While the initial TODO list might be staggering, this
article attempts to address the technology components that need to be in place
to ensure as smooth a launch as possible. Technological requirements will
differ based on numerous factors, but what will not differ is that it is an
essential element of achieving success.
Consultancy, Vendor Selection & Project Management
This may sound like a message from the Ministry
of the Bleeding Obvious, but there is a fair amount to do in terms of vendor
selection, product selection and managing the implementation of all these
various elements. This translates to a large amount of time which will be significantly
longer if the individual managing the process is not familiar with the current technological
landscape. It pays to engage with an independent consultant that can assist in
identifying the various requirements and then apply them to the current marketplace
in terms of suitability of vendors and systems. There are of course the
alternatives of either having a tech-savvy team member take responsibility for
managing the process or engaging with a technology partner that is going to
feature prominently in your overall technology environment and have them manage
all elements of the process. Regardless of which option is selected the
individual managing the process should have awareness of: different vendors and
their offerings, different systems and possible suitability, nuances of
integration with prime brokers and market data feeds and finally experience in
co-ordinating everything to work in harmony.
Network Requirements and Infrastructure
The first port of call is to assess the infrastructure requirements,
once they have been agreed key decisions such as cloud computing vs. on-premise
solutions can be easily made. Certain elements such as data circuits and
telephony need to be prioritised due to the length of time these usually take.
Following on from these the relatively simple matter of workstations and other
peripherals can be decided on. All of the above elements need to be brought
together with delivery, installation and testing. Other items that should be
addressed at this point are identifying who will host your email and ideally
they can also host your website. Your domain name will need to be chosen and
registered, the website requirements agreed and the website design company
identified and engaged.
Software
The systems that are referred to include portfolio
management, order management and accounting software. Due diligence of vendors
here is essential and particularly the support capabilities of said vendor, not
only that service desk hours match your operational requirements, but that also
the appropriate level of service is available at an acceptable cost. Will the
vendor be able to service you as a customer both today and in the future? How
complex are the systems to integrate? What are their maintenance agreements
like and what do they cover? How easy is it to use your preferred market data
vendor with these systems? All questions that need to be considered.
Data & Research
This is impacted primarily by the nature of the required
data and the requirements of the above mentioned software. This includes both
market data and market research. Installation times can also vary greatly, so
they need to be confirmed.
Integration
Possibly the trickiest part where all the software, data and
processes needs to come together and be tested. Integration refers to not only
the integration between the systems, but all data flow which encompasses the
market data, prime broker data, etc...
Business Continuity and Disaster Recovery
These overlap a great deal, but are subtly different. While
business continuity deals with the continuation of the mission-critical
processes and how the business and its employees continue to operate, disaster
recovery focuses on the infrastructure, both hardware and software, necessary
to run the business e.g. phones, email and systems. Additionally, the value of
having comprehensive procedures cannot be underestimated when it comes to
attracting investment.
Avoiding Common Pitfalls
Rank requirements in terms of priorities and identify your
nice-to-haves early, they will make a large difference in terms of choice.
Costs, timings and effectively risk can quickly escalate when looking for the
perfect solution.
Do not underestimate the impact of your systems and
technology as a whole on attracting investment, this refers as much to
infrastructure and software as it does to processes and procedures.
Managing IT effectively requires a specific skill set and an
up to date understanding of the latest technologies, whilst many people within
the finance sector will have the ability to perform this role to some level,
their time is often better spent on the business as a whole. It's time
consuming and there are service providers, consultants and contractors that can
be leveraged, each of these suited to different requirements. Do you really
want to spend days writing VBA code and nights rebooting servers?
George Toursoulopoulos is a technology specialist and Director at Synetec,
one of the UK’s leading providers of bespoke software solutions.
