About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

No ‘One Size Fits All’ Maturity Level for Data Management Projects, Says LakeFrontData

Subscribe to our newsletter

There is no ‘one size fits all’ maturity level for data management projects and firms must consider factors including size, focus, core expertise, business requirements and constraints before embarking on such a projects, according to the latest white paper from LakeFrontData. Different capability levels are therefore appropriate for different business requirements and firms must be careful not to overreach themselves in these endeavours.

The white paper, Understanding and Optimising your Firm’s Data Management Capabilities Using Maturity Models, also introduces the vendor’s own data management capability maturity model. The vendor claims this model has been designed to quantify the capabilities and readiness of firms to successfully implement, integrate and operate their data management systems with consuming business applications.

Firms can use these models to benchmark their current capabilities and identify, prioritise and address shortcomings that are evident in their data management practices, says LakeFrontData. Its own model can be used to provide gap analysis in this way and it has seven capability areas and five stages of maturity for each of these capabilities, claims the vendor. The seven capability areas comprise: governance and organisation; policy and stewardship; business engagement process; data content and coverage; data quality management; technology solution and architecture; and operations.

“Our recommended approach would be to initially identify and assess your business priorities and primary pain points when it comes to data. At all stages of maturity, this effort requires and benefits from a collaborative investigation/effort among key stakeholders including business, IT and operations,” says the white paper.

The vendor cautions that enhancements in technology alone will not solve problems: “without the efforts around data stewardship, data workflow capabilities and governance, the longer term goals are unlikely to be met”, it elaborates. The sophistication level of the technology is often over-egged, according to LakeFrontData. It claims that firms can often select a less sophisticated platform than they have chosen to meet their research requirements and thus spend less on this area.

“In most cases, research’s instrument universe and content requirements are large; but the solution typically does not need to handle such things as matching multiple feeds, complex data cleansing rules and strict entitlement controls,” the vendor explains.

LakeFrontData identifies data quality as a much more difficult area to tackle with regards to these projects than technology. There are no vendors out there that offer to tackle every issue with regards to bad data, after all, says the vendor. This is where the tracking of metrics using a data management capability maturity model comes into play, it says: “It allows you to initially gauge your maturity, take corrective action and track your improvements over time.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Unpacking Stablecoin Challenges for Financial Institutions

The stablecoin market is experiencing unprecedented growth, driven by emerging regulatory clarity, technological maturity, and rising global demand for a faster, more secure financial infrastructure. But with opportunity comes complexity, and a host of challenges that financial institutions need to address before they can unlock the promise of a more streamlined financial transaction ecosystem. These...

BLOG

Data Should be Regarded as a Strategic Asset: Webinar Preview

The growing acceptance of data as an enterprise-wide necessity is gaining ground, especially within capital markets, where rapid changes in the global economy and increasing pressure on bottom lines is prompting a rethink of business models. The need for greater data and product delivery speeds, the demand for more efficient workflows to reduce costs and...

EVENT

Buy AND Build: The Future of Capital Markets Technology

Buy AND Build: The Future of Capital Markets Technology London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Managing Valuations Data for Optimal Risk Management

The US corporate actions market has long been characterised as paper-based and manually intensive, but it seems that much progress is being made of late to tackle the lack of automation due to the introduction of four little letters: XBRL. According to a survey by the American Institute of Certified Public Accountants (AICPA) and standards...