"big bang" changes or upgrade incrementally?

NECS is an example of big bang changes. It is reported by AFR that Telstra executives had plumped for the riskier of two choices by pushing ahead with a "big bang" replacement of back-office computing operations. A $1 billion replacement of the spaghetti-like tangle of software and hardware that runs the carriers business is a key plank in the Telstra transformation strategy.

The carrier has 1200 business and operational support systems, and the move is to cut 900 systems in three years. As pointed out its not a technical issue, it's about return on capital. Its all about ROI and operational savings.

The article points out the banking sector has spent hundreds of millions of dollars over the years to build humungus new systems - and $600M later, they have no ROI. Now I am not sure where the journalist Emma Connors comes up with these numbers. Though I do remember reporting over the years banks missing the mark on technology investments.

Back to NECS - they too will ending up investing substantially in a whole new business model for settlements and lodgements. Their ROI will come but over many years, certainly not short term. What NECS is doing is big bang but it is also incremental given over the past 25 years they have been creating a land title database and imaging of plans and encumbrances. The next steps Land Registry are taking are two fold. One is improving the processes for lodging and registering Plans of Subdivision. I understand that trials are continuing with surveyors and councils. I would be interested to hear feedback on this. I believe the Eureka Tower was one of the first to be lodged electronically. The other step is electronic lodgment. Trials with banks are about to begin, soon.

Back to the banks - now I believe the banks need to overhaul their mortgage and loan processing, not with incremental changes but with a big bang overhaul. Don't just look to NECS because they aren't about solving this one, they are about lodgment. In the past you have looked at outsourcing, but really this has just resulted in more of the same, more or less. Digital loan and mortgage documentation and processing is the answer. Turn loans and mortgages into digital instruments together with digital processing and there you have not just innovation you have a huge ROI on technical investment.