The Technology Challenge

Transcription

1 The Technology Challenge Martin Spedding Executive Director DST Global Solutions Bluedoor

2 A view of the future back then..

3 Managing the growth Source: Deloittes Dynamics of the Australian: Superannuation System - The next 20 years:

4 When our requirements outgrew our capacity...

5 We looked for other options...

6 Even after we upgraded the requirements continued to grow and grow!

7 In the 1990 s we started... Where we started... Accumulation benefits, simple $1 per week insurance cover, interest in arrears, one investment option. How we did it... simple registry systems, brochures, forms, mail, cheques, data entry operators, annual reporting and statements, telephone, faxed queries, faxes to custodians & fund managers, insurers, suppliers, etc...

8 Today s requirements Clients / Users Access Methods Product / Tax Investment Insurance External Parties Admin Call Centre Employers Clients Fund Advisers Registry Employer Portal Member Portal Super Pension IMA? Wholesale MF Self Managed Equities Term Deposits Report only Admin Interface Banking ATO Custodian Unit Pricing Fund Accounting Insurer Broker Service

9 Super registry technology in use today Registry System Market Share (%) Inception date R 's Aaspire Acurity 's SuperB 's Capital 's OmniPlus 's Ultimaas II 's Bluedoor Composer 's SAS 's In house Proprietary 12.5 Varies Source: Chant West 2011

10 How funds manage?

11 Operating Costs are increasing for Industry Funds

12 Challenge from Cooper Review... The back office of super is in urgent need of an upgrade and annually costs members hundreds of millions of dollars more than it should. The Panel emphasises that the obligation of trustees to act in the best interest of fund members extends to their strategic oversight of the administration function.

13 The Challenge from Cooper Review... There is a real problem that some trustees and their staff have insufficient understanding of e-commerce and the opportunity costs of not adopting it. The Panel considers that there is a clear need for trustees to have a more active engagement with the intricacies of administration so that they are better equipped to make strategic decisions about it. - Cooper Review - Super System Review Final Report Part 2: recommendation Packages, 5 July 2010

14 Trends in technology The big picture massive environmental change Connectivity bandwidth, penetration, fibre, wireless, etc. Computing power, cost & pervasiveness Mobility anywhere, anytime, real-time Software tools, apps Data growth, Cloud, access Transformational businesses that have been enabled Apple, Google, Facebook, Amazon and Twitter

15 Connectivity

16 Connectivity Subscribers moving from dial-up to broadband

17 Connectivity Household take-up of computers, internet and broadband 1999 to 2008/09

18 Connectivity ecommerce and Broadband grow hand in hand

19 Source: NBN Connectivity

20 Connectivity Fibre is already well established in many countries

21 The Data Delivery Race How Different Methods of Internet Delivery Match Up Download speeds are affected by which type of Web connection a home has. In the chart below, speed estimates are based on the average home computer, and standard speeds are shown as advertised. Several other factors can affect Internet speeds, including the computer, traffic on the Web site being visited, and the condition of the line to the home. Web lingo 1,024 bits = 1 kilobit 1,024 kilobits = 1 megabit 8 megabits = 1 megabyte 1,024 megabits = 1 gigabit kbps = kilobits per second Mbps = megabits per second Gbps = gigabits per second 1.5MB Photo 3MB Music File 5MB Video Clip 10MB Software 30MB Dial Up (56 kbps) 3 minutes 7 minutes 12 minutes T 24 minutes more than 1 hour DSL (500 kbps) 23 seconds 46 seconds 1 minute 2.5 minutes 8 minutes Cable (10 mbps) 1 second 2 seconds 4 seconds 8 seconds 24 seconds Google Fiber (1 gbps) less than 1 second less than 1 second less than 1 second less than 1 second less than 1 second Jun Ma, Stevie Mathieu and Nicole Thompson t Sources: Numison Download Time Calculator, Columbia software engineer Ian Eyberg

22 The Data Delivery Race How Different Methods of Internet Delivery Match Up Download speeds are affected by which type of Web connection a home has. In the chart below, speed estimates are based on the average home computer, and standard speeds are shown as advertised. Several other factors can affect Internet speeds, including the computer, traffic on the Web site being visited, and the condition of the line to the home. Web lingo 1,024 bits = 1 kilobit 1,024 kilobits = 1 megabit 8 megabits = 1 megabyte 1,024 megabits = 1 gigabit kbps = kilobits per second Mbps = megabits per second Gbps = gigabits per second 1.5MB Photo 3MB Music File 5MB Video Clip 10MB Software 30MB Dial Up (56 kbps) 3 minutes 7 minutes 12 minutes T 24 minutes more than 1 hour DSL (500 kbps) 23 seconds 46 seconds 1 minute 2.5 minutes 8 minutes Cable (10 mbps) 1 second 2 seconds 4 seconds 8 seconds 24 seconds Google Fiber (1 gbps) less than 1 second less than 1 second less than 1 second less than 1 second less than 1 second Jun Ma, Stevie Mathieu and Nicole Thompson Sources: Numison Download Time Calculator, Columbia software engineer Ian Eyberg

23 Computing

24 Computing Processing speed increasing 1999 to 2010

25 Computing Costs decreasing Source:

26 Mobile Computing

27 Total sales in 2011 to reach: iphone 100 million ipad 40 million Mobile Computing

28 Mobile Computing Units Shipments of smartphones, tablets, ipads and other app enabled devices will overtake PC and Notebook sales in the next year Source: IDC Market Research

29 Mobile internet users > Desktop

30 Mobile - more data than voice

31 Mobile users buying Apple s itunes & App Store downloads Billions! Source: Market intelligence. September 2010

32 Mobile video demand taking off

33 Mobile page views v Desktop

34 How businesses are using Mobile computing

35 Mobile Revolutionising e-commerce

36 Branded Apps

37 Mobile Computing 1. Mobile internet growing faster than desktop internet did and will be bigger! 2. Estimated that 50 Billion devices will be connected to the internet by Trends Converging (3G + Social Networking + Video + VoIP + Impressive Mobile Devices) 4. More users likely connect to the Internet via mobile devices than desktop PCs within 5 years 5. Businesses need mobile web / Apps most interaction and communication will happen this way

38 Data Everywhere in the Cloud

39 Data Use of the Cloud is exploding

40 Trends in technology that will enable business Connectivity realtime, immediate Computing power, low cost & pervasiveness Mobility anywhere, anytime, real-time Software apps, micro software, integrated Data everywhere, online, using the Cloud, access

41 Result: new transformational platforms 1. Apple ipod (2001) 2. Apple itunes Store (2003) App Store (2008) 3. Facebook (2004) 4. Google Maps & Google Earth (2005) 5. Twitter (June 2006) 6. Apple iphone (July 2007) 7. Amazon Kindle (Nov 2007) 8. Apple ipad (April 2010)

42 Facebook Facebook - the Social media phenomenon Facebook If it were a country it would be the 3 rd largest in the world

43 Twitter

44 So what? More social networking users than !

45 Change in use of in 1 year

46 is dead Mark Zuckerberg unveiled his website s new messaging system and hailed the death of as we know it. The 26-year-old said it would go the way of the letter because it was too slow and too formal.

47 Music Stores gone! Impact - Music Industry The effect on music was the equivalent of the atomic bomb John Mellancam Deloitte is predicting that physical music sales will be surpassed by digital music downloads and subscriptions in 2011

48 Impact - Book Industry Amazon alone said that Kindle books started outselling hardcovers on its store last July and began outselling paperbacks this January. Sold 3 million ebooks in last week of Apple ibooks 100m sold in 9 months ebook sales trend Kindle launched November m sold ipad launched April m sold

49 Impact Other industries Share trading / broking E*Trade, Comsec Travel Virgin, Jetstar, Webjet, Lastminute.com, etc Retail Transparent pricing, mobile bar code scanning, Google Goggles, etc. Payment systems (PayPal, Bpay, etc) Internet banking online self service, e Statements, transfers, bill payments, Bpay, international transfers, etc

50 Implications for Super Funds The technology requirements for administrators and Super funds will continue to grow significantly in the near future. The cost of trying to maintain integration of more and more disparate technologies sitting on top of legacy technology will continue to grow. The conflicting needs for greater system performance, more efficient data access and tight integration of functional components on one hand and reduced cost on the other cannot be met by legacy technology. N tiered modern architected systems allow services to be easily exposed and deployable to mobile devices and integrated

51 Scalability & Performance Optimised System Performance Vertically and Horizontally Scalable Applications Optimised Data Access Bulk Selection of Entity Data CPU/Mem Load Balancing Web Farming 1 Multi-Threaded Application Architecture Multi-Threaded Data Serialisation Multi-Tiered Open XML Based Architecture Parameterised Commands for SQL Pre-Compilation Presentation Business Column = {?} SQL Rules Formula Engine Compiled Just-In-Time Automatic Caching of Business Objects Rate = 0.15% Object 1

52 Implications for Super Funds Technology investments will be required to provide for: Deployment of all transactions online no paper Development of a rich online experience quick navigation CRM and marketing of services that can be tailored to each individual their demographic, their interests, circumstances Online management & organisation of member data & reports Workflow, transaction monitoring, client view Mobile access / view Mobile iphone / Android / ipad app real capabilities VoIP and Video links Service centre, advice, training

53 Questions?

54 The Technology Challenge Martin Spedding Executive Director DST Global Solutions Bluedoor

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