1 - How can this book help you? Flashcards
What is the primary role of a Chief Data Officer (CDO)?
Responsible for enterprise-wide governance and use of information as an asset, involving data collection, governance, processing, analysis, and business intelligence.
What is the difference between digital transition and digital transformation?
Digital transition is the process of taking analogue information to a digital environment; digital transformation changes business processes underpinned by data and analytics.
What is meant by ‘single customer view’ (SCV)?
A consolidated view of all data related to a customer, providing comprehensive insights into their interactions and preferences.
Fill in the blank: The assumption that _______ is broadly true, but not new.
data equals oil
How much data was created, captured, copied, and consumed worldwide in 2021?
64 zettabytes (Zb)
What percentage of data kept by companies is typically unused for analytics?
73%
What is a ‘single source of truth’?
A single, accurate, and consistent view of the data across the organization.
True or False: Data leakage refers to unauthorized transmission of data from within an organization to an external destination.
True
What are the five waves of innovation mentioned in the book?
A structured template for using data in business (specific waves not detailed in the text).
What is the estimated growth of data volume expected by 2025?
Expected to triple from 2021 levels.
What is ‘shadow data resource’?
Data that is created and stored outside of the official data management systems, often leading to inconsistencies.
What is meant by ‘data and analytics strategy’?
Choices and priorities that create a course of action to achieve high-level organizational goals using data.
Can you describe a product or project driven specifically by data that had a measurable positive impact on the business?
A project that successfully increased customer satisfaction or revenue due to data-driven decisions.
What is the significance of being able to tell a story about data-driven success?
It helps quantify the return on investment, fosters innovation, and encourages buy-in from stakeholders.
What is the primary challenge facing businesses regarding data usage?
Most businesses do not handle their data processes optimally, leading to lost earnings and missed opportunities.
What is the relationship between data investment and IT costs?
Data and analytics strategy should determine investment in IT, not the other way around.
What is an example of a major company investment in data science?
Google invests $3.9 billion in data science every year.
What is the importance of measuring the impact of data-driven projects?
To assess the effectiveness of data usage, identify areas for innovation, and share success stories.
Fill in the blank: The world’s most valuable resource is no longer oil, but _______.
data
What are the potential consequences of poor data management?
Lost earnings, bad decision-making, missed opportunities, and regulatory fines.
What is the purpose of the ten questions posed to boards and senior managers?
To evaluate the current status and effectiveness of data governance and usage within the organization.
True or False: A CDO usually reports to the Chief Financial Officer (CFO).
False
What was the strategic goal given to the data team in 2010 by the bank?
To use data to increase the size of the business
The bank aimed to identify potential customers for investment and pension products.
What percentage of companies use data-driven intelligence to guide key business functions according to Forrester Research?
12 percent
This statistic reflects the reliance on gut feelings over data.
Who analyzed decision-making in high-pressure jobs and emphasized the importance of evaluating gut feelings?
Gary Klein
Klein’s work highlights the need for conscious evaluation of intuition.
What did Daniel Kahneman say about overconfidence in decision-making?
It is a powerful source of illusions
Kahneman emphasized that confidence in a narrative does not equate to its validity.
In what situations does Kahneman believe gut feel has some validity?
In predictable situations familiar from experience
Familiarity allows for instinctual decision-making without extensive research.
What should be done to test intuition in decision-making?
Test that intuition with data
Intuition should be viewed as a hypothesis that data can support or dispel.
What is the term for having every data element stored and edited in only one place?
Single Source of Truth
This concept eliminates data duplication and ensures consistent updates.
What percentage of analytics and customer-care professionals identified lacking a single view of the customer as their top challenge?
48 percent
This statistic was reported by Pointillist in 2020.
What is a Single Customer View (SCV)?
The process of collecting and merging data from disparate sources to form a single accurate record for each customer
Also known as a ‘Golden ID’ or ‘360-degree customer view’.
What major financial scandal involved overstating earnings through improper accounting entries?
WorldCom bankruptcy
This case involved over $9 billion in erroneous entries to create a false impression of profitability.
What does Gartner Group estimate poor-quality data costs businesses annually?
$15 billion
This cost arises from missed opportunities and unrecognized waste.
What is a Shadow Data Resource?
The collection, processing, and analysis of data without explicit approval of the data function
Typically funded by departmental budgets or corporate credit cards.
What is a common result of shadow data activities in organizations?
Increased costs of acquiring, holding, and using data
Shadow data resources often lack quality control and understanding.
What is the impact of hard-to-find data on decision-making?
It creates inefficiencies and hinders timely responses
Hard-to-find data can lead to worse decisions under pressure.
What is the potential benefit of automating data acquisition?
It can drive up data quality while reducing costs
Automation eliminates manual errors and enhances data integrity.
What should organizations understand to improve their data processes?
How much they are paying for data across the whole business
This knowledge is crucial for optimizing data management and cost efficiency.
What culture does a successful data and analytics strategy aim to achieve?
A no-surprises culture
This culture ensures that problems are identified before they escalate.
What is data leakage?
The failure to take advantage of potentially useful data generated by the business process in a way that can create an advantage for the organization
This can stem from issues in acquisition, silos, or business processes.
What are the three problems that can cause data leakage?
- Asking better questions to get more data
- Business processes restricting data capture
- Failing to retrieve and follow up on data
What is a common issue with data warehouses in organizations?
They are often built but not used effectively, leading to wasted resources.
What does the GDPR require from organizations regarding data?
Organizations must explain how data is acquired, why it is necessary, how it is held and used, and the results of that process.
How does data collection relate to creating business value?
Capturing data is only half the story; creating an integrated data-driven culture is essential for optimizing the return on that data.
True or False: Data leakage can occur even if data is collected and shared.
True
Fill in the blank: The collection of data should be integrated at the point it is _______.
collected
What is one negative impact of treating data as a stock of resources?
It can lead to disjointed data usage and internal turf wars.
What can prompt action from collected data?
Having a mechanism in place to retrieve and act on the data.
What is a key benefit of democratizing data use in an organization?
It allows for different departments to utilize data according to their specific needs.
What should organizations consider when implementing data and analytics strategies?
They should evaluate not just how much they can do with data, but why they do it and whether it aligns with their social purpose.
What is the primary focus when trying to extract value from data?
Identifying which problems require attention.
What can be a surprising discovery for businesses regarding their knowledge?
How little they know about themselves, their products, markets, and customers.
What kind of questions should be asked to diagnose data problems?
Questions about how colleagues do their jobs, make decisions, and identify opportunities for process improvement.
What is a potential outcome of uncovering bad news through data analysis?
It can present a huge opportunity for growth.
