This document summarizes a seminar given by Damien Georges on challenges with integrating information from various sources for portfolio management purposes and how a business intelligence and data governance framework can help address them. The framework would provide accurate portfolio-level information in one place to support risk management, debt management, and improving returns through scenario analysis. Implementing such a framework requires significant investment but results in better portfolio management, which is important in the current environment.

1. iGlobal SeminarOctober 14, 2009Damien GeorgesManaging Director Hipercept Inc.dgeorges@hipercept.com

2. ChallengesIntegrating information from third parties (property managers, JV partners, asset managers)Determining the impact of changes in asset acquisition/disposition strategies on investment and investor returns, including:Hypothetical portfoliosDebt financing and refinancing changesImpact of changes in underlying property leasing assumptions and major tenant changes on NOI and valueManaging diverse global portfolios and trying to consolidate that information into an accurate portfolio level understanding

3. Business Intelligence and Data Governance Using a Business Intelligence and Data Governance framework to tackle these challengesThis framework supports the consistent business requirement:“I want to see all the information that tells me how my business is running, has run and will run in one place”The reality of trying to meet the requirement:Access to high accuracy (data governance) information in underlying systemsComplex systems integrationMethod for aggregating and normalizing dataReporting Business buy-in, stamina and significant investment

4. Why should you care?I am focused on driving revenue (not technology or operations)These systems can be used to better manage your portfolioRisk management (exposure analysis)Debt management (loan-to-value, debt service coverage)Improving investment and investor returns (scenario analysis, assumption sensitization)Successfully implementing this framework will result in better portfolio managementThis framework is not a luxury in the current environmentBoth from the investment manager and the investors perspective

5. Integrated Enterprise Analytics Environment

6. Garbage in  Garbage OutWithout the dual implementation of a BI and data governance infrastructure it is difficult to provide information that end users can trust. The combined strategy enables effective risk management and leads to better decisions.

7. Implemented across the enterprise in a diverse vendor landscape

8. Solving the challenge – Combining Best PracticesCombination of past projects for private equity and investment management firmsImplementing data governance and business intelligence in parallelDefining, publishing and monitoring data standardsCreating a system agnostic schema for the consumption of informationLeveraging existing standards and benchmarks (OSCRE, PISCES, IPD and NCREIF)Investing several million dollars in establishing and maintaining this platformBuilding a comprehensive business case to support this investment

9. Focused on supporting the investment lifecycle

10. Collecting information

11. Taking a system agnostic approach to a data modelOSCRE Hybrid Approach