The business value of data has never been greater than it is today. Data is now an essential part of the core operating procedures and a central element in any business model. Data is being used all around us, improving how we work, live, learn and play. Making the most of it means that businesses can easily extract innovative business ideas and customer insights to make product and operations data-driven decisions.
A report by the World Economic Forum (WEF) notes that companies using big data analytics have experienced a 26% improvement in performance and a 21% increase in global corporate profits – just by harvesting big data for smarter decision-making. Investment portfolio management now benefits greatly from this trend, enabling businesses and individuals to align their financial strategies with real-time insights. By harnessing their data, companies gain a significant competitive advantage.
If you’re a business that has data but doesn’t know where to begin or how to use it, you’re not alone. While implementation details may vary across industries, research by the WEF shows that by focusing on four key areas, companies can extract value from big data analytics and improve long-term investment returns.
Anchor to strategy
The starting point should always be a strategy—not the data itself. A good data strategy is not about what data is readily or potentially available; it’s about what your business wants to achieve and how data can help you get there. In the context of wealth management planning, this means identifying specific goals—whether maximizing returns or reducing risk—and then using relevant data to support these outcomes. To get started, define key challenges and business-critical questions, and identify the necessary data to collect and analyze. This is how investment portfolio management becomes more aligned with your strategic objectives.
Doing due diligence
Even though technology plays a central role in big data analytics, companies should take a pragmatic approach when sourcing new tools. Conduct thorough research to determine which options best fit your needs and how much value can be extracted from current or legacy systems. This approach minimizes capital expenditure and maximizes return on investment – principles that are also essential to effective investment portfolio management.
Harness the data
Having data doesn’t mean it’s usable. You may have “dirty” data—unstructured, messy, and in need of cleaning. The next step is ensuring your team can go beyond dashboards and actually model the data to uncover insights. To address this, some companies:
- Develop internal capabilities via a center of excellence
- Encourage skill development across business units
- Demonstrate effectiveness through pilot programs and quick wins
- Use credible champions to support transformation
- Show how data improves individual performance
For example, financial institutions focused on wealth management planning often start with small-scale data initiatives that evolve into enterprise-wide transformation.
Champion the change
The final step is transferring knowledge from analysts to front-line staff. Supporting employees through the transition is essential, though often challenging. Change is frequently met with resistance. To improve adoption:
- Use pilot wins to build momentum
- Employ trusted change advocates
- Align training with business goals
Too often, businesses focus solely on the tech tools without clearly identifying the problems or opportunities to address, leading to limited ROI. But when data strategies are tied to financial objectives such as long-term investment returns, the impact is clearer, and the value becomes measurable.
Ready to make smarter, data-driven financial decisions? Partner with our experts for personalized investment portfolio management and strategic wealth management planning.
