Merrill Lynch's IT Initiatives (Page 2)

Abstract

The case examines the two major IT projects implemented by the US-based Merrill Lynch & Company (ML), a leading global financial services firm. It describes the Trusted Global Advisor (TGA) project that aimed at offering high quality content and analytical tools to enable ML’s financial advisors create, use and track financial plans for their clients. The case describes in detail the systems architecture of TGA, its utility and the problems faced by ML during and after implementation of the project. The second IT project that ML launched to replace TGA was the Wealth Management Workstation (WMW), the largest IT project worth $ 1 bn to be fully outsourced by third party vendors. The case discusses the system architecture of WMW, the role played by various vendors. Finally, it updates on the current status of the project implementation.

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BACKGROUND NOTE contd...

By 1915, the firm's name was changed to Merrill, Lynch & Co. In late 1920s, Merrill predicted the stock market crash at the New York Stock Exchange (NYSE), which occurred in 1929. In 1928, much before the crash, Merrill had sensed that the financial markets were very unstable and that the stock market was becoming increasingly speculative.

In the 1950s, the company expanded its operations into other geographical locations, by setting up offices in Great Britain, France, West Germany, the Netherlands, Switzerland, Belgium and Canada. It opened an office in Tokyo, Japan in the mid-1960s and in Hong Kong in 1982. In 1971, ML became a public limited company, with its shares traded on the stock exchange. In 1976, Merrill Lynch Asset Management (MLAM) was created, which concentrated on the mutual funds business. The company strengthened its investment banking division in 1978 with the acquisition of White, Weld & Co. Inc, a leading investment banking firm.

In the late 1980s, ML faced a situation similar to the stock market crash in 1929. On October 19, 1987, a day, which came to be known as black Monday, the Dow Jones Industrial Average (DJIA) at Wall Street crashed by 508 points (22%), causing havoc among investors. ....

        Case Code   ITSY038
   Case Length    15 Pages
              Period    1997 - 2004
 Organization     Merrill Lynch
        Pub Date     2004
Teaching Note    Not Available
     Countries    USA
      Industry    Financial Services

Issues

• Study the systems architecture of a typical IT project and examine the objectives for its implementation in a financial services company.

Merrill Lynch, IT Projects Implementation, IT in Financial Services, Trusted Global Advisor, Wealth Management Workstation, IT Systems Architecture, IT Outsourcing.

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.