Industry Practices

In early 2008, many consultants and commentators questioned the viability of universal banking model of Citigroup, JP Morgan, HSBC, Bank of America. They suggested the end of universal banking model and predicted that the crown of banking superpower would go to the top investment banks. 
 

After banks, will insurers be the next casualties of the credit crunch? Policyholders are right to be worried by the effect on insurers’ balance sheets of sharp falls in stock markets, commercial property and corporate bond prices. Many insurers have sought to spread risk by investing in all three asset classes.

The telecommunications sector faces multiple challenges. Costs are rising while margins are falling. Customers show little brand loyalty and take-up of new services like 3G has recently been disappointing. Yet there is always the possibility that “the next big thing” is just around the corner. Telecommunications companies must cut operating costs and improve customer service, yet remain agile enough to respond to sudden market developments.

UK manufacturers continue to face tough times. Offshore competition from more economically favourable locations, exchange rate fluctuations, commoditisation of products, and falling labour productivity have all been blamed. Whatever the cause, manufacturers need to find the right operating model and combine it with streamlined, adaptable processes supported by flexible technology in order to survive and thrive.

The pharmaceutical industry is facing testing times. Patents are expiring on many profitable drugs and new ones are proving increasingly elusive. Governments are piling on the pressure with tighter regulations and controls on profits. And the recent spate of mergers and acquisitions has failed to deliver the expected benefits. Pharmaceutical companies must overhaul their processes and reconfigure their underlying IT to help create cost-effective, agile organisations that will deliver lasting value for shareholders.

Whether the general picture from the high street is good or bad, some retailers seem to thrive while others struggle. The internet may have been touted as the big threat, yet online shopping only accounts for a fraction of sales. Thriving retailers are those that use technology to do the basics well. Retailers need infrastructures that help them create and manage flexible supply chains, understand and respond to customer needs, and exploit their brands effectively.

A sector once known for its predictability has become much more dynamic and demanding. Deregulation has created intense pressure on utility companies to cut costs and find new opportunities for growth. They can now choose from an array of strategies and operating models. Whatever approach they take, success depends on putting in place the right processes and supporting technologies to drive out costs and create an agile and responsive organisation.

The public sector is under pressure to improve performance and devote more resources to front-line services. It has embarked on a range of IT-enabled initiatives aimed at reducing bureaucracy, improving access to services and overcoming skills shortages. While there have been many notable successes, there have also been some very high-profile failures. Public sector managers need to find implementation partners who understand the potential pitfalls and can help deliver lasting value.