Editor's letter

 

The threat of being swept away by the current economic tide has hit us all. But these economic conditions are as much one of opportunity as they are of catastrophe. This is the theme that recurs over and over again among industry leaders. Richard Thwaite, CTO of UBS Global Asset Management, reiterates this thought as he speaks to IMT about his long, but interesting, journey from the automotive industry to finance. His comparisons between the two industries, car and finance, make for interesting reading in our ‘in conversation with’ feature (page 34). His work with the Forum on Disability reinforces this theme of opportunity in the midst of adversity.

Our thought leader by Jim Marazakis (page 8) also addresses the changes these dramatics conditions will bring about, and what asset management will have to do to regain client trust. For everyone is agreed that climate change is not restricted to global warming in the natural world. Another landscape is going to be changing: the way we do business — and IT is very much a part of this. David A Sullivan (page 42) demonstrates how we should be reviewing our internal architecture, particularly in the area of derivatives. Our cover story by Peter Laurens (page 12) dissects the current crisis and offers his views on the whys, wherefores and the how this real-life liquidity trap could impact the world of financial technology.

One perenially controversial topic is that of outsourcing, and our pro:con section this issue pulls no punches. We have a definite ‘for’ by David Weiss (page 13) while Peter Ligezinski (page 25) concedes there are areas where outsourcing may work, but remains convinced when it comes to our applications, by outsourcing their development we lose the precious resource of our own creative individuality and therefore the source of our competitive edge. Whether for or against, both men offer sound advice and checklists for those who do decide outsourcing fills their needs to the best advantage.
Finally, we look at one of the very basics of the technology we know today: the binary system. In ‘Way back when’ (page 46) we look at how the man called ‘the last universal genius’, German Renaissance man Gottfried Leibniz refined his thoughts on a universal number system by looking at the Chinese system of divination, I Ching. Here he found inspiration in the polarity of contradicting dualities.

These days there are dramatic polarities we have to deal with: the crisis of financial systems in meltdown and the opportunity they provide to re-think everything from ethics to the practical application of IT. The impact of destruction is not devastation but much needed change.

Deborah Valentine
Managing editor




Cover Story
Caught in a ‘liquidity trap’ — The all-encompassing ‘fog of denial’ is now lifting, so it is time to contemplate what this turn in the hedge fund tide means for IT. By Peter Laurens


thought leader:
Credit crisis: the impact on asset managers — This explosive situation in the financial markets will have an impact that may change the industry forever as we work to regain client trust By Jim Mazarakis


Pro:Con
Outsourcing — Build or buy? Two distinguished industry experts argue the pros and cons in outsourcing services and while they agree on certain points of advice, come to quite different conclusions


Pro:
To build or to buy: to answer the question... — Pondering a question of Shakespearean magnitude, whether to suffer the slings and arrows of internal development By David B Wiess


Con:
Fly in the face of current trends — Pondering the question of build or buy, the advice is to fly in the face of the current trend and keep your competitive advantage By Peter Ligezinski


In conversation with:
Richard Thwaite — The CTO of UBS Global Asset Management talks about the long road from the automotive industry to global asset management and his views on value-add IT Interview by Deborah Valentine


Derivatives:
Reviewing internal architecture — OTC derivatives have offered new languages, new software and inspired a shopping list of development strategies for those giving them a home By Daniel A Sullivan


Last word:
Way back when: the binary system — Research into the the beginnings of the binary system led to the ‘last universal genius’, Voltaire’s satire Candide and an ancient system of divination
By Deborah Valentine