Investment management transformation projects are complex, expensive, and notoriously difficult to get right. Firms are grappling with a mix of internal and external pressures, from integrating new technologies like AI with inflexible legacy systems to breaking down pervasive data silos and simply keeping all stakeholders aligned on a common goal. Many also struggle with foundational issues like poor data quality and a lack of data governance, making it difficult to trust their own information.
In this high-stakes environment, embarking on a large transformation project without a clear plan increases the risk for failure. Enterprise Architecture (EA) provides the strategic blueprint needed for clarity and a defined path forward, significantly reducing project risk.
In a recent AlphaChat, host Stephen Huppert spoke with Bryan Stephens, Head of Customer Transformation at AlphaCert, about the growing momentum behind enterprise transformation in investment management. Read some of the insights below.
“Enterprise architecture is a blueprint for supporting methodical planning and implementation of change,” says Bryan Stephens, Head of Customer Transformation at AlphaCert. “It helps investment management organisations maintain operational stability while evolving to meet the future demands.”
EA is responsible for understanding all the parts of an organisation and creating a comprehensive plan for how transformation can occur, particularly from a technology angle. It details how a business's data, processes, systems, and technology all connect and interact, providing a holistic view that helps to break down silos within an organisation.
Having a clear project charter provides a roadmap to guide you. “You don't just go off into the jungle and wonder where you're going,” Stephen said. “You do a survey, get your map in place, work out where you're going and what sort of equipment you need, and that could expand into what type of people you’ll need along the way.” This is precisely what EA does. It documents your current state and charts a clear, efficient path to your desired future state.
By providing a structured blueprint, EA acts as a powerful form of insurance for your transformation project, protecting it from common pitfalls.
It begins by creating clarity and a shared vision. Misalignment can derail a project. “People have different interpretations of project scope and what one person thinks is success, someone else doesn't agree with,” Bryan warns. EA creates alignment across all levels of the business, from the project team to the C-suite, by using clear documentation and visual models. Bryan notes that “architectural diagrams, visual representations of projects help clarify complex aspects and topics,” ensuring everyone is working towards the same goal.
This alignment is critical because transformation is a fundamental organisational shift. Bryan emphasises that success means looking at the bigger picture and planning for new processes, skills, and even cultural changes. EA provides the framework for this, ensuring you are “taking people on the journey” and positioning the entire organisation for new capabilities. It addresses what he calls the "organisational change aspect," which is often the missing piece in delivering these projects.
With this clarity on both the technical and human elements, EA also ensures operational stability during periods of significant change. By mapping out every dependency, you can predict the impact of changes and prevent accidental disruptions of critical systems. In Bryan’s words, “EA helps investment management organisations maintain that operational stability while evolving to meet the future demands.”
Ultimately, this stable and aligned foundation helps organisations make smarter, more strategic technology choices. With tight budgets and intense competition, every investment must count. EA provides the framework to ensure that any new technology aligns with the long-term business strategy, preventing reactive decisions and ensuring that every tech investment is highly strategic and focused on long-term value.
Adopting Enterprise Architecture doesn't need to be an overwhelming or expensive endeavour. According to Bryan, most firms can start with the tools they already have, like Excel or PowerPoint or Confluence, before graduating to more specialised software as their needs and maturity grow.
As an organisation's EA practice matures, it may look to formal methodologies for more structure. TOGAF is one of the most well known frameworks, but Bryan advises against using frameworks straight out of the box. “Enterprise architecture isn't one size fits all,” he says. “You really need to tailor the way you do enterprise architecture to each organisation, in terms of its understanding of enterprise architecture, its maturity levels, its culture and you know, what regulations, it's affected by a number of different things.”
For firms that lack in-house expertise or budget for a full-time role, the fractional EA model offers a flexible and powerful solution. A fractional enterprise architect is a “highly experienced architecture professional engaged on a part-time basis,” Bryan explains. “It’s a really cost effective way to get great talent, but at a fraction of the full-time cost.” This model is especially valuable in complex situations like mergers and acquisitions that are common in the superannuation sector, where an architect can provide objective capability assessments to inform critical decisions.
While enterprise transformation is inherently risky, proceeding without a plan is an unnecessary gamble. Enterprise Architecture provides a practical framework for managing that risk. An upfront investment in creating a comprehensive blueprint can save millions in rework, delays, and failed projects down the line.
As your organisation contemplates its next major initiative, it’s worth asking: do we have a clear blueprint for our next big project?
AlphaCert’s advisory team combines deep investment management expertise with practical experience in enterprise architecture to help firms navigate complex transformations. Get in touch with our friendly team to understand how we can help de-risk your next project.