All asset management firms are aware of the need for improved data quality, timeliness and strong data governance. With a growing number of stakeholders within the firm and beyond, data management has many drivers that include legislation, operational efficiency, cost control and business agility.
The RIMES Managed Data Services (RIMES MDS) are designed to offer a transformational operating platform that eases the data management burden and delivers strategic benefits. Market feedback confirms that our services help firms reduce overall data management costs (including visible and hidden costs), increase business agility and overall responsiveness.
As a fully managed service, RIMES MDS requires minimal capital outlay and helps align data consumption with business success. RIMES clients achieve improved productivity and enjoy both quantifiable and qualitative benefits. Although the latter may be hard to measure, they still have a positive impact on the business and will generate quantitative benefits in the long term. RIMES clients frequently report the following benefits:
- Improved productivity/operational efficiency
- IT resource savings with improved data feed and delivery maintenance
- Improved ability to scale without additional headcount
- Faster time to market
- Reduction in third-party legacy vendor fees
- Improved data quality and accuracy
- Increased agility and responsiveness
- Better risk management and risk mitigation
- Access to expertise
Many clients and prospects are aware of the benefits of a managed data service, but building a compelling business case can be a daunting and time-consuming task. However, firms need to understand the potential economic benefits of any course of action before committing to any strategic investment.
To gain a deeper, impartial understanding of the potential return on investment (ROI) of RIMES MDS, we commissioned Forrester Consulting to conduct a Total Economic ImpactTM study.
The Forrester study produced a framework that enables an organization to calculate the quantifiable benefits, costs and risks associated with implementing and using RIMES MDS as opposed to existing solutions, based on an organization’s own circumstances and profile. In this way, an asset management firm can systematically compare a pre-RIMES scenario with a post-RIMES scenario to demonstrate the sustainable business case that supports investment in RIMES MDS.
To ensure that the methodology was firmly rooted in reality, Forrester interviewed several RIMES clients to understand how and why RIMES MDS were used and how this use reflected overall business strategy. Forrester then designed a composite organization that reflected the characteristics of the interviewed organizations. This facilitated the creation of a robust financial model that could be populated with cost and benefit data obtained from the interviews.
Forrester TEI modeling assessed RIMES MDS on four criteria: benefits, costs, flexibility and risks. The methodology provides a complete picture of the total economic impact of purchase decisions.
A composite company case study
Following the interviews, Forrester synthesized a composite organization with the following characteristics:
- A privately held investment management firm and with a presence in over 25 countries
- $550 billion in assets under management
- 5,000 employees
- A RIMES customer for three years
Prior to implementing RIMES MDS, the composite organization was sourcing vendor data from several disparate sources that included legacy data solutions as well as specific vendor feeds. This data fed multiple applications as well as a main data warehouse and some minor data warehouses. The composite organization chose the RIMES Benchmark Data Service® to improve data quality, minimize risk, improve performance measurement reporting, and to boost overall operating efficiency.
The results of the Forrester study are very encouraging and present a strong case for investing in RIMES MDS. The case study on the composite organization points to benefits of $4.8M over three years versus implementation costs of $1,17M, adding up to a net present value (NPV) $3,6M and a 2.9 month payback period.
By using RIMES MDS, performance analysts were able to improve their productivity by up to 20% and the composite organization enjoyed additional savings in terms of productivity gains, cost avoidance of additional headcount, data delivery cost reductions and savings on legacy vendor services fees.
We believe the above figures are both impressive and realistic. Many RIMES clients have achieved a step-change improvement in overall performance as a result of our services. We are confident that RIMES MDS can help transform your data management operations and we would like to help you measure the potential ROI for your own organization.
- The FTSE Russell ICB Reclassification is Coming. Are You Ready?
- 2020 and Buy-Side Compliance: A Year of Awakening and Investment
- ETF answers from our experts
- RIMES Launches Unique Index Identifier to Give Investment Management Firms the Data Insights They’ve been Unable to Access Until Now
- Data Supply Chain Optimization Within Investment Management