Data is not a fluid

For a while, I thought “data is the new oil” was clever and apropos. Data as the “lifeblood of the organization” was also a fair way to describe how we should consider its importance. Now, these phrases make me cringe in the same as when I hear people say “value for money” which is like saying you can have something of high quality at a relatively low price and, by the way, it will not cost you a lot.  These phrases have become cliches and given to shallow context.  

My objective is to provide clarity to business and IT executives on how to build “data literate and data enabled” organizations.  You could argue that these are also vague or empty labels. However, two decades of trying to be credible as a consultant has taught me to define a practical and tangible framework to define something based on its many facets and to reduce the complexity. Notwithstanding the clever metaphors that compare data to all manner of fluids, an organization’s ability to manage and leverage its data is essential.

Why is this so? Without offering platitudes, let’s build a logical case that addresses a few critical questions for an executive…

How good are the insights or reports I receive for decision making? If you are like 60 percent of executives, you do not have confidence in the insights and data handed to you and among the 70 percent who live in fear that following such guidance exposes you to reputation risk. 

What is the threat to my business of not leveraging data and analytics? According to a McKinsey study, “serial adopters” of advanced analytics exhibit higher profitability across industries. Companies that do not build capabilities will find them struggling to compete within three to five years.  

What do we do when there is a shortage of analytics skills in the market and people who understand the complex technology landscape?  Building skills in data communication and visualization, handling real-time data, and applying advanced analytics are differentiators. Unfortunately, the people who can do this stuff are still hard to find in most parts of the world. Over 40 percent of CIOs expected to be confronted with shortage of data skills this year. The best approach is educating the people you have and growing their skills. 

Are we ready to respond to regulatory requirements and mandates?  As if we are not already talking about this enough, approach these mandates with a productive mindset. The efforts you make to catalog, classify, control, and manage your data will enable you to stay in public good graces, but will also yield real gains.  A study by IBM several years ago found that organizations lose anywhere between 10 and 30 percent of the potential revenue due to poor quality data.

There are many facets to being data literate and data enabled. Data literacy is clarity of outcomes and data driven decision making that leads to sustainable high performance. It is also the mindset and governance that sees data and information as an asset that must be applied to deliver value and managed to fulfil responsibilities.  Being data enabled is transforming and building technology platforms that allow an organization to ingest, process, and integrate hybrid and heterogeneous data in a cost effective manner.

My next two articles will provide a common sense profile of what you are driving your organizations towards. Besides, who needs buzz words when you can make poignant comparisons to adolescence and puberty?