Asset Management's Top 10 for 2006: Business Drivers, Strategic Responses, and Technology Priorities

TowerGroup Take-Aways

Report Coverage

Vision

The Top 10 IT Priorities

Exhibit 1: Top 10 Business Drivers, Strategic Responses, and IT Priorities for US Asset Management Firms (2006)

Business Drivers for US Asset Management Firms

1. Risk Mitigation

2. Search for Revenue Growth

3. Regulation

4. Industry Consolidation

5. IT Budget Management

6. Technology Innovation/Obsolescence

7. Investors' Search for Alpha

8. Cost-Effective Search for Liquidity

9. Investors' Sophistication

10. Information Transparency

Strategic Responses to Business Drivers

1. Build New Portfolio Capabilities/Support New Products

2. Support the Use of Alternative Investments

3. Rationalize and Integrate Technology

4. Minimize Reputational and Business Risk

5. Improve Client Reporting

6. Minimize Regulatory Risk

7. Use Outsourcing and ASPs

8. Lower Total Cost of Ownership

9. Build Global Capabilities

10. Optimize Workforce

11. Pork Barrel Projects

Technology Priorities for US Asset Management Firms

1. Architecture, Integration, Legacy Replacement

2. Data Management

3. Tactical Compliance

4. Business Continuity

5. Trading Technologies

6. Post-Trade Automation and Workflow

7. Management and CCO Reporting

8. Performance and Client Reporting

9. Risk and Portfolio Analytics

10. IT Process

11. Skunkworks

Evolution of Top 10 Business Drivers

Exhibit 2: Top 10 Business Drivers for US Asset Management Firms (2002-06)

Evolution of Top 10 Technology Initiatives

Exhibit 3: Top 10 Technology Priorities for US Asset Management Firms (2002-06)

Summary