Operational Review

During 2014, StatPro has continued its transformation from a traditional software provider into a pure cloud-based service provider.

The theme of the year is Value and Quality; this has led to further integration between business and production divisions, with the design of an integrated operational cycle.

We start with the client; their business needs, their precise definition and the formulation of how StatPro’s solution can satisfy those needs. Armed with this information and assisted by qualified pre-sales teams, the sales team can sign profitable new business. That is not, of course, the end of the process; clients must use the product and embed it in their workflows to satisfy their requirements. The key to achieving this is a successful implementation, which is viewed as an essential stepping stone for future sales and enhanced reputation. In the integrated operational cycle, the sales process itself pre-determines the success of an implementation.

The process described above generates feedback, further refining the evolving business needs; these are processed by product management teams and eventually transformed into new product developments.

Service-oriented cloud-based software production allows the effective creation of an ‘integrated cycle’, increasing the responsiveness of StatPro, client satisfaction and, ultimately, productivity. At StatPro, we are at an intermediate stage in the implementation of this process, and we still have some work to do to migrate some clients to the new products, but this is the philosophy that is driving the transformation of our operations. 2014 has seen a decisive acceleration in this direction.

 

Dario Cintioli

Total Group revenue grew by 6% on a constant currency basis. In EMEAA revenues were up 8% and up 2% in North America at constant currency. In EMEAA revenues grew by 2% at actual rates while costs increased by only 1% resulting in an overall increase in profit in the region. In North America revenues were down by 7% at actual rates, costs fell by 2% leading to an overall reduction in profits year on year.

Dario Cintioli

 

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Business needs and sales themes

StatPro Revolution is maturing quickly, offering solutions to multiple business needs. For example, the solution can assist you in complying with key aspects of miscellaneous ‘buy-side’ regulations (AIFMD, UCITS, FORM PF), fulfill the reporting needs of a middle office operation, distribute analytics information and use the system to achieve a better portfolio. In the coming months, the performance module within StatPro Revolution will be available, offering additional angles of attack in the traditional performance space.

During the second half of 2014, we reorganised our sales processes to reflect our clients’ needs that are best satisfied by our products, putting those at the centre of our sales and implementation strategy.

Marketing continues to support the sales and client services teams globally as we recognise joint and varied client drivers globally and locally.

The key role of expertise

In portfolio analytics, expertise is often the key difference between success and failure. StatPro has strengthened its traditional expertise in performance, risk and compliance with the recruitment of key personnel in the three main hubs (London, Boston and Hong Kong). Linking to the sales themes, presales experts work closely with sales teams to target the clients’ needs.

Organising the sales process around pre-defined business needs also helps clients clarify how to achieve their aims. A good pre-sales process is a natural precursor to a successful implementation, as it pre-defines the key elements required.

Cloud makes a difference

The cycle that is described is not new; however, the service-oriented architecture of a cloud product brings two key elements:

• Implementation rules can be more easily standardised, transforming customisation into configuration, deploying scale in embedding the product inside clients’ workflow; and
• The capacity of the product to adapt to feedback transforms a cycle that was previously measured in years to months, if not weeks, making it much more productive.

Cloud service-oriented architecture makes it possible to achieve a continuous and integrated cycle of evolution, centered on the business needs. This is our operational vision and what we are implementing at StatPro.

New minimum tariff part of the vision

In June 2014, we implemented a new policy whereby clients must sign a minimum financial commitment. We set a minimum annual tariff for StatPro Revolution that is in line with the operational vision described. The minimum tariff eliminates smaller commitments from our sales radar, sharpening our sales focus on bigger, more profitable opportunities with more standardised business needs. At the same time, we have simplified the implementation process, asking a base set of requirements that may be a challenge for smaller clients and increased the productivity of our professional consultants, increasing the return on our expertise, a scarce resource by definition. The first seven months of this policy show an encouraging increase of productivity.

2015

During the course of 2015, we plan to accelerate in the direction described above, whilst continuing to cultivate the basic ingredients of our ‘integrated’ operational process:

• Product aligned with clients’ needs;
• Detailed expertise;
• Sales capacity, integrated with product skills; and
• Aligned supporting departments.

Dario Cintioli
Managing Director
12 March 2015