Pretty much that describes the experience of most organisations during 2020, facing the Covid-19 pandemic and its disruptive effect on their markets. Senior executives urgently needed data to inform accelerated decision-making and rapid reporting of the impact they were having. All of which revealed gaps in data assets and flaws in business intelligence that urgently needed fixing. It also revealed where these were the consequence of political resistance, lack of investment or previous failures.
For members of DataIQ Leaders, last year presented as many opportunities as challenges, however, from delivering long dreamed-of data migrations to digital transformations and leading-edge innovation. During a roundtable in February 2021, two very different types of project were identified which have mutual benefits and dependencies.
At the foundational (or roof-fixing) level, data migration can transform disparate sources into data products, with data governance then acting as a “shopkeeper”, able to offer access under appropriate conditions for new uses. At the innovation level, “speedboat” projects need to get out in front of where the business is currently operating to explore new directions and destinations. As one member put it, “they will lay out the ground work, but they can not make the whole journey.”
This was typical of the experience at a global law firm where clients were demanding reports that covered their activities worldwide rather than country-by-country. Dealing with that required putting in place data foundations and BI infrastructure that did not exist – an opportunity that is rare in any sector.
Even in an apparent greenfield site, it involved existing data flows being redirected and ongoing reporting within a live business environment. Rules were put in place to keep the business focus clear, such as ensuring any new report had a use case and IT specification. Since key data sources were partners in the law firm, they needed to be involved in a feedback loop to ensure that their 2,000 clients continued to get the information they needed throughout the project.
A global consumer healthcare business also identified that its management information was not optimal for a fast-growing joint venture that is due to separate from its parent companies in two years’ time. It is building a new data office from scratch with a focus on three key areas: data science, data products (including MI) and data strategy (including data governance).
The CDO has recognised that these are inter-dependent, for example that data science can get blocked if data lineage and ownership is not clearly established, meaning they are unable to trust it. Fortunately, the organisation fully understands the value of data and is providing heavy back.
Elsewhere, an insurance group realised during 2020 that it could not progress the business effectively without first coming to a halt and dealing with its underlying data issues. For example, an absence of standardised structure meant data could not be shared across the five divisions in the group. Short-term needs to deliver value were also being undermined by the inability to innovate.
Buy-in to a new data strategy was won from the board and the data team has identified key pain points across the business. This has led to 40% of effort being focused on privacy impact assessments, regulatory issues and risk – a powerful use case for transforming the data asset. But alongside this foundational work, it has also initiated an AI project with the support of Innovate UK focused on understanding the barriers that data protection legislation has created to automation.
Another insurance group underwent a change of CEO last year which has switched the data focus from defensive (risk mitigation) to offensive (value creation). This is bringing data science and advanced analytics into play alongside a culture change that is hoping to shift the data governance perspective on how data is deployed. Historically, it has been confrontational and viewed advanced analytics as “the Wild West”. It saw its own role as the gatekeeper, keeping order, preventing disruption and reducing risk from the mis-use of data. This year, it is hoped that the mindset will move towards being shopkeepers who can enable positive, value-driving data projects.
The law firm is also looking to build out a new data culture, seizing the focus on data foundations as a way to build data professionalism across the business, including up-skilling colleagues to create new career opportunities. Similarly, the healthcare business has identified that embedding data skills makes colleagues more holistic, curious and less protective.
What the experience of these members shows is that organisations rarely, if ever, pursue solely foundational data projects without also launching a few “speedboat” projects to leverage improved data assets. Even in a year as disrupted as 2020, this blend of cost-based and value-creating activities went ahead. What seems likely in 2021 is that some of those innovations turn into foundations on which a fresh layer of forward-looking projects can be built.
