I just got back from Toronto, where I sat with some asset owners to talk about what’s next for them. Like many of the asset owners I meet with these days, they’re mostly concerned about the limitations of their technology today and – more important – how they can make it better tomorrow.
What’s the best way to modernize our stack? What’s the best way to get everyone on the same page? How do we rationalize our operating model? And what do we do first to initiate a workable, sustainable digital transformation?
My answers to all these questions centers on their data and how they can manage it.
Before any technology changes are made, the best approach is to put together a strategy for five-year operating model. That means having a solid understanding of your key touchpoints, like identifying the consumers of the data and their specific needs or assessing the systems you will rely on to create a workable solution.
I say this because there’s a tendency to want to make a transition all at once. Problem is, it’s never that easy. My advice is to ‘optimize, then maximize’. To do that, it’s best to start with a solid data platform in one area, then expand from there.
As an example, firms tend to map out their transformation then simultaneously implement major enterprise platforms rather than mapping out a phased approach. Our suggestion has been to establish core data mastering capabilities first, then implement other components of your operating model, whether it is front office tools, or additional data tools and platforms.
Asset owners are now at a key inflection point in charting their technology trajectories. To stay on course, it’s always better to take a deliberate, measured approach. It may take a little longer, but persistence pays off.