IT in Financial Services: Modernising – innovate or hibernate?

This article tells about the IT status of a financial service institution (FSI), need to computerize for FSI, issues on IT modernization of FSI and two approach for FSI: innovate(big-bang) or hibernate.

According to this article, there are two approaches a FSI can follow in terms of computerization. The first approach is “big-bang” approach meaning do all IT modernization at the same time. The other one is “chip away” approach which means modernization of IT a little at a time.

To elaborate further, “big-bang” approach is considered as innovative since it embraces the leading edge of technology and this approach has developed accurate cost-benefit models that link IT changes to business metrics. As the opposite concept of “big-bang” approach, “hibernate” approach of IT modernization is introduced. “Hibernate” approach adopts the ultra-conservative approach by keeping up IT systems running for the absolute minimum cost.

The writer comments not to be in-betweeners who will fritter away their IT budget on incremental modernization for little gain.

When it comes to make a decision on “innovate” approach or “hibernate” approach for IT modernization of our company, we need to analyze every aspects such as IT budgets, objectives of IT modernization, benefits analysis on customers and company inside.

To look into some more details, please click on the following link.
http://www.ft.com/cms/s/0/378b2ee2-235c-11dd-b214-000077b07658,dwp_uuid=3bd54f56-21cb-11dd-a50a-000077b07658.html