Promise of Data Analytics
Data Analytics: New Edge for Success
Business and Data Analytics to Achieve Productive Outcomes
Rethinking Healthcare Analytics
A Lesson in Analytics: How Data Can Elevate Student Achievement
Nick Montgomery, Chief Research Officer, PeopleAdmin
Empowered by Cloud, Executed on Earth: 3 Steps to Maximize Return...
Jin Zhang, Senior Director, Analytics, CA Technologies [NASDAQ:CA]
Thank you for Subscribing to CIO Applications Weekly Brief
Data as a Business Resource
By Jamie Adams, CIO, Mspark
While your company may not be in the social media or retail space, there is still an opportunity to capitalize on the data resources currently at your disposal or to capture new data and expand your existing resource pool. We see the power behind data when we read stories about Target’s success with predicting consumer pregnancy and improving target marketing ROI. As CIOs, we are responsible for helping our organizations understand the possibilities with data and for utilizing data to improve value proposition. In the same way that crude oil becomes more valuable when it is transformed into gasoline, data must be refined and transformed into useful information. We can’t be effective at increasing shareholder wealth without identifying and tracking the right metrics.
Key Performance Indicators are metrics that companies use often to measure, manage, and communicate results. There are two types of KPIs: Leading Indicators and Lagging Indicators. Many organizations will focus on revenue, profit, and growth as key measures of success; all lagging indicators that tell a story about what has happened. While these are important metrics, they do not provide foresight to where the business or industry is headed. According to Gartner, companies that focus on more leading indicators earn five percent more than businesses that do not. Why is that? Leading indicators represent metrics that forecast a high probability of future success, and they tend to communicate change in the environment. In 2010, we saw a shift in the entertainment industry when Blockbuster, the video rental giant, filed for bankruptcy. The image of the big blue and white sign that was seen on main street corners was quickly replaced with a white and red jpeg. Netflix disrupted the market. They measured viewer reach, the number of video rentals, and not the number of brick-and-mortar stores. The key is to identify a winning combination of leading and lagging indicators for your business. The next crucial step is to evaluate the data and mitigate risks associated with bad data–either data that is out-of-date, incorrect, or irrelevant.
Organizations should identify a winning combination of leading and lagging indicators for business and mitigate risks associated with bad data
I encourage CIOs to champion data governance. Despite the bureaucratic-sounding name, data governance has become an essential requirement for any organization that aspires to derive insight and business value from their data assets.