A failure to grasp how data is used across the business is one of the most common barriers facing large enterprises today, according to a new whitepaper published by GoldenSource.
The paper, which explores what causes firms to mismanage entity data, also cites breakdowns in internal communication and increasing regulatory demands as major barriers. Not knowing why successive projects can exacerbate this issue through their impact on data landscapes or how to handle new ideas from the business about how to handle client data correctly, are other key challenges highlighted. A common problem many organisations wrestle with is different internal views on the best internal architecture or third party vendor systems to adopt in order to manage their data.
Tom Stock, Head of the Product Management function at GoldenSource said: “Financial institutions that can’t clear their own internal quagmires can’t stay ahead of regulatory requirements and meet the demands for cost efficiencies and new business opportunities. Unfortunately, disparate data management systems continue to be an inherent factor within organisations that can only focus on solving immediate problems.”
FinReg consultant Jonathan Poole, who authored the GoldenSource whitepaper, added: “Large businesses that consistently fail to manage entity data unnecessarily incur operational headaches and miss opportunities to gain competitive advantage. C-level execs know poor entity data management leads to negative customer reactions, increased costs and regulatory reporting errors, but can’t break free of their own complex processes and fragmented internal operations.”