MANAGEMENT INFORMATION SYSTEMS FINAL PRESENTATION

April 29th, 2009

• London Stock Exchange – 1968

• New York Stock Exchange – 1972

• The Origins of Wall Street

• Technology Drives Volume and Efficiency

History

Wall Street: The Evolution

Barriers to Entry: Accessibility and Cost

Fixed Commission Structure Eliminated - 1975 Discount Broker Emerges

Charles Schwab

Online Brokerage Firms Emerge – 1983 E*Trade – 1983 TD Ameritrade Scottrade Fidelity

Accessibility

Communication Telephones Desktop/Laptop Computers Smart Phones

Commission Decreases

Financial Information

Online Discount Broker Analyst Reports and Opinions Industry/Sector Trends Charts and Technical Analysis

Yahoo Finance

The Future: Technology as a Driver

Social Networking

Smart Phones

Elimination of the Broker

T.D Ameritrade

Headquartered in Omaha, Nebraska CEO is Fred Tomczyk 3,947 employees International discount on-line brokerage Launched Accutrade for Windows in 1996 IPO in 1997 Favored by more professional traders Allows you to trade stocks, bonds, ETF’s, mutual

funds, futures, forex, world markets, options 6 million US based customers

T.D Ameritrade Cont’d

E-Trade

Financial Services company Has on-line brokerage and a bank subsidiary Very interactive and easy to use More expensive than most other platforms Favored by amateur investors Headquartered In Manhattan, New York 3,249 employees CEO is Donald Layton Allows you to trade stocks, bonds, ETF’s, mutual

funds, futures, forex, world markets, options

E-Trade Cont’d

Scottrade

Has fixed commission structure ($7 trades) Low cost compared to most other on-line brokers Has 403 local branches Founder & CEO is Rodger Riney 2,500 employees Headquartered in St. Louis, Missouri Allows you to trade stocks, bonds, ETF’s, mutual

funds, futures, forex, world markets, options Ranked #1 by J.D Power for investor satisfaction

Scottrade Cont’d

MIS Applied Software

Allows for remote trading Intensive on-line security

SSL (secured sockets layer) Firewall (blocks intruders)

Requires immense referential databases Requires not “off the shelf” proprietary

software Needs to be interactive and fast

NASDAQ level II quotes Real time news updates

MIS Applied Hardware

Massive hard drives with redundancy RAID hot swap drives

Fast servers using Quad core processing Scalability

Fiber optic internet connection Fast and ultra-reliable co-location

centers Firewalls for security PC’s, large array of monitors, multiple I/O

devices

MIS Applied Programming

Hardest component of MIS to manage Requires team’s of programmers and project

managers Techniques

Shared Sessions (sharing apps across multiple servers) SAN (storage area network, networked data)

Languages JAVA (SUN Microsystems) PHP (dynamic) C++ (general purpose programming) Ruby on Rails (open source web application framework)

History of Social Networking Sites

Social Networking is abbreviated SNS

What is definition? Certain features already existed

ICQ, AIM, Classmate.com First to combine was Sixdegrees.com

(1997)

Major Players

• Facebook• MySpace• Twitter• LinkedIn• Flickr• Hi5

Commonalities

Photo-sharing Personal profile Relationship initiation Ability to view other profiles (varying

degrees) Some form of messaging

Why so popular?

People feel connected Allows sharing of information Groups people around similar interests Voyeuristic (good or bad?)

What’s missing?

Another dimension – Introduce business functions

Perform business transactions within site Not just SNS “about” business SNS “for” business

Security Concern: Social Networking Identity Theft

Cyber-assaults

Phishing E-mail

Worn threat

Security concern : Online trading

Hacker attacks investor’s account

Cyber criminal

Scottrade on Facebook

New Trading Platform

Searching Engine

Blog post

Video, photo sharing

Investors interaction

In real time transaction

Social- Investment Website

Social- Investment Website

Friendly trading platform

Integrate Social networking and stock trading Feature

Reliable trading environment