– SimCorp releases paper which analyses the role of effective data management in yielding competitive advantage for buy-side firms
SimCorp, a leading provider of investment management solutions and services for the global financial services industry, has authored a paper outlining the critical role of data management in yielding competitive advantages for the buy-side.
The sharpening focus on risk management and transparency is driving the need for consistent and reliable data, as well as new regulatory and client demands for increased reporting. The paper examines how these needs can be met cost effectively, and how, when implemented properly, data management can improve profitability and productivity.
The research finds that when weighing the relative merits of different solutions, buy-side firms need a common strategy in approach from front- to back-office. This can be hampered by the use of overlapping, legacy systems, which are unable to accommodate new asset classes and create confusion over where master data lies. They also create infrastructure that is costly and complex to maintain.
It goes on to consider the evolution of the industry response to this issue, finding that even standalone data management platforms can have failings in causing data fragmentation. In addition, overlaying new platforms over legacy systems is a “flawed compromise” that fails to address core challenges of providing reliability and quality data.
The paper concludes by outlining the ideal solution – an integrated, modular platform fed from a single source. This solves the problem of siloed data and complex maintenance arrangements, and allows business users to extract timely, accurate data when they need it.
“High quality, accurate and up-to-the-minute data has become the lifeblood of investment management organizations, equipping them to make well-informed decisions and manage risk,” said Jon Irgens, Assistant Vice President, Product Management at SimCorp. “Yet many firms lack an effective means of managing data and waste expenditure on maintaining complex and inefficient systems. Companies which take control of this by implementing an integrated modular platform will put themselves at a competitive advantage relative to their peers.”
Read the full paper here www.simcorp.com/datamanagementsolutionpaper.
