IP: more on Bank chief blasts Microsoft and IT industry -" He said the United States' IT industry had "singlehandedly wrecked the world economy over the last couple of years". "

[Dave Farber <dave () farber net>]

------ Forwarded Message
From: Nathan Cochrane <ncochrane () theage fairfax com au>
Organization: The Age newspaper
Date: Tue, 05 Mar 2002 10:54:19 +1100
To: farber () cis upenn edu


Hi Dave

The big four banks in Australia are loathed by their customers for their
poor service, closing branches, and high fees. Bank closures are
implicated in the demise of the rural economy, whole communities and the
death of retail precincts in the metro area [1].

The formerly government-owned Commonwealth is no exception. In addition,
Australian banks were slow to realise the potential of the Internet, and
even now they struggle to keep their sites up during periods of load [2].

Three years ago, the banks -- through their representative lobby group,
the Bankers' Association -- were behind a vile attempt to coerce public
opinion [3]. They paid an influential Sydney radio talkback celebrity
who had been highly critical of the industry (a sort of Australian Liddy
or Limbaugh) to masquerade advertising as editorial.

Looks like the banks are trying to sheet home some blame for their
failings to a safe target, Microsoft, one of the few companies more
hated for its business practices and breathtaking arrogance.

---
[1]
The community's response to Australian banking closures

Pub date: 17-7-2001

Up and ATM, all for the counter culture

Byline: LARISSA DUBECKI

When the Commonwealth Bank closed its branch in the little Victorian
town of Warburton two years ago, people had to travel 10 kilometres to
the nearest ATM.

When the Commonwealth Bank closed its branch in the little Victorian
town of Warburton two years ago, people had to travel 10 kilometres to
the nearest ATM.

So they set up their own bank, and yesterday the Warburton branch of the
Bendigo Community Bank turned over the Australia-wide network's
billionth dollar of business since the first branch opened in 1998.

Bendigo Bank's chief manager of community banking, Russell Jenkins, said
the community banks were essentially about local people getting together
to raise the money to return to over-the-counter banking.

Forty-five community banks with about 80,000 customers now operate
around Australia, with a new branch due to open in Strathmore on Monday,
and a waiting list of hundreds of communities interested in opening a
branch. Twenty more are due to open in the next 12 months.

The Commonwealth Bank's executive manager of corporate affairs, Bryan
Fitzgerald, said that despite the closure of the Warburton branch, the
town had still been offered a full banking service through the post
office and the branch 10 kilometres away at Yarra Junction.

---
[2]

Pub date: 5-1-2001

Commonwealth crash stems ATM cash flow

Byline: CAROLYN BATT

A serious failure in the Commonwealth Bank's central computer system
caused mayhem for thousands of customers yesterday, leaving them unable
to access funds electronically for hours.

The nationwide problem affected the bank's 2600 ATMs and all Eftpos
machines, and began towards the end of a busy lunchtime. Internet and
telephone banking was also interrupted.

``We had a hardware failure in our computer centre this afternoon, about
1.45pm, and this affected the Commonwealth's networks,'' said Bryan
Fitzgerald, CBA's executive manager of corporate affairs. All systems
were operational again by 5.15pm.

---
[3]


A story from about the time of the initial revelations:

Pub date: 15-7-1999

Heat grows on talkback king

Byline: GERVASE GREENE

Australia's highest paid and most powerful broadcaster, John Laws, is
facing a storm of protest and at least five separate investigations over
his acceptance of up to $1.2 million from the banking industry in return
for ceasing his criticism of banks.

The Australian Competition and Consumer Commission yesterday joined the
Australian Broadcasting Authority, the Australian Consumers Association
and Laws' parent station 2UE in launching inquiries into Laws' actions.

The Commonwealth Bank, a major contributor to the deal, will also review
its stance.

The inquiries were prompted by revelations on the ABC's Media Watch
program that Laws' agent, Mr Bob Miller, had approached the banks,
requesting money in exchange for an end to the broadcaster's campaign
against them.

The chairman of the Commonwealth Bank, Mr Tim Besley, admitted that the
revelations had damaged the bank's standing. He said the bank's decision
to contribute $251,659 to the industry's bid for Laws' support would be
re-examined.

But Mr Besley denied having first-hand knowledge of the deal.
``Management usually runs those things, but it wasn't a matter for the
bank as such. It was a matter for the ABA (Australian Bankers
Association),'' he said.

``Obviously when anything appears in the press that seems to be damaging
to the bank and its shareholders, of course I'll have a look at it.''



Dave Farber wrote:

> ------ Forwarded Message
> From: Bill Daul <bdaul () pacbell net>
> Organization: Knowledge Engineering
> Date: Thu, 28 Feb 2002 00:39:06 -0800
> To: David Farber <dave () farber net>
> Subject: Bank chief blasts Microsoft and IT industry - smh.com.au - Biz-Tech
>
>
> http://www.smh.com.au/news/0202/28/biztech/biztech100.html
>
>  Bank chief blasts Microsoft and IT industry
>  
>
>            Commonwealth Bank of Australia managing director David Murray
> today launched a scathing attack on the information technology industry,
> accusing it of failing to deliver promises.
>
>  Mr Murray said the Commonwealth Bank and other IT users had "some serious
> issues" with the industry.
>
>  He said the United States' IT industry had "singlehandedly wrecked the
> world economy over the last couple of years".
>
>  Mr Murray singled out Microsoft for particular criticism, saying the IT
> giant had failed to deliver its promises.
>
>  In an address to the World Congress on IT in Adelaide today, Mr Murray said
> promised productivity gains had not been felt from the use of IT.
>
>  "It has done enormous things for our institution but it is not as
> straightforward as people make out," Mr Murray told the congress.
>
>  "Microsoft ... said that IT was going to lead the growth of the world
> economy. 
>
>  "Let me tell you that the IT industry in the United States has
> singlehandedly wrecked the world economy over the last couple of years.
>
>  "That's because the promises were large and by the time they were turned
> into investor promises at the casino end of the equity market, then the
> investments that were made were entirely unrealistic.
>
>  "Unless we make it genuinely easier, then we have to be careful about all
> of this hype." 
>
>  Mr Murray compared the situation of the car in Australia about  50 years
> ago to the broadband demands of the IT industry today.
>
>  "If Henry Ford or Alfred Sloane, the General Motors man, had come to
> Australia 50 years ago and told the government we have to put out eight lane
> highways all over this country ... they would have been told to go home," Mr
> Murray said. 
>
>  "The issue is that we might put out the eight lane highway but unless the
> stuff we put on it is far easier to use, unless it delivers the productivity
> benefits somewhere near what we are promised, then this generally applicable
> technology will not do for our society what we want."
>
>  He said Microsoft had intimated "unless you get aboard this (broadband
> technology), you can't have productivity savings".
>
>  "If Australia has been so bad in laying out its broadband, how come we have
> the highest productivity gain in the OECD in the last decade?
>
>  "I think we have to take a breath here.
>
>  "We should not be confused about why we are using technology: it's about
> fulfilling customer needs, its about providing productivity and a
> shareholder return and enhancing the existing business strategy.
>
>  "If it doesn't meet these tests, then question its value."
>
>  At a later media conference, Mr Murray said: "Microsoft will have us
> believe if we don't do what they say, Australia will somehow fall behind in
> the world stakes and the evidence is just not that".
>
>  He said the promise of a paperless office was "an incredible myth".
>
>  "The same technology that was supposed to make us paperless has allowed the
> proliferation of papers in various forms that has limited productivity," Mr
> Murray said. 
>
>  "I'm not putting the position that Bill Gates is no good and Microsoft has
> got it all wrong.
>
>  "I'm just saying that as the most successful implementer of this stuff in
> our industry in Australia, the outcome falls well short of the promise and
> we need a return on our investment."
>
> ------ End of Forwarded Message
>
> For archives see:
> http://www.interesting-people.org/archives/interesting-people/
>
> .




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