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Capco Proposes the Creation of a Data Culture to Advance Data Management RDR

Financial firms are falling short on data management issues such as calculating the true cost of data, identifying the operational cost savings of improved data management and embracing social media data, but according to research by consultancy Capco, these issues can be resolved with a cross-organisational and practical approach to data management and the development of a data culture.

The business and technology consultancy’s report – ‘Why and how should you stop being an organisation that manages data and become a data management organisation’ – is based on interviews with towards 100 senior executives at European financial institutions. It considers the many approaches to data management across the industry and within individual enterprises, as well as the need to rethink data management. It states: “There is one certainty: data and its effective management can no longer be ignored.”

The report suggests an effective data management culture will include agreed best practices that are known to a whole organisation and leadership provided by a chief data officer (CDO) with a voice at board level and control of data management strategy and operational implementation.

For details on the report click here

Turning the situation around and attaching practical solutions to the data management vision of an all-encompassing data culture, Capco lists regulatory compliance, risk management, revenue increase, innovation and cost reduction as operational areas where good data management can have a measurable and positive effect on profit and loss.

Setting out how an organisation can create an effective data culture, Capco notes the need to change from being an organisation that is obliged to do a certain amount of data management, to a mandated and empowered data management organisation in which data has ongoing recognition as a key primary source. The report concludes: “Every organisation has the potential, as well as the need, to become a true data management organisation. However, the journey needs to begin now.”

Source: Reference Data Review, 24.10.2012

Filed under: Corporate Action, Data Management, Data Vendor, Market Data, Reference Data, Standards, , , , , , , , , , ,

Reference Data: Current Solutions Lacking, Despite Foundational Nature of Reference Data RDR

Reference data management (RDM) is a foundational element of financial enterprises, yet the collection of solutions used to manage reference data in most firms is not satisfactory, according to a report published this week.

The report – Reference Data Management: Unlocking Operational Efficiencies, published by Tabb Group in conjunction with data integration specialist Informatica – describes current sentiment around RDM. It looks at development through four generations of solutions, details the obstacles to RDM success and sets out how firms at different levels of RDM adoption can move forward towards the holy grail of centralised RMD coupled to consistent reference data processing.

Despite huge investments in RDM over the past decade, research carried out among 20 firms – 25% in Europe, 75% in the US, 50% on the buy side and 50% on the sell side – in April 2012 found 86% of respondents dissatisfied with their RDM capabilities. Of these, 48% are being driven to improvement for reasons related to resource optimisation and outcomes, while 35% are responding to specific catalysts such as compliance.

For details on the report click here.

Recommending how to navigate the road ahead, the study suggests firms committed to bolstering existing suites of RDM solutions should focus on wrapping current solutions with technology that enables a consistent enterprise data governance process, while those yet to make a significant commitment to an RDM solution should seek solutions that manage multiple reference data domains in a consistent and integrated enterprise framework.

The report concludes: “There can be no glory without doing the hard work first. Data fluency, a critical precursor to data consumability, simply means that data flows more easily, which in turn means that end users must be able to find it. And, finding data requires meticulous attention to standards, labels and other metadata, however imperfect they may be now or in the future. That way, no matter how big or complex the data gets, end users will have a much better shot at harvesting value from it.”

Source: Reference Data Review, 19.10.2012

Filed under: Data Management, Reference Data, , , , , , , ,

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