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The Best Technology of 2007

By Joel P. Bruckenstein
Dec 13, 2007

At the close of each year, after a careful review of all the year's columns, I elect to honor some of the best technology tools.

Here are the ground rules: Software and hardware candidates can be either new products, or improved versions of existing products, that are capable of having a positive impact on an advisory practice. Industry-specific products qualify, as do general purpose products. Rookie of the Year contestants are new products used by financial professionals that may not yet be perfected, but that either break new ground or hold great promise for the future.

Let's not forget the annual disclaimer: Morningstar has no involvement in the selection process. Nor do Morningstar, or I, necessarily endorse any product mentioned in this article. This is just my way of highlighting my favorite products of the year. And no, I don't present the winners with actual awards. The glory will have to do.

Selecting my annual favorites is always a challenge, and this year was no exception. In the hardware category this year, we had a bit of an anomaly: I liked every single product I tried! Settling on a single favorite was very difficult. Selecting winners in the other categories was also a close call too, but I'm satisfied with the results. I hope you are too.

Hardware Product of the Year
As I've already mentioned, there were lots of good candidates to choose from this year. The ZoneAlarm Secure Wireless Router Z100G and the Toshiba Portable External Hard Drive really impressed me, but when it came to singling out a single product, my nod went to the Fujitsu LifeBook T4215, which has now been upgraded to the Fujitsu LifeBook T4220, so officially we are awarding the T4220 with the honors.

For those who did not read my May 2007 review, the T4220 is a convertible Tablet PC. This means that it can be used either as a traditional laptop or as a Tablet PC, so you get the best of both worlds. It is only 4.3 pounds and only 1.5 inches think, so it is easily portable. The standard 12.1-inch screen is very crisp and clear. It is perfect for the average user. Those who plan to use the computer outdoors may want to purchase the optional indoor/outdoor display, which is much more readable in daylight.

The T4220 is extremely well designed. It has the industry's first bidirectional hinge, so converting from laptop mode to tablet mode is a breeze. A built in sensor adjusts the screen to landscape or portrait mode automatically, depending on the laptop's orientation. It is also the only laptop I know of in this class that offers an internal DVD/CD drive.
With built-in security, including biometric protection and a choice of operating systems (Windows Vista Business or XP Tablet Edition 2005), the T4220 is designed for business.

Fujitsu's Trusted Platform Module solution combines an embedded chip with software to uniquely identify the mobile device, authenticate it to the network, and securely encrypt files and data. Encryption keys are stored on the chip and not on the hard drive for added protection

The fingerprint reader is enhanced by the included OmniPass software. This software allows users to create a master password, in this case a fingerprint. Once the master is created, you can enter information (user names and passwords) about protected applications and Web sites you use. You can then use a fingerprint scan to access all listed Web sites and applications. In addition, the software allows users to create encrypted files, which can only be viewed with fingerprint authentication.

Fujitsu's business-class laptop PCs are reliable, too. Since Fujitsu does not outsource the manufacturing of their business laptops, they have a tighter rein on quality control, and it shows. They generally rank well above average in reliability surveys.

I believe that in a client meeting setting, Tablet PCs are clearly superior to traditional laptops; all that's missing is the right industry specific applications to fully take advantage of what the Tablet PC has to offer. In the meantime, general purpose applications like EverNote or OneNote, used intelligently, justify the incremental cost of owning a Tablet PC like the Fujitsu LifeBook T4220.

Hardware Honorable Mention
While I did not review it here this year, there is another Tablet PC that deserves mention: The Lenovo ThinkPad X61. Its design differs substantially from the Fujitsu T4220, but it does have its own unique attributes. Perhaps the most noteworthy attribute of the X61 is that it continues the ThinkPad tradition of outstanding keyboards. If you are an excellent touch typist, you are sure to love typing on this computer. Another unique attribute, which some like and others hate, is the lack of a navigational touchpad. The X61 favors the eraserhead or pointer stick instead.

On the plus side, the ThinkPad weighs a bit less than the Fujitsu. That's because it does not include a built in optical drive. You can buy and external one and it works fine, but is costs extra, and if you need to take it on the road with you, the total weight you'll be carrying exceeds the weight of the Fujitsu T4220.

Like Fujitsu, Lenovo ThinkPads have a good reputation for quality and reliability, something worthy of consideration when many companies seem to be slipping in this department.

Aside from those differences discussed above, the Lenovo ThinkPad X61 is another excellent convertible Tablet PC. Since I'm not a great touch typist, I don't assign much of a premium to the Lenovo keyboard personally, so I've got a slight preference for the Fujitsu, but I think most readers will love either one of these fine convertible Tablet PCs.

Software Product of the Year
As was the case in the hardware category, there are many worthy contenders, but in the end I decided to single out SMARSH as this year's winner. Managing e-mail and the compliance issues that arise from e-mail are challenges for many firms. The potential consequences of failing to properly manage and monitor e-mail are just too great to ignore, especially when there are competent third parties like SMARSH offering excellent solutions at a reasonable price
There are a number of other firms that offer good e-mail archiving/compliance solutions, but the one from SMARSH really impressed me. It goes beyond the norm with regard to capabilities, flexibility and scalability. For example, larger firms can purchase an additional service called the Virtual Compliance Officer. The VCO, among other things, automatically recognize and classify e-mail messages based on a set of predetermined criteria established by the RIA firm. In addition, the system can tag messages that meet certain criteria for later manual review.

Using a set of rules to guide it, the VCO can help firms identify high-risk e-mailers in the firm. That allows compliance to single out e-mails to and from those employees for a more-detailed review. Deficiencies can then be addressed so that those individuals can be brought into compliance

As I said in October: "SMARSH, Inc. appears to offer a premium grade e-mail hosting, archiving, and retrieval and surveillance system at a competitive price. For those in need of a quality third-party e-mail provider, SMARSH should be on the list of potential candidates". Since I wrote the article, I've heard from a number of SMARSH clients, and all of them tell me they are very satisfied with the service they are receiving.

SMARSH is not the cheapest e-mail archive, management, and compliance tool on the market, but it does represent a good value for the money. With SMARSH, compliance officers and principals should be able to sleep better at night, secure in the knowledge that their e-mail management issues are in good hands. Sounds like a good deal to me!

Rookie of the Year
There were not an overwhelming number of new and exciting products that I covered here this past year, but one that deserves to be singled out for its unique approach is Portfolio Director Web.

The desktop based version of Portfolio Director has been around for a few years now, but the Web version is new. Like its older sibling, Portfolio Director Web is built upon open-source software; this allows them to keep their prices low.
The Web version, like the desktop version is solid and reliable. It does not have all the bells and whistles that some of its more expensive competitors have, but it has more than many firms need. It also includes a customizable client web portal, a feature others charge a considerable sum of money for.

For an initial setup fee of just $295 will set up your reports and user log-ins, set up a Web site in with your firm's logos and colors, import your data, and provide basic training on the software. Once the setup is complete, Portfolio Director charges a monthly fee of $400 for up to 100 accounts (additional accounts cost $2 each per month). This price includes daily downloads, performance reporting, customized billing templates and basic rebalancing capabilities.
Back in April of 2007, Portfolio Director Web only supported two custodial platforms: TD Ameritrade and Scottrade. Since then, about many more have been added including DST/FAN Mail, Fidelity, Pershing and Schwab. The developers of Portfolio Director recently joined the Your Silver Bullet organization which leads me to believe that it will be offering integration with a number of industry leading applications soon.
As vendors go, Portfolio Director is still small, but they offer an innovative business security guarantee that affords a layer of protection should the vendor experience problems.

There is no one single factor that makes Portfolio Director stand out, but their willingness to use open-source code, their low price, their business security guarantee and their solid set of features combined to earn them an Editor's Choice award.

Congratulations to our winners and a happy holiday season to all. I'll be back with more on technology in 2008!

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Joel P. Bruckenstein, publisher of Virtual Office News, is the industry's expert on applied technology for financial professionals. In addition to his monthly columns, Bruckenstein consults with companies large and small to help them achieve higher returns on their technology investment. For more information of Bruckenstein's consulting services, or to have him speak at your upcoming event, please visit www.joelbruckenstein.com.

The views expressed in this article are the author's. They do not necessarily reflect the views of Morningstar. Feedback about this article may be sent to advisorquest@morningstar.com.