Comm Bank boss blasts IT
By Michael Sainsbury, iTnews
Thursday, 28 February 2002
http://www.itnews.com.au/story.cfm?ID=9200
Commonwealth Bank boss David Murray has delivered an extraordinary
broadside to the IT industry, accusing it of over promising and under
delivering at the World IT Congress in Adelaide Thursday.
The Commonwealth Bank was the first large Australian corporate to outsource
its IT function lock, stock and a barrel in a deal with EDS five years ago.
"Technology never gets deployed according to promise," he complained in
what can only be described as a bitter attack on the industry. And while he
did not once mention EDS' name, Murray is obviously not a happy IT puppy.
There have been strong and constant industry rumours that the relationship
between the CBA and EDS has gone sour.
"The IT industry in the US has single-handedly destroyed the world economy,
leaving governments to clean up the mess," Murray said.
EDS downplayed Murray's critique. "Our understanding was that he was taking
an industry view. We are very comfortable with what he had to say. It was
thought provoking," EDS spokesperson Brian Finn told iTnews.
Murray also noted that the apparent creation of a paperless office had only
created new classes of lengthy legal documents. He griped that email had
created new legal obligations and said that if everybody at CBA sent home
an email he would have 34,000 to sift through everyday. Murray said if he
missed one vital email, say about a harassment complaint, he could be in
legal hot water.
"This doesn't seem to me like all singing, all dancing, great new stuff,"
Murray ventured. "It is difficult to trial the costs and get a sense of the
productivity gains."
He also said that every change in the way the bank does something involves
concomitant changes in the way the banks systems had to be fed. Referring
to the banks implementation of online services for its customers and noting
that CBA was ahead of its rivals in this regard, Murray said "the outcome
falls short of the promise".
Murray alluded to the birth of the motor car and mass transit in referring
to the serial practice of national (and mainly American) IT executives
winging into Australia and telling us to spend, spend, spend on IT. He
admitted stealing the line "if Microsoft had made the model T we would all
be in trouble".
He added that "if Ford had come here 50 years ago and told us to build a 50
lane highway to keep up with the rest of the world, we would have told him
to go away."
Murray also had a go at the ACCC saying the regulator is hindering
investment in Australia and this was something the government needed to
address. But Murray claimed the banks' telecommunications outsourcing deal
with Telecom New Zealand was fine. It seems that there price was the main
driver with Murray saying the bank was getting savings of 30 percent.
</quote>
There is also a report in the Fin Review
CBA chief attacks IT for wrecking world economy
Mar 1
Katrina Nicholas
Fin Review
http://afr.com/it/2002/03/01/FFXEF5NF7YC.html
-- Of everyone to whom much has been given much will be required and of him to whom they have entrusted much they will demand more. --Jesus of NazarethRegards brd
Bernard Robertson-Dunn Sydney Australia brd@austarmetro.com.au
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