In the case of Online, the planner accesses all four layers of the program over the Web. If the planner needs to leave the office to meet with a client on the client's yacht, for example, the planner can "check out" a copy of both the application and the client's data file and take it to the meeting. While the file is checked out, no changes can be made to the data on the central computer. Upon returning to the office, the planner uploads the client data file to the server, and the updated file becomes the current version.
NaviPlan Offline is really just a version of NaviPlan Online that is not connected to the Web. The application layer and the data files might always reside on the planner's computer, or the application might reside on the client's computer and the data files might reside elsewhere. Both versions of NaviPlan Online/Offline offer a number of advantages over their desktop counterparts. One is modularity. In the desktop version of NaviPlan Extended, for instance, it is very difficult to do modular planning without completing the entire data entry process. That is not the case with the Web-based versions. These newer versions allow users to define the scope of the financial planning engagement; the program then presents only those data entry screens that relate to the engagement.
Another advantage is control, a feature that is likely to appeal to giant financial institutions. Web versions of the software allow management to grant permissions and review and monitor what everyone in the firm is doing with the software. For example, a firm might decide to enable the insurance-related modules of the program only to those employees who hold insurance licenses. The software can be programmed so that junior planners can create drafts of financial plans, but they will contain a "draft" or "for internal use only" until a superior approves the plan.
Management can monitor production, a feature that might entice control-oriented wirehouses to consider purchasing it. Managers can see how many plans each employee is working on, who accessed the plans, and so on.
The reporting features have the capability to improve client service. One could, for example, generate a report showing all plans that haven't been updated in the past year for clients with more than $1 million in net worth. If the built-in reporting features are insufficient for a firm's needs or if multiple databases must be queried to obtain the desired information, a third-party reporting package, such as Crystal Reports, can be layered on to the system.
The Web-based platform opens up all sorts of collaborative opportunities. Advisors can jumpstart the financial planning process by empowering clients or prospects to enter their data into the program, either before or after an initial meeting. Specialists from diverse geographic regions can consult on a plan without leaving their offices. Clients can receive both reports and presentations over the Web. Independent financial advisors can collaborate with a client's accountant or attorney over the Web. Advisors can permit their clients to run "what-if" scenarios off of an existing plan.
Since NaviPlan Enterprise Solution is totally scalable, a larger firm can move beyond one of the two "standard" configurations by customizing any of the four layers mentioned earlier. For example, the database level could be configured to share information with other applications, so that a CRM package could work seamlessly with NaviPlan. The part of the application layer that draws the dynamic pages, as well as the page server layer, could be totally customized, resulting in a program that looks nothing like NaviPlan, but has all of NaviPlan's calculating power. Theoretically, the browser could also be customized with plug-ins for a richer user experience.
What this means, says Denis Martineau, EISI's senior vice president of sales and marketing, is that "NaviPlan Enterprise Solutions software can be molded around a corporation's approach to financial advice." It can look and feel totally different in each installation, yet the calculation engines (either Standard or Extended) driving the programs will remain constant.
Despite the rosy outlook for EISI, a few potential obstacles might slow the firm down. One is a gap in its product line. Neither NaviPlan Enterprise Solutions nor the more standardized NaviPlan Online is affordable for smaller firms at the moment. The software for a "small" installation (about 200 users) of NaviPlan Standard Online would cost roughly between $50,000 and $100,000. Total installation, including software, hardware, and IT labor (internal or external), would be between $150,000 and $250,000, plus $500 to $600 per user in annual licensing fees. NaviPlan Enterprise is even more pricey. For a custom online solution serving at least 10,000 users, the software would likely cost between $500,000 and $1 million. More than 10,000 licenses would cost between $200 and $400 per user per year. Hardware, IT and training costs could reach a few million or more. As a result, the boutique shops cannot avail themselves of all the Web-based NaviPlan platform has to offer.
It seems likely that at some point in the future EISI will offer NaviPlan Online "lite," an out-of-the-box, turnkey solution that will provide smaller firms with "standardized" Web-based versions of NaviPlan Standard and Extended that they can host in-house at a reasonable price. That version is probably a few years away. In the meantime, look for NaviPlan to either offer NaviPlan Online under an application service provider (ASP) model (EISI hosts the software; advisors pay a monthly fee to access the software and store their data files) or team with a third party who will offer NaviPlan Online as an ASP. Although this may be an acceptable alternative for some, other independents, who ironically were NaviPlan's earliest and most vocal supporters, may feel their interests are being subordinated to those of the larger firms, causing a backlash.