BIS Banking systems had the “Midas touch,” literally. During the 1980s, the company journeyed to the number one position in the world of the specialized financial (banking) software industry. MIDAS, its flagship software package, became the installed system for more than 400 banks around the world. But in April 1990, the company somewhat lost that touch, because despite its diffusion and success, BIS missed the mark on profit expectations.
Paul Verdin, INSEAD Professor At-Large, and co-author Nick Van Heck, Research Associate at the Katholieke Universiteit of Leuven, explain how external forces caused dramatic changes in the banking industry at this time, and the management at BIS wondered about the banking environment: was this simply a temporary crisis (within the banking industry), or should the company take some action in the form of strategy or reorganization?
This case encourages its user to explore the interaction between the environment, industry and the company’s strategy and organization, as well as the pros and cons of globalization (how can a global corporation localize its products and services?). It also poses queries as to how one might react to changes in the environment. Should a company (de)centralize because its clients are (de)centralizing?
Authors: Paul Verdin, Van Heck
Subjects: Industry Specific, Strategy
Industry: Finance / Banking
Company: BIS Banking Systems