Eagle Investment Systems LLC, a BNY Mellon company and provider of financial services technology, together with A-Team Group, has published a research paper offering new research demonstrating the extent to which data management capabilities underpin the business-transformation initiatives of asset managers.
The research paper, “How Agile Data Management Can Power Business Transformation,” featured a survey of senior level data management executives, which identified two primary drivers for business-transformation initiatives – the realization of new efficiencies and the need to facilitate growth. The biggest gating item that either slows or altogether precludes asset managers from pursuing transformation projects remains an overwhelming reliance on legacy systems, a barrier that was cited by 95% of those polled. As it relates to mapping out and executing business transformation plans, 86% cited that data quality is absolutely critical to success.
The survey also revealed that investment firms are exploring alternatives to wholesale re-engineering projects to upgrade back- and middle-office technology platforms. Nearly half (47%) said their organization will consider the use of managed services to simplify operations and eliminate certain manual processes, while roughly one in ten will look to fully outsource their data management needs.
Among the more notable findings from the survey:
- Eighty-six percent regard high data quality as critical to supporting business transformation plans.
- Among the benefits of implementing a strong data management foundation, respondents most frequently cited risk mitigation (89%), improved decision-making (74%) and improved agility (71%) as the most significant operational gains.
- Given the growing appreciation for data, nearly half (46%) of those polled claimed that their organization had a Chief Data Officer.
- Among the most prominent barriers in establishing a data management foundation to support business transformation, respondents cited legacy systems (95%), budget (94%) and data silos (92%) as the top three hurdles to overcome.
- When asked about future business transformation strategies, 47% said they would explore managed services, while 13% identified they would consider a fully outsourced solution.
The full white paper, with additional findings from the survey, can be found here.