Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Organizational Imperatives in the Unfolding Data Revolution
Thomas C. Redman, Ph.D. “the Data Doc”
Navesink Consulting Group www.navesinkconsultinggroup.com
Information and Data Quality Conference, Little Rock, AR, November 4-7, 2013
/Redman-IDQ-Nov2013 T.C. Redman, Page 1 © Navesink Consulting Group LLC, 2000-2013
Junior Executive
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 2
VS
Family Practitioner
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 3
VS
Rising Middle Manager
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 4
VS
CEO Capital Request
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 5
Our future… I better get involved!
More tech b#@S%! VS
Synthesis o Individually, nothing more than tough social and organizational
issues. o Collectively, suggest something deeper. o Since the dawn of time, the successful have sought and taken
advantage of superior data. o Data, especially big data, are exploding everywhere.
o Some impressive successes, from all over.
o At the same time, viewed through the “data lens,” the financial
crisis is a colossal failure of data.
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 6
The “viewpoint” taken here: A full-strength data revolution is brewing!
o It is not “big data,” it is all data. o Revolutions are chaotic, messy and inherently
unpredictable. o Sooner or later every industry, every company, every
department, and every job will be impacted. o They move slowly, then at dizzying speed. o There are no roadmaps. By the time they appear it will
be too late. o The technological challenges are tall. These pale in
comparison to the organizational challenges.
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 7
Five of the Most Common Things I Hear
o “We’re data rich and information poor.” o “I’ve been in this industry twenty-five years. Trust me.
These data are as good as they can possibly be.” o “Tom, you’ve got to keep in mind that we are much
more siloed than the other companies (industries, etc) you work with.”
o “Of course my customers like what I give them. I’ve still got a job, don’t I?”
o “If its in the computer, it must be IT’s responsibility.”
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 8
Today’s organizations are unfit for data
o Lack talent, up and down the organization chart. o Silos impede data sharing. o Quality is essentially unmanaged. o Organizations have not thought through how to
compete with data, nor gained enough experience to do so in a sensible fashion.
o Responsibility for data buried in the bowels of IT. Step one: Move it out!
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 9
Bottom Line
The leadership challenge in a nutshell: o A full-strength data revolution is brewing o Today’s organizations are stunningly unfit for data So… what to do? o You’re going to need a strategy for competing with data o Quality is pre-requisite (and we know what to do!) o Where does Analytics fit? o You need an end-to-end D4-process o Some data are uniquely your own o Revolutions stand or fall on people
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 10
So far, I’ve identified eighteen distinct ways to “put data to work”
Provide (Sell) Content o New Content o Re-package o Informationalization o Unbundling o Exploiting
Asymmetries o Closing Asymmetries
Facilitators o Own the Identifiers o Infomediation o Big Data/Advanced
Analytics o Privacy and security o Training o New Marketplaces o Infrastructure
technologies o Information appliances o Tools
*Working out “what’s right for us” is the key challenge for senior leadership!
*Every organization must think through the five in bold
• Internally o Improve
operational efficiency
o 360°-view o Data-Driven
Culture
/Redman-IDQ-Nov2013 T. C. Redman, Page 11 © Navesink Consulting Group LLC, 2000-2013
Four Basic Strategies
o Innovation (Big Data/Advanced Analytics): Find hidden nuggets in the data and,…
o Content: Provide or exploit content that others don’t have. n Informationalization n Infomediation (e.g., Google) n Asymmetry (e.g., Hedge fund)
o Build a Data-Driven Culture: Make better decisions, bottom-to-top and across the company.
o Be the low-cost provider: Superior data quality keeps costs down!
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 12
I’m Excited About Informationalization
o Eisner: “Content is king” o Basic idea: Make existing products and services more
valuable by building in more data and information o Ubiquity: So far, haven’t come across a product or
service that couldn’t be informationalized. o Available to all: Doesn’t require massive quantities of
data, people with advanced degrees, or capital investment.
o Caution: Customers already in information overload.
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 13
High Quality Data is Pre-requisite
o Poor quality is the norm. o The internal costs to accommodate bad data are
enormous. o You can’t (really) sell bad data. o Decision-makers discount data they don’t trust. And
analyses based on them. Wisely so. o In advanced analytics, data are highly leveraged. The
risk of using bad data is high. o Witness the financial crisis.
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 14
Data Quality Done Properly
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 15
Each error not made saves an average of $500. This amounts to millions quickly!
0.5
0.6
0.7
0.8
0.9
1
0 5 10 15 20Frac
tion
Perf
ect R
ecor
ds
Month
First-time, on-time results
Accuracy Rate mean control limits target
For Data, Only Two Moments Really Matter
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 16
The moment of use The moment of
creation
The whole point of data quality
management is to connect the two!
© Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 17
Data Quality: The Non-delegatable Choice
/Redman-IDQ-Nov2013
Unm
anag
ed
Eliminate The Sources Of Pollutant To Clean Up The Lake, One Must First
It is so easy for accountability to shift downstream!!!
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 18
Here’s how you do
number 3!
Where does analytics fit?
Basic Process
Improvement
New, sophisticated
algorithms
Series of Fundamental Discoveries
In the line: Everyone involved
Permanent “lab”
Analytical “sophistication”
“Home” for Analytics /Redman-IDQ-Nov2013 T. C. Redman, Page 19 © Navesink Consulting Group LLC, 2000-2013
Project team wo/line
responsibilities
“One-time” opportunity
Really close to, but not in
the line
The D4-Process Whatever strategy you select, you need an end-to-end
process: Data: High-quality, well-understood, potentially-interesting data
is pre-requisite. o In short supply and much more difficult than it may first
appear. Discovery: Finding something truly interesting in the data o Where most of the attention is focused today Delivery: Getting the results to a decision-maker, into an
ongoing process, into a new product/service, etc. o Easy to underestimate how difficult this is. Dollars: Making money from the data, discovery and delivery o “Marketplace” and “scientific” standards are not the same. /Redman-IDQ-Nov2013 T. C. Redman, Page 20 © Navesink Consulting Group LLC, 2000-2013
© Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 21
Data are the Organization’s Ultimate
Proprietary Technology!
o Difficult to sustain an advantage from publicly-available data.
o Data you create are uniquely yours. And you make more each day.
o Data are subtle and nuanced (e.g., define “customer” in your own way).
o Some, maybe most data become standardized to facilitate communications.
o Unique data offer opportunity for sustained advantage. o These data merit special attention!
/Redman-IDQ-Nov2013
Putting data to work requires new skills and
talent, up the organization chart Everyone/Culture: So far, Information Technology has not
delivered on its promise to make everyone smarter. Analysts: The truly great ones are in short supply. Managers: o For every good+ analyst, need dozens of good+ managers. o In every “clever analysis” that actually bears fruit, the “unsung
hero” is a manager who took a chance! Executive Leadership: o Stone-cold, sober evaluation of “what we can actually pull off.” o Sooner or later, all change is top-down.
/Redman-IDQ-Nov2013 T. C. Redman, Page 22 © Navesink Consulting Group LLC, 2000-2013
A Federated Organization Model for Data
People Management Data Assets Day-in, day-out: “Regular” people and managers. HR role: Policy setting and admin
Day-in, day-out: High-quality data creation and novel use of data is the responsibility of people, processes and departments. DG role: Policy setting and admin
Departmental HR: Help their units find and advance the talent they need
Departmental DG: Help their units find and/or create the high-quality data they need. Home for quality facilitators, analysts
Corporate HR: Succession planning, pay scales, etc
Corporate DG: “metadata” processes, special provision for unique data
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 23
I hope I’ve excited, and scared, you! The leadership challenge in a nutshell: o A full-strength data revolution is brewing o Today’s organizations are stunningly unfit for data For most, it is too soon to set strategy. But it is time to get
moving o Quality is pre-requisite. Move responsibility out of IT! o Experiment with ways of competing with data o Explore analytics, at all levels. o Think end-to-end (e.g., D4-process) o Sort out which data are strategic. And above all BE COURAGEOUS!
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 24
© Navesink Consulting Group LLC, 2000-2013 T. C. Redman, Page 25
Questions?
Thomas C. Redman, Ph.D. “the Data Doc”
+1 732-933-4669 [email protected]
www.navesinkconsultinggroup.com
/Redman-IDQ-Nov2013
/Redman-IDQ-Nov2013 © Navesink Consulting Group LLC, 2000-2013 NCG, Page 26
Thomas C. Redman, “the Data Doc” o Ph.D., Statistics, Florida State, 1980.
o Conceived and led the Data Quality Lab at AT&T Bell Labs.
o Formed Navesink Consulting Group in 1996.
o Helped dozens of companies think through, define, and advance their data and data quality programs.
o Led development of most of today’s best-practice data quality management methods & techniques.
o Latest and greatest: Data Driven: Profiting from Your Most Important Business Asset, Harvard Business School Press, 2008.
o Known bias: “Data are quite obviously the key asset of the Information Age. Yet today’s organizations are singularly ill-designed for data. This leads me to conclude that organizing for data is THE management challenge of the 21st century.”
o Much current work focuses on “organizing for data.”