To the editor:
Your articles on Canadian banks' moving into securities (April 22 and 23, page 1) hit the nail on the head. The biggest challenge for banks-and companies in every segment of the converging financial marketplace-is to define a strategy and execute it successfully, i.e., what do you do and how do you do it.
I'd like to add a third option to the buy or build scenarios-align. EDS has defined four business models that suggest multiple strategies for taking advantage of convergence. A key tactic for many institutions will be to team with other "manufacturers" to generate additional revenue.
Gordon Nixon mentioned a fascinating aspect of convergence when he alluded to the organizational impact of a convergence strategy on RBC Dominion Securities. Success was based on learning to adapt, to maximize revenues per client.
There is much more to taking advantage of convergence than just buying companies or assets. Chong Ng Vice president, financial industry group, Electronic Data Systems Corp., Plano, Tex.