Integrated investment management systems are computer-based systems that automate and store key financial information in big organizations like multinational corporations, governments and large nonprofit institutions. The goal of these systems is to increase access to information, all the while decreasing long term costs. The initial investment of time and money to implement investment management system is high, but improved financial transparency and information access usually offsets its initial expense.
The main features that distinguish an integrated investment management system from other computer systems are the reduction in duplicate data entry, standardization of data classifications for financial events, and implementation of internal controls for transactions. These systems ingrate accounting-related information, or bigger organizational data management systems.
Investment management systems function as a repository for the data and processes surrounding the reporting and assurance of financial responsibility. They give financial reports and information to management, increase financial responsibility, help determine budgetary decisions, and give internal and external reports.
Implementing an investment management system requires defining and mapping all financial processes, outlining needed technology and software and documenting requirements. Some commercially developed software can be modified for this purpose, or a system can be customized internally, depending on the requirements of the organization. Once a system is developed, it should be thoroughly tested and evaluated to ensure functional and financial validity.
Integrated investment management systems are technically efficient. Financial data is input once, and can then be used many times for various purposes and functions. Also, these systems create a shared programming environment, where code can be reused and repurposed, saving time when new functions are needed. For end users, it can give consistent presentation that reducing training requirements and potential confusion.
Investment management systems can create a single storage location for financial data and one authentication point that allow information to be monitored and controlled. Such systems also allow a central authority to regular security access that increases overall data security and integrity. With all the information in a single transaction, financial fraud would be harder to penetrate and easier to catch.
A well-designed investment management system might give you all the current process and date needs of the organization, inevitable changes might require ongoing maintenance to ensure the integrity and functional use of the system. Support needs depend the type and size the system implemented and the speed of changes.