UK businesses are starting to recognise the true strategic value of data as a competitive differentiator and customer experience enhancer; which in turn is increasing the potential value of data as a source of revenue. In fact, 90% of CIOs believe data is changing the way their organisations do business.
But data isn’t being fully exploited
Despite 77% of businesses viewing data as a valuable asset they still don't think they are getting the most out of it.
Until recently the responsibility of data has been largely shouldered by CIOs, who on top of their day jobs are faced with greater expectation from the business to provide value from data. 60% of CIOs say they are under increased pressure to provide higher quality data, and 59% say they are under increased pressure to provide data faster to the business. CIOs in UK organisations cited that if this data was managed effectively, and data was of the highest quality, they could increase their profits by an average of 15%.
CIOs are calling out for a single owner of data
Although CIOs have taken on this responsibility, 63% believe their role fails to cover the majority of responsibilities of a Chief Data Officer. As the value businesses place on data increases there is a clear requirement for a single data owner to relieve this pressure and extract the full potential of data effectively. So much so that 92% of CIOs are calling out for a CDO role, with 61% wanting to see an appointment in the next 12 months.
The benefits of a single point of data ownership
Ownership that supports strategy
By implementing a senior data owner, you can focus on producing a detailed strategy. Defining a strategy will require you to get to the bottom of why data is important and what data is required to support effective data management. Businesses often say that they find quantifying the problems they face with data to be a challenge. By conducting a process assessment, you can move from a more reactive approach to proactively understanding your requirements that will support investment and buy in from the board. A dedicated senior data owner will enable someone to take a broader and corporate wide view of your data. A sole owner means that someone is always responsible for reviewing processes to ensure the best people and technology are being utilised to fully exploit value.
Technology that powers potential
Establishing who is responsible for data within your organisation will help you define your technology requirements. Technology can be used to support the implementation and delivery of a corporate wide approach to data management. Technology marries both people and processes by providing easy to use systems that deliver accurate data that’s accessible across the business. Better data will improve operations, which will have a positive impact on the service customers receive and ultimately, drive revenue. Rather than trying to solve problems as they arise, a strategic focus will help your business build technology around your strategy.
Customer engagement that drives revenue and ROI
Customer expectations are ever increasing. People are more active about voicing their opinion when they are disappointed with the service your organisation has provided and with the advent of social media, it is now easier than ever for them to do this. The cost of winning back lost business could potentially be far greater than the cost of proactively managing the accuracy of your organisation's data in the first place. Whilst it’s important to understand the negative implication of inaccurate data, by having measures in place that ensure data is accurate, businesses can drive long term relationships. One CDO commented that “data enables better relationships with customers, which should in turn increase sales and create capital.” Another said that “ROI is likely to come from increased insight that will drive better relationships with customers." When asked how much CIOs and CDOs could save from investing in data quality tools, CIO cited savings of less than £1m where as the CDOs with a dedicated focus on data stated they could save in excess of £5m.
If you'd like to read the full CDO Research Report you can download it here.