If you ask organisations if they are data-driven, a lot will respond yes, we are. That is because they have state of the art data platforms, and they can answer why something happened or what happened.
What do I have to say to that? It is a great start, and it is the foundation of becoming data-driven.
What is data-driven? In a data-driven organisation, your data informs you of the past, tells you about the present and drives future decisions. In the first paragraph, note you are backwards-looking. An event has happened, and you want to know why. You look at reports and beautiful dashboards that tell you what has happened.
A forward-looking tells you what action you should take now as actions unfold; this is no small task. All required data have to be available, or your organisation should have a process in place to consume new data with minimal development time. You will require advanced analytics.
Oxford dictionary on google describes analytics as a systematic computation of data or statistics. The mentions of analytics have grown exponentially in recent years.
When building your data-driven enabling platform, you should know the state of your data you want to consume. I can define three states as past, present and future.
Your data requirement will enable you to choose and build the right platform. Take a moment to define your data vision. What is your data vision for your organisation? Your vision should not be about a specific technology but rather what you want to see. You can start with your use cases.
- We will like to create a platform that allows us to download company reports, analyse them and make investment recommendations.
- As a trading firm, you may want to know when risk events will happen in the markets that will affect your trade and know what actions to take to mitigate risks before they happen.
- Use geospatial and satellite data to predict commodity prices, like grains better. Assess crop damage due to severe weather.
- Use social media post that can convey sentiments in your interested fields.
- Find out events that are happening around you to advertise and provide your services to companies.
When you have completed writing your use case, the data must be sourced, captured, analysed, and proof of concept carried out. “Knowledge itself, while valuable, does not justify an investment unless we can show it making a difference in the decisions we make to run the business” -David Torgerson.
It is essential to understand what questions are worth asking and what this will mean in the real world. For this, it is essential to have your conceptual business model.
INFORMATION VALUE CHAIN
According to Dr. Tempich, The value chain consist of , Data Generation & Acquisition >> Structured Storage & Processing >> Integration & Analytics >> Presentation and Marketing.
However, David Torgerson describes a more detailed and relatable model which he calls the information value-action chain. The value change consists of the following steps.
- Real-World Events and Characteristics
- System Data Capture
- Accessible Location/ Storage
- Data Extraction for Analysis
- Summarise & Interpret Results
- Develop Strategy & Plan
- Deliver The Pitch
- Take Action
In part two of the write-up, I will discuss the first three steps in the information value chain.