confidential business value of quality and security v. laxmikanth broadridge financial solutions...

Confidential

Business Value of Quality and Security

V. LaxmikanthBroadridge Financial Solutions (India) Pvt. Ltd., Hyderabad

Nov 2008

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Broadridge Financial Solutions Inc

40+ years of experience in providing solutions to the Brokerage Industry NYSE Listed – (NYSE: BR) Main lines of business

Investor Communication Services Securities Processing Services Clearing and Outsourcing

$2+ Billion Revenues 5000 associates in over 10 countries Market Leader in All Business Segments we operate:

7 of the top 10 US broker dealers use Securities Processing Solutions 6 of top 10 Fortune Global 500 banks use our Fixed Income Solutions Over 1 Billion investor communications annually are distributed. 70% of all proxy votes in U.S are processed

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Disclaimer

The views and thoughts in this presentation are the personal views of the presenter and should not be construed as official or representative views of Broadridge

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Process does generate Business Value

In a 2004 ASQ survey -top-executive respondents stated overwhelmingly (99 percent) that quality contributes to the bottom line.

Empirical research provides the evidence that the stock market reacts positively to winning quality award announcements. (Hendricks and Singhal).

in 2003, Bank of America’s quality initiatives have contributed nearly $2 billion in both top and bottom line impact.

Identity theft rose 20% in 2008 from 2007 – Federal Trade Commission (FTC)

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Process Works….

Or does it ???

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The Other Side…

Of 58 large companies that have announced Six Sigma programs, 91 percent have trailed the S&P 500 since (Charles Holland of consulting firm Qualpro)

James McNerney's introduction of Six Sigma at 3M may have had the effect of stifling creativity (it’s core competency) – Business week

Six Sigma methodology was formulated in Motorola. Is Motorola the market leader in it’s domain?

Users most “frustrated” with security holes and virus attacks

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Why???

It is about Getting the basics right

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It ‘s about understanding Business Value….

Deliver something

of “value”

to the customer in a way

that’s profitable to the Investor

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What do Customers Want??

Free - Perfect - Now

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What Investor’s Want??

(High) Returns - Now - Forever

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CIO Thinking should ..

CIO Speak should

Move from Inward to Outward

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Measure end result rather than…. …

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Get the correlations right…

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Aspiration

Foundation

FivePillars

Client Retention

Accelerate Sales

Offer New Solutions

Leverage Industry Position

Margin Improvement

CULTURE

Be Indispensable

Framework for alignment to Biz Values

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The Challenges

Be Aware that Cost Savings quickly “disappear”

Measurements in IT are more “art” than science – measures are not static

In statistics you are as good as your sample The Black Swan effect Security Systems add “enormous”

complexity – sledge hammer to crack a peanut syndrome

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Thus CIO Speak should

Move from“To improve customer experience we are

implementing a process framework that will take xx years to reach nirvana and will cost $$$ and BTW

we also need a state-of-the-art security system that will cost an additional $$$ otherwise…..”

To“We are implementing a process change that will

cost us $$ and be done XX months AND will INCREASE SALE by XX%”

CIO NEEDS TO MOVE UP THE VALUE CHAIN!!!!

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Summary

A Seat at the table is about articulating

BUSINESS OUTCOMES