2 - The business case for data Flashcards
What is necessary for an investment in data to be transformational for a business?
Time and trust, willingness to work in different ways, and cooperation with other departments.
Why is it important to demonstrate the value of investing in data?
To justify the investment compared to other parts of the business.
What are the two types of value associated with data?
- Tangible value of data
- Intangible value of data
What does a business case for data need to prove?
That investing in data is justified over other business investments.
What is the role of the Chief Data Officer (CDO) in relation to data?
To evangelize the value of data within the organization.
True or False: All business decisions made without data are equally valid as those made with data.
False.
What is the risk of driving changes without making the argument for data?
You may fail to gain support or achieve goals.
Name three companies and their data science investments in 2018.
- Google – $3.9 billion
- Amazon – $871 million
- Apple – $786 million
What strategic advantage did Amazon gain from its data?
Tracking customer behavior to improve logistics and expand into general retailing.
What was the outcome of Amazon launching Prime?
Increased market share and customer spending.
What does the cost of doing nothing in terms of data imply?
Lost business and missed market opportunities.
What is a data inventory?
A fully described record of the data assets maintained by an organization.
Fill in the blank: Your data inventory is mostly valuable to your _______.
[own business]
What challenges exist in measuring the value of data?
- The value is mostly to your own business
- Difficulty in grading data quality until used
What is often overestimated in organizations regarding data?
The value of their data assets.
What is the relationship between the quality of data and the value created by IT systems?
The value is a function of both the IT system’s potential and the quality of the data used.
According to the KPMG CIO Survey 2019, what percentage of digital leaders maximize the value of their data?
35 percent.
What can a well-constructed business case for data promise?
Incredible returns, whether financial or capability benefits.
In the context of data, what does ROI stand for?
Return on Investment.
What is the significance of the business case made for data at a major UK bank?
It aimed to generate £1 billion of incremental revenue per annum.
What are two important aspects to focus on in a business case for data?
- Addressing a significant business problem
- Having a precise goal
What is a common mistake made by data evangelists?
Describing what they will do instead of what the data will accomplish.
What are the two types of value derived from data?
- Tangible value
- Intangible value
What is the primary focus when communicating with a CEO about data transformation?
Solving business problems in their language, avoiding technical buzzwords.
What is the difference between tangible and intangible value of data?
Tangible value comes from increasing revenue and reducing costs, while intangible value comes from reducing risk and improving productivity, automation, customer satisfaction, and employee satisfaction.
What are the two types of value that can be derived from data?
- Tangible value
- Intangible value
What is tangible value of data primarily associated with?
Increasing revenue and reducing costs.
What does intangible value of data contribute to?
Reducing risk and improving productivity, automation, customer satisfaction, and employee satisfaction.
What was a significant error made in the business case for the large retail bank?
Overpromising based on a grand design that was impossible to implement.
What was the core product of the retail bank mentioned?
Retail banking with 30 million customers.
What was a key factor in the success of the data transformation project?
Simplifying the process and exporting key data instead of reforming the data structure.
What did the analysis of customer cross-selling lead to after 12 months?
An 80% growth in the customer base for one of the niche products.
What percentage of organizations are effective at maintaining an enterprise-wide data management strategy according to KPMG, 2019?
Only 18%.
What is crucial for maximizing the value of data in organizations?
An enterprise-wide data and analytics strategy.
What is a critical component of a business case regarding data?
An analysis of the threat from competition.
How should data be valued according to the text?
As an asset based on value creation from processes built using it, not on volume or number of records.
True or False: Data and technology budgets should be combined.
False.
Fill in the blank: A business case isn’t a business case until you can _______.
[make it work]
What should you focus on when creating a business case for data?
Solving well-defined business problems with a clear definition of value.
