Data as a Service (DaaS) – The Benefits
Let’s start with a succinct summary of the benefits of DaaS.
Data as a Service (DaaS) is one way to consistently deliver and effectively manage data from multiple sources across the firm, both internal and external. It can be used as one “logical” and centralized, authoritative (golden) source for critical data used across the organization.
It is an efficient way to deliver data that can also improve speed to market on requests for new and additional data, either from internal parties or regulators or substitute sources.
DaaS can thus be used effectively to achieve the following:
- Reduce the cost of supplying non-proprietary external data needed across the firm
- Quickly deliver internal, proprietary data to groups that need to share data
- Deliver a single view of the data across Finance, Risk and the Business to meet business and regulatory demands
- Provide a 360-degree view of clients for firms with complex client relationships and service organizations
- Deliver a definitive record of a firm’s products across the organization
At the same time, the quality of the data can be monitored and reported centrally, along with federated (decentralized) data ownership. This allows ‘data owners’ to be responsible for defining and maintaining the data that they generate and know best, allowing others to ‘share it’. Examples include definitions of a firm’s products by the marketing groups or analytic calculations, such as Risk-Weighted Assets or capital calculations from Finance and Risk groups. Transparency of the data is increased and reuse of data is facilitated.
Critically, the quality of data can be significantly improved when DaaS is implemented within a firm. Central data monitoring, access and updating by the Sources of Record makes sure the data is sourced from the owners on a timely basis. Sharing of data and reuse, with multiple eyes on the same data, allows for quick resolution of errors and can save companies potential embarrassment.
All of this leads to three key benefits for firms:
- Agility: Firms become more agile as they can quickly implement changes and roll out new data because of the unified data models, transparency, and simplicity of the process.
- Flexibility and Cost Efficiency: New applications and necessary regression testing – which verifies that software previously developed still performs the same way after it’s been interfaced with other software – is easier as definitions, structures and data models are already known and often enhanced and extended.
- Transparency: Firms utilize unified data models, definitions, metadata, tools, and support. They can leverage the specific experience of data owners and providers to access data closer to the source and increase transparency and benefit from enhancements.
All of the above seems so logical, so sensible. And it is. As we’ve seen, however, it’s not the logic behind the DaaS process which trips people up; it’s mastering the practical implementation of the process.
In the next blog, we offer a check list of things to consider when you’re developing a DaaS solution for your firm.
Dessa Glasser is a Principal with the Financial Risk Group, who assists Virtual Clarity, Ltd. on data solutions as an Associate.
For more information on Financial Risk Group, click here.