Monthly Archives: May 2016

Counting the Cost of Legacy Systems

There’s both a science and an art to arriving at an estimated return on investment when it comes to legacy system replacement.

 

Mike Maltby, Product Manager


One of the biggest challenges in the decision-making process to replace legacy technology is demonstrating a return on the investment, or ROI. System replacements, described by one consultant as “invasive” in nature, are not only expensive undertakings, but also will almost always cause significant disruption to business functions and require extensive education programs to re-train users. For this reason, executives will often ask ahead of any system replacement initiative that those endorsing it actually quantify the value to the enterprise before taking on such a large project.

The decision to replace a legacy system is rarely, if ever, one that is made purely on the basis of an ROI calculation. However, this kind of analysis can be a powerful tool in securing buy-in from senior management, as well as future business users. Not to be overlooked, it can also go a long way to help make the business case ahead of a transformation and make the end-state solution clear at the outset of an implementation. In addition to delivering a useful metric for management, an ROI exercise will also inform the ultimate system replacement strategy and help shape the solution that is deployed.

A starting point in developing an ROI should be to factor in the cost of doing nothing. The existing system simply may not be able to support the projected business and client growth. For example, current systems and operational processes may not be able to handle the volume and frequency of data required to support a growing client base. Alternatively, new geographies or expanding asset classes may pose a significant challenge.

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Achieving Operational Excellence:
The Growing Role of Big Data

 As seen in the 2016 Mutual Fund Service Guide

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Using data science in the back office to improve processes and business performance.

Mike Maltby, Product Manager


Operational excellence has always been and continues to be the strategic goal and nirvana for asset managers and service providers. Operational procedures that have developed from constant human interaction and paper-based processing continue to haunt organizations that strive for operational efficiency. This has opened the door for technology providers to promote their evolving technologies and control environments powered by straight-through processing.

Yet, it is no secret throughout the mutual fund industry that true operational excellence continues to remain elusive. Mutual fund companies and third-party administrators continue their quest for operational excellence. The quest is fueled by the enticement of significant upside potential including:

For mutual fund companies, operational excellence enables the quickest delivery of the most accurate, highest-quality data to the front office.

For third-party administrators, operational excellence means reduced costs, better service value to clients and an ongoing competitive advantage.

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