MANAGEMENT INFORMATION SYSTEMS FINAL PRESENTATION April 29 th, 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  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  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

 Friendly trading platform  Integrate Social networking and stock trading Feature  Reliable trading environment