DigitalAlpha

1
Multi-dimensional technology strategy to create
value
NEW YORK
2
EXECUTIVE SUMMARY
WHAT LEADERS ARE DOING?
FOUR DIMENIONS OF LEVERAGE
LEVERAGE TO CXOS
LEVERAGE TO THE TEAMS
LEVERAGE TO THE FIRM
LEVERAGE TO OPERATIONS
3
Executive Summary
Bottlenecks to growth
Expansion of legacy systems
Increase in business complexity
Increase in spend
Impact of market forces
Pressure on business model


Digitization of Activities
Alpha Generating Capabilities
Digital Alpha
2X AUM Growth 1.5X Profit Margins 0.75X OT Costs
Spent 25 less on overall technology and
operations
Spent 35 more on discretionary data projects
4
FOR ASSET MANAGERS ONLY
Operations and technology costs for asset
managers have grown twice as fast as total
expenses in the last 10 years, roughly doubling
in amount
Impact of market forces
Business model faces pressure
New technologies promote new business models
disruption and creative destruction are endemic
Impacted by trends such as digitization and
commoditization, downward pressure on fees,
pressures from sustainability, new tech-centric
business models, and other investment innovations
However, best performing managers spent less on
operations and technology overall, and
out-invested competitors in data and analytics
5
FOR ASSET MANAGERS ONLY
The correlation between digital leadership and
improved overall performance is no accident
6
FOR ASSET MANAGERS ONLY
Best performers spend 25 less on overall
technology and operations, and 35 more on
discretionary data projects
7
FOR ASSET MANAGERS ONLY
Firms generating digital alpha share three sets
of operations and technology characteristics
Partnership between operations and technology
Reduce cost and technical debt, invest in alpha
generating capabilities
Place for technology at the heart of strategic
differentiation
8
FOR ASSET MANAGERS ONLY
Firms generating digital alpha describe their
digital strategies as creating, and not just
enabling, value

• Adapt effective operating models
• e.g. agile application development and
  maintenance

9
Best performers are in the top decile in each of
the following three dimensions
FOR ASSET MANAGERS ONLY

• Streamlined application landscape
• Focused set of vendors across the value chain
• High infrastructure and application stability
• Strong cybersecurity protocols

• Integrated data strategy, actively using
  algorithms and advanced analytics
• Use Machine learning to improve investment
  performance
• Strengthen product distribution and client
  relationship management
• Optimize operations, or manage talent

• Focused on reducing cost and improving efficiency
  through
• Middle office and back office process
  optimization and automation
• Capital allocator and analyst journey redesign

10
Best performers engage vendors in multiple ways
to accelerate growth and improve margins
Provide leverage to CXO with technology problem
solving to address key pain points that improve
business performance driving revenue, optimizing
IT spend, giving speed and flexibility
1
A
Speed up implementation of solutions with
flexible on-demand engagement models and
collaborative execution approach with internal
teams
Help with hiring the right talent to create value
by rapid and nimble matching of people and opportu
nities giving overall positive experience to all
the stakeholders.
Provide leverage by taking over multi-faceted
technology processes and functions to free-up the
in-house workforce to focus on higher-value tasks.
11
Leverage to CXOs Targeted problem-solving and
strategic consulting on-demand (1/2)
12
Leverage to CXOs Targeted problem-solving and
strategic consulting on-demand (2/2)
TCO and KTLO Reduction Program
New Technology and Vendor Evaluation
Capability Development Program
Nearshore Development Team Setup
FinTech AI Due Diligence
Architecture Review Services
CoE DevOps, Data and AI Pipelines
13
Leverage to the teams Accelerate solution
development that require Cloud, DevOps, Data and
AI engineering skills (1/2)
Front Office
Middle Office Risk
Back Office
Functional Solutions
Calculate daily P/L and fund/product NAV
Develop custom Investment decision workflow
Daily reconciliation of ISDA contracts and
positions
Vendor data normalization, arbitration and
optimization
Build decision support system with IBOR,
analytics and workflow
Build models and system for market, liquidity
and counterparty risk
Setup self-service data analytics platform for
analyst with integrations
Detect anomalies in data real-time using machine
learning
14
Leverage to the teams Accelerate solution
development that require Cloud, DevOps, Data and
AI engineering (2/2)
Integrate systems to reduce errors and improve
efficiency
Make on-premise applications cloud ready and
migrate to cloud
Reduce response time with digital operations
Core Architecture
Build shared services such as Redis, Kafka and
ELK clusters
Make firmwide data and calculation assets
available via micro services
Reduce new functionality time to market with
CI/CD automation
Build/enhance master data management and market
data repos
Build Data Lake for analyst research and
exploratory work
Setup self-service data analytics platform for
analyst with integrations
Data Analytics
Build enterprise data hub for real-time single
source of truth data
Build real-time data pipelines to capture
changes in underlying data
Detect anomalies in data real-time using machine
learning
15
Leverage to the teams Accelerate solution
development with flexible engagement models
Leadership gtgt
Recruitment gtgt
Location gtgt
Fees gtgt
16
Leverage to the firm Dynamic matching of people
with domain and/or technology expertise with
roles and opportunities
Well-defined Independent
Software Development and Engineering Roles
Full Stack Developer
DevOps Engineer
Quantitative Developer
Python Developer
Cloud Engineer
ML Engineer
Site Reliability Engineer
Data Engineer
Data Analyst
Full Stack Analytics Developer
Backend Engineer
17
Leverage to the firm Intense pre-screening and
client validated training program to hire right
fast
Well-defined Independent
Lateral Hire Screening Process
Veteran Young Talent Screening Process
18
Leverage to the firm Structured and transparent
hiring approach to achieve positive outcome for
all stakeholders
Hiring Platform

• Tailor coding exercises for specific positions
• Interviews are conducted by senior technical and
  domain experts

Custom Hiring Blueprint

• Systemize hiring blueprints, workflow automation
  alerts
• Access to client portal with candidate assessment
  and interview details
• Parse and match resumes using AI

Workflow Automation

• Access to more than 40 universities and colleges
  in north east
• Tailor training and capstone projects to client
  needs

Consolidate Hiring Efforts

• Continue to work with multiple vendors, and yet
  leverage from centralized pre-screening and
  hiring platform
• Free up team and firm resources from the
  pre-screening and admin activities

Client Portal
19
Appendix
20
Our Mission
Create value by solving technology problems with
a milestone-based delivery model
21
FOR ASSET MANAGERS ONLY
Best performing managers spent less on operations
and technology overall, but out-invest
competitors in data and analytics
Digital Alpha Only a handful of firms are
creating value digital alpha, through greater
investments in data and analytics, and by
digitizing their operations and technology
functions
22
We strive to create lasting and substantial
impact in our engagements
MORE IMPACT MORE OPPORTUNITIES
Impact
OPPORTUNITIES TO SERVE
23
Thank You!
www.digital-alpha.com
consulting_at_digital-alpha.com
www.linkedin.com/company/digitalalpha
(646)397 -9689