Investment Firm of the Future: Operating Model Shifts
This research takes a structured approach to analyzing the future by identifying investment firm shifts that the industry may need to accomplish collective goals.
Investment Firm Shifts
Use every tool to differentiate the operating model
Insourcing and buy-or-build decisions are critical to the value chain and use of technology.
Decisions on strategic partnerships and choice of technology and the quality of their execution will increasingly differentiate operating models.
The investment firm of the future will:
Understand comparative advantages to strengthen strategy
All parts of the investment firm’s value chain can be managed with internal or external intellectual property. The trick is knowing your comparative advantages and getting the mix right.
Be comfortable with technology
It is hard to be positive about investment firms that fail to benefit significantly from technology. They will surely be operating with an unduly costly infrastructure, given that technology has the potential to transform the value chain.
Make data strategy a comparative edge
IT and data strategy must work with agile and adaptive features implemented by well-informed but non-IT-specialized leadership. The new IT imperative is fully integrating data strategy into all levels of the business.
Exploit investment platforms to build scale
Investment firms should be able to use investment platforms to exploit the opportunities from building scale and addressing client needs. In particular, technology enables platforms to scale their customization models within appropriate cost limits.