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Why data-literacy will be the key driver of value generation in 2020

FeedStock FeedStock
21 Feb 2020
Quick Read

63% of CEOs in Gartner’s global survey on enterprise approach to data and analytics from 2018 – 2020 said they are likely to change their business models to address the growing importance of data and analytics in driving value across the organisation. Business goals are now inextricably linked to an enterprise’s digital transformation and data analytics initiatives.

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What the world’s largest organisations are doing to address their data-literacy challenges

63% of CEOs in Gartner’s global survey on enterprise approach to data and analytics from 2018 – 2020 said they are likely to change their business models to address the growing importance of data and analytics in driving value across the organisation. Business goals are now inextricably linked to an enterprise’s digital transformation and data analytics initiatives.

Data and analytics programmes within the world’s largest and best performing enterprises are increasingly aligned to their business strategy. FeedStock has seen how strong leadership from CDOs, CIOs and CTOs is instrumental for ensuring that technological developments deliver their full potential value.

Gartner’s Fourth Annual Chief Data Officer Study found that 72% of CDO respondents are now business-goal-driven in the implementation of digital transformation strategies. This represents a shift away from being technology-driven (21%) towards a more strategic, objective-driven approach. CDOs are also prioritising internal data and analytics use (63%) versus the monetization of data and analytics information (31%). Digital transformation strategies are now looking to satisfy the growing demand for data and analytics across the enterprise and implementing tools through which the entire enterprise can benefit from using data to work more effectively towards business objectives.

Does your enterprise “speak data”?

Data-literacy is a term that has emerged relatively recently to describe an enterprise’s ability to read, write and communicate data in context. Data-literacy includes the understanding of data sources and constructs; analytical methods and techniques applied; and the ability to describe the use-case application and resulting value.

This webcast predicts that by 2023, data-literacy will become an explicit and necessary driver of business value, demonstrated by its formal inclusion in over 80% of data and analytics strategies and change management programs. FeedStock has repeatedly seen the value that data-literacy initiatives can deliver: unlocking hidden insights that lie within an enterprise’s unstructured data drives strategic decisions, reveals cost-control opportunities and enables streamlined workflows and improved productivity across the entire front-office.

Why enterprise data-literacy is important

As previously mentioned, as an enterprise’s digital transformation becomes increasingly aligned to business goals, the entire organisation’s reliance on data increases too. The world’s leading organisations are looking at ways to improve data-literacy across their organisation in order to reveal hidden opportunities and provide answers to questions that weren’t being answered before. The challenge surrounding effective data-literacy is understanding the business decisions that need to be made and making the relevant datasets available to assist in those decisions.

One example of this is the use of data to improve customer retention and minimise churn. It is a well-known fact that it is cheaper to retain customers than it is to gain new ones. If you don’t have accurate customer data, you don’t know what they want, when they want it, or through what channel.

FeedStock has been working with CDOs and CTOs across the financial services industry to help define the desired outcomes of real-time, client engagement data and implement the tools needed to grow a culture of data-literacy across front-office employees to increase the ROI of sales teams.

Iterative change to drive positive outcomes

The Gartner webinar points out that “data-driven decisions” can seem like an unfamiliar and concerning concept. Humans tend to want to use the data they have to support decisions they have already made. At FeedStock we have seen how iterative change, along with the close alignment of business goals with a digital transformation strategy, leads to successful implementation of a culture of data-literacy.

CDOs, CIOs and CTOs are at the forefront of building this understanding within their firms. Gartner predicts that by 2022, 30% of CDOs will partner with their CFO to formally value the organisation’s information assets for improved information management and benefits. The world’s largest and best performing enterprises all have a Senior Executive who champions the data and analytics strategy for their business.

Julie Harris, Head of Global Banking Digital Strategy at BAML spoke to Fintech Finance about the four critical drivers of their digital strategy:

  1. Simplify access to digital channels
  2. Ensuring inter-operability across all platforms, devices and time zones
  3. Ensuring consistency across the BAML platforms
  4. Deploy “intelligent digital”

Julie explained that intelligent digital refers to “AI and bots to tell me what I need to know, when I need to know it with alerts and notifications”. The deployment of intelligent digital underpins the bank’s efforts to drive improved internal performance and personalised customer experience through its digital transformation strategy.

The key driver: value generation

VP Analyst of Gartner Research, Debra Logan, is a proponent of the view that successful digital transformation strategies are underpinned by the approaches which prioritize organisational outcomes; are rooted in a firm understanding of how enterprise decisions are made and have aligned the data and analytics technology with how decisions are made. In Gartner’s Data & Analytics Leadership and Vision for 2020 webcast she explains the importance of introducing KPIs that show real-life business improvements and demonstrate results.

This strategy is entirely in-line with our approach at FeedStock. Synapse is a client insight tool which provides real-time data on client behaviour and preferences. Using state-of-the-art deep learning technology, the tool delivers data that can drive Next Best Actions for client-facing personnel and enables sales professionals to maximise opportunities and minimise risks within their client base. FeedStock enables enterprises to transition from a technology-driven digital strategy, towards an approach that puts data-literacy at the heart of operations to effect powerful bottom line growth.

 

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