Last week, I shared with you the results of our survey of 133 buy- and sell-side professionals on the challenges in data management. This week, I’ll delve into what can be done about it. For starters, let’s look at how firms can tackle two of the key challenges they identified as a result of the data disconnect: quality and costs.
Utilities are one option
Market utilities should be considered as a viable solution bringing cost savings, improved data quality and shared best practices. Yet, only 11 percent of survey respondents are actively considering implementing a utility, indicating the challenges are more deeply ingrained within their organizations. So, beyond the option for a market utility, what can firms do?
Defining a strategic vision for data
From strategy to implementation, firms should consider defining the data vision by establishing a strategic vision for what data is required to support the company strategy, how data will be managed by the business and how it will be enabled by technology. They can also establish data policy and governance, which will allow the company to comply with data-related regulation. Furthermore, to address the reference data disconnect, firms should consider delivering data fixes and a delivery program, and establishing data services for the business.
Alternatives need to be considered across the entire cost spectrum and over a longer-term time horizon. No one solution will work for every firm, but what it is clear, is reference data solutions to date have been reactionary in nature. Now is the time for firms to be proactive and take measures to get on the right path, once and for all.
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