Dear,
Just 5 years ago (April 2008) I started this SAP Banking community.
At the time we were in a booming economy; the subprime crisis just started some months before, but their real effects wouldn't be fully visible till the Lehman Brother collapse, and the governments rescue of the Financial System on October 2008.
By then, I had understood that this was not another conjunctural crisis, like 1987, 1991, 2000, etc. This one was systemic and the center was the Financial System.
The scarcity of the natural resources, environmental damages and Financial Debts had achieved levels that made impossible to grow at the same rates that western economies enjoyed since the end of the Second World War.
By the way, I wrote about it months ago.
http://blogs.sap.com/banking/2011/12/07/its-growth-stupid/
Living in an economy of limited growth is a very big challenge for the Financial System. The whole Financial System relies in a very simple concept; I invest (or lend) capital to somebody, and I trust that he will pay me back, the invested capital plus some dividends (or interests).
But if I doubt that he will fulfill his obligations, I’ll be reluctant to invest, and without investment (or lending) there’s no Financial System. It sounds logic then, that in a world of limited growth, trust is also limited, and Capital is scarce.
If Capital is scarce, and without capital there’s no modern economy, efficient Capital management is the most critical, of the economic activities.
I've worked as SAP consultant since 1996; I've seen SAP optimizing processes in many industries for 17 years, but I always wondered why SAP presence in Banking processes was so limited. In my opinion, because the Financial System was not oriented to efficient management of Capital.
For decades Capital had been abundant and the objective was growth, no matter the amount of Capital consumed for fueling that growth.
And then, with the starting of the Financial and Economic crisis, we suddenly discovered that Capital is limited, and that’s the foundation of the Systemic change; from a Financial System based in volume to a Financial System based in efficient Capital management.
SAP is about efficiency and control, and with SAP Banking, we can build an Information System, which positions efficient Capital management at the center of the Bank’s activities. Describing and discussing how to do it, it’s the main reason why I founded this community.
Thanks to all who have joined me during this time, and I hope we keep together for 5 more years.
K. Regards,
Ferran.
Just 5 years ago (April 2008) I started this SAP Banking community.
At the time we were in a booming economy; the subprime crisis just started some months before, but their real effects wouldn't be fully visible till the Lehman Brother collapse, and the governments rescue of the Financial System on October 2008.
By then, I had understood that this was not another conjunctural crisis, like 1987, 1991, 2000, etc. This one was systemic and the center was the Financial System.
The scarcity of the natural resources, environmental damages and Financial Debts had achieved levels that made impossible to grow at the same rates that western economies enjoyed since the end of the Second World War.
By the way, I wrote about it months ago.
http://blogs.sap.com/banking/2011/12/07/its-growth-stupid/
Living in an economy of limited growth is a very big challenge for the Financial System. The whole Financial System relies in a very simple concept; I invest (or lend) capital to somebody, and I trust that he will pay me back, the invested capital plus some dividends (or interests).
But if I doubt that he will fulfill his obligations, I’ll be reluctant to invest, and without investment (or lending) there’s no Financial System. It sounds logic then, that in a world of limited growth, trust is also limited, and Capital is scarce.
If Capital is scarce, and without capital there’s no modern economy, efficient Capital management is the most critical, of the economic activities.
I've worked as SAP consultant since 1996; I've seen SAP optimizing processes in many industries for 17 years, but I always wondered why SAP presence in Banking processes was so limited. In my opinion, because the Financial System was not oriented to efficient management of Capital.
For decades Capital had been abundant and the objective was growth, no matter the amount of Capital consumed for fueling that growth.
And then, with the starting of the Financial and Economic crisis, we suddenly discovered that Capital is limited, and that’s the foundation of the Systemic change; from a Financial System based in volume to a Financial System based in efficient Capital management.
SAP is about efficiency and control, and with SAP Banking, we can build an Information System, which positions efficient Capital management at the center of the Bank’s activities. Describing and discussing how to do it, it’s the main reason why I founded this community.
Thanks to all who have joined me during this time, and I hope we keep together for 5 more years.
K. Regards,
Ferran.
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