17 - Sharing data with suppliers and customers Flashcards
What is the main idea behind sharing data with suppliers and customers?
It generates more value, improves knowledge and data quality, and crowdsources innovation.
What key concept did Jeff Bezos introduce regarding data sharing at Amazon?
All teams must expose their data and functionality through service interfaces.
What is the significance of application programming interfaces (APIs) in data sharing?
They allow for the exposure of data to customers, suppliers, and the public.
How much better business results do enterprises with advanced API management experience compared to those with basic management?
Up to 47 percent better business results.
What percentage of companies use APIs to improve speed to market and innovation?
34 percent.
What is one benefit of sharing data with the market?
It can help grow and improve the overall efficiency of the market.
What are the main risks associated with data sharing?
Quality and governance of the data shared.
What does the term ‘asymmetric information’ refer to?
A situation where one party has more or better information than the other.
How can sharing more information create a basis of trust?
It can lead to a more profitable business.
What was the challenge that led to the creation of the RIXML standard?
Better dissemination of investment research.
What are the three guiding principles of the RIXML standard?
- Standards must improve the process for all participants
- Standards must evolve with technology
- End users must benefit without needing to know the standard exists.
What is blockchain?
A system in which a record of transactions is maintained across several computers in a peer-to-peer network.
What is a potential benefit of blockchain in finance?
It offers efficiencies in processes that are currently inefficient, manual, and expensive.
What is the predicted investment growth in blockchain from 2018 to 2024?
From $1.5 billion in 2018 to $19 billion in 2024.
Fill in the blank: The process of _______ involves generating shared documents in international trade.
[letters of credit]
True or False: Blockchain requires agreement from everyone in the supply chain to function effectively.
True.
What can sharing data lead to in terms of market efficiency?
Higher-quality data in more places.
What impact did the integration of billing systems have on healthcare costs in the case study?
It resulted in a 30 percent cost reduction.
What is one challenge of exposing data to business partners and suppliers?
Maintaining data quality and governance.
What was the outcome of the RIXML standard’s implementation?
Improved transparency and consistency in the investment research process.
What does the term ‘disintermediated’ refer to in the context of the RIXML standard?
It refers to reducing the role of brokers in interpreting and explaining research.
What was the primary challenge faced by firms employing sell-side analysts?
Improving the data process
This involved standard definitions, naming conventions, consistent formats, data quality checks, and cross-checks for inconsistencies.
What are the benefits of exposing data to customers?
Creates efficiencies by allowing customers to perform tasks themselves such as:
* Checking order status
* Changing their address
* Setting preferences
This implies cost reduction and reduces the need for second-guessing customer needs.
What should businesses do to track customer actions?
Always record and track the actions that customers take.
This helps in identifying shifts in preferences and crowdsourcing solutions to data or service problems.
What is a Subject Access Request (SAR) under GDPR?
A request by individuals to access the information an organization holds on them.
Organizations must respond without delay and provide the information in an accessible format.
True or False: Exposing data leads to improved processes.
True.
It can break existing processes, leading to improvements such as self-service options for customers.
What are the implications of exposing governance systems?
Partners may require provenance, and customers are frustrated by inaccurate or obsolete data.
This can lead to reputational damage if data management is poor.
What does the term ‘disintermediated’ refer to in the context of customer service?
The reduction or elimination of intermediaries, such as customer service agents, due to self-service options.
This changes their role to support of last resort, requiring higher training.
Fill in the blank: Exposing data can effectively _______ solutions to data or service problems.
[crowdsource]
This means leveraging customer input for better data quality.
What is a potential downside of encouraging customers to correct their data?
It may lead to negative feedback if data quality is revealed to be subpar.
However, this process can stabilize and become an engine for quality data over time.
What should businesses establish before launching new services with data in mind?
A threshold for quality.
This ensures that if data integration is poor, it does not lead to customer dissatisfaction.
What can businesses do to prepare for subject access requests?
Create a project to report information in a standard format.
This ensures compliance with GDPR requirements.
What is one creative example of data exposure in marketing?
Progressive Insurance allows prospective customers to view competitors’ prices on its website.
This strategy lets them control the context of the comparison while providing transparency.
True or False: Data sharing has no impact on business relationships.
False.
Data sharing improves efficiency in business relationships but can expose inefficiencies.
What should businesses be mindful of when exposing data?
The impact on business partners and parts of the business.
This includes managing changes in job roles and customer expectations.
What is the relationship between data sharing and reputational benefits?
Data sharing can enhance reputation by making it easier to do business, but poor data management can lead to reputational damage.
This duality emphasizes the importance of data quality.
What does exposing data imply for business models?
It creates stress on existing business models.
Businesses must adapt proactively to these changes.
