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The power of the network. The Vendor Network!
I’ve written in the past “death of the data hunter” when it comes to roles in hedge funds where you hunt for datasets for finding alpha. But in a world where AI needs data, and everyone is looking at partnerships, it feels more and more like vendor networks and those with strong relationships are out running others.
In a world where AI allows you to quickly build a product, copy others, and the moats are getting harder and harder to create, what is winning is strong sales/marketing teams. Along with having strong sales/marketing motions, those with strong vendor networks, with strong networks of partners whether that is for distribution or for getting access to products and data at fair prices/terms, is becoming a superpower in itself.
In the financial services data world, we are starting to see a lot of movement of heads of Data Strategy or Heads of Data Sourcing. All the top firms are seeing turnover or are thinking through strategies, including long non-competes, to keep their data strategy and sourcing talent. Why are we seeing turnover? I believe it’s because everyone is realizing that the vendor networks, the vendor relationships, and the people with the strongest relationships are worth a whole lot more than they initially realized. In the past, it was “how well do you code, can you also webscrape for us, do the data analysis, and then oh by the way, 5% of your job is vendor relationship/management/contract review.” We are now opening our eyes to the fact that the analysis, coding, and data grunge work can be done much more efficiently with AI. BUT you can’t AI your way into a personal relationship with a data vendor. You can’t AI your way into building a network of vendor contacts over a decade of experience.
In the end, AI is changing everything, but you can’t create a personal relationship and network out of thin air. Those with the best networks will ultimately win!
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