17 - Sharing data with suppliers and customers

Question 1

What is the main idea behind sharing data with suppliers and customers?

Answer 1

It generates more value, improves knowledge and data quality, and crowdsources innovation.

Question 2

What key concept did Jeff Bezos introduce regarding data sharing at Amazon?

Answer 2

All teams must expose their data and functionality through service interfaces.

Question 3

What is the significance of application programming interfaces (APIs) in data sharing?

Answer 3

They allow for the exposure of data to customers, suppliers, and the public.

Question 4

How much better business results do enterprises with advanced API management experience compared to those with basic management?

Answer 4

Up to 47 percent better business results.

Question 5

What percentage of companies use APIs to improve speed to market and innovation?

Answer 5

34 percent.

Question 6

What is one benefit of sharing data with the market?

Answer 6

It can help grow and improve the overall efficiency of the market.

Question 7

What are the main risks associated with data sharing?

Answer 7

Quality and governance of the data shared.

Question 8

What does the term ‘asymmetric information’ refer to?

Answer 8

A situation where one party has more or better information than the other.

Question 9

How can sharing more information create a basis of trust?

Answer 9

It can lead to a more profitable business.

Question 10

What was the challenge that led to the creation of the RIXML standard?

Answer 10

Better dissemination of investment research.

Question 11

What are the three guiding principles of the RIXML standard?

Answer 11

• Standards must improve the process for all participants
• Standards must evolve with technology
• End users must benefit without needing to know the standard exists.

Question 12

What is blockchain?

Answer 12

A system in which a record of transactions is maintained across several computers in a peer-to-peer network.

Question 13

What is a potential benefit of blockchain in finance?

Answer 13

It offers efficiencies in processes that are currently inefficient, manual, and expensive.

Question 14

What is the predicted investment growth in blockchain from 2018 to 2024?

Answer 14

From $1.5 billion in 2018 to $19 billion in 2024.

Question 15

Fill in the blank: The process of _______ involves generating shared documents in international trade.

Answer 15

[letters of credit]

Question 16

True or False: Blockchain requires agreement from everyone in the supply chain to function effectively.

Answer 16

True.

Question 17

What can sharing data lead to in terms of market efficiency?

Answer 17

Higher-quality data in more places.

Question 18

What impact did the integration of billing systems have on healthcare costs in the case study?

Answer 18

It resulted in a 30 percent cost reduction.

Question 19

What is one challenge of exposing data to business partners and suppliers?

Answer 19

Maintaining data quality and governance.

Question 20

What was the outcome of the RIXML standard’s implementation?

Answer 20

Improved transparency and consistency in the investment research process.

Question 21

What does the term ‘disintermediated’ refer to in the context of the RIXML standard?

Answer 21

It refers to reducing the role of brokers in interpreting and explaining research.

Question 22

What was the primary challenge faced by firms employing sell-side analysts?

Answer 22

Improving the data process

This involved standard definitions, naming conventions, consistent formats, data quality checks, and cross-checks for inconsistencies.

Question 23

What are the benefits of exposing data to customers?

Answer 23

Creates efficiencies by allowing customers to perform tasks themselves such as:
* Checking order status
* Changing their address
* Setting preferences

This implies cost reduction and reduces the need for second-guessing customer needs.

Question 24

What should businesses do to track customer actions?

Answer 24

Always record and track the actions that customers take.

This helps in identifying shifts in preferences and crowdsourcing solutions to data or service problems.

Question 25

What is a Subject Access Request (SAR) under GDPR?

Answer 25

A request by individuals to access the information an organization holds on them. ## Footnote Organizations must respond without delay and provide the information in an accessible format.

Question 26

True or False: Exposing data leads to improved processes.

Answer 26

True. ## Footnote It can break existing processes, leading to improvements such as self-service options for customers.

Question 27

What are the implications of exposing governance systems?

Answer 27

Partners may require provenance, and customers are frustrated by inaccurate or obsolete data. ## Footnote This can lead to reputational damage if data management is poor.

Question 28

What does the term 'disintermediated' refer to in the context of customer service?

Answer 28

The reduction or elimination of intermediaries, such as customer service agents, due to self-service options. ## Footnote This changes their role to support of last resort, requiring higher training.

Question 29

Fill in the blank: Exposing data can effectively _______ solutions to data or service problems.

Answer 29

[crowdsource] ## Footnote This means leveraging customer input for better data quality.

Question 30

What is a potential downside of encouraging customers to correct their data?

Answer 30

It may lead to negative feedback if data quality is revealed to be subpar. ## Footnote However, this process can stabilize and become an engine for quality data over time.

Question 31

What should businesses establish before launching new services with data in mind?

Answer 31

A threshold for quality. ## Footnote This ensures that if data integration is poor, it does not lead to customer dissatisfaction.

Question 32

What can businesses do to prepare for subject access requests?

Answer 32

Create a project to report information in a standard format. ## Footnote This ensures compliance with GDPR requirements.

Question 33

What is one creative example of data exposure in marketing?

Answer 33

Progressive Insurance allows prospective customers to view competitors’ prices on its website. ## Footnote This strategy lets them control the context of the comparison while providing transparency.

Question 34

True or False: Data sharing has no impact on business relationships.

Answer 34

False. ## Footnote Data sharing improves efficiency in business relationships but can expose inefficiencies.

Question 35

What should businesses be mindful of when exposing data?

Answer 35

The impact on business partners and parts of the business. ## Footnote This includes managing changes in job roles and customer expectations.

Question 36

What is the relationship between data sharing and reputational benefits?

Answer 36

Data sharing can enhance reputation by making it easier to do business, but poor data management can lead to reputational damage. ## Footnote This duality emphasizes the importance of data quality.

Question 37

What does exposing data imply for business models?

Answer 37

It creates stress on existing business models. ## Footnote Businesses must adapt proactively to these changes.