The role of Business Intelligence (BI) in asset management distribution, and analytics teams more broadly, has undergone rapid development and transformation in recent years. As data became more widely available and increasingly central to decision-making, firms faced the challenge of integrating BI effectively into their distribution strategies. While many firms have made strides, the journey from IT-driven BI to a fully embedded sales and marketing enablement function continues to be a challenge for some firms.
Years ago, as firms began to tap into the increasing amount of data available to them from ever-expanding sources, the main challenge was delivering and ingesting data and building those capabilities. As such, and perhaps logically at the time, that responsibility often landed on IT teams; they were responsible for receiving, processing and storing third-party data. Since these teams had the infrastructure and technical expertise to manage data, extracting insights for business intelligence often fell on them as well. Sometimes, the role would be passed on to the operations team, depending on company structure.
Under this arrangement, distribution teams (primarily sales and marketing) would request insights from IT, often leading to inefficiencies as the two teams鈥� goals and functions were not aligned. There would often be an inherent lack of contextual understanding of what was needed and in what format it was to be delivered and when. The resulting friction meant that the utility of this data was often greatly diminished and that there was a loss of efficiency as the groups tried to work together.
As data became more robust and distribution teams increasingly recognized it as a critical component of strategy and execution, the inefficiency of having the BI function sit under IT or a back-office team became more apparent. An added layer at this phase was the increasing need to integrate data from multiple sources including, but not limited to, internal data, distributor data packs, third-party data providers and publicly available information. This further highlighted the need to have a BI team that understood the data and its uses鈥攂oth current and potential.
In response, firms began shifting the role out, with many positioning it as a standalone team reporting to the Chief Operating Officer or Chief of Staff. While this was a step forward, it still did not fully address the issue of misalignment. BI teams remained disconnected from the sales and marketing organization, limiting the team鈥檚 ability to effectively use the data in a timely, efficient manner.
Over time, or perhaps skipping the interim step altogether, many firms took a different approach鈥攅mbedding BI directly into the sales and marketing organization as an enablement function reporting to distribution leadership. This structure allowed the BI function to work closely alongside both teams, aligning their insights with business objectives and strategies while receiving real-time feedback on outcomes and challenges. Rather than acting as a separate entity providing periodic or ad-hoc reports, BI became an active participant in shaping distribution strategies through real-time data analysis and refinement.
While this migration of BI structure and function has proven beneficial, it often comes with challenges. The transition requires significant internal restructuring, both in terms of staff and infrastructure. Legacy systems often must be overhauled to ensure integrity and functionality. Additionally, firms must navigate cultural changes as team members adjust to new working relationships and responsibilities.
Another pain point has been managing talent. The skill sets required for a sales enablement BI role have evolved with the increasing complexity of data and use cases. While technical expertise in data management and analytics is crucial, team members鈥攁s part of the distribution organization鈥攎ust also possess an understanding of how the business operates. They need to be familiar with various topics:
- Sales cycles
- Client segmentation
- Territory dynamics
- Performance management
- Market trends
- Product strategy
- Customer journeys
Finding professionals who possess the right skill set is not an easy task. Many firms struggle to recruit and retain such talent, leading to gaps in execution. Some address this by upskilling existing members, but this also takes time and investment. As a result, firms that have successfully made the transition have often done so through a combination of strategic hiring and developing internal resources.
Despite these challenges, firms that have embedded the BI function within the distribution organization have seen significant benefits. Their teams are better positioned to respond to market needs in a fast-paced environment as they shift from a reactive to a proactive approach. This agility is crucial in an ever-changing sales environment where timely and robust decision-making can impact market positioning and competitiveness. Additionally, these integrated teams foster better collaboration between their members, creating a healthier work culture across the firm.
The evolution of the role of data within asset management distribution is ongoing. Asset management distribution must remain adaptable, ensuring that their data capabilities, both human and infrastructure, continue to meet their needs and are aligned with their business goals.
SS&C鈥檚 Distribution Solutions team works with all these groups to help our asset management clients shape their data-driven distribution strategy and execute on insights and opportunities. To learn more about how we can help your firm, read about our offerings and explore our research.
