Shipping Containers

Finding Efficiency with Data Management

Why You May Need to Rethink Your Investment Data Management Strategy

The process of managing the systems that power data for your organization — otherwise known as data management — is the foundation of your operational activities, supporting key tasks and reporting across the company. But data management is only as good as your infrastructure. As your organization looks for ways to simplify and reduce bloated budgets, efficient data management is key.

For many buy-side institutions, data management has become a series of problems fixed by a series of solutions, piled on top of one another without concern for the picture as a whole.

In a way, it could be compared to haphazardly stacking containers on cargo ships.

The shipping container itself can be an efficient way to transport goods around the world. But as with anything, improper practices eventually lead to problems. If you stack too many containers on the ship, it increases fuel consumption, and the cost of transporting goods outweighs the benefits. Even worse, disorderly or improperly anchored containers could fall off, causing injuries and product loss — a negative return on investment.

Over the years, your organization has added systems to fix data management problems, like building data warehouses and enterprise systems that can prepare regulatory reports, monitor performance, and more. Costly manual intervention is also required to keep this system going. After years or even decades, you are piloting a vessel that is weighed down by systems layered over systems. The disorganized and excessive weight was easy to ignore with the wind at your back, but it’s not as easy as it once was. You need to rethink your shipping method.

You need to add efficiency to your data management infrastructure.

What should you look for in an efficient data management solution?

The following are key considerations for data management efficiency:

Accurate and Reliable Analytics

Data management is at the center of portfolio management, and an efficient solution supplies analytics that empower and improve your investment activities. Modern organizations understand the pressing need to improve data quality, as trading decisions and board-level reporting are dependent on it. Your data management solution should deliver analytics you can trust.

A Clear Return on Investment

With an overgrown data infrastructure, it can be difficult to see just what you’re getting out of your organization’s data management tools. Many of the solutions you purchased or built don’t offer the same return on investment anymore. Like the containers on your cargo ship, these various legacy systems have added to the operational drag on your organization without offering a clear benefit.

Scalability

Will you always be able to rely on your current system? Can your reporting software be easily customized to create new reports? Can your accounting system handle the onboarding of more complex assets as your firm scales investment strategies? The world’s reliance on data and analytics will only increase, so moving to a system that can meet the demands of the future is more important than ever.

Data Security

A best-in-class data management solution makes security a top priority, investing heavily in secure systems and servers, compliance reviews, and intrusion testing. Leading solutions must stay up-to-date on security enhancements and regulations to ensure your data is secure.

Eliminate Information Silos and Integrate Systems

An efficient data management solution will integrate with other key systems and help eliminate information silos. Your data can be used to feed trade terminals, enrich market benchmarks, create reports, inform forecasts, and more. To effectively manage your portfolio or the investments of your clients, you need to monitor different data sources and feed that information into multiple systems daily. It’s easy to lose control of your data and end up with disparate, siloed systems.

Efficient Data Management

Every component of your business is powered by data and the analytics it provides. As in the case of the slow-moving cargo ship piled high with containers, it’s no longer possible to ignore the pile of systems and processes that power your investment data management. It’s time to find an efficient strategy and start making the most of your data.

Market Insight Spring Paper

Justin is the Director of Product Management at Clearwater. His team is responsible for defining Clearwater’s strategic development roadmap and analyzing markets and market participants to allow Clearwater to react quickly to changing client needs, new regulatory guidance, and shifting strategic priorities. Justin helps ensure our product meets clients’ needs and maintains a high level of client success and satisfaction. Justin joined Clearwater in July 2004 and served as one of the original system architects for a number of core Clearwater systems and processes. He holds a bachelor’s degree in computer science from Boise State University.