the July 3<SUP>rd</SUP> Business Week edition I read the 2006 IT investments of the leading US Banks that reminds that there is e relation between IT investment and Innovation:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">JP Morgan, IT investment 2006 is <SPAN STYLE=""></SPAN>$2.9billion in 2007 (+12.4% - 2006/2005)</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Morgan Stanley, IT investment 2006 $2.4billion in 2007 (+14.4% - 2006/2005)</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Merrill Lynch, IT investment 2006 $2.2billion in 2007 (+20.0% - 2006/2005)</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Citigroup Global Market, IT investment 2006 $1.7billion in 2007 (+13.0% - 2006/2005)</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Conclusion</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt 36pt;TEXT-INDENT:-18pt"> <SPAN FACE="Times New Roman"><SPAN LANG=EN-US><SPAN STYLE="">•<SPAN STYLE=""> </SPAN></SPAN></SPAN><SPAN LANG=EN-US>Most leading Banks in Western Europe and the USA are developing Global Operations Strategies or are rethinking the current model.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt 36pt;TEXT-INDENT:-18pt"> <SPAN FACE="Times New Roman"><SPAN LANG=EN-US><SPAN STYLE="">•<SPAN STYLE=""> </SPAN></SPAN></SPAN><SPAN LANG=EN-US>Operations strategies will vary depending on business and each Bank’s managerial capability</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt 36pt;TEXT-INDENT:-18pt"> <SPAN FACE="Times New Roman"><SPAN LANG=EN-US STYLE=""><SPAN STYLE="">•<SPAN STYLE=""> </SPAN></SPAN></SPAN><SPAN LANG=EN-US>Successful Globally Integrated Banks have solid Partners to help deliver the best ICT services at a competitive price<STRONG></STRONG></SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt 36pt;TEXT-INDENT:-18pt"> <SPAN FACE="Times New Roman"><SPAN LANG=EN-US><SPAN STYLE="">•<SPAN STYLE=""> </SPAN></SPAN></SPAN><SPAN LANG=EN-US>Operating in the global landscape demands new, specific Operating Models affecting end-to-end process, HR and ICT capability.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">The Globally Integrated Bank also presents the following big challenges for Leaders </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt 72pt;TEXT-INDENT:-18pt"> <SPAN FACE="Times New Roman"><SPAN LANG=EN-US><SPAN STYLE="">1.<SPAN STYLE=""> </SPAN></SPAN></SPAN><SPAN LANG=EN-US>Skills: securing a supply of high value skills (through off-shoring). The real competitive factor for a bank is directly related to the quality/quantity of skilled ICT people a bank can utilize</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt 72pt;TEXT-INDENT:-18pt"> <SPAN FACE="Times New Roman"><SPAN LANG=EN-US><SPAN STYLE="">2.<SPAN STYLE=""> </SPAN></SPAN></SPAN><SPAN LANG=EN-US>Trust: a Bank’s standard of governance, transparency, privacy, security, and quality need to be increased</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US> <P> <SPAN FACE="Times New Roman"></SPAN> </P> </SPAN> <P> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Comments are welcome</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt"> <SPAN LANG=EN-US><SPAN FACE="Times New Roman">Lucio Vollaro</SPAN></SPAN> </P> </DIV> </DIV>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-2995197652118950882007-06-25T07:37:00.000+01:002007-06-25T07:37:03.215+01:00<H3 CLASS=entry-header> TLC technological changes will affect transversely all Industries </H3> <DIV CLASS=entry-content> <DIV CLASS=entry-body> <BLOCKQUOTE DIR=ltr> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">TLC technological changes will affect transversely all industries.</SPAN></SPAN> </P> </BLOCKQUOTE> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">I read this is interesting comment in the interview to Francesco Caio (Il Sole 24 Ore June 21, 2006). </SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">In the interview Francesco Caio was saying that:</SPAN></SPAN> </P> <BLOCKQUOTE DIR=ltr> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Today is authorized an <STRONG>universal communication</STRONG> for all type of information thanks to broadband, easy to use terminals, and Internet Protocol. As a consequence the barriers between Media and TLC are breaking.</SPAN></SPAN> </P> </BLOCKQUOTE> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Working with Financial Services CEOs I’m observing also that the role of technological innovation in the market and particularly in the Financial Services sector is destined to dramatically grow either for the retail/private part, either for the corporate part. The growth will be particularly focused on the extended <STRONG>connectivity</STRONG> between Financial Institutions and the Stake holder’s world and towards the Corporations and the Local/Central Public Administration.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">The reasons reside in the set of <EM>social</EM> and <EM>business</EM> trends that I am profiling from a:</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN FACE="Times New Roman"><EM><SPAN LANG=EN-GB>Social point of view</SPAN></EM><SPAN LANG=EN-GB> the principal phenomena in act are: population aging, growth of the number of single, I-Generation (Internet usage is growing vertically), “global tribalism” (there is a growing interactive participation i.e.blogs…), social differences increase</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN FACE="Times New Roman"><EM><SPAN LANG=EN-GB>Business point of view</SPAN></EM><SPAN LANG=EN-GB> will continue: growing the migration from “product” production to “service” furnishing, embracing of the dynamic pricing modality, the development of global micro-business, the company approach characterized from a pro-active transparency</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">So let’s examine how are then affected the different industries' profile:</SPAN></SPAN> </P> <UL STYLE=MARGIN-TOP:0cm TYPE=disc> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN FACE="Times New Roman"><EM><SPAN LANG=EN-GB>TLC operators</SPAN></EM><SPAN LANG=EN-GB>: will enter TV distribution and even the TV contents. Consumer is the king in choosing the content of the services and he will be ready to pay the giver of contents (media) more than the “go-between” (carrier). So the good Media have something to say, and the TLC operators will concentrate in the network management, where there are improvement margins.</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN FACE="Times New Roman"><EM><SPAN LANG=EN-GB>Financial Services</SPAN></EM><SPAN LANG=EN-GB>: <SPAN STYLE="">to marshal a privileged access to the world of the technological evolution will become, during the next years, a relevant success factor to the same level of the capacity to recognize and develop, in a short time, new solutions to implement in the bank’s commercial network or to directly to offer to the bank’s customers.</SPAN></SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN FACE="Times New Roman"><EM><SPAN LANG=EN-GB>Media companies</SPAN></EM><SPAN LANG=EN-GB> will embrace Internet. Myspace (Murdoch) million of users use the site to share their profiles, photos. The Guardian, National UK newspaper, has given priority to media information on-line. The construction of palimpsest starts to creak in fact, nowadays, Television News and Shows can be seen on-demand.</SPAN></SPAN> <LI CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Advertising is migrating towards Internet. They are experiencing a fragmentation of the audience. Individuals and families are spending more time on Internet. Media and Advertising Top Executive met last month in London to capitalize on the surging popularity of “social networking” web. The old saying: “Half the money I spend on advertising is wasted; the trouble is I don't know which half!” still applies to the a<SPAN STYLE="">dvertising on paper since half of the advertisement is useless because does not reach the desired target. Different story is for the a</SPAN>dvertising on Internet, Google allows its client to understand if the message has been used!</SPAN></SPAN> </LI> </UL> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Those trends, combined to the recent technological tendencies, will make fundamental the investment in the research and the technological innovation in all Industries as a mean to integrate the different expansion needs and to maximize the competitive advantage.</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Please comments are welcomed</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> <SPAN LANG=EN-GB><SPAN FACE="Times New Roman">Lucio Vollaro</SPAN></SPAN> </P> <P CLASS=MsoNormal STYLE="MARGIN:0cm 0cm 0pt;TEXT-ALIGN:justify"> </P> </DIV> </DIV>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-44493462351698920022007-06-25T07:33:00.000+01:002007-06-25T07:33:08.963+01:00<H3 class=entry-header>Human Networks</H3> <DIV class=entry-content> <DIV class=entry-body> <BLOCKQUOTE dir=ltr> <BLOCKQUOTE dir=ltr> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN lang=EN-US><SPAN face="Times New Roman">"The European Banking System has reached a crossroads in its strategic management of the multi-channel delivery systems" - Robert Giffords is saying, and - "the models have failed to manage the promised “cost reduction” because banks need to support more fixed costs for each channel and self-service interactions have shot-up. Moreover Clients like the flexibility of the “anytime, anywhere, anyhow” model, but are unwilling to pay for it."</SPAN></SPAN></P></BLOCKQUOTE></BLOCKQUOTE> <P class=MsoNormal dir=ltr style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <P><SPAN lang=EN-US><SPAN face="Times New Roman">In Robert Giffords' quote there is a recurring fact that “Clients do not want anymore pay for the <STRONG>transport</STRONG>”. Clients are ready to pay 7GBPounds to get into London city, but do not want to pay to travel in the M4 expressway.</SPAN></SPAN></P> <P><SPAN lang=EN-US><SPAN face="Times New Roman">On the other end I see new Banking models having success, like Bankinter <A href="http://www.ebankinter.com/">www.ebankinter.com</A> and Mediolanum <A href="http://www.bancamediolanum.it/">www.bancamediolanum.it</A>. They are penetrating the market, therefore getting new Clients, through a new model of doing Banking. <EM>“The Bank designed around the Client”.</EM> Clients can appreciate not only the flexibility of getting the money in the ATM or at the nearby Post Office, but even the seamless procedures and the fact that there are Consultants ready to talk with them about their business needs.</SPAN></SPAN></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN lang=EN-US><SPAN face="Times New Roman">So this new way of doing Bank has put together, at the Client's service, both the “human touch” and the “technology touch”. They have put the Human Network at work around the Client.</SPAN></SPAN></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN lang=EN-US><SPAN face="Times New Roman">My great friend Jim Masciarelli </SPAN><A href="http://www.powerskills.com/"><SPAN face="Times New Roman"><FONT color=#800080>www.powerskills.com</FONT></SPAN></A><SPAN face="Times New Roman"> is saying</SPAN></SPAN></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <BLOCKQUOTE dir=ltr> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN lang=EN-US><SPAN face="Times New Roman">"At the end of the day, a company's only sustainable competitive advantage is its relationships with customers, business partners and employees. After all, we provide products and services to people, not to companies. A commitment to developing effective relationships strengthens the fabric of the organization in the long run."</SPAN></SPAN></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P></BLOCKQUOTE> <P class=MsoNormal dir=ltr style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN lang=EN-US><SPAN face="Times New Roman"><SPAN face="Times New Roman">Jim concludes</SPAN></SPAN></SPAN></P> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"></P> <BLOCKQUOTE dir=ltr> <P class=MsoNormal style="MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify"><SPAN lang=EN-US><SPAN face="Times New Roman">"More than any trendy management technique, human networks have always been the prime movers of business information. Ignore these networks or trivialize them on your priority chart, and you'll invite missed opportunities communication breakdowns and even business failure. The real waste products on the scrap heap of today's business world are broken promises and burned-out and failed relationships. While we often look back on such failures, as inevitable, it is more likely that proper relationship management was lacking."</SPAN></SPAN></P></BLOCKQUOTE> <P><SPAN face="Times New Roman">One leading Italian Banker Carlo Salvatori was once saying to me "To be a successful banker it is easy if the Bank's shops are working". So he meant if the Branch Offices and their Human Network work.</SPAN></P> <P><SPAN face="Times New Roman">Investing in the Bank distribution network's Human Resources is key for the Retail Bank's success.</SPAN></P> <P><SPAN face="Times New Roman">Lucio Vollaro</SPAN></P> <P><SPAN face="Times New Roman">Any comments are welcomed</SPAN></P></DIV></DIV>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-81099264570254172192006-11-12T19:38:00.000+01:002006-11-12T19:39:02.307+01:00Leadership gap<p align="left"><strong><u><span style="font-size: 130%;"></span></u></strong><span style="font-size: 100%;">A growing number of white hair managers are re-gaining the US Coporate Top seats.</span> </p><p align="left"><span style="font-size: 100%;"></span></p><ul><li><div align="left"><span style="font-size: 100%;"><strong>Viacom</strong>: Sumner Redstone fires his CEO Tom Freston, and 83 years old is now in the driver seat of his company</span> </div></li><li><div align="left"><span style="font-size: 100%;"><strong>Ford</strong>: the heir of Ford dynasty, Bill Ford, leaves his seat to Alan Mulally, 61 years old, after 37 years of employment at Boeing</span> </div></li></ul><p align="left"><span style="font-size: 100%;">Reasons:</span> </p><ol><li><span style="font-size: 100%;">The juvenilism that was raging in US is in crisis. Where the mandatory law was model "FiFo" (first in first out) that is the annual programmed substitution of 10% of managers over 40s with the worst performances, with younger managers. The model was perhaps good in logistic but tragic in company's management (e.g. the Enron case)</span></li><li><span style="font-size: 100%;">Today is back on the stage the "seniority" understood as capacity, experience, 360° competencies that today's business is requiring. Younger managers are more dynamic and assaulting, but with a specialistic culture, vertical monoculture and lack of a global vision</span></li><li><span style="font-size: 100%;">Crisis of US leadership due to generational gap. According to Forrester Research before 2010 between 50-75% of top managers will retire (ex baby boomers born between 1940-1950, and they will not be replaced by younger managers that are more re cued in number and not trained to command. Young managers "moan lack of space and power, but they do not know to suffer"</span></li></ol>Lucio Vollarohttp://www.blogger.com/profile/13758100217873394323noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-50772265612234971972006-11-12T19:23:00.000+01:002006-11-12T19:33:11.670+01:00The maven's circle author's<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://photos1.blogger.com/blogger2/3883/964837562939156/1600/autori2.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://photos1.blogger.com/blogger2/3883/964837562939156/320/autori2.jpg" alt="" border="0" /></a><br /><p><span style="font-weight: bold; color: rgb(51, 102, 255);">Lucio Vollaro</span> (on the left)</p> <p>Lucio Vollaro has over 35 years of experience in the Information Communication Technology Industry. </p> <p>Initially with IBM, he spent 10 years in Research and Development in their U.S. Systems Development Division, and later held positions in Marketing, Large Account Management and Branch Offices Management. He was later appointed Country General Manager for Wang in Italy. </p> <p>Prior to founding CIVI International, he was a Partner in the Milan office at TASA where he led the firm’s Information Communication Technology and Banking practice. </p> <p>At CIVI International, he conducts pan-European executive search assignments for a wide range of ICT vendors and Financial users and he is trusted advisor to CEOs. </p> <p>His other consultancy activities include: management appraisal, executive profiling and business positioning. He has placed more than 200 executives into client companies in the following fields: Banking, Information Communication Technology.<br />Mr. Vollaro holds a degree in Electronic Engineering from the University of Rome. </p> <p>He is married and resides in Milan.<br />----------<br /><span style="font-weight: bold; color: rgb(51, 102, 255);">Roberto Dadda</span> (on the right)</p> <p>Born in Lodi, Milano Italy, in 1950 graduated as Doctor in Chemical Engineering at the Milano Politecnico. Began is career at Oronzio de Nora Impianti Elettrochimici working on the application of computers to automatic control of chemical processes.</p> <p>From 1978 to 1983 R&D manager at Bellco, an ENI company, developed several biomedical apparatus, artificial kidneys and life support systems. Founder and director in 1983 of Carlo Gavazzi Factory Automation System division joned ITP Automazione in 1987 as responsible of process automation systems division.</p> <p>R&D manager at Banco Ambrosiano Veneto from 1994 to 1998 and then at Banca Intesa until 2000 was responsible of the project of the first on Italian on line banking system and of the first SMS portable banking system in Italy.</p> <p>Since may 2000 holds the position of Director for Research and Development at SIA SpA, Società inerbancaria per la automazione – CED Borsa. SIA manages the Italian stock exchange system, the Italian interbanking network and the SWIFT node and is the root certification authority of the Italian banking system.</p> <p>Professor for several years of Bioengineering applied to cardiovascular surgery at the Milano school of medicine, of Computer system architecture and of Compiler design at the Milano school of information technology teaches nowadays Web Design.</p> <p>Non professional Journalist wrote several books on the professional use of personal computers.</p> roberto@dadda.it<br />www.dadda.it<br /><br /><span style="font-weight: bold; color: rgb(51, 102, 255);">Our circle...</span><br /><br />Here are some things you may want to know about The Maven Circle – our philosophy about this site:<br /><br />• Experiences is the bedrock for this blog – our goal is to present our experiences about: Needs from ITC demand-side, Availabilities from ICT supply-side, and Trends of the present and future of ICT adoption that are backed up whenever possible by links. We’ll go ahead and offer experts’ best opinions when it is credible and offers value.<br /><br />• Sharing others’ insights is a critical ingredient – as an International Executive Search Consultant operating in a large community and as a “guru” like Roberto Dadda, we are fortunate to have daily discussions with many smart people with unique and informed perspectives to share. Our goal on the exchange is to open up many of these discussions and perspectives – from users, vendors, investors, academics and others shaping the industry. Of course, there are some “rules of the road” that we ask you to respect, in order to make the site work:<br /><br />• Reading is open, but commenting requires registration – we want the information offered in this Web log to be as open and accessible as possible, so no registration is needed to come to the site. To increase the sense of community, we do ask that anyone wanting to post a comment go through a simple registration (name, email). The Maven Circle has a strict privacy policy which will protect you and your information from being abused.<br /><br />• Comments are moderated – we’re not interested in having a censored environment, but to prevent spamming and nastiness, we’ll review all comments before publishing them. Disagreements and debates, with a civil tone, are welcome. • Sorry, but sometimes we link to subscription sites – if there’s more to the story that readers who are also subscribers to IDC, WSJ, Salon or other pay sites can access, we’ll put the links in. It’s not an attempt to sell IDC reports, or subscriptions to other sites; it’s just a recognition that many of our visitors are also subscribers to these sites, and may benefit from the added information. We’ll try to limit the number of these! We hope you find The Maven Circle both a valuable source of discussion and insight, as well as a valuable platform for you to share your own thoughts!Anonymoushttp://www.blogger.com/profile/12706973611214703780noreply@blogger.com0tag:blogger.com,1999:blog-7903949315597569835.post-40276333533426873422006-11-12T10:07:00.000+01:002006-11-12T19:44:08.616+01:00Maven<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://photos1.blogger.com/blogger2/3883/964837562939156/1600/Crowd.jpg"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer;" src="http://photos1.blogger.com/blogger2/3883/964837562939156/320/Crowd.jpg" alt="" border="0" /></a><span style="font-size:100%;"><strong><br /></strong><span style="font-weight: bold;">Maven</span> is a word derived from Yiddish, but originated in the United States and stands for “<em>A person who has special knowledge or experience; an expert</em>.”</span> <div class="entry-content"><div class="entry-body"> <p style="font-family: arial;">We do know many Connectors, people we create contact among other people, and most probably a few Mavens: <strong>finding a Maven acting as a connector as well is a rare fortune</strong>.</p> <p><span style="font-family:arial;">Connectors and Mavens are also found in the Internet: in the Microsoft research lab there is an ongoing research project, </span><a style="border-bottom-style: groove; font-family: arial;" href="http://netscan.research.microsoft.com/">Netscan</a><span style="font-family:arial;">, aimed to the identification of behaviors on the Usenet: in the project a few Mavens are identified and defined as </span><em style="font-family: arial;">people who answer people who do not answer people</em><span style="font-family:arial;">. They are the central nodes with many uni-directional knowledge ties.</span> </p> </div> </div>roberto dadda e lucio vollarohttp://www.blogger.com/profile/17582142277913206164noreply@blogger.com0