Mining for Gold

Sean Kelley, the new global Chief Information Officer for Deutsche Asset Management, was interviewed to discuss how he handled the challenge of integrating the information systems his company inherited after several acquisitions. He also discussed how manipulation of this integrated information has assisted his company in gaining an advantage over the competition in their industry. One of the main goals for asset management corporations is to achieve a concept called “alpha,” in which asset managers seek to “make returns beyond the market as a whole” by employing the use of technology.

Data mining techniques allow companies like Deutsche Asset Management to treat the entire Internet (websites and blogs) as a database so they can process the data into information in a timely and efficient manner, and are able to make market moves quickly. They are able to recognize market emotions by filtering through the junk on the Internet and noticing consumer trends, and dominant opinions. Companies use data gathered from external, and oftentimes nontraditional sources, and use input from their own internal data by employing their own customized step-by-step procedures. As the article mentioned, the CIO sometimes becomes chief “ideas” officer when he is called upon to interpret information, make company decisions, and formulate competitive strategy, with the goal of creating an efficient, but simplified business experience.

It is interesting to note that the recently exposed and struggling financial market provides opportunity for Kelley’s company to take on more projects and a greater market share, or provide risk assurance for current market members, since other companies have chosen to flee, or back down, in efforts to protect their current assets. From the same perspective, relationships for outsourcing and information sharing can be created so that all parties involved are better off. It has become increasingly important for companies to use networks, personal relationships, and observations of other industries to manage their industry.

The main goal of information technology is making information more available in a timely and convenient manner so that companies can share discoveries and learn from one another. The single desktop with all forms of communication created by DAM and their partners make it easier for coworkers and associates to solve problems, and in turn better the company so they can hopefully serve clientele better and create profit. Quick communication results in the creation of communities and even more networks so clients can better understand and operate the market to make investments and trades.

Companies can also personalize applications for their clients so they can get exactly what they want from their companies based on the raw data gathered by these integrated information systems. It seems to me that Deutsche Asset Management is at the forefront of creating a whole new way of doing business through manipulating and sharing information despite trouble in the current world economy. I think that this kind of information technology will help financial, banking, and brokerage industries by creating databases to open communication links among investors and brokers for the sharing of graphical and statistical data. Companies can more promptly respond to the requests of their clients.

Source: "Mining for Gold" by Ben Worthen;