Five considerations when communicating a data strategy
May 17, 2021
The success of asset managers is increasingly linked to their approach to data management. As Ac...
The success of asset managers is increasingly linked to their approach to data management. As Accenture puts it: “a strong data management program is key to transforming data into an asset and successfully delivering on a firm’s goals and complex projects.”
As champions of data management within firms, Chief Data Officers (CDOs) or other roles responsible for data strategy, are mandated with building a company-wide data strategy capable of securing the support of the exco and business users. CDOs that achieve this goal establish a data foundation that drives differentiation and value.
However, given the history of heavy investments in large Enterprise Data Management platforms that have often not delivered the expected value, and which continue to be seen as an endless project, convincing stakeholders of the merits of a data strategy can be a challenge. To help communicate the strategy successfully, there are five considerations to bear in mind:
- Data management is not an end in itself. Data management is an enabling process, it is not the business outcome. CDOs will recognize that as the engine room of the firm’s data operation, people, processes and systems require continual oversight and investment. No successful data management project is ever “once and done”.
- Recognizing and celebrating a regular drumbeat of business benefit. There will be many points along the way where business value can be recognized. What’s key is that CDOs align the success of their program with measurable business benefits, not just “go live” dates. “Low hanging” benefits should be realized quickly to demonstrable value at the earliest date possible. These wins should be publicized with a regular drumbeat of announcements, functional updates and internal education campaigns.
- Secure executive sponsorship. CDOs should partner with other C-suite leaders to ensure the exco is brought on the journey. The data function needs to be treated as a valued partner to the business, rather than a transactional shared service.
- Run data management with its own P&L, not as a project. Ensure that the total cost of ownership is understood and mapped back to the business. This should include people, market data and change enablement.
- Put in place the right governance and oversight of strategy. Ensure regular board and operational updates. Consider implementing an innovation “charter” aligned to aspirations around data and technology.
Andrew Barnett, Global Head of Product Strategy at RIMES, comments: “Data management capabilities are now critical to success. When selecting a partner to help transform data management within their firms, CDOs should look for providers offering outcome orientated services that align to their business goals and revenue model. The right approach eliminates the resources constraints that act as a barrier to performance and enable more to be done with the same budget.
“Firms should also look for partners with the global reach they need, a philosophy of continual improvement and access to a range of operating models and ways of working that align to investment firm’s business strategy. CDOs that get this right will deliver a significant competitive advantage to their firms.”
RIMES has changed. Contact us to learn more about our ground-breaking approach to data management and how it can help your firm differentiate and grow.
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