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Coping with the downturn - top five banking business tips

Coping with the downturn - top five banking business tips

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With the economic downturn looming and in the wake of Sept 11, Computer Sciences Corporation has created a "Top 5" list of strategic objectives to help financial institutions weather the storm.

1. Balance your business portfolio.
Look at your products and services in terms of lifecycle maturity. You must reduce the cost of ownership of low-margin mature product lines and lower the high cost of service in less profitable customer segments. By lowering your infrastructure costs, squeezing more value out our your margins, and enabling a comprehensive view of customer activity, you will be well positioned to accelerate the pace of your current businesses and create new opportunities.
2. Create new networked enterprises.
Rethink your business processes and roles to discover where alternative revenue sources can be found. Leverage your core competencies by repackaging and extending your successful offerings outside your traditional markets.
3. Accelerate your M&A activity.
The pace at which you acquire and assimilate new entities into your organizational structure can have an enormous impact on your bottom line. Find a business and technology partner with an experienced playbook who runs strong disciplined projects, sets metrics and manages timeframes to help you quickly incorporate and leverage business process, IT and people from disparate organizations.
4. Your total data network must be fully operational to deliver quality service.
Where your data resides and how you use it is extremely important in the overall scheme of servicing your client. In a disaster recovery environment, re-establishing links to disparate databases has proven to be more complex than anyone could imagine. It is nearly impossible to sustain high quality customer service while operating in disaster recovery mode. Proactively audit your business resumption plan in terms of IT data architecture, business processes, and people to ensure that your service levels are not compromised in turbulent times.
5. The best offense is a good defense - press for the shortest settlement time possible.
In this economic climate, you must be able to assess your cash position at the opening of each business day. By adopting the most efficient settlement cycle, you will reduce risk and increase margins, while enabling your firm to proactively manage its cash flow.

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