The numbers tell their own story: a 309% return on investment (ROI), with a project payback of under three months and net savings of $3.6 million.
If you’re like most asset managers, getting the necessary market and reference data to run your business is an expensive, and frequently troublesome operation. But what if a data management project could alleviate the hassles and offer these sorts of savings?
Forrester interviewed and analyzed a number of existing MDS customers for the study. It then used their experiences to create a composite company (Organization A) to see how a “typical” firm would fare.
The results are striking, with the composite organization seeing total savings of more than $4.8 million over three years from:
- IT resource cost savings – Increased operational efficiency due to improved benchmark data sourcing, and data feed and delivery maintenance allowed Organization A to save IT resources equivalent to two full-time employees.
- Improved operational productivity – Data operations teams’ productivity rose as much as 20% by spending less time on data validation and remediation.
- Greater scalability – Organization A was able to support new product offerings with the efficiencies brought by RIMES MDS, especially in the areas of fixed income and market events. RIMES MDS also helped add new indices, and implement custom benchmarks and blended indices, saving project management time and the need to hire additional business analysts.
- Front-office productivity – RIMES MDS accelerated data timeliness and accuracy for key processes, saving 22 portfolio managers in the organization an hour a day, or 260 hours per year.
- Vendor fee reductions – With RIMES MDS providing index and constituent-level benchmarks, Organization A was able to slash its legacy vendor service fees and reduce data delivery costs.
By contrast, the cost for the composite organization of switching to RIMES MDS was less than $1.2 million over the three years, which included all the initial planning, implementation and ongoing maintenance:
- RIMES MDS fees for three years.
- Professional services fees for RIMES to build the data history as part of the initial deployment.
- Internal labor costs during the implementation.
- Annual administrative cost to manage the RIMES relationship and ongoing requirements.
The net result – data management savings of over $3.6 million.