Leading Indicator: 89% of Financial Service Firms Have Adopted ICCs

The latest survey by Informatica Professional Services shows that 59% of enterprises have, or are in the process of, implementing an ICC. The figures vary greatly by industry however.  For example, in Financial Service Firms the percentage is 89% while for public sector organizations it is just 25%. What can we take from this?

Banks don’t move money, they move data. Banks spend more on IT than other industries; on average they spend 7.3% of revenue on IT according to a Forrester IT Spending Benchmark study. All other industries have a lower percentage; at the other end of the spectrum are companies in the primary production and consumer products industry which spend 2.5% of revenue on IT.  While other firms like high-tech software companies, research organizations, and innovative social-media websites may have more bleeding edge software, financial service firms are leading the way when it comes to solving data integration challenges. A key element of their strategy is assigning responsibility for integration activities to one or more Integration Competency Centers (ICC’s which are sometimes referred to as Centers of Expertise or COE’s or other names).  In fact one large bank has 48 different COE’s, each operating as a shared service function with a specific technology or solution orientation across multiple business or application groups.

A case could be made that there are bigger data integration challenges than those faced by banks such as the complexities of integrating data across government agencies, but banks are ahead of the curve in terms of implementing solutions to tackle the problems. As a result, we can take a lesson from them.

One of the key sources for insights and best practices in my Integration Competency Center book comes from financial service organizations. It’s important to note that these same best practices have been applied over the years to hundreds of enterprises in other industries with good success.

The conclusion therefore is that ICC’s are a growing trend.  In another 5 to 10 years they will be commonplace in every industry.

To learn more, or to talk with me in person, check out some of the sessions that I am leading at Informatica World in June. Here are a few:

  1. Next-Generation Data Integration and Analytics from Informatica
  2. Next Generation Velocity: Lean and Agile Techniques for Project Success
  3. Help Informatica Shape Thought Leadership and Drive Change

Hope to see you at Informatica World!

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