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There are some vague points in that summary, possibly because that is a summary not a full report.

But there are two key points which need to be clarified even at that high level of summary:

1.  What kind of disruption/challenges/issues investment banking is facing and why and how automotive or aircraft manufacturing approaches will help with that?

2. The role of data in the current business and IT systems and principle of processing are clear and nicely presented but what will be a role and processing of data after the proposing changes described in more general words.

I agree that banking industry, as well as other industries, are facing significant challenges and require deep changes which could be described as an industry revolution (terminology which itself requires clarification) but without those answers it will be difficult to assess and manage associated risks and impact of changes.

Regards
Igor

A Delicate  and complex one. It would be interesting to see business and technology drivers and goals.

Sometime such programmes don't deliver what is expected because of wrong focus.

Innovation as well as mobility (or sometime digital), bid data and some other like cloud are buzz words.

The key question is not what to innovate but why. An even what is an innovation. There are some types of innovations with different drivers, required efforts and potential results.

Finance sector is obviously different from manufacturing, automotive, consumer, telecoms and expect that the same approach and measure of innovation is suitable for all of them would oversimplify the problem.

Finance sector needs innovations, no doubts, but ways of how to identify and deliver those changes may be different.

Banks and other businesses maybe feel that changes are required but they are not sure what changes are required.

Idea that changes are required because of digital is not very convincing because it is not clear how those technologies will help to improve business results.

Mantra that customers want digital (what is digital and how that helps improve profitability of each customer?) and therefore banks need to be agile (how agile? What is criteria and measure?) from my point of view does not provide enough justification or clear and strong case for radical changes and  heavy investments. That looks more like gambling rather than mature forecast or estimation.

These days, when business profitability is not that great as before, deeper understanding of innovation, optimisation and modernisation projects and more careful planning of projects and results is the key to success.

@Ketharaman - thanks. One note to the innovations point: from my point of view there are different types of innovations and only some of them directly based on technology. As a matter of fact thechnolofy based innovations are not the most complex, efficient and long lasting.

Business and commersial changes initiated or supported by technology make real deal and deliver real benefits for those innovations.

The most technology edvanced sector  of economy was hard landed to reality  together with .Com bubble bust.

Banking industry, as one of the most technology based, need to keep that in mind when planning innovations.

From my point of view the main question is what is the driver of that change in HSBC and what goals that change will help to achieve for the entire bank.

Not questioning importance of digital and IT technologies in banking sector I don’t see them as a silver bullet or panacea for all problems. Banks are not failing so far because of IT technology; at least I don’t know such examples.

I also don’t know any research which demonstrates branch disadvantage and digital advantage or vice versa for retail bank business at enterprise level. If HSBC would be able to cut down their operational expenses in long term and improve profit with that technology change that would be an interesting result to look at.

Implementation of a new technology of that scale is complex and time and resource consuming process and benefits from it are not that straight forward. That is even more important in the current situation when profitability and growth is not that generous.

Technology is a capability provider and could make for example customers life easier in some cases but would not make them spend more or provide them more power to spend.

Such big change like migration of bank IT to cloud or conversion of branch channel to digital channel must be carefully planned and understood. That is not a question of budget or time or who does it first but more question of who does it right.

I hope HSBC have answers for those questions and planned that change at enterprise level not just as a new big IT project.