Jp Morgan Chase Business Model

JP Morgan Chase (JPMC) is critically dependent on state-of-the-art Information Technologies (IT) to support their base business model. Moreover, the successful implementation of cutting edge IT, is mandatory to maintain their lead in the worldwide financial banking sector. As quoted by David Hudson, JPMC global head of markets execution, “We know in our hearts that if, in five years we are doing exactly what it is we are doing today, then we will not be the top franchise” (Ye, He & John, 2017).
JPMC made a bold strategic move in 2004, when they cancelled the remainder of a seven-year, $5 billion IT contract with IBM, and back sourced their IT resources. The cancellation cost the company millions of dollars. The decision was augmented by the

And instead of needing people to watch applications and provide more horsepower or storage when needed, the applications manage their own resources and obtain what they need automatically”. This saves time for the application developers. According to Deasy, “Dollars saved by using lower-cost cloud infrastructure and platforms will be reinvested in technology” (Crosman, 2016).
2) Understanding what the next-generation application developer environment looks like, with the required tools, and development approaches – To foster Agile development, and free up the developers to maximize innovation is key. With over 19,000 developers worldwide, Dana Deasy puts this in perspective saying, “"If we could get back just one hour a day of productivity per developer, you can see how many years of productivity we could gain back," Deasy said. "Which is why we have a big initiative around what we're calling next-generation software modernization." (Crosman,

CFSI today is a national authority on consumer financial health. CFSI leads a network of financial sector IT innovators, with the focus of building a more robust financial services marketplace, through identifying higher quality IT products and services (Crunchbase, 2017). Additionally, JPMC in 2014, established the $30 million, five-year initiative, Financial Solutions Lab (FSL) initiative, managed by CFSI. It’s charter being to identify, test and expand the availability of promising innovations that help Americans increase savings, improve credit, and build assets. FSL holds IT innovation competitions to unearth promising IT innovations. This gives an avenue of exposure for entrepreneurs, and small businesses in the financial industry (Business Wire, 2017). To-date, these lab winners have raised more than $100 million in follow up venture