Case in Point: Barclays POINT Data Migration Deadline ~ approaching.
Investment data integration / management has never been more critical, moreover data requirements at asset management companies are skyrocketing. Cutter Associates notes “as investment managers take on more specialty assets, clients demand better and faster reporting, and regulators pile up demands for transparency and for information of every type.” Some don’t foresee a time when data demands, expectations, or requirements will stop growing or even slow down. Thus the build vs. buy solution decision — to integrate and manage new competitive data products and assets — is pivotal.
When asset management firms deploy new systems, they have typically developed a new data integration solution internally. This has been driven by tight deadlines, limited budget, available resources and business ‘attention’ to the delivery of the overall project. This creates a series of ‘quick wins’ which satisfies the headline business priorities of the day but the cumulative effect of these internal patches creates an operational data management function that is:
A major reason for failure of internally built data solutions is simply a lack of experience, depth, and breadth of knowledge in the specialized technology field in which a solution is intended to satisfy.
Consider the stakes of achieving high data quality integration: it facilitates superior investment decisions, delivers timely and accurate reports to clients, improves operational efficiencies, and mitigate risks.
Risk & Analytics Systems Data Integration
Most of today’s Risk & Analytics Systems ‘RAS’ housed at asset management firms have data integration solutions that were built internally and some many years agao. Timely case in point: Barclays POINT. They were purpose-built to meet specific requirements at a point in time. It made sense then. Vendor solutions in this space did not exist. Vendor solutions in this space exist now.
Business is dynamic. Requirements change as new instrument types are purchased, new funds are launched, new strategies are developed, unplanned acquisitions & divestments occur, and new systems need to be incorporated into the overall infrastructure or partially outsourced as the case can be.
The fact is internally built data integration solutions quickly age and become unfit for purpose — don’t deliver quality data to make superior, timely and accurate investment decisions or effect operational efficiencies and risk mitigation.
The upshot, a solution is needed that can keep up with the dynamics of the business and systems landscape. Perhaps you recall when you used to build your own trading or portfolio accounting platform. You don’t do that anymore, you buy one.
Today, vendor based solutions cost less to maintain, offer continual maintenance and upgrades, and significantly reduce operational risk & costs.
Vendor solutions provide a scalable operational infrastructure that reduces operational risk & costs and frees resources for your high value initiatives.
This post, originally published on 5/6/16, has been updated and expanded in this post.
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