Only a Third of Investment Organizations Have Advanced Data Infrastructure in Place Despite it being a Top Priority, Accordin...
March 17 2015 - 6:00AM
Business Wire
Institutional Investors’ Expansion into New Asset Classes and
Markets is Driving Need for Data Dexterity
A new global survey commissioned by State Street (NYSE: STT) of
400 senior executives at investment organizations reveals that
while 81 percent view data and analytics as one of their top
strategic priorities, only 37 percent have advanced data
infrastructure, expertise and high quality governance in place.
The survey, titled “The Innovator’s Journey: Pathways to Data
Dexterity” identifies three groups of organizations at different
points of progress: Data Starters, who are just beginning their
journey, Data Movers, who are making strides and Data Innovators,
who are uncovering the real value of advanced infrastructure,
expertise and high-quality governance.
“Effectively managing data is no longer optional, whether it’s
big, fast or smart,” said Jeff Conway, executive vice president and
head of State Street Global Exchange. “The opportunity to bring
real value to data and analytics lies in plotting your exact point
on the path to innovation. Organizations plagued by legacy systems,
a lack of talent and weak data governance will miss the opportunity
to extract investable insights from data without a clear
vision.”
From Paralysis to Performance – Starters, Movers and
Innovators
The survey found that for Data Starters, legacy IT issues and
compliance pose major barriers to progress and outdated systems are
making it difficult to get the full value of their data. Meanwhile,
Data Movers are increasing their investments more rapidly by
replacing legacy systems with new data architecture and applying
tools for analyzing investment risks and performance of individual
asset classes. However, despite being the group most concerned
about regulation, only 20 percent plan to significantly increase
their spending on compliance and reporting capabilities.
On the other end of the spectrum, Data Innovators recognize the
value of data and analytics and are confident in the competitive
advantage it brings. Innovators prize data quality and integrity
and set high standards for data governance and security that are
entrenched throughout the business. Additionally, they are acutely
aware of the importance of insight generation and using advanced
tools and techniques which enable them to conduct performance and
risk analysis across investment portfolios, including alternative
asset classes.
The survey found that:
- Nearly half (49 percent) of Innovators
see data and analytics as their single most strategic
priority;
- Thirty-eight percent have increased
investment in data by more than 10 percent each year and are seeing
a return on their investment;
- Forty-four percent strongly agree that
their investment in data and analytics is a source of competitive
advantage, compared with only 15 percent of Movers and 5 percent of
Starters.
“Staying ahead in a fast-changing market will be as much about
cultural change as about adopting new technology,” continued
Conway. “Data Innovators who prize data as a strategic asset are
investing in it, protecting it and getting value from it at every
level of their organization. Regardless of being a Mover, Starter
or Innovator, investment organizations need to focus on getting to
the point with their data capabilities and building strong
foundations — so they can gain a competitive edge in the high-tech
investment model of the future.”
For the full report, please click here.
Join the conversation with State Street on Twitter to map out
what will be the #NextBigIdea for data, analytics and the future of
finance.
About State Street
State Street Corporation (NYSE: STT) is one of the world's
leading provider of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $28.19 trillion in assets
under custody and administration and $2.45 trillion* in assets
under management as of December 31, 2014, State Street operates in
more than 100 geographic markets worldwide, including the US,
Canada, Europe, the Middle East and Asia. For more information,
visit State Street’s web site at www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold
ETF (approximately $27.3 billion as of December 31, 2014), for
which State Street Global Markets, LLC, an affiliate of SSgA,
serves as the distribution agent.
CORP-1316
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State Street CorporationAnne McNally,
617-664-8576AEMcnally@StateStreet.com@StateStreet
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