Goldman and Digital Transformation

Question 1

What is Goldman Sachs?

Answer 1

-A bank
“religion of client service, remaining steadfastly on the long-term”
-Focus on being “long-term greedy”
-emphasized its “fee-based” and “more-recurring” revenue streams

Question 2

After 2009, Why did Goldman Sachs make the change from trading to investment management?

Answer 2

 The Volcker Rule, part of the Dodd-Frank Act, now prohibited proprietary trading. Capital and liquidity requirements were much stricter, and regulation dramatically changed the derivatives market.
 As a condition of receiving financial assistance from the U.S government during the financial crisis, Goldman changed its structure from an investment bank to a bank holding company, which also brought additional regulation and cost.

Question 3

Who is marty chavez and why is he important?

Answer 3

• CIO and then CFO
• Willingness to use technology to simplify internal operations
• Shifted equities trader headcount from 600 to 2 and 100s of comp engineers
• FICC was siloed, shifted to working together

Question 4

Goldman Sachs is opening its platform to clients and open app environments (API) why?

Answer 4

What is the mission of the trading business mission?
― Serve clients, assess value, build scale.
 Focus on the relationship, not the transaction itself

Question 5

What is goldman’s culture+ human cap strategy?

Answer 5

Strategy: “automate yourself” “helping others automate activities, to allow you to do more interesting and more valuable things.”
- Culture of continuous learning. Learn through safe experiments (consultations with clients, regulators) with the right time horizons
sounds fake but ok

Question 6

How+why was marquee platform rolled out?

Answer 6

In 2013, Goldman started offering its clients access to its in-house data, analytics, and risk-management tools through a technology platform named Marquee. This allowed clients to integrate high- value proprietary data and applications into their own systems, but retain the flexibility to make purchases with a competing firm.
One of the applications on the Marquee platform was the Structured Investment Marketplace and Online Network, known as SIMON. . . which predominantly served smaller clients, including independent and regional brokers and private wealth managers, not Goldman Sachs’ typical institutional client. In 2016, Goldman opened SIMON to competitors, which gave clients the option to buy securities direct from Goldman Sachs or from a number of additional issuers, including Wells Fargo, CIBC, and TD Bank Group.
ach application was first designed to meet an internal need, which allowed for an iterative development process and exhaustive testing. Although originally built for internal use, all applications were designed and developed to be self-contained and were therefore easily integrated, both internally and externally.
 This discipline provided Goldman the option to open applications to clients, if and when the opportunity was ripe.
 Goldman could pursued new lines of business and new customer groups

Question 7

According to bain, what are the 4 things to consider when building a digital transformation strategy ?

Answer 7

 It’s about technology, but also people
 Digital strategy = get started, even if you don’t know the end goal
― Today forward, future-back (10 years out, and make progress in the general direction)
 Business model: product, customer experience, economic model, and operational
― What’s the raw need?
 Enablers: technology, digital, people, operating model
― Get a clear vision on how to inject
 Orchestration: moving from an experiment to a transformation
― Pilot: only best people, unlimited funding, not publicly announced, can use external vendor products
― At Scale. . . Much tougher