NAB is certainly taking the strategic view in terms of its automation risk management announcing a $1 billion program (over 5 years) to overhaul its technology platforms.
We posted during July on the payroll processing failures at Westpac and NAB and that each of these failures impacted on service delivery to millions of people.
The overhaul of the technology platform is will position NAB for a more aggressive assault on the internet banking market share of its competitors.
The move by NAB follows on from an earlier commitment by the Commonwealth bank to a $580 million core banking modernisation project to speed the development of new online products.
A benchmark business process is a benchmark business process; regardless of the application. The management of process failure risk and error in one industry sector is very similar to management of process failure risk and error in another industry – the subject matter may change but the process and principles of good practice do not change.
Referring to our earlier post on Harvard’s Professor Andrew MacAfee’s views on IT deployment the breakdown of IT budget into:
1. Function IT - Supports execution of tasks i.e. spreadsheets, CAD
2. Network IT- Supports collaboration and connections i.e. e-mail, wiki, blog.
3. Enterprise IT- Specifies a Business Process i.e. defines tasks and sequences, mandates data formats, use is mandatory.
This type of deployment fits into the Enterprise IT and really creates an opportunity for the individual Banks to create unique competitive advantage through process innovations.
Getting the right technology aligned with the right deliverables and the right people is the change management challenge for large enterprises; as the payroll processing failures have demonstrated the margin for error is extremely small when the volume of transactions is high and customer expectations are at 100% reliability.
REFERENCES:
http://www.australianit.news.com.au/story/0,25197,24141373-15306,00.html
Andrew MacAfee’s Blog: http://blog.hbs.edu/faculty/amcafee/
HBR Article: http://harvardbusinessonline.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?ml_action=get-article&articleID=R0611J&ml_page=1&ml_subscriber=true
We posted during July on the payroll processing failures at Westpac and NAB and that each of these failures impacted on service delivery to millions of people.
The overhaul of the technology platform is will position NAB for a more aggressive assault on the internet banking market share of its competitors.
The move by NAB follows on from an earlier commitment by the Commonwealth bank to a $580 million core banking modernisation project to speed the development of new online products.
A benchmark business process is a benchmark business process; regardless of the application. The management of process failure risk and error in one industry sector is very similar to management of process failure risk and error in another industry – the subject matter may change but the process and principles of good practice do not change.
Referring to our earlier post on Harvard’s Professor Andrew MacAfee’s views on IT deployment the breakdown of IT budget into:
1. Function IT - Supports execution of tasks i.e. spreadsheets, CAD
2. Network IT- Supports collaboration and connections i.e. e-mail, wiki, blog.
3. Enterprise IT- Specifies a Business Process i.e. defines tasks and sequences, mandates data formats, use is mandatory.
This type of deployment fits into the Enterprise IT and really creates an opportunity for the individual Banks to create unique competitive advantage through process innovations.
Getting the right technology aligned with the right deliverables and the right people is the change management challenge for large enterprises; as the payroll processing failures have demonstrated the margin for error is extremely small when the volume of transactions is high and customer expectations are at 100% reliability.
REFERENCES:
http://www.australianit.news.com.au/story/0,25197,24141373-15306,00.html
Andrew MacAfee’s Blog: http://blog.hbs.edu/faculty/amcafee/
HBR Article: http://harvardbusinessonline.hbsp.harvard.edu/hbsp/hbr/articles/article.jsp?ml_action=get-article&articleID=R0611J&ml_page=1&ml_subscriber=true
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