As the industry has grown in complexity, managing data licenses has increasingly required highly specialized experience that few investment managers and other buyers of data can reasonably be expected to maintain in house.
Internally, procurement teams may be able to negotiate a contract but lack the appropriate industry depth to make meaningful judgements on vendors, data or technology required. Likewise, IT teams may have technical knowhow to implement, but lack the tools and knowledge to create appropriate frameworks for managing risk.
And when seeking outside help, traditional data consulting firms focus primarily on just cost and often lack the skills, experience and industry knowledge to properly assess the appropriateness of a data license.
Buyers of data now have a completely new set of questions they need answered, such as:
Do you have guardrails in place to manage and monitor the use of data licenses?
Are you accessing the most valuable data in the most efficient and cost-effective way?
How are you monitoring and tracking changes to commercial policies?
Do you have a framework in place to ensure your team will pass a vendor audit or usage assessment without penalty?
Do you have a strong re-negotiation strategy as contracts come up for renewal?
Do you have any meaningful data quality or service metrics for evaluating vendors or your program?
Investment Data Licensing Advisors formed to provide asset managers with a comprehensive, integrated data solutions program that enhances usage risk management and reduces cost while optimizing data and reporting.
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