Linda Mastrobattisto: First and foremost, currently, we do not have an in-place enterprise-wide framework for data management. This is due in part to a dependency on legacy systems, as well as a company culture amid change. I believe Conning is not alone in its struggle to adjust to a growing global hybrid business model that is becoming more and more diverse and complex. The good news is we recognise the need for an enterprise-wide solution and are taking steps to get there. We are in the process now of implementing an EDM (Enterprise Data Management) tool that will allow us to reach a target state of having a ‘centralised hub’ for ‘everything data’ to flow through. The result will be a single version of the truth that is not only consistent, but accurate and fit for purpose.
"We recognise the need for an enterprise-wide
solution and are taking steps to get there."
Of course, there is a whole host of challenges to overcome to get to this target state, which involves implementing a more formalised data governance policy and process. This is, by no means, a small undertaking. It starts with getting buy-in from management, and subsequent ongoing support from the different business units and affiliates. One thing that is certain is that we need to get to a place where there is uniformity across the enterprise in how to view data, including the sources for that data and the definition of key data elements that are shared across the organisation. This will not only help with our day to day operations, but also help with management reporting and allow for a more streamlined approach when an expansion occurs, which is always a good thing.
Linda: Data is an asset in any company. Having said that, it is paramount for it to be recognised as such across an organisation. The days of individual business units taking matters into their own hands and obtaining data through whatever means possible, or should I say doing things the way it has always been done, should be a thing of the past. The reason is simple and should be obvious. When data is obtained by different individuals through different means and from different sources, there is no way to have controls around it, which leads to inconsistencies in the data itself, as well as the decisions being made in using it.
"When data is obtained by different individuals through different means
and from different sources, there is no way to have controls around it"
Linda: In terms of how regulations affect my job and my ability to get data to my customers, one area that comes to mind immediately is redistribution. We have seen an increase in imposed restrictions from many of our data providers because they are trying to capitalise on the data they are providing. This is a commercial move on their part that unfortunately comes at a cost and limits our ability to deliver data to our clients. It’s also interesting to note that we have found our vendors vary in their view or definition of what is considered a ‘global’ firm which also impacts the fee structure.
Linda: Technology plays a huge role, managing the pipelines of third-party data coming into an organisation as well as where it goes from there both inside and outside the organisation. Data management also plays a part, but more so from a policy standpoint, we need to make sure there is adherence to redistribution requirements. Conning pays close attention to the rights we have to the data we are licensing.
Linda: There are multiple factors to be considered when making the decision to expand jurisdictions, but the data considerations are secondary. Of course, the type of expansion determines the route to take. Generally speaking, there needs to be an open communication flow between all those involved to discover what each brings to the table and how data can be leveraged, what vendors are being used, and for what data points. Is there any value in consolidating the vendor agreement(s) to the enterprise wide level and when? How will the decision to consolidate, or not, impact market data costs and how are the costs to be allocated? It becomes equally important to define key business terms to arrive at a uniform definition that both sides can agree to for even something as obvious as what defines a ‘customer.’
"The type of expansion determines the route to take."
Ideally, I would like to see us take in all data to meet the needs of our various locations, or affiliates, into one centralised EDM tool. It is here where the Data Management team would add value by scrubbing the data to meet predefined business requirements making a “gold” record available for consumption to downstream users around the globe. The beauty of having a third party EDM software tool is that any number of data sources could be part of the process. The concept of unplugging and plugging in a new source becomes a mere mapping exercise. The controls remain constant.
Linda: This is definitely a hot topic in the industry that has been broached here at Conning. Our current focus is with the EDM tool implementation. Once that is in place, and functional, and we can scale even more data, the possibilities will be endless. One of the areas which would have the most benefit is the front office space. Having the capability to master more securities than that which we hold will afford us the opportunity to write algorithms to find securities in the marketplace that meet strategic performance objectives and/or mitigate risk.
