Profit model for non-execution services

• US 8,370,237 B1
• Filed: 04/29/2011
• Issued: 02/05/2013
• Est. Priority Date: 06/12/2006
• Status: Active Grant

• Current Assignee: Morgan Stanley Services Group Inc. (Morgan Stanley)
• Original Assignee: Morgan Stanley
• Inventors: Hurewitz, Barry S.
• Primary Examiner(s): VEZERIS, JAMES A
• Application Number:
  US13/098,007
• Time in Patent Office: 648 Days
• Field of Search: 705/35, 705/7.14
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Methods of pricing non-execution services provided by a firm comprising an execution service provider and a non-execution service provider. The methods may comprise the steps of accruing a payment for execution and non-execution services from an external client and allocating a first portion of the payment to an execution service provider and a second portion of the payment to a non-execution service provider. The methods may also comprise the steps of calculating a cost of providing the non-execution services, and calculating a profit of the non-execution service provider considering the cost of providing the non-execution services and the second portion of the payment.

Claims

1. A computer-implemented method of determining a profitability of a non-execution service provider unit of a firm based on at least one payment received by the firm from a client for execution and non-execution services, the method comprising:

receiving, by a computer system, an indication of a portion of the at least one payment allocated to the non-execution service unit, wherein the computer system comprises at least one processor and operatively associated memory;

calculating, by the computer system, a cost of providing the non-execution services of the non-execution service provider unit to the client; and

calculating, by the computer system, a profit of the non-execution service provider unit to service the client considering the cost of providing the non-execution services to the client and the portion of the at least one payment allocated to the non-execution service provider unit.

2. The method of claim 1, further comprising receiving an indication of an allocation of the at least one payment, wherein the at least one payment comprises the portion allocated to the non-execution service provider unit and a second portion allocated to an execution services division of the firm.

3. The method of claim 2, wherein the at least one payment further comprises a third portion allocated to a second non-execution service provider unit of a non-execution service provider division of the firm.

4. The method of claim 1, further comprising:

receiving, by the computer system, an indication of a portion of a second at least one payment received from a second client, wherein the portion of the second at least one payment is allocated to the non-execution service provider unit;

calculating, by the computer system, a second profit of the non-execution service provider unit to service the second client considering a cost of providing non-execution services to the second client and the portion of the second at least one payment.

5. The method of claim 4, further comprising, allocating, by the computer system, a resource of the non-execution service provider unit to either the client or the second client based on the profit and the second profit.

6. The method of claim 4, wherein the second client is an internal client.

7. The method of claim 6, wherein the second client is at least one of a unit of an execution service provider division of the firm and a second non-execution service provider unit.

8. The method of claim 6, wherein the at least one payment is taken from a reward pool established by the second client from its own revenue.

9. The method of claim 1, wherein an amount of the second portion of the payment is determined by the external client.

10. The method of claim 1, wherein an amount of the portion of the at least one payment is received from the client.

11. The method of claim 1, wherein an amount of the portion of the at least one payment is determined by the computer system.

12. The method of claim 11, further comprising determining, by the computer system, the amount of the portion of the at least one payment based on at least one of the group consisting of at least one survey of similar clients, information specific to the field of the client, and a popularity of the non-execution service provider unit.

13. The method of claim 1, further comprising allocating, by the computer system, an amount of funding to the non-execution service provider unit based on the profit of the non-execution service provider unit.

14. The method of claim 1, further comprising:

receiving, by the computer system, an indication of a fee for services of the non-execution service provider unit;

finding, by the computer system, a cost to the non-execution service provider unit of providing the services, and wherein calculating the profit of the non-execution service provider unit comprises considering the fee and the cost.

15. A computer system for determining a profitability of a non-execution service provider unit of a firm based on at least one payment received by the firm from a client for execution and non-execution services, the computer system comprising

at least one processor and operatively associated memory, wherein the computer system is programmed to:

receive an indication of a portion of the at least one payment allocated to the non-execution service unit;

calculate a cost of providing the non-execution services of the non-execution service provider unit to the client; and

calculate a profit of the non-execution service provider unit to service the client considering the cost of providing the non-execution services to the client and the portion of the at least one payment allocated to the non-execution service provider unit.

16. A computer readable storage medium comprising instructions thereon that, when executed by a computer system, cause the computer system to:

receive an indication of a portion of at least one payment allocated to the non-execution service unit, wherein the at least one payment is received by the firm from a client for execution and non-execution services;

calculate a cost of providing the non-execution services of the non-execution service provider unit to the client; and

calculate a profit of the non-execution service provider unit to service the client considering the cost of providing the non-execution services to the client and the portion of the at least one payment allocated to the non-execution service provider unit.

17. A computer-implemented method of determining a profitability of a non-execution service provider unit of a firm, the method comprising:

receiving, by a computer system, an indication of an allocation directed to the non-execution service provider unit from a first internal client, wherein the computer system comprises at least one processor and operatively associated memory;

calculating, by the computer system, a cost of providing non-execution services by the non-execution service provider unit to the first internal client; and

calculating, by the computer system, a first profit of the non-execution service provider unit considering the allocation from the first internal client and the cost of providing non-execution services by the non-execution service provider unit to the first internal client.

18. The method of claim 17, further comprising:

receiving by the computer system an indication of a portion of at least one payment directed to the non-execution service provider unit by a second client;

calculating, by the computer system, a cost of providing non-execution services by the non-execution service provider unit to the second client;

calculating, by the computer system, a second profit of the non-execution service provider unit considering the portion of the at least one payment and the cost of providing non-execution services by the non-execution service provider unit to the second client; and

allocating, by the computer system, a resource of the non-execution service provider unit to either the first internal client or the second client based on the first and the second profit.

19. The method of claim 17, wherein the at least one payment is received by the firm from the second client for execution and non-execution services.

20. The method of claim 17, wherein the first internal client is at least one of a unit of an execution service provider division of the firm and a second non-execution service provider unit.

21. The method of claim 17, wherein the allocation is taken from a reward pool established by the second client from its own revenue.

22. The method of claim 21, wherein the reward pool is at least one of a predetermined amount and a percentage of the first internal client'"'"'s total revenue.

23. The method of claim 21, wherein the reward pool is an expense item for the first internal client.

24. The method of claim 21, further comprising redirecting, by the computer system, a portion of the reward pool to a second non-execution service provider unit.

25. A computer system for determining a profitability of a non-execution service provider unit of a firm, the computer system comprising:

at least one processor and operatively associated memory, wherein the computer system is programmed to

receive an indication of an allocation directed to the non-execution service provider unit from a first internal client;

calculate a cost of providing non-execution services by the non-execution service provider unit to the first internal client;

calculate a first profit of the non-execution service provider unit considering the allocation from the first internal client and the cost of providing non-execution services by the non-execution service provider unit to the first internal client.

26. A computer readable storage medium comprising instructions thereon that, when executed by a computer system, cause the computer system to:

receive an indication of an allocation directed to a non-execution service provider unit of a firm from a first internal client;

calculate a cost of providing non-execution services by the non-execution service provider unit to the first internal client; and

calculate a first profit of the non-execution service provider unit considering the allocation from the first internal client and the cost of providing non-execution services by the non-execution service provider unit to the first internal client.