JP Morgan IT system. The agreement stated that IBM would take over tasks from JP Morgan such as hosting computer centres, running help desks, distributing applications, maintainging data and voice networks as well as hosting trading applications for JP M

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Contents

Content Page Number

Front Cover 1

Content 2

Introduction 3

JP Morgan's needs 4

JP Morgan's past system 5

Outsourcing 6

JP Morgan and IBM 7

JP Morgan and Bank One 8

Disadvantages of an Information system 9

Disadvantages of an Information system 10

Types of information systems 11

JP Morgan's IS system 12

Methodology 13

Value Chain 14

Ethics 15

Conclusion 16

Bibliography 17

JP Morgan Chase Case Study

Introduction

JP Morgan is a financial holding company with $1.2 trillion in assets and $106 billion in stockholders equity. It is the second largest financial services firm in the United States with $56.9 billion in revenue and more than 160,000 employees. The firm operates in more than 50 countries. Its principal banking subsidiaries include JP Morgan Chase Bank National Association, which is a national banking associations with locations in 17 states, and chase Bank USA, National Association which issues credit cards for the firm. JP Morgan Chase also operates a principle non-banking subsidiary. JP Morgan Securities inc, which is an investment banking firm in the United States. Currently JP Morgan Chase competes with banks, brokerage firm, investment banking companies, credit card companies and mutual find companies.

JP Morgan has been helping its clients do business for more than 200 years. To describe our firm and our people we can find no better phrase than that of one of our founders: "at all times the idea of doing only first-class business, and that in a first-class way".

In 2002 JP Morgan made a huge strategic decision and struck a deal with IBM (is a multinational computer technology and consulting corporation headquartered in Armonk, New York, USA), to outsource a large part of its IT infrastructure to them. The reason JP Morgan gave for outsiorucing to these Americna giants were that it would create "significant value" for its clients, shareholders and employees by creating capacity fro "efficient growh" while reducing costs and increasing quailty" (JP Morgan Case Study) from this sentence I conclude that JP Morgan chase made this disicion to increase profits. Although his deal did not only create oppertunities for JP Morgan chase but also for IBM as well giving them the opertunity to demonstrate the power of its new ondemand services on a stage provided by a realtionship with a major coroperation.

Agreement with IBM

The agreement stated that IBM would take over tasks from JP Morgan such as hosting computer centres, running help desks, distributing applications, maintainging data and voice networks as well as hosting trading applications for JP Morgan securities. All of these being very important for JP Morgan's day to day running.

JP Morgan's mission is to be the best financial services company in the world. To achieve this goal, we focus relentlessly on carrying out our business principles, which are fundamental to everything we do. They are to:

Aspire to be the best

* Develop a world-class franchise in every business we operate

* Be client-driven, consistently delivering the best products and services in a cost-effective way

* Innovate, test and learn

* Create powerful brands that carry a commitment of quality and integrity

Execute superbly

* Demand and maintain strong financial discipline, building for good times and bad

* Create and maintain a fortress balance sheet

* Design and maintain the best systems and operations

* Eliminate waste and bureaucracy

* Maintain a strong system of internal governance and controls

* Measure performance through a complete and balanced scorecard

Build a great team and a winning culture

* Operate with the highest standards of integrity

* Train and retain great managers

* Be open and honest with ourselves, our colleagues, our shareholders and our communities

* Get incentives right

* Foster an environment of respect and inclusiveness

* Give back to our communities

Being a first-class firm also means doing "good", not just doing well. JP Morgan has a proud tradition of being a good corporate citizen around the world.

JP Morgan's Needs

Therefore JP Morgan Chase needs to have an excellent system that is secure in place. This means JP Morgan Chase would need a large scale computer and sever system in place this will allow the company to connect and relay information at anytime. Therefore whether you were in marketing to accounts you can access the information. They would also need internal telephones, which allow people in the entire organisation to access each other. Although JP Morgan would need to have IT support to support these systems these would include the Internet and the intranet.

JP Morgan's past system

The Information strategy that resulted from the decision to outsource was based around the on-demand aspect of the relationship between the two companies, which was prompted from what was being called a "virtual pool of computing resources" (JP Morgan Case Study). The resources were supplied by both companies and were made available for when required. The Utility Management Infrastructure (UMI) was set up by IBM to refer to the technology that supported the resources supplied (JP Morgan Case Study).
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JP Morgan in the past has adopted a system where its internal environment is more important. Therefore I feel the system they have adopted in the past is an enterprise system, this system deals with the organisations associates and the building of he company. Evidence of this can be seen in the case study. "The appeal of its products to customers, its ability to meet the objectives and the needs of clients, its reputation and the ability to attract and retain its personnel"

Although by signing the contract with IBM JP Morgan seem to have changed its ...

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