Consolidating email systems
I had wondered how big a district would have to be.Take a look at this county map, available on the KSDE website.He says the integration of core banking systems is just a part of what is required if banks are to make large savings through integrating IT."You can only make the huge savings if you can find cost reductions in every part of IT," he says.It has targeted efficiency savings of up to £50m for this acquisition.But integrating the systems of two banks is risky because of their complex nature and the fact that they are business critical for 24 hours a day.The Rural Education blog at Education Week summarizes a report from the Journal of Research in Rural Education (PDF) as follows: “Students adjusted better than teachers to the social disruption” of consolidation.
As important as scholarly research is, sometimes it takes a rap for confirming the obvious. A study of school district consolidation in Arkansas says that if you look just at social factors, children have an easier time adjusting to district consolidation than adults.
Banco Santander already had a strategy to grow by acquisition and integrate the IT operations of the firms it buys to its own in-house platform, known as Partenon, which uses in-house middleware called Banksphere.
As well as rationalising IT this creates cross-selling opportunities, improves customers satisfaction and operational performance.
"It has big IT challenges ahead and hopefully it has learnt lessons from the IT integration of Abbey, which damaged customer confidence." Integrating the business of one bank onto the existing IT system of another bank is the challenge facing CIOs in the banking sector as consolidation takes grip.
IT is one of the biggest fixed costs that banks have and an investment made in a standardised IT platform by Banco Santander is enabling it to acquire banks and rationalise IT.