Introduction
The explosion of data, structured and unstructured, from innumerable sources at an extraordinary pace makes data management a challenging job. Particularly given everything that must (should) be done with the incredible volume of data: administration, integration, security, analysis, modeling, etc.
Investigating data management issues in businesses, this Forbes study found that:
- 76% find it challenging to understand their data
- 82% say that controlling and forecasting data costs are challenging
- 82% mention confusing data governance policies as another big challenge
- Nearly 80% quote that lack of data cataloging is their top challenge
- Survey respondents indicate that a shortage of talent or inadequate in-house expertise and tools are the challenges they face in their data management
- And in addition to the above, another Forbes study found that 95% of businesses consider managing unstructured data a challenge
To address all of this - and more - organizations often seek help from consultants. However, selecting an appropriate data management consulting firm may be daunting. Some feel that companies must engage large/well-known firms that offer a wide range of data management services. Because of their size and comprehensive business knowledge, companies believe such firms are the "best" choice, which - to an extent - can be true.
Large consulting firms like McKinsey, BCG, and Bain, known as “MBB” or the “Top 3,” and EY, PwC, Deloitte, and KPMG, known as the “Big 4,” rule the data management services market. Apart from their strategy consulting and accounting services, they provide data management solutions such as strategy, analytics, modeling, and governance.
The Big 4 and Top 3
The Top 3 are smaller firms than the Big 4. MBB are the most prestigious consulting firms, while the Big 4 focus on implementing strategies. They offer strategy consulting services too, but it comprises a smaller percentage of their business.
These firms have obvious benefits and are a force to reckon with. They provide expertise, problem-solving & methodological toolkits, fresh perspectives, and actionable insights that drive change. However, their services can be cost-prohibitive, and the speed to value from their work is often measured in years.
Fortunately, there are options in the form of boutique data management firms. These are mostly smaller, specialty firms offering similar data management solutions as the Top 3 or Big 4, but typically at a reduced price tag and with faster speed to results.
Can all boutique data management firms offer effective solutions?
First of all, unlike the Top 3 and Big 4, boutique data management firms typically specialize in key niches. In other words - the impetus is on you to find the right firm to solve your particular challenges.
It is also important to note that not all boutique data management firms are created equally. Some smaller, newer firms face inherent challenges, such as the lack of:
- A proven track record
- Brand recognition
- Established clientele
- Skilled, experienced resources
- A suitable bench to accommodate large projects
- Working capital, or reserves
Additionally, boutiques must constantly work to establish credibility and grow awareness against the well-known top brands. To keep the business rolling, some boutique data management firms try to offer everything to everyone rather than focusing on their areas of expertise. This can be problematic if they can’t actually accomplish what they promise.
What makes an expert boutique data management firm better than the Big 4 or Top 3?
- The golden triangle TCQ
Three primary forces drive any project and business: Time, Cost & Quality (TCQ). The ideal consultant will offer high-quality results at a reasonable/low cost, all delivered quickly. You can typically get two of the three, but rarely all of them. In the debate over Boutique vs. Big 4 or Top 3 in managing TCQ, the smaller data management firms often have the upper hand, particularly in terms of time and cost. How? Let’s find out. - Time – Fewer layers and quick approvals enable nimbleness and speed to value
The advantage of being a boutique firm in data management is speed and agility. The decision-making process is fast as there is no entanglement with complicated administrative procedures. The layers of hierarchy are fewer, so the approvals are quick.
Without the sticky web of routine procedures that are usually the norm in large firms, boutique data management teams can work rapidly, are more responsive to changes, and can quickly adapt to shifting client priorities. A shorter turnaround time can prove critical with tight deadlines.
- Cost – Budget-friendly and cost-effective
Companies with higher budgets can afford to hire more prominent firms. The Top 3 and Big 4 are proud of their brand names and reputations, which means a higher price tag. Fortunately, smaller firms can very often offer equivalent data management services at lower prices.
Sometimes the use of unique, sometimes proprietary, cost-effective tools helps them operate at a lower cost. Oftentimes it is the lack of overhead expense and almost always a desire to offer value as a differentiator.
- Quality – Specialized services under the guidance of veterans from large firms
Boutique data management consulting firms provide depth in their respective areas of expertise because the ex-employees of large firms often run them. The right ones bring a high level of maturity and subject matter expertise in specific areas, offering the same (or better) quality, skills, and methodology one can get from a large firm.
Boutique data management firms need to pay more attention to quality as they have to compete not only with the big firms but also with other small-scale, mid-scale competitors.
Other variables to consider
- Innovative ideas
The Big 4 and Top 3 firms are fast in generating new ideas but typically slow in the execution of those ideas due to bureaucracy. On the other hand, boutique data management firms can be lightning-fast incubators of innovative ideas. The larger firms undeniably have immense resources and potential, but a good boutique consulting firm can be more creative in implementing innovative ideas quickly. - Customer-centric service
Boutique firms' specialized and localized nature prioritizes customer relationships and personal attention. A nimble, dedicated group of experts working on the client's needs can deliver a fantastic experience, including: - Faster communications
- Quicker decisions and implementation of fresh ideas
- Efficient delegation of questions for quicker responses
- Catering to changing requirements
Boutique data management firms strive to provide rich service value to customers as they want to win long-term business. And they know that only meeting customer expectations consistently will lead to client retention.
- Adoption of (b)leading-edge tools and technology
Technologies like Artificial Intelligence, GPU processing, and V2 Data Mesh are trending disruptive technologies. Boutique data management firms are often able to be more experimental than the Big 4 or Top 3, who are often armed with tried and tested traditional software.
Moreover, they are quick to use budget-friendly or open-source tools that save costs. The specialized talent of boutique firms in data management also allows them to innovate their own set of unique tools that can further reduce their operating expenditure.
- Bridges the gap between consultation and implementation
If you choose one of the Top 3, you will benefit from their consultation. However, you may have to turn to one of the Big 4 consulting firms to implement the strategy. Boutique data management firms efficiently bridge this gap. They provide BOTH strategic and tactical solutions so clients can avoid the time, cost, and complexity of dealing with multiple firms. - Vendor-agnostic approach
Not all boutiques are vendor agnostic - but some are - which means they’ll deliver the right solution for your specific challenge. Not the solution that makes a key partner or vendor happy. - Quick Win POC
Boutique data management firms’ nimbleness, and specialized skill set in specific areas, can be a distinct advantage while executing a Quick Win POC. - Culture-driven Benefits
A company's culture is a reliable predictor of its internal processes and a peek into its strengths on a foundational level. For example, the Big 4 or Top 3 operate in a pretty fixed manner. They offer solutions that are frequently excellent, but it’s typically a much more rigid process. Some clients prefer firms with a more interactive and collaborative approach, and for them, boutique data management consulting firms may be the better option.
To sum up…
The Boutique, the Big 4, and the Top 3 have their place in the market; however, there are alternatives that may provide better solutions in some circumstances. Boutique data management firms may deliver faster speed to value, higher quality, and more personal service. And they’re likely to be more cost-effective, nimble, flexible, and consistently responsive to their client's needs. And when working with the right firm, there is a high likelihood that technology depth and experience will meet or exceed what is available with the big guys.
