Matthew NelsonSenior AnalystInvestment Management

Web 2.0 / Enterprise 2.0in the Capital Markets Industry

© 2007 The Tower Group, Inc. May not be reproduced by any means without express permission. All rights reserved.

September 17, 2007

© 2007 The Tower Group, Inc.

Agenda

Definitions

What does this mean to securities firms?

Challenges 2.0

Web 2.0 in action

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What is “Web 2.0?”

“Web 2.0 is about harnessingnetwork effects to build applicationsand platforms that get better themore people use them.”- Tim O’Reilly (Mar. 2007)

© 2007 The Tower Group, Inc.

The Laws of consumer Web 2.0

1. Use the network as the platform

2. Employ a rich, interactive, and user-friendly interface

3. Develop an architecture of participationand democracy

4. Let users own and control the data

5. Incorporate social networking

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Web 2.0 is about more thanjust Websites, it’s also a set ofTools

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Enterprise 2.0 – The next generation intranet

“Enterprise 2.0 technologies have the potential to usherin a new era by making both the practices of knowledge

work and its outputs more visible.”- Andrew McAfee, Harvard Business School

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The Building Blocks of Enterprise 2.0

Source: Andrew P. McAfee, “Enterprise 2.0: The Dawn ofEmergent Collaboration” MIT Sloan Review, Spring 2006

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How can Web 2.0 benefit securities firms?

Information distribution (RSS,pod/videocasts)

Customer interactions (clientportals)

Information gathering

Business partner interactions

Support and service

Internal knowledge management& collaboration

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Challenges 2.0

Building a business case

Data ownership, control andsecurity

Corporate politics

Market conditions

Adoption

COMPLIANCE!

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Web 2.0 in Practice

© 2007 The Tower Group, Inc.

Web 2.0 in Practice

© 2007 The Tower Group, Inc.

Web 2.0 in Practice

© 2007 The Tower Group, Inc.

Web 2.0 in Practice

© 2007 The Tower Group, Inc.

Web 2.0 in Practice

© 2007 The Tower Group, Inc.

Key Take-Aways

Web 2.0 has completely changedthe consumer experience and isalready disrupting enterprisesoftware

CIO’s should embrace themovement, not fight it

Securities firms should look toWeb 2.0 for both internal andexternal opportunities

Consider enhanced portal look-and-feel and innovative, engagingtools

Matthew NelsonSenior AnalystInvestment Management

Web 2.0 / Enterprise 2.0in the Capital Markets Industry

© 2007 The Tower Group, Inc. May not be reproduced by any means without express permission. All rights reserved.

September 17, 2007

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