The Path to True EDM

Rob Brachowski, Reference Data Product Manager

Enterprise Data Management (EDM) is currently used to refer to a spectrum of solutions, ranging from ETL (extract, transform, load) systems along with basic data quality components, through to truly enterprise-wide solutions for managing and delivering all funds’ investment management data.

ETL is vitally important and often complex to achieve, coordinating data across multiple systems to ensure consistency and accuracy, but it is not accurate to define it as EDM. It is really just simplistic view of reference data management.

True EDM enables the user to identify and explore the impact of the data being used. This ‘deeper data impact’ helps fund managers to ensure that the data is fit for purpose before it is used and to understand how using – or not using – the data will affect the end result or client.

The advantages of a wider approach to EDM are numerous and provide real business intelligence from which to make decisions. For example, pricing users want to know how a security price is going to impact a fund before the fund calculates its daily market value. Additionally, clients increasingly want to be able to understand what other events are impacted by the introduction of data beyond the immediately obvious and intended consequences.

Furthermore, a fund manager may want to see what their exposure is in a specific area. They are ultimately interested in how that exposure impacts their overall position. True EDM should provide you with both answers.

An EDM solution should also enable improved reporting functionality and business intelligence. By depicting data in forms and containers, detailed analytical insight will be available quickly, enabling users to reveal emerging opportunities – and risks – at any time and anywhere through mobile technologies.

The core of a true EDM solution is a data model designed specifically to support investment management business activities. The best EDM solutions offer this model as part of a platform that will deliver on current needs and are flexible enough to meet future business demands without software or model changes.

Increasingly more clients are leveraging Eagle’s enterprise-wide data management solution and realizing the benefit of clean and validated data that can be used through the entire investment management process. Today’s investors are very savvy; they want to work with managers they trust and increasingly they require more information, more quickly. Investment managers with a comprehensive EDM strategy and practice will continue to prosper not just because of ROI and improved decision-making, but also because of their ability to communicate and inform their client base.

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