Finance and control
Data is the lifeblood of any organisation as it flows through trading, modelling, reporting, valuation, risk management and settlement. Data is critical and it’s expensive and all too often management finds itself weighed down with either the technical delivery or burdensome administration, prohibiting them from performing a continuous 360 degree evaluation of systems, services and liabilities.
Our approach is not about just about costs
Information represents a significant cost base to your organisation. Without active management of spend, the costs can spiral out of control. These costs may occur due to increased service use during busy periods, acquisitions, mergers or reorganisations, new products and services being introduced or changes to existing services or technology shifts, new licensing rules and regulations. All these factors result in accumulated costs/services needing to be constantly reviewed and managed..
A reduction in base line spend without analysis of users or business needs can deliver short term savings, however, experience shows that this action does not result in sustainable cost reductions. Managing market data is more than just about cutting costs, The Spearhead philosophy is to leverage their market data intelligence and experience to ensure:
- Baseline spend is minimised on a sustainable basis for all business units without compromising business effectiveness;
- Users have access to the best possible information services;
- Support and guidance to strengthen and develop in-house capability to manage market data spend globally, with robust procedures, clear responsibilities and advanced reporting tools.
Costs tend to rise for a variety of reasons ranging from duplicate live exchange information, non-utilisation of delayed data, non-utilisation of scalable packages from vendors, poor utilisation of permissioning systems and incorrect information solutions such as thin client products. Over allocation or use of incorrect information services can result is data cholesterol – resulting in over subscription to the information services and costs.
The Spearhead Process
The first step to success in any information cost rationalisation project is to know what you have, where the information goes and what you are paying for it.
The next step is to seek to understand the use of the data by the end consumer. What gives Spearhead the edge is that our analysts/project managers have all been consumers of market data – from stockbroking to treasury. The best analysts are the people who use the data.
We next evaluate the technology you are using and deliver a number of recommendations to provide the best solution for your needs. Finally, Vendor Management is the process to get the best value from your vendors by such things as coordinating global spend or applying our Benchmarking technology.
BUSINESS PROCESS RE-ENGINEERING
Most information spend data is tracked on spreadsheets and adhoc databases. The first process to managing your data spend is to accurately track costs, all liabilities and provide detailed and transparent cost allocation information and reports to all business units,. Spearhead utilise custom spearhp hosted application, the market leading administration system for information costs to support these processes.
Once controls are in situ, organisations are able to accurately manage costs, reconcile invoices and establish procurement procedures swiftly and efficiently.
Managing demand is about analysing the use of data within your enterprise. Only after independent analysis can you truly establish your information needs. We understand that user, buyer and organisation behaviour are all barriers to change. By utilising outside, independent expertise, you can help eliminate these barriers to change.
Technology and Technology delivery
The choice of technology used to deliver your market data will have a significant effect on your market data costs. We are able to offer you expertise that helps choose the best technology to fit your business and user needs. In-house deliveries include Global leading Platform Modularised Software, multi asset, promoting your independence and Global leading Proxy and Non proxy for analysing and monitoring reference and static data.
Vendor management is about achieving the most suitable terms for your business. As an example this may take the form of coordinating your global spend to providing forecasting scenarios for your business units.
Governance and Compliance
The need for Governance and Compliance – the fear of audits and the avoidance of heavy fines, is of great concern within the marketplace today. Putting processes in place and understanding the parameters of derived data/non-display/distribution/data downloads etc can result in significant, unexpected and unbudgeted costs being incurred. Spearhead works with businesses to help identify liabilities and weaknesses and assist in delivering robust and cost effective compliant solutions and processes.
What can you expect from Spearhead Professional Services? Typical results after providing our expert advice to clients results in a 15% to 30% reduction in baseline information spend (without compromise to business effectiveness). Our clients are also equipped to sustain the information optimisation and savings on an ongoing basis.