Section 8 : Etude de cas – Odyssey Asset Management Systems

Apr 8, 2023

Odyssey Odyssey Asset Management SystemsAsset Management Systems

Illustration of a software company product strategy

2

AgendaAgenda

Corporate presentation

Product strategy

Roll out considerations

3

AgendaAgenda

Corporate presentation

Product strategy

Roll out considerations

4

VisionVision

Odyssey's vision is to achieve global leadership in advanced technology solutions for the

Investment Management community and deliver competitive advantage by helping our customers

offer superior services to their clients.

5

Odyssey - A Market LeaderOdyssey - A Market Leader

Leading software solutions for Investment Management

Of the top 25 European banks (by market capitalisation) 15 are Odyssey customers

Odyssey applications are implemented in 132 sites in 24 countries

Products based on new technologies - our core business

Strategic projects in international banks

Merging of 2 segments : IT and banking

Steady growth since inception in 1995

« Triple’A was selected out of 4 different

packages. The key selection factors were the

high functionality coverage, the user-

friendliness, the performance level of the

application and the ability to provide added value service to our clients. »

ANDREAS STRICKER

Bordier & Cie.

6

Odyssey OfficesOdyssey Offices

Luxembourg – Financial HQ

Lausanne – Operational HQ

London

Geneva

Zurich

Amsterdam

Brussels

Munich

Singapore

North America (by end 2004)

7

Odyssey Client BaseOdyssey Client Base

Odyssey solutions are used at 132 client sites worldwide, including:

* A complete Odyssey client list is available on

demand.

8

HistoryHistory

20031995

2002

2001

2000

1999

1998

1997

1996

Odyssey founded in Luxembourg by 9 private shareholders

Odyssey acquires exclusive distribution rights to the Triple’A portfolio mgmt system, originally developed at the initiative of the BCV in Lausanne

Acquisition of the Belgian company CAFC; development of Mirage reporting; offices established in Geneva and Zurich

Acquisition of the intellectual property rights to Triple’A and transfer of the development team to Lausanne

Odyssey launches development of Advisor – client relationship mgmt solution for Investment Management

Acquisition of the London-based company Market Data Systems, specialised in accessing, filtering, warehousing and distributing market data; offices established in London and Amsterdam

Office opened in Singapore; the 3 companies within Odyssey Group (OAMS, ODAFS, OMDS) are merged as Odyssey Asset Mgmt Systems

Launch of Triple’A Release 4 and development of Nexus – market data management solution

Commercial release of Advisor – client relationship mgmt solution; office in Munich established

9

Odyssey evolutionOdyssey evolution

ExtendedPositionning

Client ReportingPB

PMPB

RMPB

Market DataRepository

2004

TechnologyShift

Client ServerC/C++

Sybase

J2EEComponents

API

J2EEComponents

API

2004

GeographicalExpansion

Europe Asia Middle East North America

2004

10

Odyssey structureOdyssey structure

A DuchâteauCEO

Finance Product Strategy

COO

SalesMarketing/

Business SolutionsServices Production

Project directors

Project managers

Implementation team

Support solutions team

Product development

Business solutions

Marketing

Geo organization : Europe/AsiaPacific/NA

Country reps

Account managers by client

Internal developments

Support/helpdesk

Release management

11

Odyssey: a growing companyOdyssey: a growing company

Client CountStaff Count

EBIDTA = Earnings before interest, depreciation, taxes & amortisation (depreciation of goodwill). As Odyssey’s financial structure has evolved through the years, it is not possible to calculate all years in exactly the same manner. Therefore, 1996 & 1999 figures are estimates.

Revenue EBIDTA

12

By Activity

Turnover Breakdown 2003Turnover Breakdown 2003

Figures valid as of December 31, 2003.2003 Net Turnover = € 36.1 million

By Region36%

13

Shareholder Breakdown 2003Shareholder Breakdown 2003

Odyssey’s Capital = € 13.6 million Figures valid as of December 31, 2003.

14

Employee Location 2004Employee Location 2004

Figures updated: May 2004Odyssey Staff Count = 248

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Employee Activities 2004 Employee Activities 2004

Figures updated: May 2004Odyssey Staff Count = 248

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Client Distribution*Client Distribution*

To date, Odyssey clients are predominantly based in Europe.

We are now aiming to capture greater market share in other regions of the world.

* These graphs represent clients with licensed Odyssey solutions. All figures valid as of February 20, 2004.

Odyssey Client Count = 132

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Odyssey PartnershipsOdyssey Partnerships

Hardware Platforms

Software Providers &

Business Associates

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A pressing & moving competitionA pressing & moving competition

Back Office

Mid-FrontOffice

Institutional Private Banking Mass AffluentRetail

1. DSTi2. Sungard3. Mysis4. Simcorp5. Thomson6. Forbatech7. Igefi8. Linedata

1. ERI2. Temenos3. Avalog4. Bosslab5. SEI6. ADP7. IDS8. Callatay

1. Riskmetrics2. Brainpower3. Longview4. Latent Zero5. Charles River6. McGregor7. FMC

1. i-flex2. Temenos3. Callatay4. SAP-Alnova5. Finova6. Fiserv7. Fidelity National8. System Access

1. Finantix2. Siebel-Eontec3. S14. Fidelity5. Getronics6. Unisys7. Fineos8. BanqIT

1. Odyssey2. Business Architects3. Delta4. Swissrisk5. COR6. Finaplex7. Reuters8. X-eyes9. Thomson10.Sage

Segments

Activities

DataRepository

Asset Control, Eagle Pace, Fame, FTI, Netik, Odyssey

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Odyssey Market PositioningOdyssey Market Positioning

ClientRelationship

Manager3rd PartyManager

PortfolioManager

FundManager

FundAdministrator

Back office

Asset ManagementWealth Management

Front & Mid office

Client Data Management

Relationship Management

Client Reporting

Valuation & Analysis

Performance

Constraint & Strategy

Order Input, Generation & Management

Integration & Workflow

Central Security Warehousing

‘Output’ management (report production, distribution and archiving)

Private Banking

Mass Affluent

Inst

itu

tio

nal

Retail Banking

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Business Solutions Positioning

Portfolio Manager Workstation

- Portfolio Mgmt & Analysis

- Portfolio Modelling & Balancing

- Advanced Analysis

- Advanced Performance Attribution

- Client & Portfolio Monitoring

Relationship Manager Workstation

- Portfolio Mgmt & Analysis

- Client & Portfolio Monitoring

- Collaborative Advice & Contact Management

- Client Data Management

- Investment Profiling

Presentation Framework

Integrated SolutionsIntegrated Solutions

Independent Business Components

- Business Business

ComponentsComponents

- Customer Portal Customer Portal

- Straight-Through-Straight-Through-

Processing Processing

- Workflow & DataflowWorkflow & Dataflow

21

22

AgendaAgenda

23

Business Solutions – User ProfilesBusiness Solutions – User Profiles

Portfolio Management & Analysis

Portfolio Modelling & Balancing

Advanced Analysis

Advanced Performance Attribution

Portfolio Management

Relationship Management

Client & Portfolio Monitoring

Collaborative Advice & Contact Mgmt.

Client Data Management

Investment Profiling

Foundation ComponentsFull functionality available

Subset of functions available

Portfolio Managers

Relationship Managers

3 rd Party Managers

Retail Relationship

Managers

Custom Profiles

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AgendaAgenda

Corporate presentation

Product strategy

Roll out considerations

25

Some Strategic Market ObjectivesSome Strategic Market Objectives

• Expanding Solutions towards:

Off-Shore => On-Shore

PM => RM

Discretionary => Advisory Business

HNWI => Mass Affluent/Retail

In-House => ASP/BSP Solutions

In-House => B2B/B2C

Europe => Global (US / Asia)

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Some Recent Requirements Some Recent Requirements On Odyssey Solutions On Odyssey Solutions

• Functionalities available as services, in-house or in ASP/BSP

mode

• Implementation of subsets of functionalities

• Integration with bank/third-party products available as services

• Full availability through the WUI

• Support of very large volume processing

• Time-to-market and quality in providing new advanced

functionalities

• Full Integration of Odyssey products offering (Triple’A, Advisor)

• Database Independency

• Lower Cost of integration and of Ownership

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The Development Strategy : The Development Strategy : A Component ArchitectureA Component Architecture

This development strategy consists in developing,

using J2EE technology, business components

covering both new and existing specific

functionalities, including Triple’A .

These components can be provided and seamlessly

implemented as combination, or implemented

independently.

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Today’s Functional ArchitectureToday’s Functional Architecture

Component Client/Server

Odyssey Presentation Framework (OPF)

Odyssey Technical Framework (OTF)

Live!Report

Gateway

TA GUINexus

GUI

TA Financial Server

TA Import / Export

iMD

i F

ilte

rs &

Lo

ad

ers

DB Component

Repositories

HEART

Repository

Odyssey Business Components

TA DB

Odyssey Solutions

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A More Detailed Functional ArchitectureA More Detailed Functional Architecture

Component Client/Server

Advisor Profile RM Profile

Odyssey Presentation Framework (OPF)

Odyssey Technical Framework (OTF)

Live!Report

Gateway

TA GUINexus

GUI

TA Financial Server

TA

DB Business Procs

Repository

TA Import / Export iMD

i F

ilte

rs &

Lo

ad

ers

Val

o

Per

fo

Op

His

t

Fu

sio

n

Ch

eck

Str

at

Rec

on

cile

Jou

rnal

TA Script

…

TA Script

TA Script

Ma

il M

gr

CD

M

CIM

S

MC

Q/A

lert

DB Component

Repositories

HEART

Repository

IPA

Re

ba

lan

cin

g

Va

lo/C

he

ck

TA

SC

CB

I

MD

F

Msg

Org

a

Sec

u

GC

L

Wrk

Fl

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dit

DB

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XD

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Scr

ipte

d

Pag

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w

Inte

rnat

.

Pag

eFlo

w

Pre

fere

nce

Pro

fili

ng

UD

P

Qu

ery

Ed

ito

r

Ser

vice

s

PM Profile

Ord

erM

gt

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Today’s Technical InfrastructureToday’s Technical Infrastructure

Component Client/Server

Actuate

Neuron Data

(Presenter)

Sybase Open Client

Java / Swing

Sybase Open Server

Sybase

C/C++

Ascential

HTML / XML (->PDF / Excel / …)

Web Container

EJB Container

AS

WS

/

We

bL

o

Cocoon

Java / J2EE

JVM

XSP / XSL

Sybase / Oracle / DB2

Torque Castor Jython JDOQL

JDBC JMS RMI

…

JNI –> C/C++

DonLP2 SimCorp

Log4J

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C/S Architecture : Benefits & IssuesC/S Architecture : Benefits & Issues

Benefits

• GUI & FS Rich Functional Coverage• TA Brand• TA Installed Client Base • TA Maturity• Relative System Architecture Simplicity • Parametrization Tools• Accessibility to Business Consultant Profiles

Issues

• Modules, but no Independant Components

• Data Replication

• TA Sybase-Only• Limited Scalabilty in Very High Volument Environnement (Retail)• User friendliness for non-power users

32

Component Architecture : Benefits & IssuesComponent Architecture : Benefits & Issues

Benefits

• Web User Interface• OS & DB Independence• Component Independence• Facility to Package Multiple Solutions• Integration Facilities

Limited Data Duplication Access to External Components

• Customisation Facilities• AS Scalability• Standard Frameworks

Issues

• Todays PMS WUI & Server limited functional coverage (compared to TA)• Limited Customisation Tools (WUI / Rules)• More Complex Architecture

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The Future Functional ArchitectureThe Future Functional Architecture

A Fully Component-Based Architecture

Odyssey Presentation Framework (OPF)

Odyssey Technical Framework (OTF)

Live!Report

GatewayDB Component

Repositories

HEART

Repository

Odyssey Business Components

Odyssey Solutions

Triple’A

Repository

Third-Party

Business

Components

A 3 years perspective to be achieved step-by-step !

34

A More Detailed Functional ArchitectureA More Detailed Functional Architecture

Advisor TA/RM

Odyssey Presentation Framework (OPF)

Odyssey Technical Framework (OTF)

Live!Report

DB Component

Repositories

HEART

Repository

CB

I

MD

F

Msg

Org

a

Sec

u

GC

L

Wrk

Fl

Au

dit

XD

I

Scr

ipte

Pag

eflo

w

Inte

rnat

.

Pag

eFlo

w

Pre

fere

nce

Pro

fili

ng

UD

P

Qu

ery

Ed

ito

r

Ser

vice

s

TA/PM Mass Affluent Nexus

WU

I C

ust

o

Other New Profiles …

Dcm

t

Ed

ito

r

WkF

lw

Ed

ito

r

Ru

le

En

gin

e

Ma

il M

gr

CD

M

CIM

S

MC

Q/A

lert

IPA

Re

ba

lan

cin

g

Va

lo/C

he

ck

TA

SC

Ord

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gt

Triple’A

Repository Gateway

NM

4

Flo

wM

ind

Ris

kM

etr

ics

Fin

an

cia

l P

lan

nin

g

Lo

da

Po

s

Str

at

Ad

min

JR

NL

Pe

rf /

GIP

S

Oth

er

PM

S

Co

mp

on

en

ts

WU

I A

dm

in

DD

L

Ad

min

A Fully Component-Based Architecture

DB

A

cces

s

35

The Benefits of the Future architectureThe Benefits of the Future architecture

Benefits

• F-E & B-E Rich Functional Coverage• TA Brand Remains• TA Installed Client Base is Preserved • TA Maturity• A Unified System Architecture• Parametrization & Customization Tools• Accessibility to Business Consultant Profiles

Benefits

• Web User Interface• OS & DB Independence• Component Independence• Facility to Package Multiple Solutions• Integration Facilities

Limited Data Duplication Access to External Components

• Large Customisation Facilities• AS Scalability• Standard Frameworks

Only the Benefits of Both World Should Remain !

36

How to Address the Issues of the How to Address the Issues of the Component Architecture ?Component Architecture ?

Issues

• Todays PMS WUI & Server limited functional coverage (compared to TA)

• Limited Customisation Tools (WUI/ Rules)

• More Complex Architecture

Solutions

• Triple’A FS Componentisation• Extended WUI Functionalities (incl. dhtml, Flash, Swing, …)

• Investment in Parametrization & Customisation Tools

• Investment in Packaging & Administration Console

37

Triple’A Componentization : Triple’A Componentization : What Does It Mean ? What Does It Mean ?

Financial Calculators are available in service mode /

Data Providers deal with data access :

Valuation

Portfolio/Position

Instrument

Price /

Exch Rate

Valued

Portfolio/Position

TASC / FS

XML / JMS

HEART

Custom

Java

AP

I

Java

AP

I

CalculatorInput Data

ProvidersOutput Data

Providers

SQL / DB

TASC / FS

XML / JMS

HEART

Custom

SQL / DB

38

Triple’A Componentization : Triple’A Componentization : What Does It Mean ? What Does It Mean ?

One Triple’A financial function may correspond

to several specialised components :

Valuation

Financial Server

Valuation

LoadPos

+

Pos Pre-Process.

Instr. Analytics

Format

Valuation Fct

TASC/Export

TASC/FS

Components

(2004)

LoadPos

Valuation

TASC/Export

Components

(2005)

LoadPos

Valuation

Instr. Analytics

UDP+Pre-Proc

Components

(2006)

The ‘component version’ of a financial function should be at least as rich, ideally richer !

UDP+Pre-Proc UDP+Pre-Proc

39

Triple’A Componentization : Triple’A Componentization : What Does It Mean ? What Does It Mean ?

Componentization does not necessarily mean Java :

Financial Server

Compute

New Pos

Load

Pos + Op

Save New Pos

Fusion Fct

Compute

New Pos

(C)

LoadPos

SavePos

Components

Other Candidates : Donlp2 (Done) / Instrument Analytics (Simcorp) / Perf Attrib (TBA) / …

40

AgendaAgenda

Corporate presentation

Product strategy

Roll out considerations

41

Release management processRelease management process

Definition Development Delivery Beta support

Documentation

Impact analysis :

Spec review / Beta test case creation

Skills requirements definition & gaps

Training plan

Client Beta site support or

Internal beta

Develop/update implementation methodology (incl. Training plan)

Beta support

Program management

Specs validation

Test cases validation

Documentation validation

Early validation of software delivery

Release content definition

Commercial release

R&D

SO

BSM

Beta/Pilot site selectionSales Active account mgt

PSS

Client Beta management

Resource plan Trainings execution

Training received

from R&D

Release Beta

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Release management processRelease management process

Methodology update/creation & training plan ( Rollout team)

Option 1 (preferred) – Client Beta site

Client Beta phaseAlpha phase

Pilot ImplementationAlpha phase

Commercial release

Option 2 – No client beta site

Beta release

Methodology update/creation & training plan ( Rollout team)

Beta release

Internal beta phase

Internal beta phase (Rollout team)

Commercial release

1 to 3 MONTHS

Training Beta teams

Training Beta teams

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Other roll out considerationsOther roll out considerations

Impact on sales

Impact on services (implementations)

Impact on R&D

44

Impact on SalesImpact on Sales

Be aware of the product strategy Set up a migration plan for existing clients base

85 sites GUI, TASC, components sites

Be aware of possible migration options for clients Avoid multiple migrations Who finances migration costs ? Minimize migration costs thanks to customization or migration

tools

45

Impact on ServicesImpact on Services

Change in skills requirements High value consulting Java development skills Use of web based customization tools (layout designer, workflow,

pageflow, java scripting langage) Technical skills (integration, messaging, performance, etc…)

Get configuration tools is critical Standard architecture makes outsourcing of services to third

parties easier Trainings, recruiting, subcontracting needs Helpdesk must be able to support clients and implementation

teams

46

Impact on R&DImpact on R&D

Doubling of development effort (on old financal servers and on components)

Multiple configurations to manage Review of development tools and methodologies Review of testing methodologies