Evolving in the New Operational Frontier

Every battle is won before it’s fought,Sun Tzu wrote in “The Art of War.” As the legendary Chinese military strategist observed more than 2,500 years ago, understanding the terrain in which a battle will be waged is critical for those who want to prevail

That’s as true for 21st century investment managers as it has been for armies throughout history. Asset management remains a growth business with strong margins, but demographic, social, economic and technological forces are reshaping the business landscape, transforming the industry into a much more complex and competitive environment than the previous generation of money managers could have imagined.

Other forecasts are even gloomier, warning that a large percentage of existing money managers will likely disappear within the next 10 to 15 years. Regardless of how much stock one places in these scenarios, it seems clear that “adapt or die” is quickly becoming an industry mantra.To gain advantage in a hypercompetitive world, asset managers must not only evolve their operations, but also discover new ways to leverage them. This article highlights hwo having the right operating platform is critical to success.