It shouldn’t take such levels of destruction as occurred in 1871 for us to take action. The impacts of poor data architecture and data management practices directly contributed to the recent credit crisis and have allowed space for nefarious behaviors to burn companies and investors. Also, lack of wider investment and adoption of data best practices has led to missed opportunities in the investment management industry at a time when margins are tight and competition fierce. These examples, which have touched so many of us, should serve as fair warning to firms that changes are needed now. We need more firms to harness their data assets better and uncover advantageous investment insights, while also helping us connect with our clients.
Fortunately, many industry leaders see the opportunities on the horizon. Realization of the possibilities resulting from nurturing our data assets starts with sound foundational architectures. The transition from legacy to the future requires commitment, expertise, and pragmatism. Going from where we are today to where we need to be takes a series of intelligently mapped-out steps. There are no easy short cuts to leading major infrastructural changes while maintaining business as usual. However, getting the data architecture right is the essential first step in creating a foundation from which innovation can take root. Supporting advanced risk measures to avoid market pitfalls and protect organizations against scandalous predators; providing innovation labs for investment analysts and data scientists alike to discover the next great insights; building models to visualize data in new ways leading to new understandings that support investment decision making and risk management—the success of each of these opportunities is predicated on the availability of a sensible and secure architecture that puts the power of data in the hands of those who can best harness its power.
The great architecture of Chicago has inspired people in all walks of life. Next time you happen to be walking around looking for a good deep dish pizza in Chicago (call me if you need a recommendation for the best spots!), take a look around and draw from the lessons the city skyline offers to challenge ourselves in leading the evolution of our asset management industry through investment in needed data architecture improvements!
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