Data is inherently tactical, just numbers without intelligence. It takes structure, capability development, and governance to turn it into a useable asset that adds value. In the absence of a structure that is designed to enable the identification, analysis, and leveraging of that data, and to turn it into useable intelligence, it will remain just data.
To go about that task, ask yourself a number of questions:
What are the data flows?
Through the enterprise, who uses the data, how do they use it, and to what outcome?
Where are the interconnections that occur, to what extend are they compounding positively? Data can also compound negatively, usually because it reinforces an existing confirmation bias that is flawed.
Data is functionally agnostic, should be readily available to all, and the outcomes of use transparent so they can be built upon and compounded.
Who ‘owns’ the data?
Too many times I see the IT department generating data, and keeping to it themselves. Similarly, the finance department is guilty, as are all functions. This is usually not malicious; it is just reflecting a lack of cross functional collaboration. It is becoming more common that marketing is driving a large part of the data agenda, enabled by digital tools, but few marketers have the capability to do it effectively.
Often, there is an expectation that ‘digitisation’ of the enterprise will change the way data is used. Not so, it is no more than putting a new coat of paint on the building, unless the internal structures are changed as well, nothing really changes, you just get a few press releases and nice photos for the annual report.
What data is used?
Piles of data is generated, often collated, and distributed, or made available, but never put to productive use. Usually the missing ingredient is curiosity. Those who are curious approach the data with a ‘why’ and ‘what if’ attitude, they ask questions which identify holes in the data, drives them to be filled, and seeks new sources.
Where does the data add competitive value? Competitive value is a two sided coin. On one side is the need to keep up with what your competition is doing, to leverage the opportunities for productivity and not fall behind in your customers eyes. The second is to find ways for data, and more specifically the knowledge that comes from analysing data, to give you a competitive edge. If a proposed investment does not do at least one of these two things, why would you proceed?
How well do the data outcomes reflect alignment with strategy?
Having data and the analyses that goes with it that leads to conclusions that are inconsistent or divergent from the stated strategy must cause you to question the data, its analysis, and the strategy. In these circumstances, it makes sense to deploy the scientific method, create a hypothesis, test it, collect more data and rinse and repeat until you have alignment between the strategy and its supporting data.
Where are you on the digital adoption curve?
Data is just another asset, it requires explicit actions to build the capabilities necessary to generate, use and fund it. There has to be explicit policies and priorities given, or the investments in data development and the capabilities required, or it will not happen. There needs to be a clear picture of the structures of data domains, from engineering, finance, marketing, sales, and they need to be prioritised and organised to deliver the best return in the long term.
The tools being used to accumulate, process and analyse data are just tools, no different to the hammer that drives a nail. It is how we use them that make the difference. Tools everyone should have are those that ensure the data is both clean and robust. Decisions based on data that fails either of these ‘sanitary’ tests will be sub-optimal at best.
We have entered the digital world. Data and its organisation, funding, leveraging and governance are rapidly becoming the key to competitive survival.
How well are you, and your enterprise placed?
Header cartoon: courtesy Tom Gauld at tomgauld.com.
