Changing Operating Landscapes
With new entrants, increasing regulations, and the increasing sophistication of the investing public, remaining as the pre-eminent trade execution people won’t be sufficient. Margin compressions are especially a critical force to move away from.
Against the many and increasing pressures, businesses consistently needs to articulate initiatives to be put in place (witin the quickest time) to:
- Move up the value chain to increase revenue velocity
- Retain the end clients through pro-active customer service , better investing tools, and to cultivate a sense of belonging to a socialized trading community
- Reduce costs of operations
- Technology procurement, if required, needs to give a clear return and benefit to the business
- Extract synergies in costs management & revenues between business units
- Offer a compelling (& unique) operational environment –try not to be another me-too provider
What is the risk of inaction?
One oft-repeated observation of the stock-broking fraternity in Malaysia is this : when times are slow, plans are made to improve cost and revenues; but if the market returns before such plans can be implemented, plans are shelved until “we have the time.” Lather. Rinse. Repeat.
Fast forward many boom-bust cycles. We see what we’re seeing is common today. Archaic systems, with no integration, and no definitive customer view.
Transformation is now!
What is OFE?
One key underpinning initiative to contain cost is through automation through formalized workflows and automated decisioning systems.
To reach this future state, an organization needs to develop and enhance its capabilities in its people, process, and technology.
How OFE will help you?
With OFE, organization attains the capability to manage automation ideas at a faster rate than conventional methods. Such capability allows organizations to expand their business at a faster rate and even across geographic locations.
Some strategic capabilities that your organization stands to attain are:
- Able to integrate new acquisitions in the quickest timeframes (“plug-and-play” architecture).
- Able to consistently operate across different markets (“rationalized operations”) at the lowest possible cost.
- Knowing your customers more intimately through a single view & 360° View.
- Become known as a trusted advisor, and as a reliable stand-in for your sales agents or intermediary agents when meeting a service call from the end-client.
- Implement a selling mindset through the provision of sales tools and customizing operational process to engage with stakeholders, primarily customers.
- Become nimble and quick-to-market to support business & operations initiatives.
- Able to derive value from the facts (“business intelligence”) about your customers.
- Has a compelling & unique trading platform (no longer another me-too organization).
Functionalities of OFE
Central corporate data repository
A central database that can aggregate and augment the various back-end data into one location. Coupled with data quality, these features give great insights into customer’s data for automation, sales initiatives and consolidated view of data for org-wide risk management controls.
This is a computer-driven work flow along the lines of an assembly line. Wherever possible, the transaction shall be moved electronically and approved or rejected without human intervention
This workflow design is done through a screen-based designer that lists the job steps required for a particular transaction originating from the tail-end of the Kenanga network.
As transactions are received from the cloud, form or UI, the relevant jobs are invoked, and the job steps are executed. For example, in an account opening, the lookup for related party, bankruptcy, and defaulters may be automated, and handled automatically. Another aspect of this workflow is the ability, for example, to forward a credit limit request to an officer for manual assessments when the limits are too large or when the requester has bad credit profiles.
Automated Decisioning (Business Rules)
Working in tandem with the Workflow Assessment is the jBOSS Drools component. This is called the Business Rules Engine, and is also user-configurable but deterministic.
A business operations designer “writes” the rules needed for each type of transaction sub-step, and is lodged into this central rules repository. Versions of the same rule may be held, and is up to the program to decide which rules to use, obviously based on another set of “rules” that govern a transaction’s behavior.
Many rules may be defined, and this rules engine is highly customizable.
A centralized database with a proper CIF and single view capabilities will be able to provide a consolidated view of the customer’s various business relationships with Kenanga. This is the basis for the 360° View.
The 360° View is a term that provides the ability to view a customer’s past, present, and a predictive (likelihood) of the types of products and services that may be on his radar.
Licensed & Open-Sourced Platform Architecture
The use of open-sourced technologies such as Apache, etc, etc will allow you to reduce the IT cost footprints over long term. With commonly utilized open-sourced technologies, technical support and resources becomes readily available to manage your companies expansions.