Implementing the proper data governance framework is a crucial first step that organizations must take if they want to make effective use of semantic data technology, market expert David Saul stated at a recent event.
Saul, who serves as the chief scientist and senior vice president of a major financial services institution, told attendants at the North American Trading Architecture Summit that while he supports semantic technology, companies that adopt it need to do more to create the right data management framework, according to Sell-Side Technology.
Benefits of semantic technology
Semantic data can provide benefits to organizations such as buy-side financial institutions since users can harness it to describe not only structured data, but also information that is either semi-structured or unstructured, the media outlet reported.
In addition, companies can leverage semantic technology to more effectively use the information they have at their disposal, since this type of technology has the objective of providing some meaning for the relevant information.
For example, a relational database might simply indicate that a specific company is a client of a buy-side financial institution. However, semantic technology could potentially specify that the customer of the buy-side firm is also partnered with other organizations that could be prospects.
Key importance of data governance
In order to make use of this particular technology, Saul stated that companies need to create an enterprise-wide set of policies and procedures for their key information, and that this framework needs to create methods for both the definition and discovery of data, Sell-Side Technology reported. In order to effectively harness semantic technology, companies must know where their crucial data exists, and how to harness it.
After companies perform this step, the market expert advised that they take some time to get a lay of the land in terms of what regulatory requirements exist now and also in the future, according to the news source. Firms need to know what tasks they will need to perform in terms of gathering the data, holding and then reporting it to the proper authorities.
Challenges in creating optimal frameworks
While the suggestion of the market expert may sound quite sensible, buy-side financial institutions must keep in mind the current state of the regulatory landscape. The environment is complex, but this situation could become more troublesome as time goes on.
Market participants are currently coping with the results of lawmakers and regulators enacting various regimes. In addition, industry groups and legislators have been launching challenges against these major reforms.