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The Automotive Industry Lays the Foundation for Major Transformation
In 2006, the automotive industry will accelerate its efforts to set the directions for a dramatic transformation, which is needed to ensure financial viability in the future. The industry's efforts will result in increased product desirability and process efficiency gains.

Banking Services Will Need Greater Agility and Efficiency
Beginning in 2006, banks must address operational risk management issues, integrate their retail delivery channels, consider service-oriented architectures to enhance their agility and retain their most-profitable customers via strategic loyalty programs.

Banks and Card Issuers Will Pursue New Payment Schemes
Banks and card issuers in 2006 will deploy chip-enabled payment cards and retail payment hubs to address authentication issues, while enabling new payment schemes. Additionally, large banks will begin to centralize their payment architectures and adopt a customer-driven approach to payments.

Consumer Goods Companies Will Use Innovative Strategies to Increase Competitive Advantage
For CG firms, this decade is characterized by belt tightening and greater operational efficiencies. We predict shifts in strategy to fund significant investments in innovation solutions, real-time responsiveness, and improved focus on retail customers and end consumers via enhanced collaboration.

Energy and Utilities' Outlook Shaped by Merging Market Forces
The global energy utility market faces challenges from a confluence of high energy prices, a loss of protective regulation, market restructuring and financial implications. The results will shape the market's pricing, mergers, outsourcing and infrastructure.

Predictive Modeling Will Bridge Healthcare Management and Underwriting
Healthcare payers will use predictive modeling applications to align care management and underwriting. This will usher in payer/employer-designed preventive and care compliance programs that will reduce premiums.

Healthcare Payers Must Tap IT to Support CDHP Demand
Growing consumer acceptance of consumer-directed health plans is contingent on the availability and ease of use of IT-enabled tools that will help consumers make appropriate medical and financial choices.

P&C Insurers Will Increase Claims Investment
In 2006, property and casualty insurers will significantly increase the investment in claims technologies and process modifications to support efficient claims processing. A focus on customer service, catastrophe planning, loss reduction and claims management will intensify.

Life Insurers Shift the Role of Policy Administration to Growth Driver
After a decade of inaction, five of the world's top 20 life insurers will begin policy administration system consolidation projects for systems that support individual life and annuity products. These high-risk, high-reward projects will help determine which life insurers continue to grow.

Investment Services Develop Strategic Infrastructure by Stealth
In 2006, lack of clear business direction will force investment services CIOs to leverage tactical projects for building strategic infrastructure capabilities

Life Science Manufacturers Adapt to Industry Transitions
In 2006, life science firms (biopharmaceutical and medical products manufacturers) will need new techniques for leveraging scientific knowledge into improved products and adapting commercialization processes to meet a rising tide of consumerism.

The Retail Industry Faces a Pivotal Year
Some multiyear technology endeavors, such as radio frequency identification and digital signage, will see breakthroughs in 2006. At the same time, emerging strategic trends, such as customer-centricity and the entry of international retailers into India, will appear.

Cross-Industry Research Sees Growth in Business Systems Engineering
The ability of business systems to deal with increasing rates of external turbulence will start to increase as engineering disciplines are applied to business systems.

Healthcare Provider Collaboration Will Emerge, Despite Challenges
During the next three to five years, collaborative efforts across various healthcare stakeholders will begin to pass from hype to reality. Here are some predictions about this trend. This will bring benefits to the quality and cost of healthcare.

Healthcare Provider IT Groups Face Reorganization
IT is continuing to transform the delivery of healthcare. These transformations will have significant impact on care delivery organizations.

IT Transitions to Value-Based Manufacturing
The continuing rise of China and India in the manufacturing sector triggers a number of critical reforms to manufacturing firms and IT markets. Greater focus on productivity, clear client value and time-based IT competition is required. The CIO organization and function must adapt.

Media Segments Face Differing, Uneven Futures
While some segments of the media industry will see market opportunities open up and expand during the next three years, we expect others to stall, choked by regulation or competitive infighting, which will delay agreement on technology standards and development of successful business models.