The Future of Enterprise Data Management – Part 3: Future-Proofing EDM Strategies 

Investment Technology

The Future of Enterprise Data Management – Part 3: Future-Proofing EDM Strategies 

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04/06/2024

Previously, we examined the past of Enterprise Data Management (EDM) in investment management, followed by a look ahead at future challenges of interoperability, compliance, and integrating unstructured data. 

If you missed the insights and historical perspective we covered in part one, you can revisit it here. You can find part two on the future challenges of EDM here

In part three, we look at how investment managers can future-proof their EDM strategies as they tackle an increasingly data-driven world. 

To stay ahead, firms must not only adapt to today’s challenges but also anticipate future shifts. Several key strategies exist to future-proof an EDM approach, focusing on adaptability, scalability, flexibility, security and privacy — all essential traits for any firm aiming to harness the full potential of its data management capabilities.  

Adaptability  

The first step in future-proofing an EDM system involves ensuring that it is adaptable. Investment management firms must embrace technologies that can quickly integrate new tools and adapt to new processes without significant overhauls. This agility allows firms to respond to market changes and regulatory updates efficiently, minimising disruptions to their operations.  

Considering the integration of AI/ML tools as an example, a robust EDM platform acts as the backbone, ensuring that the systems are not handicapped by poor data quality or data silos, thereby enabling these advanced technologies to perform at their best and deliver real competitive advantages in exception management and automation of previously manual processes. 

Scalability and Flexibility  

A scalable and flexible EDM system is fundamental to any firm looking to grow in the dynamic financial landscape. As firms expand, whether by scaling their operations, entering new markets, or adding new asset classes, their EDM systems must be able to handle increased data volumes and complexities. Scalability ensures that the system can manage growing amounts of data and user demands without performance degradation. 

To achieve this, EDM systems must evolve to become more than just repositories of information; they should act as proactive, analytical engines that inform business strategy and operations in real-time. The future of EDM involves creating an environment where data is not only easily accessible but also translates directly into strategic actions that align with business goals.  

Ultimately, a well-integrated EDM system is critical to a resilient business model that not only withstands future challenges but also thrives on them, turning potential disruptions into opportunities for growth and innovation.  

Security and Privacy 

Vast amounts of financial data make investment management firms a prime target for cyber-attacks; therefore, implementing comprehensive cybersecurity processes is imperative to defending against bad actors. 

EDM systems must, at minimum, support industry-standard encryption and multi-factor authentication. However, to ensure ongoing protection in an increasingly complex threat landscape, they must also be subject to regular security audits of both systems and staff to identify and address potential weaknesses. 

In an era where privacy is also increasingly valued, choosing a system that adopts a “privacy by design” approach to its data collection, use, retention, and disposal, again with regular privacy audits and impact assessments, is vital to future-proofing against regulatory shifts and evolving client expectations. 

Navigating the Future with FINBOURNE’s EDM+  

  • A more interconnected, intelligent, and insightful financial world.  

FINBOURNE’s EDM+ solution is uniquely designed to enhance decision-making and operational efficiency, supporting real-time data ingestion and management. With its ability to integrate seamlessly into existing technologies and support complex asset structures, EDM+ ensures that your investment management firm is equipped to face the future, optimising every aspect of data handling.  

Read more:  

A Brief History Of Enterprise Data Management – Part 1: The Data Deluge 

The Future of Enterprise Data Management – Part 2: Data-Driven

Interested to learn more? Speak to one of our experts today by clicking here.

Finbourne Logo

FINBOURNE

04/06/2024

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