Companies can harness many different strategies to ensure that they get as much as possible out of their existing data-driven applications, Brian Ascher, partner for a leading venture capital firm, wrote in a recent Forbes opinion piece.
Buy-side financial institutions might be able to employ this advice as they seek to harness large troves of information, which can help organizations make more informed decisions and gain a competitive advantage. It is important to keep in mind that while big data has generated significant visibility lately, many businesses need to focus on how they can make practical use of all this information.
Focusing on finding solutions
Ascher noted this trend in the piece, stating that many companies are more focused on using big data to find solutions to their problems than emphasizing how much information they have at their fingertips. The market expert noted that smart companies think of big data is simply being a tool that they can use to solve business challenges.
Firms on the buy-side, including asset managers and hedge funds, should keep in mind that they can leverage the increasing amounts of available information to address many different problems. For example, they might want to harness their data to explore more effective risk management strategies.
Firms can derive many benefits from their data
Alternatively, they might want to utilize their key data to get better insight into their customer base. In addition, buy-side financial institutions could potentially use available information and data-driven software to enhance business development by scrutinizing prospects.
By gathering significant information on these potential customers, financial firms can potentially ensure that they are catering to their prospects in a better informed manner.
Harness less-visible metrics
The market expert noted that companies can potentially obtain a competitive advantage by analyzing statistics that are not heavily used by other firms. Ascher noted that firms frequently rely on similar metrics to enable their business development activities. For example, they might make an attempt to link the information associated with downloading white papers to making a sale.
The firm might look into the title of the person who accessed this resource, as well as how much time they spent looking at different documents on a company website. While this could certainly be helpful, Ascher noted the value that exists when companies get more creative in the metrics they use.
Buy-side financial institutions that want to make their business development more sophisticated can potentially get a leg up on their competition by looking at metrics that are not widely used.