Current Uses of Computers in UK Business

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Current Uses of Computers in UK Business
Industry
October 2004
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Contact Details
Jacqui Tege Client Money Technology email
jacqui.tege_at_gs.com Glyn Braganza Treasury
Technology email glyn.braganza_at_gs.com
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Lecture Contents

• About Goldman Sachs
• What is our Business?
• Where does Technology fit in?
• Business Concerns - How Technology Helps
• GS Technology case study Client Money
  Technology
• Questions Answers

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About Goldman Sachs

• Goldman Sachs is a leading global investment
  banking, securities and investment management
  firm that provides a wide range of services
  worldwide to a substantial and diversified client
  base that includes corporations, financial
  institutions, governments and high net-worth
  individuals.
• Founded in 1869, it is one of the oldest and
  largest investment banking firms. The firm is
  headquartered in New York and maintains offices
  in London, Frankfurt, Tokyo, Hong Kong

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About Goldman Sachs
Over 50 Offices Worldwide
Tokyo
New York
Hong Kong
London
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About Goldman Sachs

• Approx 20000 employees globally (3500 in
  Technology)
• Approx 5000 employees in Europe ( 600 in
  Technology)
• 16,012 mn Revenue in 2003
• 3,005 mn Net Earnings in 2003
• Approx 2,000 mn annual technology spend

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What is our business?
Investment Banking
Investment Management
Global Investment Research
Equities
Merchant Banking
Technology
Fixed Income, Currency and Commodities
Human Capital Management
Operations Finance
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What is Technology at Goldman Sachs?
Mobile Communications
Development
Database
Financial Modelling
Networks
Market Data
Information Security
Messaging
Voice Services
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Project Drivers

• New Business Opportunity
• Market Initiatives
• IT Strategy
• Operational Efficiency
• Performance and Stability
• Regulatory Requirements

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Application Development

• Project management
• Problem solving in partnership with the business
• Gathering user requirements
• Systems design
• Development and maintenance
• Testing and production rollout
• Support and trouble shooting systems issues
• Evaluating new technologies

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Our Development Environment
Windows NT/2000/XP Solaris Sybase MS SQL
Server UDB Apache WebServer Linux .Net

• HTML, Perl JAVAScript
• C
• JAVA
• Cobol
• C
• Visual basic
• XML
• XSL

and anything else we need
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Enterprise Technology

• Core Infrastructure
• Networks
• Technology operations
• Telecommunications
• Market data
• Information security
• Divisional Systems
• Systems administration
• Database administration
• User support groups

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Our Infrastructure in 2003

• Total no. of UNIX servers in Europe
  3,119
• Total no. of PC workstations in Europe
  7,000
• Total no. of network connections in Europe
  19,500
• Total no. of market data users in Europe
  1,700
• Approx. data storage available in Europe
  54.8 terabytes
• Approx. data storage available globally
  1 petabyte
• Rate of data storage growth? 2001-2002 up 115
• 
  2002-2003 up 45

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Our Infrastructure in 2003

• Network
• 4 x 155 mb London - NY circuits
• Our network has 154 routers, 379 switches and
  54,556 ports
• WAN bandwidth between London NY 465 mbps
• Monitoring
• We send half a million system alerts a week
• 97 of these are dealt with automatically
• Telephony
• We made 15 mn outgoing calls last year
• We have 19 PABXs - the largest implementation in
  the UK

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Business Concerns

• Reputation
• Regulatory Issues
• Risk
• - Financial
• - Operational
• - Systemic
• Control
• Security
• Speed of Information
• Time to Market
• Business Continuity Planning

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Business Concerns A Case study
Client Money Reporting
- Jacqui Tege
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Client Money Reporting Given

• Per the FSA, client assets, e.g. cash, must be
  segregated daily in order to provide protection
  from a UK firms potential bankruptcy.
  Conservatively, this requires knowledge of assets
  that are truly owned by a client on a daily
  basis
• Failure to comply can result in suspension of
  business operations
• Goldman Sachs is a large, multi-national,
  multi-business organisation providing flexible
  services to a host of counterparts across a
  variety of investment instruments managed by
  specialised Operations and Technology areas
• That means our processing is complex

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Client Money Reporting The Problem

• So what?
• Distributed reporting distributed
  interpretations of rules. Risk?
• Different interpretations, leading to rules
  violation
• Clients can transact in multiple products need
  to consolidate product buckets. Risk?
• Accidental exclusion of a clients balance in a
  product, leading to rules violation
• International business different end of days.
  Risk?
• Accidental exclusion of NY-driven changes to a
  clients UK balance, leading to rules violation
• May be some legacy or manual reporting lurking.
  Risk?
• Operational (typos, omissions, etc), leading to
  rules violation

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Client Money Reporting The Problem
and Rules Violation leads to?
you get the picture
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Client Money Reporting Functional considerations
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Client Money Reporting Other considerations

• Deployment?
• Distributed Business Operations
• Variety of desktop builds
• Web-based application
• Performance?
• Large, international user community
• High volumes
• Caching (disk I/O avoidance)
• Time to Market?
• Growing businesses manual /or legacy processes
  not scalable
• We dont tolerate reputational risk
• Reuse (find a suitable existing framework)
• Cost?
• As costs go up, profits comes down (most of the
  time!)

Reuse (find a suitable existing framework)
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Client Money Reporting Project

• 2 Managers
• Operations (functional)
• Technology (technical)
• Team
• 1 ½ Technical Architects
• 4 Analyst / Developers
• Extended team size 20
• 12 Operations Analysts
• Extended team size 68
• 40 Senior Stakeholders
• Statistics
• 120GB data
• 50,000 lines of original code
• 24 x 5
• Delivered on time

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Client Money Reporting Project Lifecycle

• Scope
• What do you want? Who? Where? How? When?
• Sponsor-driven
• Functional boundaries, milestones Technical
  strawman agreed
• 4 months elapsed, 1.5myrs (4-5 people)
• Functional Specification
• Operations-driven, significant technology input
• Elaboration of functional Scope
• 6 months elapsed, 5myrs (10)
• Technical Specification
• Technology-driven
• Translation of functional to technical framework
  (elaboration on strawman)
• 3 months elapsed, 1.5myrs
• 6 people (give that person a prize)

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Client Money Reporting Project Lifecycle (contd)

• Development
• Code test standards, development, reviews
• Iterative
• Avg 3 months elapsed, 1.25myrs (5) per phase
• User Acceptance Testing
• Highly organised, phased test period
• Technology tests (performance, recovery)
• Avg 2 months elapsed, 1.5myrs
• Implementation
• Process, Contingency
• Support
• and, of course, the Go Live Party!!!

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Client Money Reporting Communication
Business Steering Committee
External Audit
Internal Audit
Project Steering Committee
Project Management
Technology Core Team
Operations Core Team
Extended User Community
Extended Technology Community
When in doubt, over-communicate!!
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Careers in Goldman Sachs Technology
Goldman Sachs has Graduate, Summer Analyst and
Work Placement positions available. You can find
information and application forms at this
link http//www.gs.com/careers
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Questions?