By Kate Bosco
Did you miss our recent webinar on Big Data? Good news, we've got the replay here.
KC from SDCG and Bill Schmarzo, author of “The Economics of Data, Analytics, and Digital Transformation” had a great conversation. You will learn how your enterprise can identify, codify, operationalize, and continuously learn, adapt, and win.
Big Data has changed how organizations understand and make use of the growing volume, velocity, variety, and value of enterprise data. Any company, whether large or small, can take steps to analyze and make use of the disparate information. Enterprises that learn and adapt faster will win.
Bill’s new book, “The Economics of Data, Analytics, and Digital Transformation”, is chock full of actionable insights for how organizations can leverage data and analytics to drive their data monetization and digital transformation. Each chapter ends with a homework assessment so that you can determine where your organization sits concerning your effectiveness in understanding and exploiting the unique economic characteristics of data and analytics. As you study the book – because the book is meant to be studied, not just read – here are what Bill feels are some of the more provocative concepts in the book:
If data is the new oil that will fuel the economic growth in the 21st century, then the most important question your organization must address is how effective is your organization at leveraging data and analytics to power your business models?
Senior management needs to shift from an accounting mindset where the asset valuation is determined by what someone paid for it (value in exchange), to an economics mindset where asset value is determined by what value one can derive in using that asset to derive and drive new sources of customer, product and operational value.
Organizations must stop focusing on being data-driven, and instead become value-driven. Possession of data provides zero value. There are storage, processing, and management costs as well as regulatory and compliance risks associated with just holding data. Data is only of value when organizations put that data to use in optimizing their key use cases.
Organizations that are going to prosper during digital transformation are those that master the unique economic characteristics of data and analytics; assets that never wear out, and can be used across an unlimited number of use cases at zero marginal cost.
Leading organizations are taking use-case-by-use-case, business outcomes, ROI-driven approach to incrementally build their data and analytics capabilities. The “Big Bang” approach that dominated ERP and CRM implementations is giving way to an incremental approach of building the organization’s data and analytics capabilities.
Elon Musk’s statement “I believe that when you buy a Tesla, you are buying an asset that appreciates, not depreciates, in value” may be the most powerful statement in modern business. AI / ML enables the engineering of analytic assets that appreciate the more that they are used. Tesla and Google have figured this out. Is no one else watching?
In knowledge-based industries, “Economies of Learning” is more powerful than “Economies of Scale”. And every industry is becoming a knowledge-based industry
The heart of Digital Transformation is creating a continuously-learning and adapting culture. Tomorrow’s battles will be won by organizations that learn and adapt more quickly than their competition.
Do you have a digital transformation project you would like to discuss? The San Diego Consulting Group can help.
Contact us: https://www.sandiegoconsultinggroup.com/contact