Shearson Eyes Branch Of The Future: OS/2 Servers, More Broker Tools

Shearson Lehman Brothers Inc. systems heads are engaged in budgetary reviews to determine whether the firm will fund the installation of OS/2-based IBM PS/2 Model 90 applications servers in each of its 400-odd branches. The applications it will run, meanwhile, are being defined by a Shearson Branch of the Future Task Force.

Rather than replace the ADP FS Partner market data service that Shearson has used since early 1989, the branch of the future would include a Shearson-proprietary server that would move many of the broker applications and data out into its branches. Concurrently, to support the enhanced functionality, Shearson might upgrade to ADP's newer FS Partner Advanced Functionality (AF) market data service platform.

If approval is granted, the proprietary OS/2 server would be linked by local area network to the PS/2 Model 80 market data servers and Model 50 and 55SX broker workstations that currently run the ADP FS Partner service. Shearson uses FS Partner to provide market data to its 14,000 retail brokers and to access a range of mainframe-based proprietary applications.

Topping the list of Shearson's must-have applications is broker order-entry, say sources at the firm. Other tools it plans to place in brokers' hands are portfolio management, prospecting and a sales lead generation application known at Shearson as Target.

Shearson staff have already developed a PC-based order-entry facility that will be tested in the field before the end of the year. Sources indicate that this facility could reside on the PS/2s that brokers are now using.

While bigger plans await the budgetary stamp of approval, developers continue to build proprietary applications, most of which reside on IBM mainframes and are accessed from brokers' workstations via 3270 terminal emulation. However, a number of applications have been written to run locally on the DOS/Mondrian-based FS Partner system.

A graphical computer-based broker training facility guides new users through Shearson applications and offers training in financial concepts. Last year, Shearson added a financial planning tool, called Strategic Asset Allocator (SAA), that allows brokers to enter customers' risk profiles and assets, entertain what-if scenarios and generate investment recommendations.

Until recently, files could be uploaded from the ADP server to Shearson's mainframes, but no downloading of data was possible. Although the ability to download customers' holdings from mainframe-based files into SAA would have been helpful, Shearson staff elected to run the application locally to allow graphical presentation of information, which Shearson brokers frequently display or print for customers.

In its most recent software version released last month, Shearson has added the capability to download customer name and address information to SAA when queried with the customer account number. A broader mainframe/server link is planned for early 1993, Shearson sources say.

But to support the full suite of desired applications and store the necessary data files, Shearson would likely require a separate local server. Under current proposals, that server would run OS/2 and support OS/2 CICS applications for mainframe to local area network connectivity.

A previous round of reviews eliminated IBM's RS/6000 from the list of prospective branch applications servers, according to sources at Shearson. Smith Barney Harris Upham & Co. and Kidder Peabody & Co., by comparison, have begun work on RS/6000 servers to support broker tools similar to many of those Shearson is seeking to add.

Sources say Shearson executives, particularly on the business side, were dismayed to find that the firm's closest rival -- Merrill Lynch & Co. -- was already providing its 10,000 brokers with the ability to enter orders -- and confirm executions -- from their workstations, which also run a customized version of ADP's FS Partner service (IMD, Oct. 14, 1991).

But unlike Merrill, whose dedication of resources to retail broker's technology has remained relatively healthy in recent years, Shearson's systems staff have seen their budgets shrink as belts were tightened firmwide.

Frequent staff changes haven't helped either. Personnel desertions, reassignments and dismissals have punctuated Shearson systems history since Jerry Callaghan was installed as president of Shearson's information services management group.

Shearson recently lost one of its top retail systems development managers, Dorothy Leo, who recently vacated her post at Shearson to head systems development at Smith Barney (IMD, July 20).

Earlier this summer senior vice president Ken Boyles and last month systems staffer Kevin O'Reilly were both eased out, for reasons that Shearson sources say are as much political as technological.

Picking up responsibility for groups left leaderless by the departures of Boyles and Leo is director of information services Richard Caplis, who adds retail applications development to his currently bulging portfolio of tasks.

Caplis came from Coopers & Lybrand, where he worked with Callaghan while consulting to his group at Bear Stearns & Co. Other former direct reports to Leo, including Alice Anderson and Peter Pastori -- department managers respectively for financial services and client investment systems -- now answer directly to Callaghan.

A spokesperson for Shearson declines to say whether the appointments are likely to be made permanent. Neither Callaghan nor Caplis returned calls seeking comment. Other Shearson systems staffers, however, indicate that all appointments are subject to change in the current environment of recurring personnel shuffles and reshuffles.