In this article, we aim to explore what puts SimCorp ahead of the rest and what has been the key to their current success.
Firstly, in terms of system, SimCorp Dimension is very flexible. You can tailor a lot of custom processes to match the specific needs of many businesses. The export and import functions are able to accommodate a large range of requirements. Increased flexibility affects cost however, so SimCorp has needed to shift its focus to address this whilst still maintaining its exceptional standards. This does reduce pliability to a degree but importantly reduces implementation cost and time. It is clear that this shift has been welcomed by new signing organizations.
Another positive is the integrated solutions on offer. There is no need for a large tangled mess of solutions; instead, you have one installation with one database and one consistent view for all users across the organization. Whilst it could be argued that this may contribute to vendor risk, the large number of partnerships and open APIs to ecosystem innovation offers exceptional flexibility and the superior usability and accessibility of the system cannot be disputed. The foundation for this belief appeared in the early 2010s with the rising market interest in Investment Books of Record, or IBOR. This quickly morphed into ABORs and TBORs for accounting and trading respectively and naturally, every vendor subsequently claims to have the best. Although you can solve a lot with integration, it is clear that SimCorp’s IBOR is the only true integrated package in the market, and it is starting to pay off. SimCorp’s IBOR is truly foundational and allows users different views of the chosen platform depending on departmental needs.
Dimensional Community asked Oliver Johnson, MD SimCorp Asia Pacific, for his thoughts on SimCorp's recent successes.
“Our mission is to build great technology for our clients. Each year, we invest 20% of our revenue into R&D to ensure SimCorp Dimension remains at the forefront of technology and meets our clients’ needs in a constantly changing marketplace.”
SimCorp's cloud offering is another significant feature, allowing them to compete in a market where more and more are moving to various cloud-based solutions. This offering has definitely brought more clients to consider SimCorp than in previous years, especially with recent integration methods within Microsoft Azure. It will be interesting to see the practical results over time as ‘Everything as a Service’ and the promising service offerings, such as DataCare, progress. Being publicly cloud-based will enable them to grow exponentially. There is no doubt that if this momentum continues, they will not only be competitive but distinctly set apart from some of the big players. Why outsource your business to a large custodian if you can do it within SimCorp while keeping control, access, and visibility of your data? Time will tell how SimCorp will compete with these new parameters and how well they can learn from any mistakes. So far, user comments suggest that it has been very well received.
A further crucial element in SimCorp’s business success of late has been the handling of the Asian market. Utilising the skills of key personnel in their Asia unit, they assembled a team of well-versed individuals with an average tenure of over a decade. This strong, experienced team was pivotal in procuring new contacts for SimCorp.
There are naturally broad cultural differences between western and eastern regions, requiring wholly different approaches to solutions. In Asia, the remote work of key SimCorp staff from other market units (in Europe and North America) meant the best knowledge and expertise were shared across the globe. SimCorp boasts seasoned professionals who are key in growing their professional service reputation. Despite the quality of their staff, SimCorp has been able to lower professional service costs by incorporating a mix of onsite and offsite staff. This meant onsite teams could be leaner with fewer consultants, but supported by specialists from other units.
Timing has also been a contributing factor to SimCorp’s recent success. In the finance world, software has a lifespan, mainly due to companies' business demands either outgrowing their current solutions, or the business needs and demands increase or change and require a completely new system. Due to the financial costs and the time and effort to implement new software, the rule of thumb is that clients look to review or replace their software every 4 - 6 years for a front office solution and every 10 years for back office. SimCorp consistently reinvests in R&D which has allowed their solutions to stay relevant and ahead in their field.
Clearly from both a process and business standpoint, SimCorp is a formidable choice. If you’re searching for reliability and swift tailor-made solutions, then look no further. If you’re asking for ingenuity and support no matter the situation, SimCorp is the answer.