The Importance of Root Cause Analysis
On Tuesday, I chaired the North American Trading Architecture Summit. If you attended, I hope you walked away with new ideas and new contacts. In case you missed it, I along with my colleagues Tim Murray and Jake Thomases have written several analytical pieces from the event.
One presentation in particular caught my attention. Howard Halberstein, vice president and lead solutions architect of Deutsche Bank's UNIX division, provided a thoroughly entertaining case study on root cause analysis, in which he described two "causes" that relate to an event. Proximate cause is directly linked to the undesired outcome. He likened this to a missile hitting a plane, with the missile being the cause of the plane falling out of the air. Root cause is more difficult to determine as it is usually more political than technical.
Reactions to problems tend to be knee-jerk instead of the result of looking into the root cause. "Someone trips over a cord and we put armed guards in front of the datacenter. A person accidentally pastes something incorrectly, we remove ‘paste' from every computer in the entire company so it never, ever happens again," Halberstein says.
Determining root cause is difficult. "It's really hard in an IT shop to find root cause," he says, because a seemingly endless string of people, events and processes have to be examined. Numerous interactions take place, involving lots of people and different units and vendors—not to mention the data points to weed through.
I will explore this issue in more depth soon, but the idea that became clear at the event is that root cause analysis can only be effective with good quality data in place. And creating standards for where data is stored is essential. This is about creating efficiency throughout the organization and not just blindly throwing money or resources at an issue in a reactionary way.
I would like to thank all the delegates and sponsors who made the North American Trading Architecture Summit possible. It really was a great day.
If you have any feedback on the event, or want to discuss root cause analysis further, drop me a line at +1 646-490-3973 or anthony.malakian@incisivemedia.com.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Tech VC funding: It’s not just about the money
The IMD Wrap: It’s been a busy year for tech and data companies seeking cash to kick-start new efforts. Max details how some are putting the fun into fundraising.
BNY uses proprietary data store to connect disparate applications
Internally built ODS is the “bedrock” upon which BNY plans to become more than just a custodian bank.
Waters Wavelength Ep. 296: Questions about data quality
It’s all about the data, data, data.
The AI boom proves a boon for chief data officers
Voice of the CDO: As trading firms incorporate AI and large language models into their investment workflows, there’s a growing realization among firms that their data governance structures are riddled with holes. Enter the chief data officer.
FactSet launches conversational AI for increased productivity
FactSet is set to release a generative AI search agent across its platform in early 2025.
If M&A picks up, who’s on the auction block?
Waters Wrap: With projections that mergers and acquisitions are geared to pick back up in 2025, Anthony reads the tea leaves of 25 of this year’s deals to predict which vendors might be most valuable.
ICE Connect adds data integration capabilities for proprietary data
Intercontinental Exchange’s desktop platform is collaborating with CloudQuant to allow customers to integrate in-house data and analytics with the datasets found on its ICE Connect platform.
MIAX taps DataBP for exchange data licensing, custom contracts
To support planned growth of its data business, the exchange group has implemented DataBP’s platform to strengthen its licensing process and scale up its distribution capabilities in anticipation of end-user demand.