2 - The business case for data

Question 1

What is necessary for an investment in data to be transformational for a business?

Answer 1

Time and trust, willingness to work in different ways, and cooperation with other departments.

Question 2

Why is it important to demonstrate the value of investing in data?

Answer 2

To justify the investment compared to other parts of the business.

Question 3

What are the two types of value associated with data?

Answer 3

• Tangible value of data
• Intangible value of data

Question 4

What does a business case for data need to prove?

Answer 4

That investing in data is justified over other business investments.

Question 5

What is the role of the Chief Data Officer (CDO) in relation to data?

Answer 5

To evangelize the value of data within the organization.

Question 6

True or False: All business decisions made without data are equally valid as those made with data.

Answer 6

False.

Question 7

What is the risk of driving changes without making the argument for data?

Answer 7

You may fail to gain support or achieve goals.

Question 8

Name three companies and their data science investments in 2018.

Answer 8

• Google – $3.9 billion
• Amazon – $871 million
• Apple – $786 million

Question 9

What strategic advantage did Amazon gain from its data?

Answer 9

Tracking customer behavior to improve logistics and expand into general retailing.

Question 10

What was the outcome of Amazon launching Prime?

Answer 10

Increased market share and customer spending.

Question 11

What does the cost of doing nothing in terms of data imply?

Answer 11

Lost business and missed market opportunities.

Question 12

What is a data inventory?

Answer 12

A fully described record of the data assets maintained by an organization.

Question 13

Fill in the blank: Your data inventory is mostly valuable to your _______.

Answer 13

[own business]

Question 14

What challenges exist in measuring the value of data?

Answer 14

• The value is mostly to your own business
• Difficulty in grading data quality until used

Question 15

What is often overestimated in organizations regarding data?

Answer 15

The value of their data assets.

Question 16

What is the relationship between the quality of data and the value created by IT systems?

Answer 16

The value is a function of both the IT system’s potential and the quality of the data used.

Question 17

According to the KPMG CIO Survey 2019, what percentage of digital leaders maximize the value of their data?

Answer 17

35 percent.

Question 18

What can a well-constructed business case for data promise?

Answer 18

Incredible returns, whether financial or capability benefits.

Question 19

In the context of data, what does ROI stand for?

Answer 19

Return on Investment.

Question 20

What is the significance of the business case made for data at a major UK bank?

Answer 20

It aimed to generate £1 billion of incremental revenue per annum.

Question 21

What are two important aspects to focus on in a business case for data?

Answer 21

• Addressing a significant business problem
• Having a precise goal

Question 22

What is a common mistake made by data evangelists?

Answer 22

Describing what they will do instead of what the data will accomplish.

Question 23

What are the two types of value derived from data?

Answer 23

• Tangible value
• Intangible value

Question 24

What is the primary focus when communicating with a CEO about data transformation?

Answer 24

Solving business problems in their language, avoiding technical buzzwords.

Question 25

What is the difference between tangible and intangible value of data?

Answer 25

Tangible value comes from increasing revenue and reducing costs, while intangible value comes from reducing risk and improving productivity, automation, customer satisfaction, and employee satisfaction.

Question 26

What are the two types of value that can be derived from data?

Answer 26

* Tangible value * Intangible value

Question 27

What is tangible value of data primarily associated with?

Answer 27

Increasing revenue and reducing costs.

Question 28

What does intangible value of data contribute to?

Answer 28

Reducing risk and improving productivity, automation, customer satisfaction, and employee satisfaction.

Question 29

What was a significant error made in the business case for the large retail bank?

Answer 29

Overpromising based on a grand design that was impossible to implement.

Question 30

What was the core product of the retail bank mentioned?

Answer 30

Retail banking with 30 million customers.

Question 31

What was a key factor in the success of the data transformation project?

Answer 31

Simplifying the process and exporting key data instead of reforming the data structure.

Question 32

What did the analysis of customer cross-selling lead to after 12 months?

Answer 32

An 80% growth in the customer base for one of the niche products.

Question 33

What percentage of organizations are effective at maintaining an enterprise-wide data management strategy according to KPMG, 2019?

Answer 33

Only 18%.

Question 34

What is crucial for maximizing the value of data in organizations?

Answer 34

An enterprise-wide data and analytics strategy.

Question 35

What is a critical component of a business case regarding data?

Answer 35

An analysis of the threat from competition.

Question 36

How should data be valued according to the text?

Answer 36

As an asset based on value creation from processes built using it, not on volume or number of records.

Question 37

True or False: Data and technology budgets should be combined.

Answer 37

False.

Question 38

Fill in the blank: A business case isn’t a business case until you can _______.

Answer 38

[make it work]

Question 39

What should you focus on when creating a business case for data?

Answer 39

Solving well-defined business problems with a clear definition of value.