The Handbook of Investment Technology: A State-of-the-Art Guide to Selection, Implementation, and Utilization.

• Author: Rock, D. Kent

Reviewed by D. Kent Rock, city treasurer, City of Boise, Idaho, and member of GFOA's Committee on Cash Management.

One of the great imponderables of our time is how to know if one is going to receive what is expected from a major software acquisition and implementation process. The Handbook of Investment Technology attempts, through a compilation of articles by investment and technology professionals, to lead the investment professional to the appropriate system.

At first blush, the book seems to be written by and for computer programmers. Quite to the contrary, however, the editors have assembled a stellar cast of Wall Street investors, computer and business consultants, college professors, and attorneys to author chapters on practically every aspect of using technology to improve processes. The book is replete with the business jargon of the 1990s, such as business process reengineering, paradigm shifts, strategic technologies, and genetic algorithms.

The context for the book is set by the first chapter, which explores business process reengineering (BPR). Through use of anecdotes and analogies, the author discusses the strengths of BPR relative to such competing approaches at total quality management and holonics. She also includes a case study indicating how a private-sector company used BPR to address problems specific to the financial industries.

The book then walks the reader through several chapters on computer system selection. From the choice between mainframe and client/server technologies to evaluating and contracting with vendors, from the financial evaluation of transition technologies to legal considerations, step-by-step guidance is provided.

While those of us in the public sector have developed some level of expertise in the request for proposals (RFP) process, sometimes making the distinction between actual software capabilities and vendor sales pitches can be a pig-in-a-poke process. A chapter on evaluating and contracting with vendors gives some very useful hints. Drawing upon personal experience, the author presents ways to identify differences between RFP responses and the sales pitch. He also identifies methods to ferret out overselling of the system's capabilities. There is also a helpful discussion on the perennial buy-versus-build quandary.

The next section, focusing on electronic technology applications, is a bit narrower; however, there are some useful nuggets of information to be found, especially for larger...