Leader or Laggard: How Data Drives Competitive Advantage in the Investment Community
Upcoming SlideShare
Loading in...5
×
 

Leader or Laggard: How Data Drives Competitive Advantage in the Investment Community

on

  • 2,519 views

In an age where asset owners and managers face vast amounts of data, two distinct groups are emerging. The data leaders are using smart data strategies for valuable insights and a competitive edge, ...

In an age where asset owners and managers face vast amounts of data, two distinct groups are emerging. The data leaders are using smart data strategies for valuable insights and a competitive edge, while the laggards struggle to master data complexity. There are key strategies these institutional investors need to go from laggard to leader – and pull ahead of the pack.

Statistics

Views

Total Views
2,519
Views on SlideShare
2,282
Embed Views
237

Actions

Likes
4
Downloads
35
Comments
0

6 Embeds 237

http://www.linkedin.com 202
https://twitter.com 28
https://www.linkedin.com 3
https://community.statestr.com 2
https://uk.linkedin.com 1
https://mysite.statestr.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Leader or Laggard: How Data Drives Competitive Advantage in the Investment Community Leader or Laggard: How Data Drives Competitive Advantage in the Investment Community Presentation Transcript

  • DATA & ANALYTICS Leader or Laggard: How Data Drives Competitive Advantage in the Investment Community Featuring highlights of the State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit
  • DATA & ANALYTICS About the Research A global survey of more than 400 asset managers and institutional asset owners on investment data and analytics, conducted by the Economist Intelligence Unit on behalf of State Street (August and September 2013). Respondents by Region Respondents by Type 8% 20% 33% 8% 34% 16% 18% 11% 33% North America Europe Asia Pacific  Diversified Asset Managers  Traditional Asset Managers  Alternative Asset Managers Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 19%  Banks  Insurers  Pension Funds  Other 2
  • DATA & ANALYTICS Disruptive Industry Trends Require a Rethink of Data Strategies Issues Most Likely to Drive Change in Data Strategy Over Next Three Years Asset Owners Asset Managers (Top three issues cited) (Top three issues cited) More stringent risk More stringent risk management standards management standards Growing volume of Growing volume of trading trading data data Expansion new Expansion into into new regions regions 38% 34% 33% Increased demands from regulators from regulators Competitive pressure Expansion into new Expansion into asset classes new asset classes Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 37% 35% 33% 3
  • DATA & ANALYTICS The Industry is Investing Heavily to Keep Pace % Change In Investment into Data and Analytics Over Past Three Years 2% 11% 1% 11% Significantly increased investment (>20%) Slightly increased investment (1-20%) Made no change Slightly decreased investment (1-20%) 75% Significantly decreased investment (>20%) Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 4
  • DATA & ANALYTICS Investment is Targeted at Decision-Making in the Front Office How Investment Will Be Prioritized Across a Range of Data Tools Order Management Systems/ Execution Management Systems • Decision-support for the front office becomes a priority 34% 53% 46% Performance analytics 43% 28% Benchmark data • Need to move closer to real-time information Portfolio optimization 43% 27% Risk analytics 39% Slight increase Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 30% 24% Significant increase 5
  • DATA & ANALYTICS Data and Analytics are Now a Firm Priority for Institutional Investors … Data is the Key to Addressing a Wide Range of Strategic Concerns 1% 8% 37% • Nine out of 10 institutional investors view data and analytics as a high strategic priority • For 37 percent, data and analytics as the most important strategic priority 54% Most important strategic priority High strategic priority Mid-level strategic priority Not a strategic priority Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 6
  • DATA & ANALYTICS Yet the Industry is Polarized by its Approach Data is a competitive asset … But few know how to use it • 66 percent believe data will be a key source of competitive advantage in the future • Only 29 percent of firms are reaping the full benefits from their data and analytics capabilities today • 86 percent increased investment in data infrastructure in the past three years An Industry Divided by Data • Our research reveals that a capability gap is opening up between data leaders and data laggards 1. “Data Leaders” – Companies in the survey whose data and analytics are already a source of competitive advantage 2. “Data Laggards” – Have yet to gain full benefit from their data Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 7
  • DATA & ANALYTICS Data Leaders are Better Prepared for the Challenges Ahead Leaders Data leaders are more confident in ... Laggards % confident in capability  70% • Generating forward-looking insights from data 42% 72% • Integrating risk and performance analytics 50% • Optimizing their electronic trading strategies By contrast, data laggards are … • More likely to get distracted by the complexity of data management X 64% 53% % agree with statement 7% 30% • Less likely to feel their data capabilities are keeping pace with the growth of their business Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 92% 50% 8
  • DATA & ANALYTICS Data Leaders have Smarter Tools for Managing Risk, Compliance and Performance % that view area as a strength Leader 81% Tools for regulatory compliance Laggard 63% Leader 60% Multi-asset class risk tools Laggard 38% Leader 70% Custom benchmarks/indices Laggard Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 59% 9
  • DATA & ANALYTICS The Industry Wants Tightly Integrated Solutions… Main Problems With External Data Lack of integration Lack of integration capabilities capabilities 42% • Data providers need to deliver an integrated view on risk and performance Lack of responsiveness Lack of responsiveness from client support staff from client support staff 35% Pricing too high Pricing too high • Institutional investors often need to integrate hundreds of external data sources 35% Lack of timeliness in Lack of timeliness in the provision of data the provision of data Pricing too rigid Pricing too rigid Source: State Street 2013 Data and Analytics Survey conducted by the Economist Intelligence Unit 32% 30% 10
  • DATA & ANALYTICS Defining a New Service Model Data You Can Trust Adaptable Systems Smarter Insights Challenge • Accuracy of information is the top data challenge cited in the survey • Systems must adapt to support multiple geographies, asset classes and regulatory regimes • Only 14 percent of firms have all of the talent they need to manage data effectively Solution • Trusted data providers • Systems that support global reporting • New outsourcing models focused on insight as well as cost • Integrate data to achieve “one version of the truth” • Integrated view on risk and performance 11
  • DATA & ANALYTICS In Summary: How to Become a Data Leader Get Smart on Risk • The industry needs tightly-integrated solutions to manage today’s multiasset portfolios Trade Better, Faster • Better, more accurate and timely data is key to making better investment decisions and being able to act on these insights in real time Manage Regulation • Build systems and processes with the flexibility to meet evolving regulatory demands across multiple jurisdictions The Bottom Line • Firms that develop the right data tools and strategies will be rewarded with better insights, improved performance measurement and a deeper capacity to understand risk across their global activities • These advantages will be the edge that defines our future industry leaders CORP-0891 12