Post on 20-Jun-2015
description
transcript
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Submitted By:
Limbert Bontigao
Satya Kopparapu
Karthik Mehta
Tanvi Patel
Dolly Patel
MIS 750 Professor Thomas Brier
JPMorgan Chase JPMorgan Chase
Team Case PresentationTeam Case Presentation
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Agenda
Abstract - Limbert
Company Background
As-Is Matrix
Analysis
SWOT Analysis - Satya
To-Be Matrix
Strategic Alignment Maturity Model - Dolly
Problems & Opportunities
Governance Archetype & Key Stakeholders – Tanvi
Major Objectives
Alternatives - Karthik
Recommendation, Conclusion & Next Steps
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Abstract
Chase Global Markets (now part of JPMorgan Chase) has recently moved towards a Centralized IT Environment in addressing e-business opportunities.
This case study analysis weighs the benefits and disadvantages of this Centralized IT Organization Model; and provides a suitable alternative in the form of a Federated IT Organization.
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Company Background
JPMorganChase
As-Is Matrix
Leading global financial services firm
Assets of $1.5 trillion; operations in more than 50 countries
A component of the Dow Jones Industrial Average
JPMorganChase has its corporate headquarters in New York
3rd Largest Banking Institution in the U.S. (after BofA and Citi)
As-Is Matrix
Centralized Web Development for 6 Business Divisions
Centralized IT Infrastructure
Centralized IT Governance
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As-Is Matrix
FEDERATEDFEDERATED IT IT
Unresponsive
No BU ownership
No BU Control of Central Overhead $
Does NOT Meet Every BU Need
Scale Economies
LeverageStandards & Tools
Control Architecture
Critical Mass of Skills
CentralizedCentralized IT IT
-- --++ ++ Decentralized ITDecentralized IT
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Analysis: SWOT
E-commerce Strategy: Chase Global Markets initiated e-Capital market, in response to it’s competitors.
Strengths:
Strong Global Brand and Reputation
Wide-reaching Branch Network
Strong Finances and marketing
Innovative Products (e.g. Chase Freedom Card, )
Strong partnership
Weaknesses:
Multitude of Technology Platforms because of Mergers & Acquisitions
Old Chase vs. Bank One Management positioning
Business Model
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Analysis: SWOT Cont..
Opportunities:
Expanding role into fixed income trading (Market Axess)
Strengthen leadership position in Foreign Exchange Market (ChaseFX)
Geographic expansion into China, India
Efficiency initiatives (Chase Bond)
Threats:
Investment Banking exposure to sub-prime crisis
Slowing economy, less investment and M&A activity
Financial Service sector hurting
WorldCom and Enron related litigations
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Analysis: To-Be Matrix
Federated IT Federated IT ReportingReporting
IT InfrastructureUnresponsive
No BU ownership
No BU Control of Central Overhead $
Does NOT Meet Every BU Need
Scale Economies
Leverage Standards & Tools
Control Architecture
Critical Mass of Skills
Centralized IT Centralized IT InfrastructureInfrastructure
-- --++ ++Decentralized IT Decentralized IT System DevelopmentSystem Development
IT ReportingVision &Leadership
Users control IT Priorities
BU Ownership
Responsive to BU's Needs
IT System Development Excessive $ to group Variable Standards of IT Competence No Synergy & Integration Reinvention of Wheels
Strategic Control
Synergy
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Analysis: Strategic Alignment Maturity Model
The Strategic Alignment Maturity Model (SAMM) assessment was
evaluated by taking into consideration of 6 categories:
Communication - practices that encourage knowledge sharing across the business and IT organizational communities
Metrics - practices that demonstrate the business value of IT
Governance - practices that ensure that the business and IT communities formally discuss and review the priorities and allocation of IT resources
Partnership - practices that address how the business and IT communities perceive the contribution of the other, as well as the level of trust between the communities and how risks and rewards are shared
Scope & Architecture - practices that address the extent to which IT is able to provide solutions that are customizable for each customer
Skills - practices beyond traditional HR activities that enhance and reward skills that align business and IT objective
Chase Global divison• As-IS Centralised• Business & IT worked in small groups, in
same geographies.
• Idea generation and decision making is in main division of parent company ie in-house.
• Financial industry generally speaking is more localised and so fewer mergers & acquisition, so lesser need for new system & up gradation.
• Same or similar geographies implied similar way of communication, time zone, similar work culture, easier to measure work done due to similar geographies making management of projects easier and less governance issues.
• Work force in smaller geographies implied easier measurement of work done.
• To-Be (Distributed)• Business & IT work in bigger groups in
remote corners of world and decision making is based on ideas generated, discussed and finalised in 10 different geographies.
• Ideas generation is outsourced and happens in different geographies of company’s division and decision making committee sits in main division of parent company ie in-house.
• Financial industry going global so greater number of merger and acquisitions, implying greater degree of changes and customization and up gradation of parent company’s software.
• Globalised work force means centralised system relatively less effective when it comes to governance, metrics compilation, adhering to compliance of respective countries and need for distributed system for measuring metrics.
Distributed system
Strategic Alignment Maturity model (SAMM)Advantages of Distributed system in globalised era
Communication
Idea generation and faster development cycles
Performance
Governance
Rather than the Master –Slave communication as in case of existing system (Centralised depository), alternative offers peer-to-peer communication. This implies faster resolution of small problems at initial level thus saving time and money for the company.
Multiple location data repository implies breaking down of departmental silos within the Chase bank and thus greater degree of feedback from Business user, IT, Management, consumer.
• Better feedback at early stage of IT development means better idea implementation at an early stage and shortened development cycles. This in turn reduces risk of need for changes at later stage of development and better capability of change management.
• Faster and more democratic idea generation and thereby better and more efficient decision making.
• Better communication and democratic decision making implies best talent ideas are accepted and better performamce.
Data availability at multiple location implies better monitoring of work,
Greater degree of discussion, better idea generation and reduction in Administrative overhead cost typical of a global company.
SAMMData recovery
& better risk
management of data
Infrastructure
In Centralised data repository failure of the central system implies complete failure of the entire system, if the single system fails. Multiple systems data storage in decentralised system implies replication of data across multiple systems then enables faster data recovery.
Loss of only smaller chunks of data since, data is available at every location provided by server thus lesser degree of risk in event of failure of a system. This is a big plus for management and thereby governance of the operations.
Globalised resources like human resources, global offices of Chase unlike localised offices of past requires distributed system to cater to global needs of today’s Chase office in terms of Metrics, peer-to-peer communication, compliance data with local governments.