Understanding ROI: The Real Impact of Data Quality
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The document discusses the findings of a study on the return on investment (ROI) of data quality and market intelligence in the asset management sector. Key insights include that one-third of external market intelligence is underutilized, with significant variation in usage and value among providers. The study emphasizes the importance of a strong culture in converting market intelligence into actionable business intelligence.
Understanding ROI: The Real Impact of Data Quality
- 1. www.nicsa.org | #WebinarWednesday Understanding ROI: The Real Impact of Data Quality November 6, 2019
- 2. www.nicsa.org | #WebinarWednesday Featured Speakers Andrew Guillette Sr. Director - America Insights, Broadridge Financial Solutions, Inc. Jeremy O’Shea Head of Global Sales Analytics, Legg Mason Rebekah Wahba Director, Global Head of Platform Data, BlackRock
- 3. www.nicsa.org | #WebinarWednesday How External Market Intelligence is Converted to Business Intelligence Source: Verge Advisory study “Measuring Return on Business Intelligence”, Broadridge Research and Data External Providers of Market Intelligence Internal Users of Market Intelligence Integration of Firm-Specific Metrics Business Strategy Alignment Sources Wholesales Advisors Broker Dealers Clients Business Intelligence Gatekeeper Power User Procurement Centralized Research Group Decentralized Business Units
- 4. www.nicsa.org | #WebinarWednesday One-third of External Market Intelligence is Underutilized or Wasted Average Market Intelligence Usage Among Asset Managers 34% 66% Source: Verge Advisory study “Measuring Return on Business Intelligence”, Broadridge Underutilize Utilize
- 5. www.nicsa.org | #WebinarWednesday Users Now Working with Smaller Number of External Providers 9.9 4.0 6.0 13.5 2.7 10.8 Total Data Research Past Now Average Number of External Providers Used Now vs. Past Source: Verge Advisory study “Measuring Return on Business Intelligence”, Broadridge
- 6. www.nicsa.org | #WebinarWednesday Users’ Strong Preference for Data Will Continue To Accelerate 0% 0% 33% 56% 11% 7% 0% 11% 59% 22% Very Low Low Moderate High Very High Data Research Value of Research vs. Data Source: Verge Advisory study “Measuring Return on Business Intelligence”, Broadridge
- 7. www.nicsa.org | #WebinarWednesday -40 -20 0 20 40 60 80 100 0 2 4 6 8 10 LOW USAGE/ HIGH VALUE HIGH USAGE / HIGH VALUE LOW USAGE / LOW VALUE HIGH USAGE / LOW VALUE Level of Usage (1-10) Value-NetPromoterScore(NPS) Source: Verge Advisory study “Measuring Return on Business Intelligence”, Broadridge Analyst Note: Visualization represents asset manager with industry average of 10 provider relationships Bubble size represents spending on each provider. Providers falling in the quadrant for low usage and low value represent budget that could be saved or redeployed Savvy Firms Will Measure Usage/Value of External Market Intelligence Providers and Redeploy Capital Return on Business Intelligence (ROBI) Framework “Renew” (grow relationship) “Cancel” (redeploy capital)
- 8. www.nicsa.org | #WebinarWednesday 33% 33% 33% Established: It is our culture and a requirement to convert market intelligence into business intelligence on all projects Developing: We have a developing culture where senior mgt. tries to integrate business intelligence into key decisions Emerging: Individual business strategists drive the need for business intelligence rather than corporate culture or mandate Culture is Evenly Split for Integrating Business Intelligence with Corporate Strategies Market Intelligence Culture at Asset Managers Source: Verge Advisory study “Measuring Return on Business Intelligence”, Broadridge Least Structured Most Structured