This post is the third about our risk management engines and FACTORY with respect to foundations, constructions, development processes and positioning. The Inside of the Outside as the Outside ... is about the flexible construction - Sell Products to Customers Who Care about the principle positioning and our understanding of innovation.
That got me to thinking about our own processes and how they influence our offerings.
Our product names are suggesting industrial thinking, but we are not industrialists.
Simplified, industrialists make profits by making their working systems efficient - this is not too easy when striving for, say, optimal positions related to system utilization, time in process and work in process. All under the assumption that the products are fit for purpose and meet the quality requirements.
The processes need to be flexible enough to be adapted to new requirements - but this has hard limitations.
Industrialists encapsulate risk in inline quality assurance systems.
Pointedly speaking, industrialists maximise productivity and the amount of profit (related to it). Consequently, industrialists do not particularly like market dynamic, competition, creativity, ....
Our customers are risk takers.
Financial markets are changing constantly and drive technology accordingly. Just as an example: pricing an instrument taking into account the market dynamic and the sensitivity of instrument exposures to credit spreads (derived from counter party risk, ..) and other risk induced adjustments does change a whole work flow.
So, we need to be risk takers too. We prepare our foundations and services to meet future requirements, but even more important our development processes are rationalized but not automated.
When new requirements change everything market participants knew about valuation, we need to tie things together differently or even reinvent the foundations and the implementation techniques.
Our customers are not industrialists - consequently, we are not industrialists. We are here to innovate.
