1 - How can this book help you?

Question 1

What is the primary role of a Chief Data Officer (CDO)?

Answer 1

Responsible for enterprise-wide governance and use of information as an asset, involving data collection, governance, processing, analysis, and business intelligence.

Question 2

What is the difference between digital transition and digital transformation?

Answer 2

Digital transition is the process of taking analogue information to a digital environment; digital transformation changes business processes underpinned by data and analytics.

Question 3

What is meant by ‘single customer view’ (SCV)?

Answer 3

A consolidated view of all data related to a customer, providing comprehensive insights into their interactions and preferences.

Question 4

Fill in the blank: The assumption that _______ is broadly true, but not new.

Answer 4

data equals oil

Question 5

How much data was created, captured, copied, and consumed worldwide in 2021?

Answer 5

64 zettabytes (Zb)

Question 6

What percentage of data kept by companies is typically unused for analytics?

Answer 6

73%

Question 7

What is a ‘single source of truth’?

Answer 7

A single, accurate, and consistent view of the data across the organization.

Question 8

True or False: Data leakage refers to unauthorized transmission of data from within an organization to an external destination.

Answer 8

True

Question 9

What are the five waves of innovation mentioned in the book?

Answer 9

A structured template for using data in business (specific waves not detailed in the text).

Question 10

What is the estimated growth of data volume expected by 2025?

Answer 10

Expected to triple from 2021 levels.

Question 11

What is ‘shadow data resource’?

Answer 11

Data that is created and stored outside of the official data management systems, often leading to inconsistencies.

Question 12

What is meant by ‘data and analytics strategy’?

Answer 12

Choices and priorities that create a course of action to achieve high-level organizational goals using data.

Question 13

Can you describe a product or project driven specifically by data that had a measurable positive impact on the business?

Answer 13

A project that successfully increased customer satisfaction or revenue due to data-driven decisions.

Question 14

What is the significance of being able to tell a story about data-driven success?

Answer 14

It helps quantify the return on investment, fosters innovation, and encourages buy-in from stakeholders.

Question 15

What is the primary challenge facing businesses regarding data usage?

Answer 15

Most businesses do not handle their data processes optimally, leading to lost earnings and missed opportunities.

Question 16

What is the relationship between data investment and IT costs?

Answer 16

Data and analytics strategy should determine investment in IT, not the other way around.

Question 17

What is an example of a major company investment in data science?

Answer 17

Google invests $3.9 billion in data science every year.

Question 18

What is the importance of measuring the impact of data-driven projects?

Answer 18

To assess the effectiveness of data usage, identify areas for innovation, and share success stories.

Question 19

Fill in the blank: The world’s most valuable resource is no longer oil, but _______.

Answer 19

data

Question 20

What are the potential consequences of poor data management?

Answer 20

Lost earnings, bad decision-making, missed opportunities, and regulatory fines.

Question 21

What is the purpose of the ten questions posed to boards and senior managers?

Answer 21

To evaluate the current status and effectiveness of data governance and usage within the organization.

Question 22

True or False: A CDO usually reports to the Chief Financial Officer (CFO).

Answer 22

False

Question 23

What was the strategic goal given to the data team in 2010 by the bank?

Answer 23

To use data to increase the size of the business

The bank aimed to identify potential customers for investment and pension products.

Question 24

What percentage of companies use data-driven intelligence to guide key business functions according to Forrester Research?

Answer 24

12 percent

This statistic reflects the reliance on gut feelings over data.

Question 25

Who analyzed decision-making in high-pressure jobs and emphasized the importance of evaluating gut feelings?

Answer 25

Gary Klein ## Footnote Klein's work highlights the need for conscious evaluation of intuition.

Question 26

What did Daniel Kahneman say about overconfidence in decision-making?

Answer 26

It is a powerful source of illusions ## Footnote Kahneman emphasized that confidence in a narrative does not equate to its validity.

Question 27

In what situations does Kahneman believe gut feel has some validity?

Answer 27

In predictable situations familiar from experience ## Footnote Familiarity allows for instinctual decision-making without extensive research.

Question 28

What should be done to test intuition in decision-making?

Answer 28

Test that intuition with data ## Footnote Intuition should be viewed as a hypothesis that data can support or dispel.

Question 29

What is the term for having every data element stored and edited in only one place?

Answer 29

Single Source of Truth ## Footnote This concept eliminates data duplication and ensures consistent updates.

Question 30

What percentage of analytics and customer-care professionals identified lacking a single view of the customer as their top challenge?

Answer 30

48 percent ## Footnote This statistic was reported by Pointillist in 2020.

Question 31

What is a Single Customer View (SCV)?

Answer 31

The process of collecting and merging data from disparate sources to form a single accurate record for each customer ## Footnote Also known as a 'Golden ID' or '360-degree customer view'.

Question 32

What major financial scandal involved overstating earnings through improper accounting entries?

Answer 32

WorldCom bankruptcy ## Footnote This case involved over $9 billion in erroneous entries to create a false impression of profitability.

Question 33

What does Gartner Group estimate poor-quality data costs businesses annually?

Answer 33

$15 billion ## Footnote This cost arises from missed opportunities and unrecognized waste.

Question 34

What is a Shadow Data Resource?

Answer 34

The collection, processing, and analysis of data without explicit approval of the data function ## Footnote Typically funded by departmental budgets or corporate credit cards.

Question 35

What is a common result of shadow data activities in organizations?

Answer 35

Increased costs of acquiring, holding, and using data ## Footnote Shadow data resources often lack quality control and understanding.

Question 36

What is the impact of hard-to-find data on decision-making?

Answer 36

It creates inefficiencies and hinders timely responses ## Footnote Hard-to-find data can lead to worse decisions under pressure.

Question 37

What is the potential benefit of automating data acquisition?

Answer 37

It can drive up data quality while reducing costs ## Footnote Automation eliminates manual errors and enhances data integrity.

Question 38

What should organizations understand to improve their data processes?

Answer 38

How much they are paying for data across the whole business ## Footnote This knowledge is crucial for optimizing data management and cost efficiency.

Question 39

What culture does a successful data and analytics strategy aim to achieve?

Answer 39

A no-surprises culture ## Footnote This culture ensures that problems are identified before they escalate.

Question 40

What is data leakage?

Answer 40

The failure to take advantage of potentially useful data generated by the business process in a way that can create an advantage for the organization ## Footnote This can stem from issues in acquisition, silos, or business processes.

Question 41

What are the three problems that can cause data leakage?

Answer 41

* Asking better questions to get more data * Business processes restricting data capture * Failing to retrieve and follow up on data

Question 42

What is a common issue with data warehouses in organizations?

Answer 42

They are often built but not used effectively, leading to wasted resources.

Question 43

What does the GDPR require from organizations regarding data?

Answer 43

Organizations must explain how data is acquired, why it is necessary, how it is held and used, and the results of that process.

Question 44

How does data collection relate to creating business value?

Answer 44

Capturing data is only half the story; creating an integrated data-driven culture is essential for optimizing the return on that data.

Question 45

True or False: Data leakage can occur even if data is collected and shared.

Answer 45

True

Question 46

Fill in the blank: The collection of data should be integrated at the point it is _______.

Answer 46

collected

Question 47

What is one negative impact of treating data as a stock of resources?

Answer 47

It can lead to disjointed data usage and internal turf wars.

Question 48

What can prompt action from collected data?

Answer 48

Having a mechanism in place to retrieve and act on the data.

Question 49

What is a key benefit of democratizing data use in an organization?

Answer 49

It allows for different departments to utilize data according to their specific needs.

Question 50

What should organizations consider when implementing data and analytics strategies?

Answer 50

They should evaluate not just how much they can do with data, but why they do it and whether it aligns with their social purpose.

Question 51

What is the primary focus when trying to extract value from data?

Answer 51

Identifying which problems require attention.

Question 52

What can be a surprising discovery for businesses regarding their knowledge?

Answer 52

How little they know about themselves, their products, markets, and customers.

Question 53

What kind of questions should be asked to diagnose data problems?

Answer 53

Questions about how colleagues do their jobs, make decisions, and identify opportunities for process improvement.

Question 54

What is a potential outcome of uncovering bad news through data analysis?

Answer 54

It can present a huge opportunity for growth.