Bold proposal for new financial services industry operating model, based on findings of multi-million dollar research project
Austin, TX – October 21, 2008 – Saying that updated regulations and fresh capital are necessary but insufficient to solve the world’s economic and financial services crisis, nGenera Corporation proposed today a set of comprehensive design principles and initiatives that would resuscitate the financial services industry for the long-term. The high-level design recommendations are part of a research paper available immediately at the nGenera website (www.nGenera.com), entitled Risk Management 2.0. They were co-developed by Don Tapscott, influential nGenera business strategist and co-author of the best-selling business book Wikinomics: How Mass Collaboration Changes Everything, and colleague Bob Tapscott.
“To restore confidence in the bludgeoned financial services industry, we need a new operating model based on unprecedented transparency and the wide-spread sharing of intellectual property. This is completely feasible and affordable in a digitized world,” said Don Tapscott, chairman of the nGenera Innovation Network. “As financial instruments became more complex they became more opaque, which has proved disastrous. Sunshine is the best disinfectant, and sunlight is what smart digital tools would provide.”
“Investors, board members of public and private companies, bankers, and other business leaders should be looking to collaborate around a private-sector solution to the chronic problems undermining the financial services marketplace,” says Mitchell Kertzman, partner with Hummer-Winblad, an nGenera board member, and previously chairman and CEO of Sybase, a billion-dollar publicly traded company. “They need to rethink many assumptions of the industry’s basic modus operandi and we believe nGenera’s design proposal for ‘risk management 2.0′ is the kind of insightful approach to a new operating model that is needed.”
The research findings was produced for nGenera clients as part of a multi-million dollar, proprietary research program. “Among the design principles,” said co-author Bob Tapscott, “investors would be able to ‘fly over’ and ‘drill down’ into a Collateralized Debt Obligation’s underlying assets. With full data, they can readily graph the payment history, and correlate information such as employment histories, recent appreciation (or depreciation), location, neighborhood pricings, delinquency patterns, and recent neighborhood offer and sales activities. Now that AAA ratings have proved worthless, currently investors don’t have a glimmer of what they are being asked to buy. And they won’t start buying until they fully understand what they are purchasing and know that the price is fair.”
About the Authors
Don Tapscott is chairman of the innovation network arm of nGenera Corporation, an Austin, Texas-based technology company serving a marquee list of Global 2000 customers. He is the author of 13 books, most recently Grown Up Digital: How the Net Generation is Changing Your World(October 2008).
Robert (Bob) Tapscott is provisional CEO of RISConsulting, specializing in cutting-edge financial risk and capital management solutions for large institutions worldwide. As a former CIO he has a diversified background in organizational creation and transformation having delivered bottom-line results from the successful design, construction, and implementation of new strategies, systems and processes.
nGenera Corporation is an on-demand platform for business innovation that provides a suite of subscription-based offerings to enable the Next Generation Enterprise. Powered by software and people, nGenera’s on-demand offerings give organizations sustainable, breakthrough capabilities in leadership performance, talent management and development, and customer experience. Customers include a marquee list of Global 2000 companies in a range of industries. For more information visit www.nGenera.com.