Saturday, November 16, 2013
Monday, November 04, 2013
My response on this discussion is
Banks are going through what Telco's have gone through in last decade. That is, that their core product voice (analogue) is digitised and hence voice based service is free in competitive markets. In case of banks money is still not fully digital, but its not that far either, it will be digitised in few years. In that case then banks or telcos become digital platform for transaction enablement, like Google is for search. And so downstream consumers get free services and upstream consumers pay for interacting/engaging with downstream consumers using the digital platform and in that case it will be banking's core platform. Not only banks but any industry where core offering can be digitised as a multisided platform will have to be adopted else the business will go belly up. Media is evolving on those same lines.
In case of Australia its bit hard because markets across verticals are either monopoly or duopoly, its not a competitive market as compared to US/Europe. Having said that internet and internet of things will force it and banking will have to adopt that model else they risk of losing out to others.
That means services on downstream might not be totally free but some will be for sure. If Australia was more competitive and less regulation then downstream services will be totally free. Other thing about digital based model is that Marginal Cost (MC) is nearly negligible when it has to expand the business, where as in a brick and mortar/non digital based business Profits become maximum when MC = Marginal Rev. Digital business doesn't suffer from this economics.
Wednesday, September 25, 2013
Monday, September 16, 2013
Why IT - CMF For IT Strategy - It differs from other IT frameworks in several fundamental respects:
• It is comprehensive. While other frameworks focus on one dimension of IT management—for example, ITIL (Information Technology Infrastructure Library) concentrates on infrastructure and operations, while CMMI (Capability Maturity Model Integration) focuses on application development—the IT-CMF examines the full spectrum of dimensions.
• It is holistic and value-focused. Other frameworks tend to focus solely on IT process maturity, which by itself does not create business value. The IT-CMF, however, focuses on the business value delivered by IT and how a combination of process, skills, culture, and tools can maximize that value.
• The IT-CMF is also action oriented. An IT-CMF assessment not only confirms the IT organization’s current maturity for a given capability or set of capabilities, it also defines both short- (that is, 12-month) and medium-term (that is, two- to three-year) target maturities and the results the IT organization could expect to achieve by hitting those targets. Further, it identifies the specific steps necessary to achieve those targets, as well as appropriate metrics to use to track progress—and can provide case study examples of companies that have taken similar measures.
• Finally, the IT-CMF is not disruptive. Assessments for some frameworks require armies of consultants with clipboards and can be highly disruptive to day-to-day operations. IT-CMF assessments, in contrast, can gather the necessary information and achieve a credible degree of rigor without being obtrusive.
Overview on IT - CMF can be found here.
Source : BCG and IVI