The world economy. The upturn in the world economy continued during the period under review. The world economic climate as polled by the ifo Institute rose in Spring 2006 for the third time in succession. In the euro-zone, too, the good performance and economic recovery are continuing. The German economy was in good shape at the mid-year.

Developments in the banking and retail sectors. According to a study by the Fraunhofer Institute of Labor Economics and Organization (IAO), banks are expecting to see more intense competition in the private clients business, especially where standardized products and services are concerned. This challenge is to be countered with improved service in branches, such as addressing customers pro-actively via self-service equipment. At the same time banks are continuing efforts to boost their branch banking efficiency by means of standardization and process optimization. Greater moves towards business process outsourcing are intended to achieve focus on selling as a core competency.

The retail sector continues to be characterized by strong competitive pressure. As a result, international groups are at pains to use modern IT to achieve productivity and efficiency gains and are also expanding their store networks in growth territories.