{ "docId": "019dd923-622b-71dc-a6db-bdca37d75b59", "docSlug": "5fc8a35c21e4", "documentTitle": "The Bank of New York Mellon (BK)", "authorId": "07_Marcato", "authorName": "Marcato Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2015-03-01 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 35, "pageCount": 153, "prevPage": 34, "nextPage": 36, "slideType": "problem_statement", "function": "diagnose_problem", "density": "overcrowded", "nDataPoints": 0, "notes": "Uses a simple equation format to visualize the problem of fragmentation.", "elementsJson": [ "headline_text", "bullet_list", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622b-71dc-a6db-bdca37d75b59/35", "deckHref": "/decks/019dd923-622b-71dc-a6db-bdca37d75b59", "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-bdca37d75b59.json", "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-bdca37d75b59#slide-35", "components": [ { "bbox": null, "kind": "callout", "text": "Technology Fragmentation Is A Key Source of Excess Costs", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-0933-75bb-9bfb-4026bf551da4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.7, "x": 0.15, "y": 0.2 }, "kind": "diagram", "text": "Two Custody Platforms + Five Accounting Platforms = Major Redundancies: Back office headcount, Systems maintenance, Application development, Reporting costs", "attrs": null, "subkind": "other", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "fa018efd-e922-4b4b-a797-d5952e3ad111", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.84, "x": 0.08, "y": 0.55 }, "kind": "quote", "text": "And I think I've mentioned about the challenges with the merger & acquisitions is we have so many different fragmented technology in various businesses and various products...I think the nature of the acquisitions have resulted in lots of fragmentation of technology", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "496f8802-c2d5-4c2a-b0f4-31c369fcdbf4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.84, "x": 0.08, "y": 0.71 }, "kind": "quote", "text": "The traditional approach for any of these acquisitions is steeped in the thesis that you'll see more synergies the more simplified your back end, and the more common systems you share, especially those that benefit from scale.", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7308738f-d797-49e6-963d-bbabb3c4a7b6", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.84, "x": 0.08, "y": 0.36 }, "kind": "quote", "text": "One of the things that is really setting us apart [from our competitors] post-transformation is the fact that we do have one global platform... If you have six accounting platforms and you were doing a regulatory change six times, that's 1/6 the IT efficiency", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "adce3b34-c504-4421-8631-7a164d7c1d92", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"One of the things that is really setting us apart [from our competitors] post-transformation is the fact that we do have one global platform...When we spend dollars to build the future functionality, we do it once. And then we leverage it across the world. If you have six accounting platforms and you were doing a regulatory change six times, that's 1/6 the IT efficiency\" — Gunjan Kedia, State Street EVP, 2/25/15; \"And I think I've mentioned about the challenges with the merger & acquisitions is we have so many different fragmented technology in various businesses and various products...I think the nature of the acquisitions have resulted in lots of fragmentation of technology\" — Suresh Kumar, BNY Mellon CTO, 3/13/13; \"The traditional approach for any of these acquisitions is steeped in the thesis that you'll see more synergies the more simplified your back end, and the more common systems you share, especially those that benefit from scale. That's been time-tested in the trust banking business\" — Tim Keaney, Former BNY Mellon CEO Investment Services, 2010", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-0933-75bb-9bfb-44ca2b9ea548", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.26, "y": 0.86 }, "kind": "source-note", "text": "Source: Company filings, Company transcript, HBS Case Study (1) Harvard Business School Case Study: \"Merger of Equals: The Integration of Mellon Financial and The Bank of New York\"", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "caa2af1e-d1cb-4ddc-85a6-a005ce1b9913", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.65, "x": 0.06, "y": 0.1 }, "kind": "title", "text": "Technology Fragmentation Is A Key Source of Excess Costs", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f5699254-678e-4c14-b602-62e4fc879a33", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }