People can make tools work

While technology is exciting, I often hear from investment professionals that they don’t understand technology and that while the staff they hire may be good at analyzing markets, there aren’t that many people who are good at analysis and technology at the same time. Additionally, building out systems that can work across the organization requires not just business and technology acumen, but also project management and an expertise in herding cats.

This leads to the need for two types of people. The first are the decision makers, who see the value of technology and make it a business priority to introduce and adopt technology. The second type of individual is the implementer – the person who can make the technology fit into the business. This could be internal or external, but committed to getting the most out of the technology being used, and help educate and empower the users of technology.

For example, some RIAs who use Addepar as a wealth management solution, experience a combination of both – they have someone internal who is trained to be an expert, and also have a team at Addepar supporting them. For asset managers and asset owners who are embarking on a new project, this might mean hiring an external advisory team that has expertise in both investing and technology, with a high level of service.

Disclaimer: All views expressed in this article are that of the author and do not necessarily reflect the views of his employer or any of its affiliates. The author may be associated as an investor or as an advisor with certain companies mentioned in this article.