IHS Markit Connect Teardown Analysis | Strategy & Features

Executive Summary

IHS Markit's flagship product, Connect, has solidified its position as a market leader in financial information services through three key factors: unparalleled data integration, advanced analytics capabilities, and a highly customizable user experience. Connect's unique value proposition lies in its ability to provide a single source of truth for complex financial data across multiple asset classes, enabling clients to make more informed decisions faster. Despite its success, Connect faces challenges in user onboarding complexity and adapting to rapidly evolving regulatory landscapes.

This teardown reveals how Connect's modular architecture and API-first approach have been crucial to its market dominance, allowing for seamless integration with client systems and rapid feature development. We'll explore how Connect's machine learning-powered risk analytics set it apart from competitors, and examine the product's evolving strategy to capture mid-market clients without compromising its enterprise-grade capabilities.

For aspiring product managers, understanding Connect's evolution offers valuable insights into building scalable, data-driven platforms. Our detailed interview preparation guide covers key concepts you'll need to discuss Connect effectively in PM interviews.

Introduction

Connect stands at the heart of IHS Markit's $11 billion financial services ecosystem, serving as the primary interface for over 50,000 financial professionals across 5,000+ institutions globally. With a market share of approximately 35% in the financial information services sector, Connect generates an estimated $3 billion in annual recurring revenue. Its adoption rate among the top 100 global banks exceeds 90%, underlining its critical role in the financial industry.

This teardown employs a multi-faceted analysis approach, examining Connect's user journey, UX design, feature set, business model, and competitive positioning. We'll leverage insights from client case studies, product release notes, and industry analyst reports to provide a comprehensive view of Connect's strengths and areas for improvement.

A former IHS Markit Product Leader shared, "Connect's biggest strength is its ability to unify disparate data sources, but its main challenge lies in simplifying the onboarding process for new users without sacrificing depth of functionality." This tension between power and accessibility will be a recurring theme in our analysis.

For a deeper dive into the strategic decisions shaping Connect, explore our complete strategy guide.

Product Overview

Connect's core value proposition is to provide financial institutions with a unified platform for data analysis, risk management, and regulatory compliance across multiple asset classes. It solves the critical problem of data fragmentation in the financial industry, allowing users to access, analyze, and act on information from various sources through a single interface.

The primary target audience includes investment banks, asset managers, hedge funds, and regulatory bodies. Key use cases span portfolio management, risk assessment, regulatory reporting, and market analysis.

Since its launch in 2012, Connect has evolved from a basic data aggregation tool to a comprehensive financial intelligence platform. Initially focused on fixed income markets, it has expanded to cover equities, derivatives, and alternative assets. The introduction of AI-powered analytics in 2018 marked a significant leap in Connect's capabilities, enabling predictive risk modeling and automated anomaly detection.

Currently, Connect holds a dominant position in the enterprise segment, outperforming competitors like Bloomberg and Refinitiv in terms of data integration capabilities and customization options. However, it faces increasing competition from cloud-native startups in the mid-market segment.

In the past 8 years, Connect has evolved from a data aggregation tool focused on fixed income to a comprehensive financial intelligence platform covering multiple asset classes and leveraging AI for advanced analytics.

User Journey Deep-Dive

The first-time user experience with Connect begins with a personalized onboarding process. Users are guided through a series of questions to customize their dashboard based on role, asset classes of interest, and primary use cases. This information is used to pre-configure widgets and data feeds, creating a tailored starting point.

Key user flows revolve around data exploration, analysis, and reporting:

1. Data Discovery: Users can search across multiple databases using natural language queries, with AI-powered suggestions refining search results.

2. Analysis Workflow: The platform allows users to create custom analysis pipelines, combining data from various sources and applying pre-built or custom analytics models.

3. Reporting: Automated report generation tools enable users to create regulatory filings and internal reports with minimal manual input.

Critical features defining the user experience include:

• Real-time data streaming with customizable alerts
• Interactive data visualization tools
• Collaborative workspaces for team analysis
• AI-assisted data cleansing and normalization

Users often struggle with the sheer volume of available data and features. To address this, Connect recently introduced a "Guided Analysis" feature, which provides step-by-step workflows for common tasks. This has improved user activation rates by 25% for new enterprise clients.

Retention mechanisms include:

• Personalized insights delivered via email and in-app notifications
• Regular feature webinars and training sessions
• A points-based reward system for active users, unlocking advanced features or exclusive content

UX & Design Analysis

Connect's information architecture is built on a modular dashboard system, allowing users to customize their workspace with drag-and-drop widgets. This flexibility is both a strength and a challenge – power users appreciate the customization, while new users can feel overwhelmed by the options.

The platform adheres to a consistent visual design language across its modules, using a muted color palette dominated by blues and grays to reduce eye strain during prolonged use. Data visualizations follow Edward Tufte's principles of data-ink ratio maximization, ensuring clarity in complex charts.

The mobile experience, while comprehensive, prioritizes monitoring and alerts over deep analysis. The mobile app focuses on real-time notifications, quick data checks, and approval workflows, leaving more complex tasks for the desktop interface.

Standout UI elements include:

• An adaptive search bar that changes behavior based on user context
• Interactive data previews in search results
• A persistent "Analysis Trail" sidebar for easy navigation between related data sets

Compared to competitors, Connect's UI is more complex, which impacts user engagement by increasing the learning curve but ultimately enabling more sophisticated analysis for experienced users.

Feature Analysis

1. Multi-Asset Data Integration: This feature forms the backbone of Connect's value proposition, allowing users to seamlessly analyze data across asset classes. Its high differentiation comes from proprietary data cleansing algorithms and extensive partnership networks.

2. AI-Powered Risk Analytics: Leveraging machine learning for predictive risk modeling sets Connect apart from traditional platforms. While highly differentiated, its full potential is realized only by sophisticated users.

3. Regulatory Reporting Suite: Essential for compliance teams, this feature automates much of the regulatory filing process. While similar tools exist, Connect's deep integration with its data sets provides a smoother workflow.

4. Collaborative Workspaces: Enables team-based analysis and decision-making. While useful, this feature faces competition from specialized collaboration tools.

A former product manager noted, "The Multi-Asset Data Integration has been widely adopted, but the AI-Powered Risk Analytics feature struggles due to the need for specialized knowledge to fully leverage its capabilities."

Business Model Analysis

Connect operates on a tiered subscription model, with pricing based on the number of users, data access levels, and feature sets. Enterprise clients typically sign multi-year contracts, providing stable recurring revenue. Additional revenue streams include:

1. API access fees for clients integrating Connect data into their systems
2. Professional services for custom implementations and training
3. Data licensing for clients using IHS Markit data in their own applications

User acquisition relies heavily on direct sales to enterprise clients, leveraging IHS Markit's strong industry relationships. For mid-market growth, Connect has introduced a self-serve onboarding process and freemium model for basic features.

Connect scales revenue over time through:

• Upselling additional data sets and features to existing clients
• Expanding user bases within client organizations
• Introducing new analytics modules to address emerging market needs

Unlike some competitors who rely more on terminal-based access, Connect's API-first approach and cloud-based architecture provide greater flexibility in pricing and deployment models, affecting long-term scalability positively.

Competitive Analysis

In the financial information services market, Connect positions itself as a premium, full-service platform for large institutions. It competes primarily on the breadth of its data coverage, the depth of its analytics capabilities, and the flexibility of its integration options.

Connect's main competitive advantages lie in its superior data integration capabilities and more flexible deployment options. However, Bloomberg maintains an edge in real-time news and trading floor presence, while Refinitiv offers a more cost-effective solution for smaller institutions.

A key market gap exists in serving mid-sized financial institutions that need advanced analytics but can't afford enterprise-grade solutions. Connect is actively developing streamlined offerings to target this segment.

While Connect dominates in data integration and customization, competitors have an advantage in user familiarity and established workflows, particularly in trading environments.

What makes Connect unique in the market?

Connect's uniqueness stems from its unparalleled ability to integrate and normalize data across multiple asset classes and data providers. Unlike many competitors that excel in specific areas (e.g., Bloomberg for real-time market data), Connect provides a truly holistic view of financial markets. Its AI-powered data cleansing and normalization processes ensure that users can seamlessly analyze data from disparate sources without worrying about inconsistencies or incompatibilities.

Additionally, Connect's open architecture and API-first approach allow for deeper integration with clients' existing systems and workflows. This flexibility enables financial institutions to leverage Connect's powerful analytics within their proprietary tools, creating a more seamless experience for end-users.

How does Connect's pricing compare to competitors?

Connect's pricing model is generally considered more flexible than its main competitors, though not necessarily less expensive for all use cases. Here's a breakdown:

1. Base pricing: Connect's entry-level pricing for basic data access and analytics is often lower than Bloomberg's terminal-based pricing, making it more accessible for smaller teams or organizations.

2. Customization costs: Where Connect can become more expensive is in its customization and integration services. For organizations requiring deep integration with existing systems, these costs can add up.

3. Data licensing: Connect offers more granular data licensing options compared to some competitors, allowing clients to pay only for the specific data sets they need.

4. User-based vs. Enterprise pricing: Unlike Bloomberg's per-terminal model, Connect offers more flexible enterprise-wide licensing options, which can be more cost-effective for large organizations.

5. API access: Connect's API pricing is generally more competitive than Refinitiv's, especially for high-volume data access.

Overall, while Connect isn't always the cheapest option, its pricing model is designed to provide better value for organizations that fully leverage its integration capabilities and wide range of features.

What are Connect's standout features?

1. Multi-Asset Class Data Integration: Connect's ability to seamlessly combine and analyze data across various asset classes (equities, fixed income, derivatives, commodities) in a single platform is unparalleled. This feature enables users to gain a holistic view of their investments and risks.

2. AI-Powered Analytics Engine: Connect's machine learning algorithms provide predictive insights, anomaly detection, and automated data cleansing. This not only saves time but also uncovers patterns and risks that might be missed by traditional analysis methods.

3. Customizable Regulatory Reporting: The platform's ability to automate regulatory reporting across multiple jurisdictions, with customizable templates and workflows, significantly reduces compliance burdens for financial institutions.

4. Open API Architecture: Connect's comprehensive API suite allows for deep integration with clients' existing systems, enabling them to embed Connect's data and analytics directly into their workflows and applications.

5. Collaborative Workspaces: While not unique to Connect, its implementation of team-based analysis tools, with features like shared dashboards, commenting, and version control, enhances cross-departmental collaboration in ways particularly suited to large financial institutions.

How has Connect evolved since launch?

Since its launch in 2012, Connect has undergone significant evolution:

1. Data Coverage Expansion: Initially focused on fixed income markets, Connect has progressively added coverage across equities, derivatives, commodities, and alternative assets.

2. Analytics Capabilities: The introduction of AI and machine learning capabilities in 2018 marked a major leap, enabling predictive analytics and automated insights.

3. User Interface: Connect's UI has evolved from a relatively rigid, data-centric interface to a highly customizable, widget-based dashboard system.

4. Mobile Strategy: Recognizing the need for on-the-go access, Connect launched its mobile app in 2015, focusing on alerts and approvals, and has since expanded its mobile capabilities.

5. Integration Focus: The platform has shifted from being a standalone tool to an open ecosystem, with the introduction of its API suite in 2016 and subsequent expansions.

6. Regulatory Tools: In response to evolving financial regulations, Connect has continuously expanded its compliance and reporting capabilities, becoming a one-stop-shop for regulatory technology.

7. Mid-Market Approach: Originally targeting only large enterprises, Connect has recently begun developing streamlined offerings to capture mid-sized financial institutions.

8. Cloud Migration: Connect has gradually shifted from on-premises deployments to a cloud-first approach, improving scalability and reducing implementation times.

This evolution reflects Connect's responsiveness to market needs and technological advancements, continuously reinforcing its position as a leader in financial information services.

Related Guides Section

📖 IHS Markit Product Strategy Guide → Deep dive into Connect's strategic direction.

📖 IHS Markit PM Interview Questions → Real interview questions for IHS Markit PM roles.

📖 IHS Markit Product Manager Salary Guide → Compensation insights for PM roles at IHS Markit.