There you’re going to start driving out transparency and
liquidity and increasing concentration risk. That’s a
concern some people have.
Consulting: How is Sapient advising clients to stay compliant with these new regulations?
Register: Compliance really has been largely a data
management exercise. There are things you can do to be
smarter if you have strong data management and can put
your fingers on all the different pieces of data flying
around these huge, complex often siloed institutions. If
you went to a large investment bank and said show me
all your oil risk, that may not be an easy thing for them
to do because they probably have a commodity trading
unit, but also a project finance group, and probably some
ETFs or Indexes they’re monitoring with oil in them.
Those are all different operating divisions that don’t
speak to each other well given their current infrastructure, they never needed to do it before but now they
have to. And the equity guys never really thought about
how to communicate with the commodities guys so
they can get an enterprise view of all these risks. They
really have to kick it in gear from a data management
side and get smart about how they move data around so
they can aggregate it and slice it and dice it.
Consulting: How can managing data more effectively
help institutions tighten their belts?
Register: I think if you look at what these institutions
do, only about 20 percent is proprietary to them. The
rest is common across every institution. Take reference data for instance. I’ve seen banks spending tens
of millions of dollars just managing reference data.
Why is every institution on the street managing their
reference data? Why isn’t there a utility that everybody just plugs into and it manages one set of reference data, and you pay some sort of fee for everybody
to access what is essentially the exact same information replicated across every institution? It’s a chance
for large-scale business optimization that’s going to
save a lot of money just by taking inefficiencies out of
the system. We call it the utilization process. I think a
lot of that other 80 percent is going to get pulled out of
that institution and into some common format. It’s very
exciting to watch that process, not only to see how they
respond to it but also to help build those utilities.
BCG and E-Health at the Rockefeller Foundation
The Rockefeller Foundation, a charitable organization that works around the world to expand
opportunities for poor or vulnerable people, was seeking a strategy for an e-health initiative.
The Foundation called upon BCG to help improve the quality, equity, and cost-effectiveness
of healthcare in the “Global South”—a term for developing countries. It would do this by
using information and communication technologies (ICT) to improve and expand diagnostic,
treatment, preventive, and monitoring capabilities, as well as user awareness and access.
catalyzing application development,
and providing coalition leadership at the
outset; direct roles and responsibilities will
be scaled back as the coalition grows and
matures. The Foundation could also focus
on advocacy and convening functions, as
well as key areas of program support.
The BCG team identified and defined clear
objectives, which would be achieved by focusing on five key areas:
1) Evaluating e-health
opportunities in the developing world;
Determining the potential value of e-health;
3) Assessing optimal timing for the broad initiative;
4) Evaluating the need for a guiding
coalition, and 5) Defining potential roles in
the coalition. Coordinated action was needed
to address multiple e-health challenges.
As infrastructure improves in the Global
South, many e-health applications are springing up organically in the absence of any standards, leading to myriad of systems unable
to share information with one another.
BCG recommended specific ways that the
Foundation could play a key coordinating
role to serve as a leverage point for e-health by increasing donor involvement and
In the end, BCG helped the Rockefeller
Foundation to: assess the potential value
of such an initiative; determine the readiness of individual countries; identify potential participants, roles, organization models,
applications, and action agendas for an e-health initiative or coalition; and ultimately,
develop a strategy through which the initiative’s objectives would be met.
Consulting January 2013