JP Morgan & Chase - OneBench IS Case

1. JP Morgan Chase IS CASE
Steffi Boss
Alice Leconte
Kevin Spanberg
Yadurshyan Sethukavalar
Tiziano Tassi
MIS and Modelling for Decision Making
Prof. Tim White
Session 2 - 29/09/09

2. What are we talking about?
Eclipse
Open Source project that wants to create and develop a Eclipse Foundation is a non profit organization that
development platform. develops software Eclipse. The members are IBM, HP,
Developed by Open Source Community free for everyone Ericsonn, Nokia, Oracle, Red Hat, etc.
Services €€€
OneBench
Development platform build with Eclipse by JPMorgan
dev’s for dev’s themself
JPMorgan Chase & Co. is one of the oldest
Final Apps financial services firms in the world and
leader in the same market
Apps build with OneBench by JPMorgan dev’s for
several functions in JPMorgan

3. ANALYSIS OF SECTOR
VALUE CHAIN
This concept has been described by Michael Porter.
“It is a set of activities that enables to a firm to be more organized and more competitive.”
In the case of JP Morgan the value chain is composed of two kinds of
activities that make it more competitive:
1. The Aim activities of the firm
A) Investment Banking
B) Commercial Banking
JPM is commited to meet the envolving investment banking needs
C) Private Banking
At an individual level, to help families and people to protect and to growth their wealth
across generations
D) Treasury and Securities Services
The aim is to help to optimize efficiency, to enhance revenue and to implement
innovative payments

4. E) Asset management
Provides institutional, high-net-worth and individual investors clients with
high quality global investment management in equities, fixed incomes
F) Human Resources Management
G) Marketing and Sale
2. The Support activities
A) Risk management
Is the practice of creating economic value by using financial instruments to
manage exposure to risk, particularly credit risk and market risk
B) Distribution channels
Credit cards and mortgages for retail customers or treasures and
securities services
C) Research
Creation of a foundation for everything they do for their clients: Morgan
Markets, a research website

5. Competitive forces and strategic groups
★ Leader in the Investment Bank
➡ JPM is the third Bank in the USA
★ International Presence all around the world in more than 60
countries: real asset in a world ruled by globalization and the growth
of emerging countries
➡ JPM is presente in the Middle East and Asia
★ JP Morgan was built over 200 years and become one of the best
financial services company in the world
★ Several activity sectors
➡ E.g. Commercial banking, asset management, treasury and securities services
★ Strategy of external growth
➡ Strategy developed with acquisitions. The last is Bear Stearns, bought in 2008
★ Based-RCP Eclipse: very useful and powerful tool to develop and to
deliver banking applications
➡ Excellent graphical performance, efficiency, attractive solution for devs, lower costs, solve problems and more
★ The merger of JP Morgan & Chase in 2001 allowed to improve
efficiency share activities
➡ Activities for professional of the group ruled by JP Morgan and activities for individual are ruled by Chase.

6. BANK
Investment Bank Retail Bank
Private Bank
An INVESTMENT BANK is a financial institution that raises capital,
trades in securities and manages corporate mergers and
acquisitions.
A PRIVATE BANK is a bank which offers private banking services.
They specialize in clients with large accounts (the minimum balance
varies) who want their money invested and managed for the long
term.
A RETAIL BANK is a banking service that is geared primarily
toward individual consumers. Retail banking is usually made
available by commercial banks, as well as smaller community banks.

7. So JP Morgan is in competition with other banks in
several sectors
Invest Banking
(E.g. Morgan Stanley, Merrill Lynch)
Private Banking
(E.g. LCL, Crédit Suisse)
Retail Banking
(E.g. Crédit agricole)
Principal competitors
(E.g. Bank of America, Citi, BNP Paribàs, HSBC)

8. “Because you didn't come here to make the choice, you've already made it.
You're here to try to understand “why” you made it.” - The Oracle
Matrix Reloaded (2003)
The NEW way
The OLD way
Lower
apps
development
1me
(weeks
to
hours)
GUI
and
common
task
openly
available
Apps
developed
with
C++
and
Excel
Graphical
performance
are
excellent
Long
programming
:me
(weeks)
Eclipse’s
Update
Manager
to
manage
several
Apps
wri?en
for
solve
defined
so4ware
key
features
problems
SWT
and
XML
are
integrated
in
OneBench
Backup
data
is
difficult
Plug-­‐in
friendly
environment
Old
programs
(over
10
years)
Spreadsheets
compa:bility
problem
with
official
.dll
libraries
Goals
Improve
efficiency
Lower
costs
Control
to
manage
effec1vely
so4ware
Free
resources
for
new
projects
Found
a
plug-­‐in
friendly
environment

9. OneBench: money spent in the right way?
Objectives Fixed
JP
Morgan
dev's
wanted
to
lay
a
solid
founda1on
for
enhanced
security,
audi:ng,
scalability,
interoperability
and,
above
all,
reusability.
Concrete gains
Free
resources
Lower
costs
So4ware
is
managed
effec:vely
Apps
can
be
reused
Lower
:me
to
develop
new
apps
Dev’s
can
focus
on
business
Safer
and
Faster

10. Looking forward...
Potential Evolutions
Lower cost in the future makes competitive advantage and
JPM can implement new projects
Improvement of the software
Attract new customers increasing workers’ performances
Customized applications on different functions and
business areas
Lower time is required to do job in several functions so
workers are able to improve their productivity

11. Looking forward...
Our critics
Long time to develop OneBench platform and new softwares
They decided to make it and not to buy, thus they have to
employ many JPM’s developers
Eclipse is an open source environment, thus every company can
copy what JPM made and use similar applications
Open Source is generally weak in security against hackers
because source code is public for everyone
Risk of job cuts due to improved efficiency?
Installation, maintenance and technical support for OneBench
are expensive and are (probably) provided by corporations
members of Eclipse Organization

12. And now...
Conclusions
“Yes, JPM Made a good choice”
Efficiency improved, enhanced security, auditing,
interoperability and reusability
High Scalability due to OneBench’s plugin architecture
Sum of Advantages and Disavantages is positive
Goals have been achieved

13. Q&A
BE FRIENDLY, THANKS =)

14. List of Resources
http://en.wikipedia.org/wiki/JPMorgan_Chase
http://en.wikipedia.org/wiki/Eclipse_(software)
http://it.wikipedia.org/wiki/Eclipse_(informatica)
http://en.wikipedia.org/wiki/Eclipse_Foundation
http://www.eclipse.org/
http://www.eclipse.org/community/casestudies/jp_morgan_final.pdf
http://www.devsource.com/c/a/Add-Ons/JPMorgan-Stays-Focused-on-Eclipse/
http://www.eweek.com/c/a/Application-Development/JPMorgan-Stays-Focused-on-Eclipse/
http://www.eweek.com/c/a/Application-Development/Survey-Eclipse-Helps-Make-Save-Money/
http://www2.mokabyte.it/cms/article.run?articleId=4GE-LHK-HCU-A9U_7f000001_14191084_d2fc6d3d