The effect of standards on the enterprise Bill Stangel Fidelity Investments April 26, 2004

Agenda  Why standards are important  Standards within the enterprise  What’s missing

Largest mutual fund company in US #1 provider of workplace retirement savings plans Employs over 29,000 people Assets exceed $1 trillion Who is Fidelity Investments? Fidelity Investments is one of the world’s largest providers of financial services, with custodied assets of $1.9 trillion, including managed assets of $1.0 trillion as of March 31, Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit

Average daily phone calls: 255,000 Average daily trades: 129,000 Envelopes mailed daily: 650,000 “Routine” Business Transactions Online daily commissionable trades: 94% Weekly Web visits: 4.5 Million Average daily phone calls and Average daily trades, Fidelity Facts, December 31,2003; Weekly Web visits, FeB Web Stats, as of March 28, 2004; Online daily commissionable trades, FeB Web Stats, as of March 31, 2004; and Envelopes mailed daily, Fidelity Wide Processing (D. Marx), December 2003.

Key Goals for Fidelity The leading manager for trillions of dollars in new, post-retirement assets The team member of choice for correspondents, registered reps, and investment advisors The pre-eminent provider of benefits services The most trusted provider of lifetime investment solutions

Organizations we belong too  WS-I  Oasis  HRXML  Liberty  FIX, SWIFT  ANX  Etc.

Before we had Messaging Standards  8 protocol hops to get to core data  5 development groups involved in a transaction  Costs in – Problem resolution – New features deployment – Maintenance – Operational complexity

Adoption of Web Services ConsumerProducer XML HTTP

Leveling Technologies Databases TCP/IP HTTP XML Java,.Net, Cobol Application Servers Web Servers XMLSchema SOAP WSDL UDDI Web Services Storage MVS, Unix, Microsoft

Resource Virtualization Time Quality, economies of scale Single Use Community Use Ubiquitous Use TCP/IP Storage Area Networks

Goals on standards  Simplify – We stopped inventing them internally  Integrate – Adoption of more products  Allows us to lead with our customers – Implement features faster

7 Themes  Identity centric applications  Applications tolerant to change  Service Oriented Architectures (SOA)  Enterprise information  Intelligent networks  Virtual computing platform  Security simplification

7 Standards  Liberty, WS-Federation, SAML  Java,.Net, Cobol,  XML-Schema, SOAP, WSDL  FIX, SWIFT, HRXML  UDDI, Messaging, SOAP, IPV6  OGSA, WS-Resource Framework  ISO 17799, WS-Security, 802.1x

What’s needed  Higher level services – Collaboration – Content Management – Portals (JSR 168, WSRP) – Document management  Simpler data standards – Industry specific (FIX, SWIFT, etc.) – Other extreme they are too general – Digital rights management  Fewer competing standards

Conclusion  Keep it simple  Standards are for your customers  Don’t take away the creativity of the developer  Come to consensuses quickly  Bake them into products & open source  Keep it simple Fidelity Distributors Corporation, 82 Devonshire Street, Boston, MA 02109