Fueling the Ship: Data Management in Focus. Derek Pratt Director, Citisoft

Transcription

1 Fueling the Ship: Data Management in Focus Derek Pratt Director, Citisoft

2 Data Is The New Oil Data is just like crude. It s valuable, but if unrefined it cannot really be used. It has to be changed into gas, plastic, chemicals, etc., to create a valuable entity that drives profitable activity; so must data be broken down, analyzed for it to have value. - Michael Palmer, ANA Developing a capability to refine data into greater business insights, more profitable decision-making, and new product offerings is clearly one way to make a substantial impact on the enterprise. It all starts with effective data management. - Perry Rotella, Contributor to Forbes

3 Harness Data to Fuel The Ship Data is one of the most precious assets a firm has in our information driven industry. It fuels investment analysis, decision making, risk, compliance, reporting, finance all aspects of the investment management business. Data Management represents the combination of people, process and technology involved with converting raw data into usable information. A well-organized data infrastructure is essential to effectively deliver standards across the investment management organization

4 Agenda Current Challenges & Industry Landscape Future Vision Case Study Lessons Learned / Battle Scars

5 Data Management Challenges and Current Landscape

6 Handle With Care!

7 Global Industry Trends In Citisoft s view, the global investment management marketplace is going through a period of significant change; key drivers include: Market and regulatory changes facing the industry are a real and growing area of focus Diversification through the use of alternative assets is the new normal the use of multi-asset strategies, ETF s, OTC derivatives and other forms of alternative investment are up tenfold over the last decade Globalization world allocation strategies and emerging markets will play a larger role in the industry s future Regulatory Climate Diversification Globalization M&A Risk Management Distribution Risk mitigation/management is driving asset allocation for investment managers in the global marketplace Increasing influence of Distribution in the Asset Management business model 7

8 Business Drivers & Challenges Growing recognition of the importance of data Lack of trust in data Industry trends and vision outpacing vendor capabilities and organizational ability to execute High dependency on Excel and manual processes Risk monitoring Technology changes Unsystematic data management approach Regulatory requirements Exceedingly difficult to access data Cost reduction Citisoft clients estimate true cost of data (TCO) at 3-5x initial acquisition cost 75% of current Citisoft projects have EDM as a core focus The Gartner Group reported 100 CDO s in Industry last year; double the # from 2012 Data-related costs account for 83% of IT spend in Financial Services 8

9 Future Vision What Are We Fueling Toward?

10 Data Management Components The set of solutions by which a company manages data Architecture The management of data and its ownership Data Administration Governance Information Delivery Delivering data to users - how and when they want it 10

11 Data Governance Framework Data Governance is the process by which an organization will behave to protect and maximize the benefits inherent in its data assets EXECUTIVE Data Management: Strategy and Governance Accountable execution of overall data strategy Liaise with business and IT stakeholders CONTROL STRATEGIC Data Governance Provide Assurance of Overall Perspective & Approach Provide Strategic Direction for Data Stewardship Level Resolve Escalated Issues at Strategic Level Data Stewardship Act as Overall and Domain specific Data Stewards Resolves Escalated Problems at Tactical Level Ensures Management & Integrity of Data Domain Definitions Across Departments Measuring, monitoring, and managing aggregate data quality PROCESS Define what Departments Participate: Org.Structure Roles and Responsibilities Process and Workflow Data Operations Define Data Definition / Usage / Rules / Transformations Identify and resolve data related issues Manage integrity of created data Create / maintain reconciliation & control reports to ensure data quality Measuring, monitoring, and managing data quality 11

12 Data Architecture Data Architecture is the set of principles by which a company manages the sharing of data between multiple business processes. Industry Technology Trends Mainframe and Bureau Packaged Systems Straight Thru Processing Data Warehousing Information Management Business Intelligence Green Screen COBOL Bureau Systems Portfolio Accounting Order Management Evolution of RDBMS (Oracle, Sybase, MSSQL) Functionally Aligned Systems Exception Based Straight Thru Processing Service Oriented Architecture EDM Batch storage and reporting Channel Support 2008-Present Reference Data Management Client Communication Reporting Optimization Next 10 Years Data as an Asset Portals Advanced Analytics Competitive Advantage Big Data 12

13 Data Administration The purpose of data administration to provide clean, consistent, & accurate data COMPREHENSIVE DATA Fully automated data collection and report creation Increased efficiency and mitigation of process errors Single version of aggregate data reconciled back to source HIGH QUALITY CONSISTENT DATA Data is reliable, accurate, timely, defined, owned, and well managed Data is reconciled and compared against secondary sources Consistent and traceable business logic is applied SCALABLE SOLUTION As other investment systems needs change, the data structure remains Quick time to market as new investment products enter the marketplace Vendor software support is available to assist when needed GOLD COPY DATA Single version of the truth Clear data governance and ownership Centralized Investment Data and Rules 13

14 Information Delivery Ability to display various aspects of the data by using interactive pictures and charts Generate either ad-hoc reports or customizable reports (e.g. parameters from drop down list) Capability of putting a Googlelike search engine in front of the BI environment BI Search / BI Guided Search Advanced Visualization Business Query & Reporting OLAP (On-line Analytical Processing) Ability to slice and dice data, with extremely fast queries & calculations Predictive Modeling & Data Mining Office Integration Analysis that attempts to discover patterns in data Dashboards Scorecards & BI Portal Able to use Excel as a front-end tool, & incorporate charts into PowerPoint or Word documents Dashboard reports containing intuitive displays of information Scorecards take dashboard idea further by analyzing performance Provide BI in a portal and customized by the recipient 14

15 Benefits of Established EDM Program Increased speed of delivery for future requirements Improved data availability and quality Risk reduction Greater efficiency Valuable business resources freedup to do more value-add/revenuegenerating tasks Data collection costs reduced through rationalization of duplicate sourcing 15

16 Case Study Large global asset management firm (>$500b AUM) Diverse business lines, including mutual funds, institutional asset management, ETFs Disparate data technologies and processes (redundant system costs, lack of resource fungibility) Large data program to identify opportunities and realize needed benefits ISITC June 2016 Industry Forum & Working Groups June 12-14, 2016

17 Battle Scars & Lessons Learned Chart the course before setting sail (lead with a sound Data Strategy) No 1 size fits all solutions although best practices to help (governance, data dictionaries, best of breed technology) Patience & good sponsorshipeverybody needs a champion! ISITC June 2016 Industry Forum & Working Groups June 12-14, 2016

18 About Citisoft Citisoft is a consulting firm dedicated to servicing the investment management industry Unrivalled Industry Expertise 30+ year history Sole focus is global investment management Global client base Advisory and Delivery services Client relationships are built on recognition that our client s success is our success World-Class Professionals Global staff has 16 years industry experience Over 100 dedicated consulting professionals Deep knowledge of investment management business, systems, operations and data One of Consulting Magazine s Best Firms to Work For ISITC June 2016 Industry Forum & Working Groups June 12-14,

19 Our Services Focused. Strategic. Pragmatic. Citisoft offers business and technology consulting that delivers results, not just ideas. We use a pragmatic approach to bring your strategy to life through our Advisory and Delivery services. Advisory Strategic Assessment Systems Strategy & Selection Operating Model Design Outsourcing Evaluation & Selection Merger & Acquisition Integration Delivery Program & Project Management Requirements Definition Systems Implementation & Integration Outsourcing Transition Test Planning, Control & Execution Business Process Reengineering ISITC June 2016 Industry Forum & Working Groups June 12-14,

20 Thank You!