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AXA INVESTMENT MANAGERSInvestit Conference – Data ManagementIdentifying the Business Case for aReference Data ProjectV MAL...
AGENDA                                               1   Business rationale for a Reference Data                          ...
Business rationale for a Reference Data initiative     AXA IM Challenges       Current Operating Model                    ...
Business rationale for a Reference Data initiativeWhich data needs to be sourced centrally ? An Asset Management company ...
The rationale for centralising Reference DataWhich data needs to be sourced centrally ?                                   ...
AGENDA                                               1   Business rationale for a Reference Data                          ...
Two questions before starting the business case1. Why is it so hard to invest in a reference data initiative ?            ...
Two questions before starting the Business Case 2. Why is it so hard to sell a reference data program ?  Challenge : Convi...
AGENDA                                               1   Business rationale for a Reference Data                          ...
First step : MANAGE EXPECTATIONS                                                                                          ...
Second step : BE STRATEGIC      Link the reference data initiative to your company strategy          A Multi Expert Busine...
Third Step : CHOOSE YOUR ROUTESelect the approach suitable to your company culture                 2 PRACTICES : TOP- DOWN...
Fourth Step : CONVINCE    The ROI study   Different scenarios can be studied. In AXA IM, we worked on three different opt...
Fifth Step : IMPLEMENT THE VISIONThe key building blocsData Management key   Implementation                          Valid...
Sixth Step : MAKE IT HAPPENThe AXA IM phases                                                    • Internal SLAs have been ...
Getting buy-in for the business case What’s the magic formula ?Educate business to recognize the importance of data by lin...
ConclusionGain & Maintain Top managementsupport• Sell, and resell the business case                                       ...
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Axa IM - investit conference -V Malaval - 190707

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Data Management presentation - Investit 2007

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Axa IM - investit conference -V Malaval - 190707

  1. 1. AXA INVESTMENT MANAGERSInvestit Conference – Data ManagementIdentifying the Business Case for aReference Data ProjectV MALAVALGlobal Head of Data Management
  2. 2. AGENDA 1 Business rationale for a Reference Data Legal Initiative in AXA IM Employee Agreement ClientNet Asset Value & Data Third party 2 The two key questions before starting the Management business case Securities Holding & & Market data Transaction Portfolio & 3 Getting buy-in from top management and the Product business 2
  3. 3. Business rationale for a Reference Data initiative AXA IM Challenges Current Operating Model AXA IM Business Model LTOM* AXA INVESTMENT MANAGERS (HOLDING) Finance, Risk Management, Legal, Audit, Compliance, Human Resources, Communications & Brand Fixed Income AXA Rosenberg AXA Framlington Equity Conviction/Talents SALES, MARKETING INVESTMENT INSURANCE AND Decalog SOLUTIONS INVESTMENT Structured Finance CLIENT SERVICES AXA Private Equity AXA REIM Hedge Funds SHARED RESOURCES Investment Strategy, Trading, Operations, Projects, IT Current Operating Model Business model LTOM visionBased on vertical siloed applications : Focusing on investment performance via Implement flexible & modular platforms specialization and resource sharing more adapted to AXA IM multi expert Reference Data is embedded in model Business Applications Specialized investment teams focused on specific investment areas Is only achievable by the delivery of No data ownership where we can add real value for our consistent data in a timely manner : The Inaccurate, inconsistent & redundant clients AXA IM DATA BACKBONE data Teams are supported by shared Data access is complex resources (research, strategy, IT, Trading) Organisation & systems can “One fits size all” model is not be in line with expected over level of Time to Market 3
  4. 4. Business rationale for a Reference Data initiativeWhich data needs to be sourced centrally ? An Asset Management company can be seen like a DATA factory It is key to show that all business processes even in different departments are using the same core reference data Stockbrokers Private banks Advisors Banks 4
  5. 5. The rationale for centralising Reference DataWhich data needs to be sourced centrally ? Sales & Service Client Wholesalers Advisors Client Online Sales Account Services Distribution Advisor Desk Service Partners Wirehouses Regional Firms Distribution Independent Advisors Content Banks Production & Sales Management Analysis & Subscriptions, Strategies Redemptions, Transfers & Exchanges Investments Products, (Mutual Funds, Managed Valuation, Managed Accounts) Account And Operations Performance, Platform Investment Commentary Transfer Investment Agent Management Shareholder Services Investment Data needs Operations Data needs Distribution needs  Counterparty data  Settlement instructions  Product master & Benchmarks  Security data categorization Security analytics  Fund accounting data  Client & account master Security master  Net asset values  Positions, transactions, net Market data  Position keeping data, cash asset values, performance Position & cash  Custodian feeds  Fund flows / sales data External product data  Client/account master  Competitive analysis Performance returns  Benchmark returns  Prospective clients  Historic performance returns  Common Data Subject Areas  Product master  Benchmarks  Positions  Net assets  Transactions  Performance returns  Security master  Client & account master 5
  6. 6. AGENDA 1 Business rationale for a Reference Data Legal Initiative in AXA IM Employee Agreement ClientNet Asset Value & The two key questions before starting the Data Third party 2 Management business case Securities Holding & & Market data Transaction Portfolio & 3 Getting buy-in from top management and the Product business 6
  7. 7. Two questions before starting the business case1. Why is it so hard to invest in a reference data initiative ? LET’S TAKE TWO MINUTES IN THE CEO’S SHOES ? Looking at a Data Management, he/she sees :  A long term project  Complicated planning  A costly exercise His/Her Dilemma  High Risk A certain project is expected to produce benefits, but will require And listening the business, capital investment choice becomes difficult… That same capital could be invested elsewhere, potentially producing a  “Things are working well today !” different set of benefits  “I will be the last to benefit”  “This service is not adapted to my How do I decide which business” project or projects to invest  ”It will be quicker doing it myself” in? 7
  8. 8. Two questions before starting the Business Case 2. Why is it so hard to sell a reference data program ? Challenge : Convince different players and understand intangible drivers LET’S TAKE TWO MINUTES IN THE PROGRAM MANAGER’S SHOES ? CEO BUSINESS TEAM Drivers Drivers DriversCorporate management, risk, Time to market, leverage, data Recognition, proximity to profitability access, ownership business What you need to do What you need to do What you need to doDemonstrate expected ROI to Demonstrate added value by Demonstrate data managementexecutives in a language they delivering “quick wins” in the team is useful in the whole understand and believe early phase of the project company How How How • Educate & motivate your team • Stick to appropriate level of• Explain & educate to push the key messages on detail• Convince through external the ground • Solve issues as they arisetestimonials • Focus them on added value • Convince by quick win• Provide ROI & NPV study tasks & encourage approach development of specialist skills 8
  9. 9. AGENDA 1 Business rationale for a Reference Data Legal Initiative in AXA IM Employee Agreement ClientNet Asset Value & The two key questions before starting the Data Third party 2 Management business case Securities Holding & & Market data Transaction Portfolio & 3 Getting buy-in from top management and the Product business 9
  10. 10. First step : MANAGE EXPECTATIONS Longer term Explain where the main benefits are realizable Greater organizational efficiencyPriority drivers for near- term Improved revenue cost adoption generation, cross selling and customer retention • Efficient Corporate Trade failure/STP management improvements • Improved quality of the data 2 years Enhanced IT investment avoidance management • Data feed rationalisation information • Revenue generation • Potential for application de- and client retention commissioning Better regulatory compliance • Minimizing regulatory risk • Cost reduction Quick win approach Near- term In business Cross business realizable Size of circle indicates relative importance 10
  11. 11. Second step : BE STRATEGIC Link the reference data initiative to your company strategy A Multi Expert Business Model Supported by a flexible Operating Model Support Functions OMs Manufacturing OMs AXA INVESTMENT MANAGERS (HOLDING) Profitability Analysis (FRISBE) Data M2E Decision Making Tools Finance, Risk Management, Legal, Audit, Compliance, Human Resources, Communications & Brand Support Functions Data Mart (Market Outlook, Risk exposure …) Procurement (ARIBA) EQ FI SF AXA IM data Human Resources ( Peoplesoft ) Fixed Income IS HF P/E Communications OM AXA Rosenberg Communications Risk Management (VAR, Counterparty Risk …) Fund Accounting : GP3 (FR), SimCorp (DE) MCH (UK) Marketing OM AXA Framlington Marketing AXA IM DataWarehouse : EDW Sales & Marketing Data Mart Order Capture Market data Bloom, Reuters Data Access Framework Sales, Client Services OMs Asset Servicing : RKS PMA : HiPerformance Trade Support : GTM Equity Conviction/Talents SALES, MARKETING INVESTMENT INSURANCE AND Trade Compliance SOLUTIONS INVESTMENT Structured Finance CLIENT SERVICES Client Reporting Trading & Stock lending AXA Private Equity OSSM OM External data provided by SSC AXA REIM Distribution Investment Data Mart Trade Flow Management Portf Controls : NAV Validation, Corp. Actions … Hedge Funds CRM SHARED RESOURCES Third parties Investment Strategy, Trading, Operations, Projects, ITDon’t sell the initiative alone! It is part of global review of your Organizational architecture.  Our company strategy :  Be the preferred asset manager for our client, having a multi expertise offering  This business model, to be flexible, will be supported by dedicated front office platforms and new risk management tools  Not centralising core reference data will imply duplication of data, data quality issues, an increase in manual processes and additional costs  The reference data initiative is seen as the “Glue which holds things together” 11
  12. 12. Third Step : CHOOSE YOUR ROUTESelect the approach suitable to your company culture 2 PRACTICES : TOP- DOWN & BOTTOM-UP APPROACH Top-down  Bottom-up  Strong top management mandate  Quick win model , where business  Program is seen as mandatory sees measurable results  Advantages  Advantages  Strong sponsorship  Practitioner involvement and ownership  LT direction clearly designed  Better time to market delivery  Changes are more readily adopted  Business value  Disadvantages  Disadvantages  Takes more time  Lack of executive-level authority and direction  Need to resell the initiative  Possibility of fragmented solution  Inconsistent sponsorship We use both approaches Any strategic/LT decisions & priorities are taken at the Management Board level But daily support has to be found at business level with :  Delivery of some quick wins (10 were undertaken in 2006, 4 completed in 2007)  First deliverables are launched with our Business Champions (Sharing vision, High profile service)  Usage of prototype and proof of concept period to convince that service is better 12
  13. 13. Fourth Step : CONVINCE The ROI study Different scenarios can be studied. In AXA IM, we worked on three different options : Build an in- house data management platform, buy a software solution or outsource Estimates were done on a five year period Savings should be measurable and credible to top management We used an external organization to validate our figures and approach  Automation &  Common &  Improved AXA IM  Common source optimization of shared data quality  System sharing data feeds distributionReduction  Focus on layers retirement  Standardization  Reduction of Drivers added value of interfaces bespoke  Higher tasks databases standards % 20 to 25% 10 to 15% 15 to 20% 10 to 20% 15 to 20% In House Software package Outsource Final CEO decision taken in December 2006 is to invest in an internal data management Payback : 5Y Payback : 3,5Y Payback : 3Y team, supported by a software solution 13
  14. 14. Fifth Step : IMPLEMENT THE VISIONThe key building blocsData Management key Implementation Validate the Enablers Business case ROI Platform selection Clear strategic plan & implementation Time for business and partners Service Approach (KPIs, SLA) Define quick win, Change management : & LT roadmap Define & implement new Key Activities Q2 07 July Q3 07 Q4 07 Q2 08 Q4 08 Q2 09 Q4 09 SmartCo UAT phase business processes Implementation SMF implementation – ThinkFolio Pilot Production Development of all Data sets for ThinkFolio DMT UAT Tests ThinkFolio fed by SMF GATE 3 Approval SMF Sophis/Sesame deployment implementation – Capstone Suite deployment All DMT Deployment Other DMT Deployment (TBC) Decalog retirement CTP Master file CTP In production implementation – Client View CRM connected Client View Pilot Axa Rosenberg CRM connected CTP Finance systems connected implementation – Axa REIM CRM connected All CRM Deployment SFD CRM connected 14
  15. 15. Sixth Step : MAKE IT HAPPENThe AXA IM phases • Internal SLAs have been built and agreed Full Data Services • KPIs understood by the business are in Internal SLAs in place place 2009 • Central data repositories are in place. Manufacturing • Need to push the data Pursue full data distribution • System retirement can start • Integration of change Processes management on business processes Adapt the processes is part of the reference data initiative 2007 - 08 Delivery • A end to end approach : Delivery of a Start with your business central repository with distribution to champions business applications. • Quick win (small delivery, local administration) Resource • Define a LT resource plan Team Building • Role and responsibilities need to be Resource estimates clarified Define the service framework • Start producing simple KPIs 2006 Business Case • Identification areas of key savings ROI study • Makes the initiative credible • Necessity to resell the business case again Vision • Will help to stay the course Set up the vision & key • Set up the principles to push principles alignment inside the company 15
  16. 16. Getting buy-in for the business case What’s the magic formula ?Educate business to recognize the importance of data by linking it to company strategy Formulate an approach to sell the business case and put it into practice Calculate the ROI and transform your project as something incontrovertible Even if plans are big, show manageable deliverables 16
  17. 17. ConclusionGain & Maintain Top managementsupport• Sell, and resell the business case Ongoing OptimizationStart now and use a phased 2009approach• Deliver quick wins, but adhere to the deadlines• Explain that business value will take Extension Functionality 2008 timeBe excellent 2007• Prepare a ROI Study Adoption• Anticipate business process change• Select your data management architecture• Define your service led approach 2006 (simple metrics & SLA implementation ) EnablementSell business benefits• Take the time to communicate• Keep it simple Time 17

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