Columbia citi-conference-2010

Ashu [email protected]

http://www.linkedin.com/in/ashubhatnagar© 2010 GoodMorningResearch.com

Panel: Emerging Media Value Chains

And

Their Impact On Internal Organizational Structures

Ashu BhatnagarCEO, Good Morning Research

A Wall Street Finance 2.0 Company

Transforming Media Professions: Media Management Practice in the Age of DisruptionFriday, June 11, 2010Columbia University



Off-shore Internal Organizations

Value Add

Info Sources Media Cos. Info Users

Financial Media Company Transformations

New Technologyand

Regulators Mandate

BEFOREAFTER



StrategicView

SEC Filings (10-K/10Q) Earnings / Call Reports

Annual Reports

Filers/Companies

Data Providers/Sell-side Analysts

Valuation/Forecast Models

Stock Recommendations

Buy-sideAnalysts

Consensus Estimates

Data Information Analysis Insights

Long Tail of Data OrganizationWorld of Accounting

(GAAP)

50 to 100 common Financial Metrics for

• Income Statement• Balance Sheet• Cash-flow

World of Analysts(Industry Specific Taxonomies)

World of Investors(Folksonomy)

Additional Unlimited, unstructured ‘localized’ synonyms for many Financial Metrics for

• compliance with country-specific regulators• proprietary financial modeling frameworks• lack of any appropriate metrics in GAAP or readily available taxonomies, resulting in –Line 6 Items on 10-K, MDAs, and Footnotes

GoodMorning

ResearchLongTail View

Wiki-Tagged

Data

Organization

Process

Additional 2,000 + unique Financial Metrics for

• Financial Modeling• Valuation• Forecasts,• Trading Strategies

Trading Strategies

Data Aggregators

Ratings

Screeners

Comps Back - Test

Portfolio Construction

Risk Management

Investor Presentations

Long Tail of Data



How Big is the Market?$20 Billion+/year

Global Finance Industry 20,280,000 Professional Users*

Finance industry a InvestmentProfessionals b

* Source: CFA Institute 2006 Annual Report - http://www.cfainstitute.org/aboutus/reports/pdf/06annualreport.pdfa) Estimated Data using CFA Institute Modeling process b) b) Serious Investment Professionals and Academics

** Source: Bloomberg - http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/16/8404302/index.htm*** Source: SEC Chairman Christopher Cox – http://www.sec.gov/spotlight/xbrl.htm#roundtable2006**** Booz Allen Hamilton 2006 Report - http://www.boozallen.com/media/file/Saving_Sell-Side_Research.pdf

Research Industry in turmoil: Compliance, Regulators, Globalization, Technology & Soft-dollars (CSA) forcing Change!

$5 BSell-sideResearch

Market ****

FREE (Anonymous) Users Ad supported Business Model

(Yahoo! Finance & Competitors)US Individual Investors =

100,000,000+ ***

Approx. $ 15B Market **

Thomson Reuters.

Bloomberg, Factset, S&P &

others (have 500,000+ subs)

PredominantlySoft-dollars(CSA)Business modelpresently

SEC/XBRLsqueeze

Global Estimate 20,280,000 830,000

United States 5,865,000 203,000

Mainland China 3,840,000 108,000

United Kingdom 1,179,000 89,000

Japan 1,633,000 77,000

Germany 1,275,000 67,000

India 1,424,000 64,000

Canada 706,000 36,000

Switzerland 237,000 10,000

Hong Kong 170,000 8,000

Singapore 110,000 5,200



Analysts Need Automation Help With Research Work-flow

Acquire raw data, build models, develop forecasts,

Manually Tag and upload financial Models to

proprietary databases

Search many databases, co-mingle and massage

different data formats and then develop Comps

and Screens under severe time pressures

Develop and distribute analytics and Alpha insights

to Buy-side clients, Traders and Investment

Bankers under business critical time pressures

Manual

Process

Manual

Process

Manual

Process

Help!“biggest frustration is the turnaround time . . .”Analyst at a top Wall Street firm



Financial Data Supply Chain - Today

GovernmentFinancial

Regulators

SEC,

FDIC,

. . .

EDGAR Filingsby Companies10-K, 10-Q, . . .

FinancialMedia

Companies

Thomson ReutersBloombergS&P/Cap.IQ

News Corp/Dow JonesMcGraw Hill

Factset. . .

Off-shore Internal Organizations

$5 BSell-sideResearch

Market

FREE (Anonymous) Users Ad supported Business Model

(Yahoo! Finance & Competitors)US Individual Investors =

100,000,000+

Approx. $ 15B Market

Thomson Reuters.

Bloomberg, Factset, S&P &

others (have 500,000+ subs)

InstitutionalInvestors

Individual Investors



Financial (XBRL) Data Supply Chain - Tomorrow

GovernmentFinancial

Regulators

SEC,

FDIC,

. . .

FinancialMedia

Companies

Value Add ?

Regulators Mandating XBRLat Source

InstitutionalInvestors

Individual Investors

Web 2.0 Social Media

Web 2.0 / Semantic Web

FREE Digital Content (XML)

TransformationUnderway

?

?

?



Thank You

Columbia citi-conference-2010

Business

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