The case, ‘Santander Acquires Abbey: The Plug Project', is applicable a general strategic management target to an examination of the ‘Jack Project', the Spanish financial group's THAT centric task to acquire Abbey. The case concentrates on Jose´ Marı´a Fuster, key information officer (CIO) wonderful perspective in leveraging THIS to combine Abbey. This issues happen to be explored: (1) the value of THIS; (2) the generation of synergies in M& A; and (3) the prioritisation of IT-related options comparing two diverse realities. At the conclusion of the case, learners will take a look at how Parteno´ n, Colectividad Santander's primary IT program, leveraged this acquisition and made an impact within the bank's long lasting market situation.
Keywords: IS DEFINITELY strategy; THAT architecture; merger and acquisitions; IT governance; retail financial; Synergies
Reunion Santander 2
Banco Santander (BS) was founded in 1857 by Rafael Botı´n. Beginning in 1950, his great grandson, Emilio Botı´n Sr. business lead the bank's expansion vacation. In 1957, he minted a remarkable cope with FC Barcelona3 to build a club arena, Camp Nou. The deal specific that BALONEY would manage FC Barcelona's assets for the 10-year period and that the membership would question its 30, 000 users to open accounts at BALONEY. This push enabled BULL CRAP to develop a branch network in Catalonia. At the time of the bank's 100th anniversary in 1957, BALONEY was the seventh largest bank in Spain. In 1986, Emilio Botı´n Jr. was appointed president.
For years, Spain's seven biggest banks (BS, Banco Bilbao,
Banco Vizcaya, Banco Well-known, Banesto, Banco Central,
Bajio Hispano Americano) entered into ‘gentlemen's
agreements'; few banks wooed customers faraway from rivals;
rather, banks expanded into areas where few-people had
checking accounts. It was as well customary to pay no interest on
current accounts, no matter how significant the balance. In 1989,
BS tore this cosy layout to shreds by releasing the
‘Supercuenta' (Super Account), which paid out 11% curiosity.
BS deposit grew by simply leaps and bounds, supplying the bank
the financial muscle mass to acquire additional entities. In 1988, an
cha?non was cast with The Royal Bank of Scotland,
placing BS for the European bank map. Chief executive Botı´n
was known for his favourite saying: ‘The early bird gets the worm'.
With all the acquisition in 1994 of Banco Espan˜ol de Cre´dito (Banesto), BS became the greatest Spanish traditional bank. In 1995, BS
expanded its network in Latin America. In a 10-year period,
BS had bought three of the eight largest The spanish language banks in
place in 1989: Banesto, Bajio Central, and Banco Hispanico
Americano. In 2000, the lender acquired Net bank
Patagon (re-named Open up Bank in 2004), which usually yielded
five-hundred, 000 buyers worldwide. How big is the new traditional bank
allowed it to fund a fresh series of acquisitions in Spain
(Grupo Totta), Germany (AKB), Poland (PTF), Norway
(Elcon), and Latina America. some
By year-end 2003, GS had h351. 8b in assets, ciento tres, 038 personnel,
9199 twigs, and more than 69m clients in above 40
countries (Exhibit 1). Its primary business emphasis, retail banking, contributed 82% of the group's profit (the remaining 18%
came from asset management, private banking, and global
low cost banking).
Chief executive Botı´n observed:
Grupo Santander's success is dependent on sticking to full
banking, which can be its main competence. Secondly, the
traditional bank is very extreme in industrial terms. Finally, the
bank is very advisable when it comes to managing risks
Progression of IT goals in banking
In the 1970s, the majority of European financial institutions invested in mainframe
computers to automate back-office tasks such as
accounting, invoicing, and payroll. Soon almost all products and
their very own related functions (such while account managing or
mortgages) relied upon software applications that have been
stored and run on mainframe computer systems. In
the eighties, Banco sobre Espan˜a released guidelines to cut
transaction costs, reduce paperwork, improve secureness,
and reduce the scope intended for fraud. Financial institutions began to spend
in IT for front-office operations...
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