San: What are your top IT priorities for the year ahead?


Carmichael: The top IT priority of the year ahead is to develop and implement best-in-class technology in Asia.  We are looking at expanding our capabilities in key markets in the region, such as China and India, and further developing our electronic trading business.


We are also putting in place a three year IT strategy, a global re-engineering program, which includes building out the next generation derivatives and securities trading platforms across the electronic trading businesses as well as our back office systems. We are also consolidating numerous platforms that we have acquired through various mergers in the last decade. This is a significant challenge as the changes will be across all our banking platforms. Through this, we will gain productivity by providing our business users with leading edge trading technology platforms.


Besides technology priorities, our people agenda is critical to our success. We have an aggressive hiring plan for the region, with India as the technology hub.  At the same time, we are focused on retaining our current talent and developing our people via comprehensive technical and business training.  We also have a robust mobility program in place that allows our people to hone their skills in other locations and roles across the region and globally.


San: As CTO, you are at the forefront of evaluating the business promise of emerging technologies. How far in advance do you map out your regional IT roadmap; and how do you ensure plans are flexible enough to respond to market changes?


Carmichael: The investment banking business is a fast moving industry and three years is a very long time. We are in constant dialogue with our business partners and adjust our priorities as new business opportunities arise or the operational environment changes.  As such, we can’t rigidly stick to a three year plan without taking checkpoints, revising or reprioritising the plan as these different requirements come along.


However, the strategic plan plays a vital role in providing guidance to our decision makers in terms of where we are moving on our strategic IT road map.


San: What advice can you impart to IT executives wanting to align their technology strategy with that of their organisations business goals?


Carmichael: The first thing is to ensure you have a good partnership with the key business leaders in the organisation.  You need to understand the goals of the business and have sound knowledge of the business environment. You also need to know if the IT goals are focused on the right priorities from a business perspective and that they will ultimately meet the businesses’ goals.


The other factor is to understand the gaps that technology can fill and the barriers it needs to overcome to meet those business goals.  Therefore, you will need to understand the business trends, challenges and where the business is going, etc.


Having witnessed significant changes in the industry over the last few years, we must stay flexible in today’s fast moving business environment.


San: There is an increasing uptake of mobile technology in the retail banking and insurance sectors. Do you foresee a future for mobile technology in investment banking and wealth management; why/why not?


Carmichael: Mobile technology gives people the ability to work interactively with clients and the opportunity to provide information to clients in a timely manner.  This is more prevalent now as clients increase their IT literacy.


In the investment banking space, however, there are restrictions to where our traders can make their trades.  Our own personnel have to be on our premises, so there are some limitations as to how we can provide a mobility solution to our staff.


From a client perspective, we want to provide the mobility solutions that best meet their needs.  For example, J.P. Morgan recently launched the eFX platform, MorganDirect, on the iPhone.  Our FX clients can access data and enter trades into MorganDirect wherever they are.


We are always looking at ways to enable our clients to interact with us in a way most convenient to them. It is about making sure the client relationship is as sticky as possible.


San: Can you elaborate on J.P. Morgan’s India based application development centre; and given you are based in Hong Kong, how is this managed?


Carmichael: In 2009, we made significant progress in expanding our India footprint in IT technology and more than doubled our workforce there. We are looking to leverage the workforce, skill sets and the talent that is on the ground in India. 


We are looking to build a center of excellence in India with about 70 per cent of our teams there focused on application development. We have also ensured that the team on the ground is integrated globally and we are very much focused on building an inclusive culture within J.P. Morgan.


After an extensive recruiting exercise last year, we now have an exceptional management team in India. As a regional head, I am in India about every six weeks.


Extensive travelling is required to manage a region like Asia and I find myself always on the road.  Face time is important, as video conferencing can only go so far. It is important to spend the time on the ground to understand the local culture and business priorities.


San: What do you consider to be the most innovative technology trend emerging within the financial services sector right now?


Carmichael: If we look back at the past 20 years on the game changing technology that has changed the industry, technology like distributing computing has really put power in the hands of traders as compared to the time when they had to trade off green screens and get data from large mainframes.


As we look forward from a technology perspective, it is the constant chasing of speed and latency that is changing the industry, as we are seeing about 30 per cent of trading coming from electronic means as compared to the “high touch” approach. For example, the markets will welcome technologies that enable the retrieval of data from memory rather than from a database if it reduces latency and increases the speed of the trade.


San: How do you see J.P. Morgan’s customer channels evolving within the next three to five years?


Carmichael: No one channel is going to solve all of the problems.  Our clients are at the center of our business and it is about what they need and how they want to interact with us. If the client wants to interact with us through emails, video conferencing, mobile, etc, we will provide that channel to them.


J.P. Morgan has always adopted a “high touch” model where it is about the personal interaction with our clients.


San: What do you feel are the fundamental skills necessary to be a successful technology chief?


Carmichael: Business knowledge is key in our industry.  You have to understand the market you are playing in.  The CTO needs to be people focused in order to manage a large geographical area like Asia. A good deal of my time is spent on various people initiatives to retain and develop our talent.


You also need to have good communication skills to interact with the business partners and the organisation as a whole.


Having a strategic viewpoint is also critical to ensure that your daily decisions are in the right direction, as it is no longer about managing the “now”.


The CTO also needs the finance and business skills required to manage a significant budget. Finally, it comes down to execution. A CTO is ultimately judged on the results that are delivered. 


San: What keeps you passionate about your job – is it the technology or the sector?


Carmichael: The sector itself more than anything else.  It is about the pace and the people you work with, as opposed to the new technology that appears now and then in the industry. 


San: Every IT leader, particularly at your level, has a legacy they wish to be remembered for. What is yours?


Carmichael: It comes down to the team we have built and the challenges I have met with my colleagues. I would like to think that I have left a team and technology environment that is in a better place than where we started.