Transcription
The First Step in DataQuantifying the Value of DataKelle -9661Proprietary & Confidential
Presentation Objective Discuss how data creates value to a company Quantify that value creation Review practical methods for communicating valueof data Agenda:— Approaches to data— Quantifying value— Communicating valueProprietary and Confidentialpg 2
Categories of Value Data as an asset Contribution to brand effectiveness Improved productivity Decreased cost Reduced risk Increased revenueProprietary and Confidentialpg 3
[APPROACHES TO MANAGING DATAProprietary and Confidential]pg 4
Enterprise Information ManagementEnterprise Information ManagementGOVERNANCEInformation StrategyBusiness Intelligenceand PerformanceManagementContent DeliveryData ManagementInformation AssetManagementContent ManagementArchitecture and Technology EnablementORGANIZATIONAL ALIGNMENTProvides a holistic view of data in order to manage data as a corporate assetProprietary and Confidentialpg 5
Enterprise Data ManagementEnterprise Data ManagementEnsure data is available, accurate, complete and secureTraditional& Big DataGovernanceData QualityManagementMaster DataManagementReference DataManagementData ingBig DataManagementPrivacy/SecurityDevelop and execute architectures, policies and procedures to manage the full data lifecycleProprietary and Confidentialpg 6
Data Governance Assessment Operating Model Arbiters & Escalation points Data GovernanceOrganization Members Roles and Responsibilities Data Ownership &Accountability Vision & Mission Objectives & Goals Alignment with CorporateObjectives Alignment with BusinessStrategy Guiding PrinciplesProprietary and Confidential Policies & RulesProcessesControlsData Standards & DefinitionsMetadata, Taxonomy,Cataloging, and Classification Statistics and AnalysisTracking of progressMonitoring of issuesContinuous ImprovementScore-cardingChangeManagement Business Impact & ReadinessIT Operations & ReadinessTraining & AwarenessStakeholder Management & CommunicationDefining Ownership & Accountability Collaboration & InformationLife Cycle Tools Data Mastering & Sharing Data Architecture & Security Data Quality & StewardshipWorkflow Metadata Repository Communication PlanMass CommunicationIndividual UpdatesMechanismsTraining Strategypg 7
[Proprietary and ConfidentialDATA AS AN ASSET]pg 8
Data is an Enterprise Asset What is my data worth to the enterprise? How do you value an intangible asset? How much are we losing by not managing our data? In terms of both increased costs and reduced opportunities.Proprietary and Confidentialpg 9
The Value of Data Assets Determine the “theoretical value” of information Somewhere between 20% - 60% of the value of the company Consider “depreciation” based on data changes, i.e.approximately 10% of the population changes addresses,emails, etc. per year Analyze the maturity level of Data Governance to showthe utilization value of information assets Calculate the value to be derived by increasing the levelof Data Governance Full data governance maintains the integrity of theentire asset, while no data governance allows thedepreciation to mark down the value of the asset to zeroover timeProprietary and Confidentialpg 10
Calculating the Value of DataElementRangeCalculationValue ofCompanyResult 10,000,000,000Value ofInformation20% - 60%20% 2,000,000,000Depreciation ofInformation10% - 20%10% 1,800,000,000Maturity Level1-41 450,000,0002 900,000,0003Opportunity for Value4Proprietary and Confidential 1,350,000,000 1,800,000,000pg 11
[Proprietary and ConfidentialCONTRIBUTION TO BRAND]pg 12
Data Related to Brand Interbrand: 80% of the value of brand is related to 10distinct factors: 4 internal and 6 external. The fourinternal factors are: Clarity, Protection,Commitment and Responsiveness. For brandvaluation, the factors are equally weighted. Customer data has a direct correlation to the valuesassigned to Commitment and Responsiveness.Proprietary and Confidentialpg 13
Calculating the Value to BrandElementRangeCalculationValue of Brand 1,000,000,000Impact of80%Factors on BrandImpact ofCustomer DataProprietary and ConfidentialResult.802 out of 10.2equally weighted 800,000,000 160,000,000pg 14
[Proprietary and ConfidentialPRODUCTIVITY]pg 15
Calculating Productivity Impact Manual Data Reconciliation Inputs: Employee time Opportunity cost of Employee time Data Access and Retrieval Inputs: Above Incremental cost of hardware, software, and process Project Delays Inputs: Above plus Increased consulting fees Opportunity cost of delayProprietary and Confidentialpg 16
Calculating Productivity ImpactProductivity LossQuanitfication of ImpactManual DataReconciliation Impact E1(Hours x FTE cost) E2(Hours x FTE cost) . En(Hours x FTE) [opportunity cost of E1, 2, 3, . n]Data Access andRetrieval Impact [E1(Hours x FTE cost) E2(Hours x FTE cost) . En(Hours x FTE)] [opportunity cost of E1, 2, 3, .n] (incremental cost of data software, hardware, andsupport)Project Delays Impact [E1(Hours x FTE cost) E2(Hours x FTE cost) En(Hours x FTE)] Δconsulting cost Δsupport cost opportunity cost of delayProprietary and Confidentialpg 17
Actual Value Identified Estimate 10 FTEs allocated to reconciling data Estimated 5-7 additional FTEs dedicated to manual datacollection/update processes The accelerating adoption of regulation will continue toincrease the demands for more transparent data andflexible reporting Targeting a 10% improvement in Year 1 with the ultimategoal of reducing those costs by 40% over 3 years EPM Project delays due to bad data resulted in 2 yeardelay, 3.1 million spent with only 50%-60% of thefunctionality delivered (cost and time increased 1.5xinitial estimate)Proprietary and Confidentialpg 18
[Proprietary and ConfidentialOTHER COSTS]pg 19
Impacted Costs Technology costs Data movement Increased configuration/customization IT Resource Costs Work-arounds Add-ons Re-dos Marketing Costs Personnel CostsProprietary and Confidentialpg 20
Actual Value Identified Reduce call center agent time searching for clientinformation from 5 min to 2 Improved productivity could enable 1-2 people to be reassigned toother high value activities Improved Customer Satisfaction with improved call handling time Improved marketing effectiveness Productivity improvement of 5–10% would enable marketing teamto increase number of executed campaigns Reduced number of emails sent to inaccurate or duplicate emailaddresses (Quantified at 5 per email) Reduce sales rep commission reconciliation from 3 days/month to 3 hours/monthProprietary and Confidentialpg 21
[Proprietary and ConfidentialREDUCED RISK]pg 22
Risk Categories Strategic Competition M&A Financial Cash flow and collections Regulatory Regulatory Penalties Cost to adhere to Regulations Opportunity cost to respond to regulators Operational Supplier exposure Employee turnover Loss of informationProprietary and Confidentialpg 23
Actual Value Identified Restatement cost 4-5 million in professional services, notincluding soft dollars (FTE) Consulting fees are 9m for audit; 40% of audit cost spenton gathering data Employee burn out was consistently cited as major risk ofmaintaining the status quo Credit Risk Rating remediation project resulted in over2,500 hours of effort Global expansion (additional markets and 24x7processing ) will continue to exert pressure on manualprocesses, further increasing the likelihood of an oversightleading to reporting mistakes or noncompliance.Proprietary and Confidentialpg 24
[Proprietary and ConfidentialINCREASED REVENUE]pg 25
Categories of Value to Revenue Increased “walletshare” Improved "household" penetration Increased upsell/cross-sell Improved marketing - response rate, purchase value perresponse, campaign effectiveness and optimizedsegmentation Increased sales effectiveness and face time Reduced churn Improved lifetime value of CustomersProprietary and Confidentialpg 26
[Proprietary and ConfidentialCOMMUNICATING VALUE]pg 27
Translating Data Value intoBusiness Value Communication is key to maintaining commitment The right metrics help maintain alignment Metrics have no value if they aren’t aligned to the interestsof a stakeholder Ensure there is some way of measuring how the improvementin data is helping stakeholders progress toward their goals What information do you need to track and measure to thosegoals? Translate the value statement into the language ofthe recipientProprietary and Confidentialpg 28
Sample: Creating Business ValueConcernsPoor DataQuality & Lackof sing Data& Reports /accuracyDifficultytargeting /profilingLack of DataProprietary and ConfidentialOpportunitiesBenefitsEnable Sales Force Automation andother toolsIncreased business effectiveness andagilityImproved Access to accuratecentralized Customer DataFacilitate Customer-centricity360 View of Customer “single source of truth”Increased up-selling and cross-sellingSupport ERP roll out and other systemchangesAutomated customer engagementImproved Customer Data MaintenanceProcessesFaster time to marketCommon 3rd Party Customer DataAcquisition & Integration processesImproved customer experienceImproved reporting and analyticsImproved productivityMore accurate payment reconciliationImproved ability to measure successCommon Customer DefinitionReduce data maintenance costspg 29
The First Step in DataQuestions?Kelle -9661Proprietary & Confidential
Develop and execute architectures, policies and procedures to manage the full data lifecycle Enterprise Data Management Enterprise Data Management Ensure data is available, accurate, complete and secure Traditional & Big Data Governance Data Quality Management Data Architecture Data Retention/Archiving Master Data Management Big Data Management
