"A detailed, cogent road map for organizations such as pension funds to harness technology and truly invest for the long-term." Eric Schmidt, former CEO, Google
Silver Medal Winner, 2021 Axiom Business Book Awards
Institutional Investors underpin our capitalist world, and could play a major role in addressing some of the greatest challenges to society-such as climate change, the ballooning wealth gap, declining infrastructure, aging populations, and the need for stable funding for the sciences and arts. Advanced technology can help institutional investors deliver the funds needed to tackle these grave challenges.
The Technologized Investoris a practical guide showing how institutional investors can gain the capabilities for deep innovation by reorienting their strategies and organizations around advanced technology. It dissects why technology has historically failed institutional investors and recommends realistic changes that they can make to unlock technological superpowers. Grounded in the actual experiences of institutional investors from around the globe, it's a unique reference manual for practitioners on how to reboot their organizations for long-term performance.
The book walks readers through many detailed frameworks for analyzing how well new technologies fit with their organization's goals and resources, as well as how to make the organization itself more robust to technological change. It also envisions the ways that the durable empowerment of institutional investors enables them to achieve their long-term objectives. Based on first-hand empirical analysis, the book will help institutional investors to rethink their perspectives on the role of technology in their organizations, and the future possibilities it can unlock.
Autorentext
Ashby H.B. Monk is Executive Director and Research Director of the Global Projects Center at Stanford University. He is the co-author of Reframing Finance: New Models of Long-Term Investment Management (Stanford, 2017). His writing has appeared in the Economist, the New York Times, the Wall Street Journal, the Financial Times, Institutional Investor, Reuters, and Forbes. Dane Rook is Research Engineer at Stanford University.
Klappentext
An essential guide for finance managers to leverage advanced technology in long-term investing.
Institutional Investors underpin our capitalist world, and could play a major role in addressing some of the greatest challenges to society such as climate change, the ballooning wealth gap, declining infrastructure, aging populations, and the need for stable funding for the sciences and arts. Advanced technology can help institutional Investors deliver the funds needed to tackle these grave challenges. The Technologized Investor is a practical guide showing how institutional Investors can gain the capabilities for deep innovation by reorienting their strategies and organizations around advanced technology. It dissects why technology has historically failed institutional Investors and recommends realistic changes that they can make to unlock technological superpowers. Grounded in the actual experiences of institutional Investors from around the globe, it's a unique reference manual for practitioners on how to reboot their organizations for long-term performance. The book walks readers through many detailed frameworks for analyzing how well new technologies fit with their organization's goals and resources, as well as how to make the organization itself more robust to technological change. It also envisions the ways that the durable empowerment of institutional Investors enables them to achieve their long-term objectives. Based on first-hand empirical analysis, the book will help institutional Investors to rethink their perspectives on the role of technology in their organizations, and the future possibilities it can unlock.
Inhalt
This chapter leads a whirlwind, curated tour of investment technology's six-millennium history-from clay tablets on up to digital ones. It teases out three dimensions of progress that have characterized advances in invest-tech across time: data latency, inferential depth, and resource efficiency. The chapter discusses patterns in how these dimensions are interrelated, and why they are important for institutional investors that are seeking to reorient their organizations around technology. This chapter also looks at how the tyrannous reign of spreadsheets is a poster child for what's presently amiss with investment technology.
This chapter conducts a deep-dive appraisal of the state of technology in institutional investing and dissects how it is holding institutional investors back from reaching their goals. It discusses ten "entangling" problems that our research indicates are to blame-including focusing on the wrong scales for tech projects, deprioritizing innovation, having isolated perspectives about technology, failing to cooperate with peers on tech, and more. The chapter also explains why some "scapegoats" that get blamed for institutional investors' tech troubles are mostly just hollow excuses (these include outsourcing, costs, and being "close followers").
This chapter provides an overview of current trends in cutting-edge technology that are relevant for institutional investors who aim to reorient around technology. It pays special attention to two such trends: openness and simplicity. The chapter covers four key classes of tools that can serve as the foundations of institutional investors' tech superpowers: artificial intelligence, alternative data, collaboration tools, and productivity utilities. The chapter discusses the balance that must be struck between understanding and efficiently deploying these tools. An appendix to the chapter gives flyovers of deep-learning and blockchain fundamentals.
This chapter supplies rubrics to help institutional investors analyze the suitability of specific technologies for their organizations. It begins by introducing a tool set to compare a candidate technology's impacts on the organization's opportunity set and resource budget. The chapter then provides several tools for analyzing how a technology may affect, and create value from, an organization's data, information, and knowledge resources. The chapter concludes with commentary about the role of cost-benefit analysis in assessing technology's fitness within the organization.
This chapter presents thirteen features that empirical research indicates will be needed for any institutional investor to successfully technologize. Some of these features are attainable in the very near term, whereas others may take time to cultivate. These features are divisible into two groups: "Core Attributes" needed to sustain tech skills in the long run, and "Sources of Advantage" that will more immediately help institutional investors brandish tech superpowers. This chapter gives an extensive discussion of features in each of these groups, and describes how they address traditional technological shortcomings.
This chapter launches a foray into the data-related tech superpowers that institutional investors can build. It distils empirical findings on the causes of institutional investors' current struggles with their existing data s…