Exchange rates, economic forecasts, technologies - they're always changing on us, presenting new challenges and opportunities, according to former Federal Finance Minister, John Manley. But one thing remains constant today for all companies keen to compete globally: the need to invest in IT and networking solutions to drive business productivity.

On September 25th, MTS Allstream held a luncheon in Toronto for executives from the financial services industry that featured remarks by former Federal Finance Minister and Deputy Prime Minister, John Manley (presently Senior Counsel at McCarthy Tétrault LLP). The purpose of the event, hosted by John MacDonald, President of MTS Allstream's Enterprise Solutions division was to explore the global dynamics affecting competitive realities in the Canadian financial services sector.

Manley offered a positive message overall for Canadian businesses, despite recent uncertainties in the economic outlook and in global financial markets in particular. "The fundamentals of the Canadian economy are as strong as they've been in a generation and I'm confident that we're capable of flying through the turbulence and landing safely."

Manley made reference to several factors that Canadian companies and governments must respond to in preparing for the future:

• The increased volatility in financial markets that require prudent monetary and fiscal policy, along with regulatory transparency as national financial systems become more interdependent.



• The rapid rise of the Canadian dollar to parity with the U.S. dollar, and what it means for Canadian companies today.



• The priority of focusing on productivity investments to ensure that Canadian companies can thrive in globalizing markets.

Manley said that he'd never been in favour of a low Canadian dollar, a fact which marked his tenure as Federal Finance Minister. A strong dollar, he argued, will benefit the country over the long term as the price of imports drop in relative terms, while giving Canadian companies greater buying power in expanding their operations internationally.

Likewise, he said, there is a continued need in Canada for investments in productivity and workforce training to improve our national competitiveness at a time when the Canadian currency is likely to remain at or near parity with the U.S. dollar for the forseeeable future.

Commenting on the shift in the Canada-U.S. currency exchange rate, Manley also observed that the most successful Canadian companies of the past decade or longer "have done everything possible to make their customers so loyal that even if the exchange rate forced their prices to rise somewhat they won't automatically look to find another supplier."

Echoing Manley on the challenge of customer-focused productivity, MTS Allstream's John MacDonald talked about the fundamental role of communications in competitive strategies in the financial services sector: "From an IT perspective, there's an increasing need for agility and flexibility that all organizations face, like the need to dismantle your IT silos and streamline back office processes to improve service delivery. You also need a robust security layer surrounding all your information and data. And trancparency to monitor regulatory compliance."

MacDonald also highlighted the paramount importance of orienting investments in IT and networking around serving customers better. "The major thing we're focused on is how we can improve the way we respond to customers - when they call into a contact center, or go to a website, or walk into a bank branch. What is the level of experience, or the expectations, that we can deliver on for customers? As a solutions provider, MTS Allstream is focused on understanding, and then meeting and exceeding, the needs of our finacial services sector customers."

In briefly reviewing the Allstream solutions portfolio, MacDonald mentioned simplicity, accessibility and intuitiveness as being key attributes that all large and mid-size companies require to leverage the collaborative potential of their people. "Simply put: how much do your people have to learn? How can we make life simpler and easier for customers when they want to complete a transaction? If a system or technology or process is complex, then people will stay away from it - like the plague."

This MTS Allstream luncheon was part of an ongoing speakers series offered to the company's customers, partners and prospects in the financial services sector. For more information on MTS Allsteam solutions for financial service please click here.

Manley's Thoughts on Competition: