SCHOOL OF BUSINESS MANAGEMENT, MUMBAI

Programme : MBA 1st Year, Trim 3

Course Name: Enterprise Architecture & IS Strategy

Submitted To:

Prof. Vikas Gadre

Submitted By:

Name Roll Number

Krishnamoorthy H002

Darshan Banda H012

Abhishek Goyal H021

Adwaith Kerala Varma H031

Kalpita Nimje H039

Harshvardhan Shah H049

Prarthna Tandon H059

Company

We have decided to select Morgan Stanley as the company for this project.

Scope

Morgan Stanley is a multinational company providing investment banking and financial services
globally. It was founded by Henry Sturgis Morgan and Harold Stanley, in response to the Glass-
Steagall Act which needed commercial and investment banks to split up.

The company majorly has its business in three areas:

1. Institutional Securities - This business segment services institutions to raise capital and
provides advice for real estate, project finance, mergers and acquisitions, corporate
lending and restructurings.
2. Wealth Management – This business segment provides financial and wealth planning
services to its High Net Worth Individuals clients and also provides investment advice as
well as stock brokerage services.
3. Investment Management – This business segment provides fixed income, real estate
investment, asset management products and services in equity, alternative investments,
and private equity to institutional and retail clients. The services are provided in three
ways, namely, through intermediaries, through third-party retail distribution channels or
through Morgan Stanley's institutional distribution channel.

Objectives

 Putting the clients first – Morgan Stanley firmly believes in the philosophy that the
client’s needs and requirements must be fulfilled by giving it top most priority.
 Doing the right thing – Morgan Stanley’s vision is to mobilize capital that will deliver
sustainable growth and long-term value. In order to fulfill this vision the company
ensures that all business processes are conducted in the right manner.
  Leading with exceptional ideas – Morgan Stanley strives to achieve excellence in all its
areas of business. This is achieved by delivering results in the present and setting
strategic goals for the future.
 Giving back – Morgan Stanley holds a mission that is dedicated to local and global
communities since 1935. The firm was founded with commitment to community as its
guiding principle and has been making a difference ever since.

System Context Diagram

Clients Management

 Institutional securities  Corporate Governance

 Wealth management  Integrity and core values
 Investment management
 Client, employees and
stakeholder management

Morgan Stanley

 Investment  Underwriting
management portfolio  Research and valuation
 Brokerage  Sales and trading

Third-Parties Employees
Foundation Diagram

Application Business
Data Layer
Application Layer Layer Layer

Underwriting
Institutional
Securities
Business Layer Prime
brokerage
Customer Wealth Investment
Management Portfolio
Data and
Infrastructure Investment Asset
Layer Management Management
Operating Model

There are 4 types of operating models namely,

 Coordination - High business process integration, low standardization

 Unification - High business process integration, high standardization
 Diversification - Low business process integration, low standardization
 Replication - Low business process integration, high standardization

Coordination allows companies to integrate untold numbers of products or processes without

forcing standardization. Therefore, we have selected the Coordination Operating Model for our
company, Morgan Stanley.

 Morgan Stanley offers a wide range of services to its clients that require extensive
coordination and collaboration among its internal teams
  Morgan Stanley has different departments that provide non-standardized and
customized services for each of its clients
 Morgan Stanley uses an integrated technological intranet for all its internal business
processes

Enterprise Architecture

Banking
Sales and M&A
Trading

Investment Clients
Banking
Digital
Employees
transformation
using New Stack Managers
Software
Agents

Asset
Management
Research Investments
Different components of Enterprise Architecture diagram are:

Element Description Relationships Owner

This component deals In order to provide

with providing capital services to the
raising, underwriting customer, the
of debt, equity and department must
Investment Banking securities. interlink with the
Institutional securities
research and
department
investment
departments to
understand the
various nitty gritties of
an investment.

This is a component This component is

that is utilized for the majorly linked with
buying and selling of the research
equity. Foreign component to Institutional securities
Sales and Trading
exchange and fixed understand how the department
income securities are global economy and
also a major part of markets are behaving.
the business process.

This service is The clients and their

provided to the High finances can
Net Worth Individuals efficiently be Wealth management
Banking
to manage their managed by an department
finances. integrated business
process.

One of the most This component will

important services of be integrated with
Morgan Stanley is to Investment Banking
provide advisory for and Research.
mergers and
acquisitions. The Institutional securities
M&A
investment and department
procedure for the
same is completely
undertaken by the
bank handling the
M&A.
 Various institutions This component will
employ the financial be linked to
services of Morgan Investments and
Investment
Stanley to manage Research.
Asset Management management
their assets and
department
develop an
investment portfolio
for them.

The research This will be linked to

department of M&A, Investments,
Morgan Stanley Asset Management
performs analysis of
the global economy,
Institutional securities
Research stock markets,
department
company valuations to
help the other
departments
successfully provide
services to the clients

The investment
banking component is
Morgan Stanley has an
linked to this
investment
component
department that Institutional securities
Investment
advises its clients on department
how, when, why to
invest.
Different components of Enterprise Architecture diagram and how they work together to
create value are:

Items Involved Value Created Why not a single Owners

Element ?
1) Investment All 3 departments Each process uses the
Management complement each information from the
Institutional securities
other to develop the other process to
2) M&A department
best financial advisory enhance their service
3) Research service for the clients for the client

1) Sales and Trading Better return on The research about

investments in fixed the stock market
2) Research Institutional securities
income securities, influences the
department
foreign exchange and decisions of the sales
equity and trading
department

Different components of Enterprise Architecture diagram and how the EA can be altered to
add value are:

Item Opportunity Next Steps Owner

It is an Artificial The platform can be
Intelligence platform integrated to develop
that will enhance M&A advisory using AI
visibility in search, for similar investment Customer Relationship
provide answers to projects based on the Management and IT
YEXT financial advisors and previous mergers or Team
facilitate integration acquisitions of the
with Customer company given a
Relationship particular set of
Management market conditions and
constraints
 Zachmann Framework

WHAT HOW WHERE WHO WHEN WHY

Financial Morgan Annual Satisfy client

Client Morgan Stanley
SCOPE Services requirements
Stanley head
employees
General needs and
office Meeting earn revenue

Morgan
BUSINESS Three main Coordination Stanley Business
operating Each business Quarterly
business regional process
MODEL segments model offices
segment head process review
integration

Business Efficiency of
processes in Business Employees Monthly business
SYSTEM each process
At each
and third process process and
department
MODEL business models level
party review doing the right
segment distributors thing
Key Takeaways

 Software has risen to a board-level discussion as business leaders in every sector

recognize the tie between robust digital offerings and competitiveness
 Businesses now rely on a staggering number of critical applications to support their
operations, so the need for rapid, flexible software development is directly connected to
business success
 There has been a rise of “New Stack” software development technology, including Agile
and DevOps which enables higher developer productivity and a faster pace of product
innovation
 Morgan Stanley has deployed a Digital Vault for storage of documents safely.
 Yext is an AI powered platform that is used by Morgan Stanley for its financial advisors.
It also has an integrated chatbot to accurately answer financial advisors.

Recommendations

 As per Morgan Stanley’s research team, the investment in the New Stack Software
Development is going to increase to 50 billion dollars. So we recommend that the
company completely shifts to New Stack software for its business process integration
and deploy effective data collection methods.
 The level of efficiency of digitalization in the economy is only 27% and we suggest that
the company invest more in transformation to further enhance business processes and
successfully fulfill client needs.
Exhibit 1

Income Statement
Balance Sheet
Cashflow Statement
Exhibit 2

All exhibits have been taken from the Morgan Stanley research archives.

https://www.morganstanley.com/ideas/new-software-stack-2019

https://www.morganstanley.com/ideas/digital-revolution-big-data-iot-productivity

Morgan Stanley’s Digitalization Index

New Stack Spend vs Old Stack Spend

Key benefits of adopting Industrial IOT