DATA STRATEGY

DATA STRATEGY

1. Defense versus offence

   • Organization's information
     • Organised
     • Governed
     • Analysed
     • Deployed
   • Promotes the efficient use of data
   • Promotes the allocation of resources
   • Helps companies design their data-management activities to support their overall strategy
   • Differentiated by distinct business objective
     • Minimizing downside risk
       • Ensuring compliance with regulations
       • Using analytics to detect and limit fraud
       • Building systems to prevent theft
     • Supporting business objectives
       • As increasing revenue, profitability, and customer satisfaction
       • Activities that generate customer insights
       • Integrate disparate customer and market data to support managerial decision making through

2. Single source, multiple versions

   • Company’s data architecture
     • Deascribes
       • How data is collected
       • How data is stored
       • How data is transformed
       • How data is distributed
       • How data is consumed
     • Incluides
       • The rules governing structured formats, such as databases and file systems
       • The systems for connecting data with the business processes that consume it
   • SSOT
     • Is a logical, often virtual and cloud-based repository that contains one authoritative copy of all crucial data, such as customer, supplier, and product details
     • Must have
       • Robust data provenance and governance controls
       • Use a common language—not one that is specific to a particular business unit or function
     • MVOTs result from the business-specific transformation of data into information—data imbued with “relevance and purpose

3. Striking a balance

   • The CDO commonly conceives it and leads its development and execution
     • Must determine the right trade-offs while dynamically adjusting the balance by leveraging the SSOT and MVOTs architectures
     • The company’s overall strategy
     • Regulatory environment
     • The data capabilities of its competitors
     • The maturity of its data-management practices
     • The size of its data budget

4. Organizing data managment

   • The optimal design will depend on a company’s position on the offense-defense spectrum
     • Centralized
       • A centralized data function typically has a single CDO with accountability across the entire organization
       • Ensuring that data policies
       • Governance
       • Standards are applied consistently
     • Descentralized
       • Several companies we studied found that data offense can be better executed through decentralized data management
       • With a CDO for each business unit and most corporate functions
       • Is well suited to offensive strategies
       • It can increase the agility and customization of data reporting and analytics