Even the largest family fund owners are unable to manage the data overload and make its apt use in making optimal investment decisions… Decisions that could mitigate risks and enhance earning potential!
A recent research by Ashby Monk of Stanford University (Global Project Center) and Daniel Nadler and Dane Rook of the Kensho Technologies throws insight into how endowments, sovereign wealth funds and some of the biggest pensions handle data.
Their research indicates that even big funds find managing data appropriately a great challenge and this keeps them from effective and efficient use of data and deprives them of reaping long term performance, profits and innovation. It’s an irony that plethora of business intelligence information is available online, but most big investors are yet to utilize these intelligent inputs and use them for the benefit of their family fund or organization.
Monk, Nadler and Rook opined that unfortunately none of the large investors felt that they were undermining the data inputs or they could have done better with intelligent insights from the data. They fail to decipher the importance of data and that the quality of data delivered by their systems, processes or social media platform is inappropriate, weak or inaccurate and therefore unable to deliver the results it should.
The direct outcome of the inaccurate data is that it leads to wrong decision making. Often it results in delayed decision making and as a result these investors lose confidence in data as a useful tool in achieving optimal yields.
As such, this gives rise to a vicious circle, wherein their decisions became progressively inaccurate and would further keep them away from using intelligent data in decision making.
Now, this leaves them with 2 options:
1. They hire the services of investment managers to manage their funds (who may or may not be using the power of data for endowment funds) and incur additional expenses
2. Go to a reliable Big Data company that specializes in Endowment funds.
The advantage of using services of Big Data Analytics specializing in Endowment Funds is the investors can get highly accurate, deep psychographic insights about the funds, the way it is being managed, trends, global updates and more and use these intelligent insights to arrive at business decisions.
It should be understood that here, the decision making still rests with the investors. With the data driven inputs, they are now able to cash on the big opportunities that otherwise remained hidden from them. Risk mitigation is another area where the data insights can help the investors.
The investors can make better, informed decisions knowing exactly the nature of risk. In fact, the data throws light on the risk factors that were largely unknown or ignored in the traditional investment decision making…
To put it in nutshell, getting real time actionable intelligent data is the key to success for investors. It is about time that the COO and CEOs that a step forward to leverage the power of data into decision making.