Contributor: Cory T. King
Many of today’s technology leaders didn’t plan the technology stack that they support but rather they inherited it. Typically that stack evolved from a core accounting or contract management platform and over the years had additional functionality bolted on to support modern originations, channel management, credit decisioning, document management, collections and asset management. Transactions today may pass through a dozen applications in a typical leasing life cycle and that situation may be complicated even further where the variety of financial products offered cannot be supported by the legacy systems in place.
Ever wondered why your IT spend is looming large? Why your business is so slow to adapt to market demands? Having to make any kind of change in this complex environment is an ordeal. Take trying to implement something as small as tagging and tracking your assets with a bar code for example. You may need to modify your originations, adjudication and lease accounting systems to get that asset tag to the asset management system; and don’t forget the three interfaces that will also need to be changed.
But even more importantly, your data is spread across multiple databases and to get any intelligence from it you will need to embark on a business intelligence project. It can often be a complex and expensive task to rationalize the data in all those systems and to store it in a common database warehouse so that you can mine the data. This is essential to determine, for example, if there is a correlation between credit scores and the condition of the assets at end of term – extremely useful in structuring deals involving a remarketer or setting up a residual guarantee.
Well here’s a bit of business intelligence for the intelligent business… put the data in one place to start! If you are evaluating your aging IT topology, consider the benefits of an end-to-end system capable of managing the entire transaction life-cycle. A single database means no data rationalization or consolidation and it can transition your company from business intelligence to intelligent business.