The Data Leadership Nexus has five basic components;
1.- Top-Down Leadership (by the Senior Executive Team)
2.-4.- Data, Information & Analytics
5.- Organizational Culture
We have explored Top-Down Leadership (#1) and Organizational Culture (#5) in previous postings and will now discuss the combined components of Data, Information & Analytics (#2-4).
In the Data Leadership Nexus the role of Data, Information & Analytics are what Michael Porter calls Core Competencies: “a defining capability or advantage that distinguishes an enterprise from its competitors”. They are not the underlying technologies, associated infrastructure and services that the IT Team is responsible for and what most of the industry conversation continues to myopically focus on i.e. Big Data. Instead, they are the inherent intellectual capabilities & acumen found broadly within the Organization and pervasively utilized across the entire Enterprise. It is in these Core Competencies where we manifest the ability to become a true Predictive Enterprise. The Predictive Enterprise is not a technology, it is an Intellectual and Cultural Construct for Creating Strategic Outcomes for each Organization.
The Core Competencies of Data, Information & Analytics compliment others which are specific to the Industry or Service Sector that the Organization serves e.g. Supply Chain in Manufacturing, Logistics in Consumer Goods, etc. They are that critical pillars that every Organization’s Strategies need to be built on and are ubiquitous in use by everyone within the Enterprise i.e. Core. Every organization leverages and exploits their Core Competencies to create points of differentiation, drive operational excellence, manage risk appetites and to create/sustain other sources of competitive advantage in the modern enterprise.
As Core Competencies; Data, Information & Analytics drive everyday activities to achieve pervasiveness. Sustainable Competitive Advantage comes from the full leverage of these competencies in respect to the competition or other benchmarks (as found in the Government sector). Typical examples of the leverage points within the Core Competencies of Data, Information & Analytics are the following;
- Data Curation: The continuous development, enhancement & stewardship of historical, reference, transactional & operational data sources to create the highest intrinsic value and agility for the Organization.
- Information Exploitation: The business contextualization of Curated Data to create maximum leverage points in support of all Strategic, Tactical & Operational Goals set out by the Organization.
- Pervasive Analysis: The continuous application of statistical, descriptive, predictive and cognitive decision science to Contextualized Information sources for use in Decision Making, Customer Insights, Risk Mitigation, Performance Improvement and Other endeavors that each member of the Organization is responsible for.
Each Core Competency has companion technical domain activities that are the Responsibility of the IT & Service Delivery Team(s). A collaborative framework is established between Data Leadership and IT/Service Delivery to insure maximum effectiveness and efficiency. IT & Service Delivery works in concert with the Accountable parties in Data Leadership (via a mutually defined RACI) to maintain, sustain and optimize the underlying infrastructure and delivery solutions such that the Strategic Value of the Data is maintained/enhanced and that all Information & Analytics competencies can be fully realized. This approach will typically require new structures in the traditional IT functional suite as well as its Leadership Team. These obstacles are easily overcome once the Organization has established a fully accountable Top-Down Data Leadership structure, strong Strategic Direction and a newly defined Organizational Culture which is driven by the beliefs that; Information is an Asset, Evidence-based Decisioning is the norm, and that the pervasive use of Analysis is the critical path to Real-time Insights, Risk Awareness & Business Agility.
Data, Information & Analytics are no longer outliers in respect to the Short and Long-term Strategies of every Organization. They are constituent components of every Organization’s Strategy in the form of Core Competencies which must be fully leveraged and exploited to achieve the desired Outcomes and to create/sustain Competitive Advantage in a world where differentiation is hard to achieve and razor thin in scale. Each of these must be utilized to their fullest to create and sustain a Predictive Enterprise.
The Predictive Enterprise has three essential elements for Strategic Success; Effective Leadership, A Committed Organizational Culture & The Exploitation of its Core Competencies. In the next installment of The Data Leadership Nexus we will discuss the Integration of all these elements, along with supporting functions which are required, to achieve a full Transformation of the Legacy Organization into a true Predictive Enterprise.
In the meantime you can follow The Data Leadership Nexus discussion on Twitter via the #DataLeadership hashtag, in the September and October issues of Information Age (UK) (www.information-age.com) and at Data Leadership 2014 in London (October 30th) (www.dataleadership.co.uk). Finally, I will also be setting up private briefings for those Enterprises who are interested in how to transform themselves into Predictive Enterprises for this Fall in the US and UK. If you are interested you can contact me via email: firstname.lastname@example.org
Thanks for following along.