kasina-Why e-Business Is Good Business


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A recent talk on why we think that there is a good case for investing more in e-business due to the market downturn

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  • kasina-Why e-Business Is Good Business

    1. 1. Why e-Business is Good Business 1 December 2008
    2. 2. About kasina
    3. 3. About kasina <ul><li>kasina also runs the kasina Youth Foundation. </li></ul><ul><li>More information is available at </li></ul><ul><li>www.kasinafoundation.org </li></ul>Our firm has a singular mission: Innovate distribution in financial services
    4. 4. Our Clients <ul><li>kasina works exclusively with asset management firms solving global problems in a variety of channels and countries </li></ul>Pictet
    5. 5. Why is e-Business Good Business? <ul><li>There is a convergence coming: </li></ul><ul><ul><li>e-Business is moving closer and closer to Sales </li></ul></ul><ul><ul><li>Sales and service are moving closer to e-Business </li></ul></ul><ul><li>The best firms today are acting on this </li></ul>
    6. 6. Groundwork: We Are Not As Divided As Our Channels Suggest
    7. 7. Institutional and Intermediary Channels Share a Lot <ul><li>Core needs of each are similar in nature </li></ul><ul><li>The “Institutionalization” of retail channels has created a service convergence </li></ul>
    8. 8. The Needs Do Not Look Drastically Different <ul><li>For Advisors, Product, Account, and Commentary are the most important needs in descending importance </li></ul>
    9. 9. Two Emerging Major Trends and Best Practices <ul><li>Institutional looks very similar – Pricing, Account, and Commentary top this list of needs </li></ul>
    10. 10. The Impact of the Institutionalization of Retail Online <ul><li>MFS was the pioneer in developing sites designed exclusively for the professional retail buyer of funds </li></ul>
    11. 11. <ul><li>This is trickling down to the advisor level </li></ul><ul><ul><li>Fidelity’s advisor site was ranked #1 in large part to extensive, quasi-institutional product information availabilty </li></ul></ul>The Impact of the Institutionalization of Retail Online
    12. 12. Why e-Business Is Good Business
    13. 13. What Forces Are Making e-Business Good Business? <ul><li>Revenue opportunities are being identified through technology </li></ul><ul><li>Competition is increasing online </li></ul><ul><li>Customers of investment management products are increasing online </li></ul>
    14. 14. The Case for Sales Scale <ul><li>e-Business can readily facilitate sales with professional buyers of investment management products </li></ul>Source: “Your Site Will Sell,Too” kasina. 2008.
    15. 15. e-Business Today: Separate and Less Important Source: Elevating the Role of e-Business, 2008. <ul><li>Firms do not currently value e-Business today </li></ul>
    16. 16. e-Business Tomorrow: Integrated and Very Important Source: Elevating the Role of e-Business, 2008. <ul><li>Change in importance indicates e-Business will be an area of greatest competitive change </li></ul>
    17. 17. Change in the Definition of “Usage” <ul><li>Professional buyers are increasing the interactivity and quality of their Web usage </li></ul>Source: “What Advisors Do Online” kasina. 2008.
    18. 18. Best Practices in Integration of e-Business and Sales
    19. 19. Two Emerging Major Trends and Best Practices <ul><li>Firms are being more aggressive in selling their story online </li></ul><ul><ul><li>Web sites are becoming more proactive in selling </li></ul></ul><ul><ul><li>CRM systems are finally getting integrated </li></ul></ul><ul><li>Distribution models are evolving that will embrace technology more </li></ul><ul><ul><li>Hybrid Wholesaling has created by technology </li></ul></ul><ul><ul><li>It is more profitable than traditional models </li></ul></ul>
    20. 20. Subtle Selling on Product Pages <ul><li>Information on product pages flows from right to left to sell stories of its products </li></ul><ul><ul><li>1. Give the data </li></ul></ul><ul><ul><li>2. Tell the story </li></ul></ul><ul><ul><li>3. Define Action </li></ul></ul>
    21. 21. Shopping for Institutional Products <ul><li>Vanguard’s Institutional site includes a series of Web 2.0 charting functions </li></ul>
    22. 22. Integration of Research <ul><li>AllianceBernstein integrates research and reporting for a service selling experience </li></ul>
    23. 23. Selling the Story before the Numbers <ul><li>MFS is using the first shows multimedia after inquiring about its funds, not its performance </li></ul>
    24. 24. Developing Unique Tools Online <ul><li>Calvert is a prime example of a brand-aligned value added program online </li></ul><ul><ul><li>Brand alignment – Attaches to Calvert’s SRI message </li></ul></ul><ul><ul><li>Easy to be explained through any touchpoint (wholesaler, e-mail, etc.) </li></ul></ul>
    25. 25. Increasing the Interactivity with the Brand <ul><li>Goldman Sachs offer an “FX Blog” with insight from its traders </li></ul>
    26. 26. CRM is Being Integrated to Dictate Sales <ul><li>Nuveen has seen 25% conversion rates in cross-selling funds to SMA clients </li></ul>
    27. 27. The Big Picture: Sales and Scale <ul><li>Hybrid wholesaling seeks to answer two key questions for the Sales team </li></ul>
    28. 28. <ul><li>Territories covered by hybrid range show 0-30% increase in profitability </li></ul><ul><ul><li>75% of firms report that success </li></ul></ul><ul><li>Cultural impact of hybrid wholesaling is largely positive </li></ul><ul><ul><li>Provides a career path for internals looking to get into the field </li></ul></ul><ul><ul><li>Provides lifestyle and location flexibility </li></ul></ul>Hybrid Wholesaling: e-Business Made It Possible
    29. 29. Summary
    30. 30. Summary: Why is e-Business Good Business? <ul><li>The Direction </li></ul><ul><ul><li>e-Business is moving closer to sales </li></ul></ul><ul><ul><li>Sales is moving closer to e-Business </li></ul></ul><ul><li>The Business Case </li></ul><ul><ul><li>Institutionalization of retail </li></ul></ul><ul><ul><li>Measurable, revenue opportunities </li></ul></ul><ul><ul><li>Increasing competition </li></ul></ul><ul><ul><li>Customers want it </li></ul></ul><ul><li>The Opportunity </li></ul><ul><ul><li>Cost-effective solutions in a tough economy </li></ul></ul><ul><ul><li>Competitive bar is still low </li></ul></ul>
    31. 31. Thank You. For more information, please contact: 581 Avenue of the Americas, 5th Fl New York, NY 10011 United States Mike Ma Principal e-mail: [email_address] phone: +1 646 257 4470 fax: +1 212 349 7413