IBM Beating Market Mandates

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IBM Beating Market Mandates

  1. 1. July 2012In collaboration with Broadridge Financial SolutionsBeating market mandates:
How winners are re-engineering financial markets operations IBM Center for Applied Insights © 2012 IBM Corporation
  2. 2. IBM Center for Applied InsightsIBM and Broadridge sought out to uncover how leading financial market firmsrespond to volatile market conditions by evolving their operating models2 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  3. 3. IBM Center for Applied InsightsFacing turbulent market conditions, respondents highlighted regulatoryrequirements and demanding customers as standout drivers of change3 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  4. 4. IBM Center for Applied Insights “A lot of resources are tied up in dealing with regulatory changes. Other areas – new products, building scalability or efficiency, building new functionality or services – have to take a back seat.” – COO, Universal Bank, Singapore4 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  5. 5. IBM Center for Applied InsightsOnly a small group of Leaders excel at both innovation and compliance5 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  6. 6. IBM Center for Applied InsightsA key differentiator: Leaders look outward while Laggards are still gettingtheir houses in order6 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  7. 7. IBM Center for Applied Insights “Changes must enhance the whole process. It’s no good having a Rolls-Royce in the front and a Mini in the back.” – COO, Universal Bank, UK7 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  8. 8. IBM Center for Applied InsightsLeaders design their operating models to be decidedly more client-focused,agile, scalable and collaborative – and they consistently outperform8 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  9. 9. IBM Center for Applied InsightsClient-focused: Leaders bring the front, middle and back office together toinnovate and better serve their customers “ The better/more efficient our operations are, the more customized products can be offered; this will allow us to differentiate.” – COO, Investment Manager, US9 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  10. 10. IBM Center for Applied InsightsAgile: Streamlining operations helps firms respond quicker and moreflexibly to changing market demands “The Asian market looks for innovative products with very high risk and very high volatility. If you have to offer these products quickly and effectively, and manage them internally from a risk point of view, your risk management infrastructure becomes extremely important.” – COO, Universal Bank, Singapore10 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  11. 11. IBM Center for Applied InsightsScalable: Using size and global coverage to gain competitive advantage “We are looking to harmonize our systems and applications across the globe; and then looking at how we manage the 24-hour clock.” – COO, Universal Bank, UK11 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  12. 12. IBM Center for Applied InsightsCollaborative: Using new partnership and sourcing models to augmentcapabilities and share risk “By finding the right partner, we can gain speed to market and best-in-class offerings for our customers.” – VP, Broker/Dealer, US12 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  13. 13. IBM Center for Applied InsightsLeading firms are much more likely to outsource certain processes,leveraging their partners’ capabilities13 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  14. 14. IBM Center for Applied InsightsFollowers and Laggards are turning their attention to operating modelinnovation – Leaders will have to work hard to stay ahead14 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  15. 15. IBM Center for Applied InsightsCOOs and CEOs have the most significant roles in driving and influencingchange – but overall, it’s a team effort15 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  16. 16. IBM Center for Applied Insights “The role has changed in the last couple of years from focusing on the day-to-day stuff to high-level business strategy. It’s about taking a step back and looking at the way we do things from a larger perspective.” – COO, Broker/Dealer, UK16 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation
  17. 17. IBM Center for Applied InsightsTo excel, you need to innovate your operating model… but are you ready? How does your client service compare with your peers? Are your current capabilities sustainable over time? What sets your firm apart? When volumes decline, are you left with high stranded Would clients say their service relationship with your costs? firm revolves around them or around your organizational structure? Are you actively looking for opportunities to innovate through globalization? Is your client service continually improving by design? How quickly can your operational support move from an Should you be championing industry-wide shared initial product concept to launch? services that reduce operational costs for all participants? How rapidly – and cost effectively – can you respond to new regulatory requirements and client requests? Would you collaborate with third parties to provide necessary solutions? Where could additional insights help improve operational processes and decision making? Are your sourcing decisions focused more on cost or competitiveness?17 1/15/2013 In collaboration with Broadridge Financial Solutions © 2012 IBM Corporation

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