Enterprise Technology for Private Equity

224 Pages·2013·5.26 MB·English

by  Ankur Agarwal

ENTERPRISE TECHNOLOGY
FOR PRIVATE EQUITY
How to plan, design and execute a business
transformation programme using strategic IT solutions
Ankur Agarwal
Published in August 2013 by PEI
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© 2013 PEI
ISBN 978-1-908-783-22-6
eISBN 978-1-908-783-45-5
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Contents
Figures and tables
About the author
Introduction
1 Technology in the context of the private equity
business model: A holistic view
Introduction
How the private equity business model works
Investment strategy as a determinant of IT needs
IT as an enabler of core business activities/functions
Conclusion
2 The critical role of technology in enhancing
information exchange
Introduction
The market players
Interdependency of key players
Who does what in the firm?
Conclusion
3 How business challenges determine IT needs
Introduction
Defining systems and technology terminology
How business challenges influence IT needs
Identifying technology needs
No single IT solution
Conclusion
4 Enterprise architecture: A practical framework for
change
Introduction
Is change needed?
Where enterprise architecture adds value
Enterprise architecture: Where to begin?
Conclusion
5 Business architecture: Articulating the current
functional structure and identifying new requirements
Introduction
What is business architecture?
How business architecture helps the private equity firm
Business architecture: Key components/models
Putting the business architecture together
Business intelligence and analytics
Conclusion 6 Data architecture: A structured approach to collecting, storing and
retrieving information
Introduction
Defining data architecture
Data architecture: How it helps the business
Benefits of data architecture
Data architecture: Key components/models
Creating a business function-data entity matrix
Conclusion
7 Applications architecture: Defining the structure and
interaction of systems and a methodology for product
evaluation
Introduction
Defining application architecture
How application architecture helps transformation
Application architecture: Key components
How to evaluate an IT product
Conclusion
8 Technology architecture: Standardising the underlying
IT platform
Introduction
Defining technology architecture: Key terminology
Value of technology architecture to private equity firms
Technology architecture: Key components
Business continuity planning (BCP)
Conclusion
9 Target architecture: Planning and managing the
transition to new systems and implementation
Introduction
What is target architecture?
Consolidating the future state of the business
Transition architectures: Steps to transformation
Business prioritisation/roadmap and migration planning
Implementing the transformation programme
Conclusion
10 Current technology trends in private equity
Introduction
Enterprise search technology
Business intelligence and analytics
Virtual data rooms
Security
Mobiles and tablets
Cloud computing
Conclusion
APPENDICES
1 Q&A: Evaluating and implementing a new IT system
Monish Singhal, director, program management at Sapient shares his expert opinion
on the best approach to implementing a new IT system in a private equity firm, how to
evaluate products and considers the next big IT trends in the industry
2 The virtues of cloud computing in private equity and
portfolio companies
By Jim Kouris
Introduction
Evaluating IT needs
Why cloud now?
Security
Cloud services in portfolio companies
Conclusion
3 Case study: Blackstone’s BXAccess – The next
generation of limited partner reporting
By Matthew Pedley, The Blackstone Group
Introduction
Laying the foundation
New world, new expectations
Functionality and benefits
User rollout
Future functionality
Conclusion
Glossary of terms
About PEI
Figures and tables
Figures
Figure 1.1: Typical private equity business model showing key
stakeholder groups
Figure 1.2: Private equity investment scenarios
Figure 1.3: Primary routes to investing in private equity
Figure 1.4: Core operational activities of a private equity firm
Figure 2.1: Inter-relationship and association of private equity market
players
Figure 2.2: Association of the functional business groups in private
equity firms
Figure 3.1: Interaction between investors, fund manager and portfolio
companies
Figure 4.1: Use of technology in private equity: A comparison with
other areas of financial services
Figure 4.2: The building blocks of enterprise architecture
Figure 4.3: An enterprise architecture roadmap
Figure 4.4: A sample stakeholder diagram for a private equity firm
Figure 4.5: Identifying the people to involve in enterprise architecture:
A stakeholder power-versus-interest matrix
Figure 4.6: Required system features to meet stakeholder objective –
Example 1
Figure 4.7: Required system features to meet stakeholder objective –
Example 2
Figure 5.1: Where business architecture fits into the wider enterprise
transformation programme
Figure 5.2: Sample organisation structure model
Figure 5.3: Sample business domain model: Establishing where
functions/teams sit geographically
Figure 5.4: Private equity fund lifecycle
Figure 5.5: Sample business context diagram (BCD): Identifying
essential functions to support phases in the fund lifecycle
Figure 5.6: Sample business process flow chart for the management
fee accounting business function
Figure 5.7: Objective, feature and requirement classification – Example
1
Figure 5.8: Objective, feature and requirement classification – Example
2
Figure 6.1: Sample data entity-relationship diagram
Figure 7.1: Sample target application architecture for a private equity
firm
Figure 8.1: Sample environment and locations diagram showing where
technology is hosted and used in the business
Figure 8.2: Typical business continuity/disaster recovery planning
process
Figure 9.1: Sample transition architecture
Figure 9.2: Sample transition architecture from an applications
perspective Figure A2.1: Evolution of cloud computing
technology
Figure A3.1: Basic PCRS data flows
Figure A3.2: The Home Section – aggregated private equity view
Figure A3.3: The Funds tab – detailed fund-level view
Tables
Table 3.1: Software solutions providers to the private equity industry
Table 4.1: Sample map showing stakeholder involvement in the
enterprise architecture
Table 4.2: Common challenges/conflicts encountered during enterprise
architecture and resolution methods
Table 4.3: Business principles/guidelines for the enterprise architecture
phase
Table 5.1: Suggested methods for ensuring effective communication
between key stakeholders in the business architecture
phase
Table 5.2: Sample business functions catalogue: Prioritising core
functions and listing issues with existing applications
Table 5.3: Sample business functions catalogue: Prioritising support
functions and listing issues with existing applications
Table 5.4: Sample systems requirement matrix template
Table 5.5: Sample traceability matrix template
Table 6.1: Principles/guidelines for data and information management
Table 6.2: Sample data security matrix for a private equity firm
Table 6.3: Sample business function-data entity matrix for private
equity
Table 7.1: Principles/guidelines for adopting IT systems and
applications
Table 7.2: Sample business function-data entity matrix for private
equity with components identified
Table 7.3: Sample business function-data entity matrix for private
equity: Application components named
Table 7.4: Sample business functions catalogue for a private equity
firm: Target applications identified