SimCorp, the software firm, has issued a paper via integrated investment management consultancy Investit that examines data governance issues.

Entitled, Data governance: key contributor to successful data management strategy, the paper notes that by permeating data governance throughout an organisation, buy-side firms can ensure good quality data at every level and increase profitability.

“Investment management firms are starting to grasp the importance of defining and establishing a governance framework to ensure delivery of a cost-effective, flexible, scalable and sustainable data management solution,” said John Robertshaw, author of the paper and principal within Investit’s operations practice.

“Data governance can be a major contributor to aligning and improving an enterprise-wide dialogue in data,” he said.

Arguing that many firms invest substantially in IT infrastructure systems, the paper explains that few firms adopt the holistic view required to extract value from the data these technology investments are meant to harness, manage and govern.

Marc Schröter, head of strategic research at SimCorp, said: “Ultimately, a well-formulated data governance programme drives transparency for buy-side firms and can be a significant differentiator.”