CASE STUDY Asset Management (Mutual Funds)

Client

A Global Asset Management Firm

The Opportunity

“Their application portfolio had grown unwieldy as a result of acquisitions and new business thrusts into different products and markets.”

The Business Challenge

A global asset management firm recognized that their application portfolio had grown unwieldy as a result of acquisitions and new business thrusts into different products and markets.   The cost of technology service delivery was starting to outpace revenue growth, causing margin suppression in a highly competitive environment.   Senior management decided it was time to simplify their environment, achieve early wins, and use the proceeds to further rationalize their technology footprint for agility and scale.

Our Approach

We mobilized a cross-functional client team and structured a series of high energy workshop sessions to surface application rationalization quick hits and strategic priorities for the investment firm.   Key steps included:

  • Mapped out and categorize the enterprise application portfolio across lines of business in order to surface application rationalization opportunities
  • Identified immediate opportunities to reduce ongoing application portfolio costs by, for example, wrapping discrete legacy applications in managed services, re-hosting in a lower cost platform environment, or other creative options to reduce total cost of ownership and risk
  • Surfaced new ways to rationalize and simplify the existing integration architecture to create a more loosely coupled application environment for strategic portfolio applications
  • Identified application rationalization opportunities to consolidate functionality and reduce risk by combining systems and reducing the number of applications
  • Defined the technology standards and rationalization roadmap to standardize the strategic portfolio on common technology platforms going forward
  • Translate technology costs into relevant business costs for each of the lines of business represented in the enterprise application portfolio

Developed a detailed execution road map and business case to drive down the cost per customer for each line of business through application and infrastructure rationalization program strategies.

Bottom Line

The firm saved over $6 million in the first year of the program, increasing to $10 million in savings per year thereafter.   System consolidations and retirements also reduced enterprise complexity and dramatically simplified the operations and technology environments, resulting in further operational cost savings.