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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.