JP Morgan & Chase - OneBench IS Case


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JP Morgan & Chase - OneBench IS Case

  1. 1. JP Morgan Chase IS CASE Steffi Boss Alice Leconte Kevin Spanberg Yadurshyan Sethukavalar Tiziano Tassi MIS and Modelling for Decision Making Prof. Tim White Session 2 - 29/09/09
  2. 2. What are we talking about? Eclipse Open Source project that wants to create and develop a Eclipse Foundation is a non profit organization that development platform. develops software Eclipse. The members are IBM, HP, Developed by Open Source Community free for everyone Ericsonn, Nokia, Oracle, Red Hat, etc. Services €€€ OneBench Development platform build with Eclipse by JPMorgan dev’s for dev’s themself JPMorgan Chase & Co. is one of the oldest Final Apps financial services firms in the world and leader in the same market Apps build with OneBench by JPMorgan dev’s for several functions in JPMorgan
  3. 3. ANALYSIS OF SECTOR VALUE CHAIN This concept has been described by Michael Porter. “It is a set of activities that enables to a firm to be more organized and more competitive.” In the case of JP Morgan the value chain is composed of two kinds of activities that make it more competitive: 1. The Aim activities of the firm A) Investment Banking B) Commercial Banking JPM is commited to meet the envolving investment banking needs C) Private Banking At an individual level, to help families and people to protect and to growth their wealth across generations D) Treasury and Securities Services The aim is to help to optimize efficiency, to enhance revenue and to implement innovative payments
  4. 4. E) Asset management Provides institutional, high-net-worth and individual investors clients with high quality global investment management in equities, fixed incomes F) Human Resources Management G) Marketing and Sale 2. The Support activities A) Risk management Is the practice of creating economic value by using financial instruments to manage exposure to risk, particularly credit risk and market risk B) Distribution channels Credit cards and mortgages for retail customers or treasures and securities services C) Research Creation of a foundation for everything they do for their clients: Morgan Markets, a research website
  5. 5. Competitive forces and strategic groups ★ Leader in the Investment Bank ➡ JPM is the third Bank in the USA ★ International Presence all around the world in more than 60 countries: real asset in a world ruled by globalization and the growth of emerging countries ➡ JPM is presente in the Middle East and Asia ★ JP Morgan was built over 200 years and become one of the best financial services company in the world ★ Several activity sectors ➡ E.g. Commercial banking, asset management, treasury and securities services ★ Strategy of external growth ➡ Strategy developed with acquisitions. The last is Bear Stearns, bought in 2008 ★ Based-RCP Eclipse: very useful and powerful tool to develop and to deliver banking applications ➡ Excellent graphical performance, efficiency, attractive solution for devs, lower costs, solve problems and more ★ The merger of JP Morgan & Chase in 2001 allowed to improve efficiency share activities ➡ Activities for professional of the group ruled by JP Morgan and activities for individual are ruled by Chase.
  6. 6. BANK Investment Bank Retail Bank Private Bank An INVESTMENT BANK is a financial institution that raises capital, trades in securities and manages corporate mergers and acquisitions.  A PRIVATE BANK is a bank which offers private banking services. They specialize in clients with large accounts (the minimum balance varies) who want their money invested and managed for the long term. A RETAIL BANK is a banking service that is geared primarily toward individual consumers. Retail banking is usually made available by commercial banks, as well as smaller community banks.
  7. 7. So JP Morgan is in competition with other banks in several sectors  Invest Banking (E.g. Morgan Stanley, Merrill Lynch) Private Banking (E.g. LCL, Crédit Suisse) Retail Banking (E.g. Crédit agricole) Principal competitors (E.g. Bank of America, Citi, BNP Paribàs, HSBC)
  8. 8. “Because you didn't come here to make the choice, you've already made it. You're here to try to understand “why” you made it.” - The Oracle Matrix Reloaded (2003) The NEW way The OLD way  Lower  apps  development  1me  (weeks  to  hours)  GUI  and  common  task  openly  available  Apps  developed  with  C++  and  Excel  Graphical  performance  are  excellent  Long  programming  :me  (weeks)  Eclipse’s  Update  Manager  to  manage  several    Apps  wri?en  for  solve  defined   so4ware  key  features problems  SWT  and  XML  are  integrated  in  OneBench  Backup  data  is  difficult  Plug-­‐in  friendly  environment  Old  programs  (over  10  years)  Spreadsheets  compa:bility   problem  with  official  .dll  libraries Goals  Improve  efficiency  Lower  costs  Control  to  manage  effec1vely  so4ware  Free  resources  for  new  projects  Found  a  plug-­‐in  friendly  environment
  9. 9. OneBench: money spent in the right way? Objectives Fixed JP  Morgan  dev's  wanted  to  lay  a  solid   founda1on  for  enhanced  security,   audi:ng,  scalability,  interoperability   and,  above  all,  reusability. Concrete gains  Free  resources  Lower  costs  So4ware  is  managed  effec:vely  Apps  can  be  reused  Lower  :me  to  develop  new  apps  Dev’s  can  focus  on  business  Safer  and  Faster
  10. 10. Looking forward... Potential Evolutions Lower cost in the future makes competitive advantage and JPM can implement new projects Improvement of the software Attract new customers increasing workers’ performances Customized applications on different functions and business areas Lower time is required to do job in several functions so workers are able to improve their productivity
  11. 11. Looking forward... Our critics Long time to develop OneBench platform and new softwares They decided to make it and not to buy, thus they have to employ many JPM’s developers Eclipse is an open source environment, thus every company can copy what JPM made and use similar applications Open Source is generally weak in security against hackers because source code is public for everyone Risk of job cuts due to improved efficiency? Installation, maintenance and technical support for OneBench are expensive and are (probably) provided by corporations members of Eclipse Organization
  12. 12. And now... Conclusions “Yes, JPM Made a good choice” Efficiency improved, enhanced security, auditing, interoperability and reusability High Scalability due to OneBench’s plugin architecture Sum of Advantages and Disavantages is positive Goals have been achieved
  13. 13. Q&A BE FRIENDLY, THANKS =)
  14. 14. List of Resources