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Managing information in the digital age

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This overview provides a new approach for managing information in the digital economy by shifting from management aligned to the sourcing of information to management aligned to the consumption of information by business processes targeted to achieve value propositions

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Managing information in the digital age

  1. 1. ©InfoSightPartners,2016,AllRightsReserved A new Information Approach for the Digital Economy Welcome to the Exponential Age The Exponential Age is the Fourth Industrial Revolution Mark Albala President, InfoSight Partners
  2. 2. ©InfoSightPartners,2016,AllRightsReserved We are in the midst of what is called the fourth industrial revolution Information is the great enabler, but few manage it as an enabler Each phase of the Industrial Revolution builds on its predecessor Enabler 1st Machinery 2nd Mass Automation (Electricity) 3rd Computer Aided Automation 4th Systematized Process (Information) INDEXThe Exponential Age is the Fourth Industrial Revolution The purpose of this material is to derive a roadmap to managing information as an organizational asset Processes change more regularly when information is reconfigured rather than machinery requiring reconfiguration
  3. 3. ©InfoSightPartners,2016,AllRightsReserved Time is a Major Factor Information Assets Because it takes less time to repurpose information, disruption will be more commonplace in the fourth industrial revolution Companies that thrive in the fourth industrial revolution will manage information as an organizational asset Those who Flourish in the Fourth Industrial Revolution Wield Information In the Fourth Industrial Revolution, information used in business the right business processes is worth more, understanding which ones is key and is one of the major roles of the Chief Data Officer INDEX
  4. 4. ©InfoSightPartners,2016,AllRightsReserved Index Click to navigate to the sections
  5. 5. ©InfoSightPartners,2016,AllRightsReserved Leader in the 3rd Generation An example of a leading disruption Disruptions in flight More examples In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide. Within just a few years, their business model disappeared and they went bankrupt. What happened to Kodak will happen in a lot of industries in the next 10 year, and most people don't see it coming. Did you think in 1998 that 3 years later you would never take pictures on paper film again? Yet digital cameras were invented in 1975. The first ones only had 10,000 pixels, but followed Moore's law. So as with all exponential and disruptive technologies, it was a disappointment for a while, but within a few short years became mainstream. It will now happen with Artificial Intelligence, health, autonomous and electric cars, education, 3D printing, agriculture and jobs. Welcome to the 4th Industrial Revolution. Welcome to the Exponential Age. The ability to wield information will disrupt most traditional industries in the next 5-10 years. Uber’s product is excellence in managing information. Uber is the biggest taxi company in the world, yet does not own cars, they own information. Google and Amazon manage information. Airbnb is now the biggest hotel company in the world, although they don't own any properties, what they own is information. There is a Chinese blessing and curse: May you live in interesting times. Welcome to some interesting times. Welcome to the Exponential Age Introduction INDEX
  6. 6. ©InfoSightPartners,2016,AllRightsReserved We are in the midst of a major shift The four phases of the Industrial Revolution (each phase is 50 – 100 years) First 1760 - 1850 Second 1870 - 1930 Third 1940 - 2005 Fourth 2010 – 2060 (?) Railroads Steam Engine Mechanical production Electricity Assembly Line Mass Production Computing & Internet Semiconductors Computing Aided Processes Mobile Internet of Things Systemic Intelligence Source: The Fourth Industrial Revolution, World Economic Forum, 2016 Each phase of the industrial revolution was met with a high degree of disruptions. We are in the midst of a highly disruptive period. The first phase was mechanical, where those who were able to wield mechanics flourished. The second phase was electronic, where those who could make their processes repeatable flourished. The third phase was computing, where those who could wield computing technology flourished. The fourth phase wields information, where those who could wield information in their value propositions are flourishing. OUTPHASINGOFSLAVERY DEPRESSION 2008MELTDOWN Major Economic Disruptions COLONIALISM Mechanical Electricity Computing Information INDEX
  7. 7. ©InfoSightPartners,2016,AllRightsReserved ACTIVE INTERNET USERS TOTAL POPULATION ACTIVE SOCIAL MEDIA USERS UNIQUE MOBILE USERS ACTIVE MOBILE SOCIAL USERS GLOBAL DIGITALSTATSHOT THE NUMBER OF PEOPLE USING DIGITAL, SOCIAL &MOBILE MEDIA AROUND THEWORLD Source: see We Are Social’s Digital inAPAC2016 report: bit.ly/DSMAP16 SE P 2016 7.448 BILLION 3.630 BILLION 49% 2.671 BILLION 36% 4.779 BILLION 64% 2.438 BILLION 33% +1% +14% +21% +28% +27% INDEX Growth Rate (YOY) Penetration
  8. 8. ©InfoSightPartners,2016,AllRightsReserved The Disruptions Have Started Companies which live in the digital ecosphere were first; their product is information (e.g., Google, Facebook, Amazon, Adobe, etc.) Postal Disruption Postal Services have been disrupted by email, which is being disrupted by instant messaging and Social Media Publishing Disruption The publishing industry has gone from a paper model to an electronic one, effecting postal services Entertainment Disruption The traditional model of a few advertising avenues has mushroomed, thereby driving advertising revenues lower. Netflix, Hulu and others are disrupting this model even further This level of Interruption is not an outlier Uber, the taxi company owns no taxis. AirBnB owns no hotels. What they own is information. INDEX “We’re seeing brick- and-mortar retailers meld with the digital as more locations offer in- store pick-up for online orders, while on the other side, virtual-only services, such as Birchbox, open physical stores” Trends, 2015
  9. 9. ©InfoSightPartners,2016,AllRightsReserved The high speed of business change in the marketplace, thanks to the digitization of most markets requires a very fluid information fabric tightly aligned with the processes that use it by the actors who execute the processes. Few if any companies are equipped to deal with this level of upheaval. To complicate matters, the time it takes to identify, model and publish information for this new world order, which is ill equipped to handle the speed of the marketplace. It is not that the processes cant handle the rapid flow, it’s that they are focused on what is aligned and the clutter that is not aligned nor capable of producing any value. Left without change, the process actors will have a choice: Slow down processes to identify, validate and use information Introduce risk by using information that may indeed be noise to the process Have data scientists perform the data to information transformation Use information but make decisions based on what “feels right” Few if any companies are equipped to deal with this level of upheaval. The high speed of business change in the marketplace, thanks to the digitization of most markets requires a very fluid information fabric tightly aligned with the processes that use it by the actors who execute the processes. To complicate matters, the time it takes to identify, model and publish information for this new world order, which is ill equipped to handle the speed of the marketplace It is not that the processes cant handle the rapid flow, it’s that they are focused on what is aligned and the clutter that is not aligned nor capable of producing any value. The SolutionThe Solution ©InfoSightPartners,2016,AllRightsReserved Slow down processes to identify, validate and use information Introduce risk by using information that may indeed be noise to the process Have data scientists perform the data to information transformation X X X Use information but make decisions based on what “feels right” X
  10. 10. ©InfoSightPartners,2016,AllRightsReserved The ability to wield information is a key differentiator Data Information Organization Aligned to sources to optimize drill back to source data Aligned to business processes that consume the information Governance Resolve definitional conflict, prioritize reference data & metadata initiatives Eradicate resistance to using information in business processes Clutter Improve the analysis capabilities to be able to find identified patterns Eradicate clutter through a number of techniques Context Provide context to data warehouses, subject data marts and analytic models Provide context specific to information as it will be used in business processes Most organizations manage data and organize it so it can fit a large number of analytical needs. They do not manage information, which is organized to be consumed by business processes specifically devised to deliver on a value proposition. It is for this reason that information is heavily utilized for reporting, basic analysis and Business As Usual (BAU) situations, leaving process actors to corral their own information in Non-BAU and disruptive situations. The new approach for managing information mandates migration from a storage paradigm to a usage paradigm INDEX
  11. 11. ©InfoSightPartners,2016,AllRightsReserved Internally Sourced Data, storage organized Internally Sourced Data, usage organized Market Sourced Data, usage organized Market Sourced Data, storage organized Information made available to analysts is tightly controlled and published from internal production applications. To facilitate drill through to data, the organization of data is tightly coupled to the data sources and data owners of the applications souring the data. Information internally and externally sourced goes through a transformation process which is regularly updated to align to the current portfolio of business processes which yield the value propositions of business models. Transactional internal data and heard and learned inferences are synthesized to meet the needs of business. Information made available to analysts is consumed from sources outside the organization. While transaction data is important, the data made available from outside the organization (heard and learned inferences) is much more prized than the introspective information available from internal transactional systems. Information is stored by the source of the data. Internal, mostly historical, master and reference data are used to derive directional guidance to identify anomalies from internal transaction streams. The organization of the results are aligned to processes which yield the value propositions of business models. Data lineage is stored to meet the needs of drill through because data organization does not align to sourcing. Typical Drivers Data Scientist driven integration Data Lineage Information Usage Resistance Typical Drivers Data Quality MDM Data Lineage Typical Drivers Information to Business Model Alignment Information Gap Remediation Information Usage Resistance Typical Drivers Social Media Log Analysis MDM Data Alignment Clutter Mgmt Which most typically represents your management of information? Typically Blindsided by disruptions Typically Exploits Disruptions The Four Quadrants of Information Management TargetQuadrant TypicalITDrivenQuadrantTypicalCAODrivenQuadrant Typically Late to Disruptions Thrives in disruption, but not stable markets OpportunisticQuadrant INDEX
  12. 12. ©InfoSightPartners,2016,AllRightsReserved Measure the potentially consumed and actually consumed information by usage scenario (marginally aligned, BAU, NON-BAU, disruptive) Switch the focus of the technology organization from managing data sources to managing consumable information products Change governance intents from improving sourced data to eradicating resistance to consuming data in business processes Ensure information made available to business process is prepared in a way that is orchestrated through controls that are repeatable Meter the consumption of information by business process using a managed repeatable process Organize to manage information assets consumed by process, not as sourced data The New Strategic Intents of Information Management Manage Meter Orchestrate Govern Engineer Measure INDEX STRATEGY: Manage information as an intangible, non-depleting (but expiring) asset of the organization aligned to the organization’s current value propositions Strategy
  13. 13. ©InfoSightPartners,2016,AllRightsReserved Process Information A non-expiring asset consumed in business processes Methods Prepared by Inventory Machinery Strat Influenced By Not all use of information is equal Realized Realized by Information not measured has limited value When is it Information? Information is a non- expiring asset of an organization that only obtains value when it is consumed in business processes associated with a value proposition. Machinery is applied to convert data into information. The machinery must be able to prepare information faster than the business process cycle time. Information is worth more when it influences realization of large amounts of value. This realization is stratified by the use class of information. The value attributable to information must be measured or achieved value will be applied elsewhere Information is constructed from data; machinery is used to align information with processes orchestrated by a business model that produces value for the organization Value Value Applied Information receives a % of the value of business models While information value is measurable, there are too many soft measures in measurement. Rather, an approach similar to royalties will be applied. INDEX
  14. 14. ©InfoSightPartners,2016,AllRightsReserved Information Inventory The finished goods inventory which is managed similarly to other non-depletable intangible assets of the organization. In a perfect world, all impediments, such as information trustworthiness, are removed from information in the WIP processes. Work in Process Inventory The interim state which is processed by the machinery which prepares data for tight alignment with processes specifically devised to deliver organizational value per the value propositions of business models. Data Inventory The corporate knowledge, heard inferences, learned inferences and innovations not yet aligned with business processes. The raw materials of data must continually be managed in WIP processes to ensure alignment with business processes as they are transformed into consumable information. Exactly what are information assets? Data is the raw material asset which is constructed into information Information is the finished goods inventory which is consumable by business processes ValueoftheInformationAssets INFORMATION INVENTORY WIP INVENTORY INDEX
  15. 15. ©InfoSightPartners,2016,AllRightsReserved The platforms adopted by your stakeholders will be complex Below is a list of technologies available to one of the functions, marketing, each having its own underlying data requirements INDEX
  16. 16. ©InfoSightPartners,2016,AllRightsReserved CHANGE VISION CLUTTER MAPPING Because business process changes more rapidly, the mapping of information will similarly change. This will require information models to be highly fluid. Algorithms to serve as early warnings using information created outside the organization will serve as triggers to action Information no longer mapped is clutter and will be either archived or de-emphasized Information is mapped to business processes as part of a CDO blueprint. This blueprint is foundational. THE NEW ORDER Mapping to process, not information source In order to participate in the digital age, information must align to business processes, not data sources INDEX Bringing the information house in order will necessitate major changes to the way information is managed, it is not simply a document that maps source to use but a more fundamental shift in managing information assets.
  17. 17. ©InfoSightPartners,2016,AllRightsReserved USABILITY ACTIONABLE ACCESS CLUTTER FREE The technology to insulate process actors from the complexities of information must be available at the convenience of process actors The information must be organized in such a way so that it can be accessed for action without transformation at the convenience of process actors The information must be clutter free so it and its context can be found without significant effort Managing Resistance CONTEXT Context for the scope, derivation, definition and applicability of information must be available at all times TRUST Information published for consumption must be considered de facto trustworthy INDEX The governance function should be mandated to identify and eradicate resistance to using information in non-BAU and disruptive scenarios
  18. 18. ©InfoSightPartners,2016,AllRightsReserved Measure Influence Accelerate Optimize Metrics • Measure the value of information consistent with the methods used for other organizational assets. • Positively influence the impact of information as a competitive weapon. • Accelerate the processes used to deliver information. • Optimize the value of information (CDO Blueprint, Governance elimination of resistance). • Publish metrics to drive the new strategy In the digital economy, while most organizations believe information is a valuable asset of the organization, few have found a way to measure the value of information Measure INDEX
  19. 19. ©InfoSightPartners,2016,AllRightsReserved 1 2 3 Finished Goods Inventory of information is engineered from the CDO blueprint and aligned to a value proposition . The value propositions of business models are dependent on usage scenarios (BAU, Non- BAU, Disruptive). Information carries the same usage dependency. A proactive repeatable process which manages the consumption of information assets and records value is required. This generally does not exist today. 4 The new strategy will require re-alignment of roles to shift from managing information by source to managing information by use. INDEX
  20. 20. ©InfoSightPartners,2016,AllRightsReserved©InfoSightPartners,2016,AllRightsReserved t FV = PV(r) ∑ t=0 PV(r) + Tax Benefit Revenue Expenses CapEx/WC Taxes The case for a royalty approach to attributing value to information Information is an intangible asset which is allocated a pre-determined % of a value proposition t FV = PV1(r) ∑ t=0 Expenses CapEx/WC Taxes Revenue t – PV2(r) ∑ t=0 Revenue Expenses CapEx/WC Taxes Benefit PV3(r) + Tax While the math is entirely possible, the measurement of the percentage of value proposition attributable to the information consumed is still going to be subjective. A much more defensible approach is to use a royalty type approach to measuring information value. Innovated ValueNon-Innovated Value INDEX Source: Canadian Institute of Chartered Business Valuators
  21. 21. ©InfoSightPartners,2016,AllRightsReserved Producer Split Governance, machinery costs offset Incremental Value recognized revenue split Promotion Split CDO, DAM Cost Offset Production Costs Provisioning + Machinery DevOps Operations Costs Continuous realignment of business process with information, operations associated with algorithms Promotion Costs Processes to ensure the availability of the appropriate fully contextualized, just-in- time, trustworthy, actionable information The Data Asset Manager (DAM) orchestrates the Information Asset Royalty Recognition (IAR) processes The net value of information assets is the equal to the recognized revenue split (as defined in the IAR processes) less the production and promotion cost offsets Costs Revenues People Recognition Recognition of value associated with information assets Royalty Approach to Information (Click the center circle for more information) Production Costs are: • The costs to obtain raw materials (data), • Standardization instructions (reference data), • Developed Code used to align information with processes, • Instructions required to eradicate resistance • And operational instructions to ensure that information is available just in time for processes Production Costs Provisioning + Machinery DevOps The promotion costs are those spent on the publication of a catalog which is used to communicate • What information is available • What has been done to improve the context, trustworthiness and action- ability of the information • What has been done to ensure the alignment of process with information • Communication of the information lineage and proof of it’s accuracy Promotion Costs Processes to ensure the availability of the appropriate fully contextualized, just-in- time, trustworthy, actionable information The operations Costs are related to the operational controls put in place to ensure that information is available for manually and automated processes (models, algorithms) just in time for the execution of the business processes Operations Costs Continuous realignment of business process with information, operations associated with algorithms Production Costs Promotion Costs Operations Costs Value Recognition Recognizing Revenue Producer Split Promotion Split Most organizations do not measure the sharing of value produced by the consumption of information in business processes. By using a royalty approach to measuring this information, a pre-determined split based on how information was consumed (reports, BAU, non-BAU, disruptive) is applied to compute a value for information used in business processes. How it’s done Most organizations would consider themselves delirious if they did not actively manage inventories or receivables. But that is exactly what they are doing with information. That is because they do not treat information as an asset of the organization. Just like a person is assigned to manage inventories and receivables, a person is required to manage the information assets of the organization, the Data Asset Manager (DAM) A repository containing what information is consumable by process is available to the data asset manager. When information is consumed, it’s use is recorded (new capability), and the Data Asset Manager will use the repository to assign value to the consumption of the data asset. The data asset manager administrates data, WIP and information inventories. Click here to continue INDEX
  22. 22. ©InfoSightPartners,2016,AllRightsReserved The recording of the availability and use of Information Assets is at the heart of the information value recognition process Potential and actually achieved information value is recorded in the registry CDO CIO Administering the Royalty Approach to Information The Information Asset Registry Actors The people who are accountable, responsible and participate in a business process Processes The processes that participate in achieving a business model value proposition Information The information consumed in a business process Potential The value that can be achieved when information is consumed Actual The value of information actually achieved by being consumed in business processes Resistance Information that can be consumed by business processes but for one reason or another was not consumed Attributes of the mandatory process: Administered through a repeatable orchestration layer that ensures uniformity in the value recognition process Utilizes a central repository shared by all who participate in the information creation and valuation processes Records the results of the information valuation process so that it can be reviewed by third parties INDEX
  23. 23. ©InfoSightPartners,2016,AllRightsReserved Business Model The Business Model and business model components that encompass the strategies and tactics that create, capture, extend and protect organizational value. Process The processes that are executed as a means to realize the strategies and tactics of the business model. Information The information consumed in processes used to capture, enhance, expand and protect organizational value. Resistance The items that discourage usage of information in processes, such as information clutter, lack of context, trustworthiness and other factors. A Model to Map the Value of Information Processes consuming information within business models Ways to Obtain Value CREATE CAPTURE EXTEND PROTECT Thwart Risk Cross/ Upsell Capture Opportunity Innovate Business Models represent the intents of the business. They are executed by business processes of the organization, and each of those processes source and/or produce information (not data) The value of information is measured as an enabler of the processes consuming the information. The information is an intangible asset which has value by the fact that it was instrumental in making the outcome of the business process successful. Value: % split of value propositions which protect, extend, capture or create value Potential: CDO consumption map Resistance: The forces that make it difficult to use information in business processes. Strategic: Eradicate resistance to enable use of information when it is worth most, namely in non-BAU and disruptive scenarios. Accountability: Governance Metrics: % Potential Value (CDO map) Realized INDEX
  24. 24. ©InfoSightPartners,2016,AllRightsReserved Mapping the intersection of processes and information The potential value of information is registered at the intersection of processes and information. Through use of benchmarks, interviewing and other methods, an inventory of processes, information and actors (RACI) is constructed. Key initiatives that will improve the use of information in situations where premium value is achievable are prioritized. Resistance, or the items which impede the use of information at the most critical times, are identified and prioritized by governance for elimination. The potential value of information is equal to the consumption points of information in business processes devised to obtain a value proposition. Business Models and Associated Processes Information Assets and Source Data Actors and Accountabilities Potential Value (Possible Intersection) Actual Value (Consumption of Information) Resistance (impediments to using information at critical times) Less Equals INDEX
  25. 25. ©InfoSightPartners,2016,AllRightsReserved Mapping Information Flows to Business Processes Each process orchestrated to complete the expected outcomes of the business model either consumes, creates or dispatches information. Each of those information flows are associated with achieving value to the organization. A set agreement detailing how value will be associated with the consumption of information is negotiated and the value. There are information inputs and outputs from each business process. The consumption of these information assets as inputs and outputs of the business process are registered as achieved value of the information assets. The value of information is the accumulation of information consumed in business processes, either as input, output or process managed information. Information Input (used for analysis) Critical Information Input Process Information Output (execution plan) Process Managed Information Execution Feedback Collaboration Information Triggering Information (critical info) ClosureInformation Process Managed Information Information Output (execution plans) Information Input (used for analysis) Critical Information Input Execution Feedback Some important notes: The triggering process is information used to identify when a process should be triggered In Non-BAU and disruptive scenarios, this triggering information is an early warning system and has exceptionally high value if utilized. Some important notes Critical information will be obtained from a variety of sources as deemed necessary to identify what has happened, derive and test hypotheses, and derive and coordinate action plans. Algorithms and models are vehicles to pre-wire information in a specific way so that it can be consumed quickly. Some important notes The ability to collaborate execution plans quickly so that the information is used in a consistent manner is as much a determinant of success as is utilizing the right information. Algorithms and models force a level of consistency, as long as they are aligned to the process they are integrated into. Without this integration, they are little more than another reporting source. Some important notes An alignment validation is a process which uses the repository of processes and information as its source and validates that the alignment baked into the information and the algorithms and models that automate the consumption of this information still holds true. If there is a misalignment, then the information machinery is adjusted, the information is recast and any automation is retrofitted. This process should occur regularly. Alignment Validation Collaboration Fit (RACI validation) Information Output (execution plans) Information Input (used for analysis) INDEX
  26. 26. ©InfoSightPartners,2016,AllRightsReserved The process to record information value 1 The Chief Data Officer (CDO) records the potential value achievable into the Information Value Base based on the Information / Process / Actor Map and the agreed to information value % allocations of value propositions 2 When a process is run, a call to an object is made which records a transaction of when the process was executed and whether information available to the process was retrieved 3 The Data Asset Manager (DAM) uses the information / process / actor map and the usage transactions through an analyzer application (a function of the orchestration process) to determine the appropriate royalties for the period. The repository is central to the recognition of information consumption 4 The Data Asset Manager (DAM) uses an orchestration process to record information value for the period and computes resistance based on processes executed but information mapped to a process not consumed. Info / Process Map Royalty Splits Potential Information Value Base Step 1 OBJ Step 4 Value is assigned Royalty Analysis Application Step 3 Analyzer Process Step 2 Usage of a information is recorded Information INDEX
  27. 27. ©InfoSightPartners,2016,AllRightsReserved The information leaders in the digital economy New roles for the digital economy CDO DGC Chief Data Officer (CDO) The CDO is accountable for managing and directing the alignment of information and process and is measured by the value achieved through the use of information. Chief Risk Officer (CRO) The CRO is responsible for identifying and prioritizing the eradication of systemic risks to the organization, which have information centric implications. Chief Information Officer (CIO) The CIO is the engineer for the machinery that turns data into information and eradicates resistance from the information. Chief Analytics Officer (CAO) The CAO is accountable for the automated models and algorithms used to achieve information value, which consume information, not data. Data Governance Council (DGC) The DGC is accountable for eradicating resistance in the overall framework. Data Asset Manager (DAM) The DAM is accountable for managing the information assets of the organization and recording a revenue split for use of the assets. Organize INDEX
  28. 28. ©InfoSightPartners,2016,AllRightsReserved©InfoSightPartners,2016,AllRightsReserved Some Key Metrics in Information Valuation WHO WHAT METRICS USED FOR MEASUREMENT Chief Data Officer Responsible for elevating the potential value of information, forging information valuation splits Year over Year change in information asset valuation, % of non-actionable information recorded as potential value Data Asset Manager Maintain the repository used for recording potential information asset valuation % of processes mapped, % of adjustments made to the information valuation process Data Governance Council Identify and eradicate impediments to using information in business process Actual / Potential Information Value Data Governance Council Identify and foster the repeatability of analytic models and algorithms % of models and algorithms automated Chief Information Officer Develop and Maintain the processes that transform data into aligned information with minimal usage resistance % of Transformations managed by Data Scientists, business professionals Chief Risk Officer Assess the % of disruptive (require business model innovation) uses of information % Disruptive Index, by Internal (Fraud, etc.) and External (competitive) Disruption ©InfoSightPartners,2016,AllRightsReserved INDEX
  29. 29. ©InfoSightPartners,2016,AllRightsReserved In the digital economy, the repository is a central requisite to managing information The repository houses the basis of information value CDO I eradicate resistance and foster repeatability I define the alignment I find risks DGC CRO DAM I administer the assets and the repository CIO INDEX
  30. 30. ©InfoSightPartners,2016,AllRightsReserved Major Organizational Roles INDEX
  31. 31. ©InfoSightPartners,2016,AllRightsReserved Major Organizational Roles INDEX
  32. 32. ©InfoSightPartners,2016,AllRightsReserved Major Organizational Roles INDEX
  33. 33. ©InfoSightPartners,2016,AllRightsReserved Major Organizational Roles INDEX
  34. 34. ©InfoSightPartners,2016,AllRightsReserved Major Organizational Roles INDEX
  35. 35. ©InfoSightPartners,2016,AllRightsReserved Major Organizational Roles INDEX
  36. 36. ©InfoSightPartners,2016,AllRightsReserved Business Process 01 Business Models Business Models are collections of business processes which together reap incremental value for the organization. 04Governance Governance is the body accountable to eradicating obstacles that prevent consuming data as part of the business processes. 02 Information Information is a collection of non- expiring assets aligned to business processes. 03 Data Data is the raw material which is transformed into information through governed machinery. The altered Role of Governance Governance is the body that eliminates obstacles to using information in business processes and improves repeatability in analytic models and algorithms IT IS IMPORTANT Just like electricity, resistance is highest when the flow, or need for information, is greatest Governance’s worth is earned with eliminating obstacles on disruptive and non-BAU situations The consumption of information by process yields value Machinery Govern INDEX
  37. 37. ©InfoSightPartners,2016,AllRightsReserved 01 Data Quality Programs Data Lineage Programs 04 Alignment and Prioritization programs 02 Information Half Life Programs 03Metadata, Reference Data and Master Data Programs TRUSTWORTHINESS Information can not be put to work quickly if it is not trustworthy. ACTIONABLE Having information trivia, expired information and easily misused information hiding a pathway to what is actionable is a great source of information resistance. CLUTTER If what is important is hidden with information clutter, then finding what is important will be an impediment to using information at critical moments. CONTEXT An understanding of the context and scope of information is necessary to properly use it at critical moments. What does eradicating resistance mean? The Information / Process map defines what resistance needs to be addressed CDO Information / Process Map Governance’s primary role is prioritizing and sponsoring the efforts to eradicate resistance. INDEX
  38. 38. ©InfoSightPartners,2016,AllRightsReserved Mapping Resistance as a Prerequisite to Eradicating it The more critical and time sensitive a business process is, the higher the effects of resistance to the use of information in business processes. It is a primary role of governance to eradicate resistance through well defined programs. In this way, governance directly impacts the value of an organization’s information assets. Trustworthiness Information is de-facto expected to be validated prior to consumption by business processes. Clutter More is not better, especially when clutter obfuscates the important information that would make a difference. Context Providing meaning to the information through metadata and semantics gives the necessary context to use information. Expiration Information has a half life, and keeping expired information available to analyses compromises trustworthiness, adds to clutter and often leads to inappropriate actions. Trustworthiness Clutter Context Alignment Expiration Alignment The alignment and timing of information to business processes changes regularly as market forces change, not performing the necessary adjustments leads to misalignment. The cost to fix a data error at the time of entry is $1. The cost to fix it an hour after it’s been entered is $10. And the cost to fix it several months later is $100+. Trustworthiness Factoid to think about Stephen Hawking Clutter Factoid to think about Trying to drink from a firehose of information has harmful cognitive effects. Newsweek Measuring Information Expiration All information expires, and it’s expiration is based on its quantitative value. The quantitative value decay is called the information half life, which is measured by the following formula: Qualitative Data Value = ((Data Usefulness) X (Loss to Competitive Advantage) X (Timeliness)) INDEX
  39. 39. ©InfoSightPartners,2016,AllRightsReserved Valued Actual Information is constructed from heard inferences, learned inferences, the body of enterprise knowledge and innovations Data transformed by machinery administered by the CIO to align to business processes and eradicate usage resistance Information (transformed data) cataloged for consumption by business processes Information that has been consumed (it can be consumed more than once up to the expiration date) Information whose consumption has been recognized by the Data Asset Manager The Data Asset Manager (DAM) administrates the inventory of information assets Actual Potential WIP Data The Classes of Information Assets managed by the DAM INDEX
  40. 40. ©InfoSightPartners,2016,AllRightsReserved Governance’s Toolkit Governance eradicates resistance through several programs Quality Governance ensures consistent operational quality of data and information Quality must be encapsulated in a repeatable, measurable process Clutter The culling / demotion of expired and once required information. Meta, Reference & Master Data The metadata, master data and reference data programs that ensure consistent definition of information Enlightenment Governance promotes the use of the information catalog as a vehicle for finding the right information Context The context of information available for analysis made available through metadata and other means. Conflict Governance ensures the publication of metadata lineage and operational lineage, where available Lineage Governance ensures the publication of metadata lineage and operational lineage, where available It is important for organizations to determine whether they will deliver operational lineage (procedural exceptions) Security & Privacy The assurance that information made available is protected from influencing damage through reputation, breach regulatory and other security and privacy concerns. The effectiveness of governance is measured as actual value achieved / potential value achievable INDEX
  41. 41. ©InfoSightPartners,2016,AllRightsReserved Valued Actual If data aligned with its sources is not transformed into information aligned with business processes then it wont be used at the critical moments. The time available to re-align data into information in lockstep with business process changes is critical to ensure usage of information Eradicate resistance and enhance re-usability of models and algorithms Ensure that information is utilized in BAU, Non-BAU and disruptive business scenarios Information usage not captured will not be recorded Governance needs a repeatable framework to ensure trustworthiness of created metrics Actual Potential WIP Data Information What and how does Governance Orchestrate Govern the rate of change and % non- actionable information (clutter) Govern the time required to alter the processes A repeatable governance facility and associated orchestration layer (workflow) is required to Govern the ratio of actual to potential information value Govern the value achieved by type of business scenario Orchestrate the process to recognition of information value through a repeatable process INDEX
  42. 42. ©InfoSightPartners,2016,AllRightsReserved For Information to be managed as an asset The governance mandate requires redirection Eradication of Resistance Eradication of resistance to using information when it is most valuable is the means in which governance will participate in value creation. Agent for Repeatability Ensure as much information alignment to process, particularly in the cases of analytics, is repeatable. Marketing the Catalog Facilitating the ability for business process owners to know how to find the information they need . Resolving Information Conflict The traditional governance role survives but for information aligned with process, not all data. Coordinative Role The coordinative glue between the CIO, CDO, CRO and DAM. Governance Effectiveness % equals (actual value achieved divided by potential value achievable) INDEX
  43. 43. ©InfoSightPartners,2016,AllRightsReserved Measuring Governance Effectiveness Extending the role of governance for managing information assets Cost of Data Assets The cost of obtaining and maintaining data Governance provides organizational value by culling out processes that propagate machinery used to construct information no longer aligned to business processes Agreements to acquire data no longer used will be cancelled 1 2 Eradicating Conflict The traditional definition of governance is eradicating conflict in the definition and use of data, not information (data is not aligned with process, information is) 3 Eradicating Resistance The difference between potential and actually achieved value associated with information assets 4 Repeatability Ensure as much analytics are repeatable as possible to enable their prep time to be minimized, required for disruptive and NON-BAU situations Governance Effectiveness % = (actual value achieved / potential value achievable) * 100 INDEX
  44. 44. ©InfoSightPartners,2016,AllRightsReserved Information has value only when consumed by business processes The value of information is highly correlated with the value propositions of business models Value Category Information’s Role Business Terms Value Measurement Capture (% of Incremental value) Sales Campaign Information Identify Opportunistic Items Sales Campaign Results One Time Opportunities Systemic Opportunities Present Value of the information’s role in identifying and capturing value from others Extend (% of Incremental value) Identify Extensions to customer relationships Up Sell and Cross Sell Sales Funnel Activities Present value of the information’s role in identifying and capitalizing on deeper customer relationships Protect (% of Incremental value) Eradicate risks which would otherwise erode value Opportunity Risk Operational Risk Fraud and Process Aberrations Present value of the information’s role in protecting from other’s attempts to capture value and protection from regulatory fines Create (Greenfield) Innovate which in best cases, ripples a disruption through the marketplace Innovation Introductions New Product Lines New Methods Present value of the information’s role in realizing discounted cash flows associated with market revenues realized from the innovation INDEX Orchestrate
  45. 45. ©InfoSightPartners,2016,AllRightsReserved Value Metrics Royalty approach to measuring information value The registry is the central repository of information that can be consumed by processes mapped to business models (BMC) A pre-arranged % split of value propositions is applied to the information consumed by business processes used to execute a business model, the % split is potential information value. The value is highly dependent on the situation in which it is consumed (static or standard BI, prescriptive and predictive analytics in BAU situations, and NON BAU situations. Chief Data Officer Optimize the Value Framework Obtain Information Value Split agreements Data Governance Eradicates Resistance Influences Analytic Repeatability Data Asset Mgr. Administers Repository Manages Inventory Records Value INDEX
  46. 46. ©InfoSightPartners,2016,AllRightsReserved CDO Tool: A representation of business models and consumable information: The BMC Rivers of information flow through the processes that together form the business models of the organization. In order to manage the information assets and optimize their value, it is important to understand how information is used in processes. While the traditional business model canvas (BMC) does not discuss information, it is easy to map the rivers of information that flow through the business model using the BMC. Strategyzer, 2012 INDEX
  47. 47. ©InfoSightPartners,2016,AllRightsReserved ©THEGROVECONSULTANTS INTERNATIONAL DESIGNA BETTER BUSINESS The 5 bold steps vision canvaswas originally designed by David Sibbet 5BOLDSTEPSVISION®CANVAS COLLABORATION How will you collaborate your actions? SUCCESS CRITERIA How will you measure the success towards this vision statement? VISION STATEMENT What is the vision you are planning to execute? BUSINESS THEMES What are the themes of the playbook used to realize this vision? 5 BOLD STEPS What are the big steps towards your vision and who is accountable ? SUPPORTS What are the supports that improve the chances of reaching your vision? CHALLENGES What are the challenges that hinder reaching your vision?VALUE PROPOSITION What is the value proposition for this vision? THIS VERSION BY INFOSIGHT PARTNERS, LLC 2016 INFORMATION What information is used to identify supports and challenges? In Collaboration with business strategy leaders, the CDO maps vision and value propositions to information via a business model INDEX
  48. 48. ©InfoSightPartners,2016,AllRightsReserved SOURCE PLANNINGOUTMARKETDISRUPTIONS What new consumer needs, wants and expectations are created by the changes? Where and how does this trend satisfy them? Which (new) customer groups could you apply this trend to? What would you have to change? How are other businesses applying this trend? Which deep consumer needs & desires does this trend address? Why is this trend emerging now? What’s changing? Shifts: Long-term, widespread macro changes Incremental changes and sentiments serving as the impetus for the disruption Emerging Consumer Expectations Basic Needs Drivers of Change How and where could you apply this trend? Innovation Potential Inspiration Who Innovations and planned disruptions TREND CONTEXT Planned target equilibrium Triggers and Tipping Points INDEX This version by InfoSight Partners, 2016 INFORMATION Identifying Tracking Visioning Driving
  49. 49. ©InfoSightPartners,2016,AllRightsReserved BYDESIGNABETTERBUSINESS.COM Thisworkislicensed under a Creative CommonsAttribution-ShareAlike 4.0InternationalLicense. http://creativecommons.org/licenses/by-sa/4.0or send a letter to Creative Commons, 171Second Street, Suite 300,San Francisco,California,94105,USA. DESIGNA BETTER BUSINESS WHATISTHESCENE FOREXECUTION? VISION SUBJECT What is the vision about? VISION STORYTELLING CANVAS The CDO maps information to the vision statement, processes used to execute the vision and supporting information This version by InfoSight Partners, LLC 2016 VISION GOAL What should be achieved by this vision? VISION AUDIENCE? Who is the audience? EXECUTION CONDITIONS WHATISTHEAUDIENCE A-HAMOMENT? WHATISTHECALLTO ACTION? WHATARETHEDESIRED AUDIENCEREACTIONS? SUPPORTING INFORMATION TRIGGERING INFORMATION AUDIENCE CONTEXT ACTION MODELS MEASUREMENT CRITERIA INDEX PROCESSES ENLISTEDThe storytelling canvas represents the list of processes that support a vision, which when executed properly result in successfully realizing a value proposition. The processes utilized consume information as detailed in the storytelling canvas. The vision represents the means and conditions under which a value proposition will be realized.
  50. 50. ©InfoSightPartners,2016,AllRightsReserved Contents of the Registry Actors (RACI) Information Business Process Registry Data The Registry The Registry is the central repository used to record potential (information poised to achieve value in business processes) and actual (value achieved by information being used in business process) value, and represents the intersection of information, business processes consuming information and people using information within business processes. Data = Information Data is the raw materials of information. It becomes information through the machinery managed by the CIO to  align it to business process,  align it to master, meta and reference data,  add context to it’s use and scope and  provide details of its quality, vintage, integrity and lineage. Business Model (BMC) Value Proposition Machinery INDEX
  51. 51. ©InfoSightPartners,2016,AllRightsReserved An Information Valuation Situational Framework* Value influenced by redirecting business model based on NON-BAU forces Value influenced by maintaining business model trajectory Information used to steer in an expected business trajectory Profit center aligned Activity and other reports Cost center aligned Capital and expense used to produce information Information Alignment What returns value? Value Participation DISRUPTIVENON- ACTIONABLE BAUNON-BAU Not Yet Aligned Forces at Work Info Use Value influenced by recasting business models caused by disruption Algorithms triggered to create / respond to disruptions Information used to collaborate actions based on NON-BAU forces Risks Value J JL J K J L J K L ? J K L There is a tight correlation between the situations in which information is used and the value the information can provide * Assumes alignment to business processes devised to fit business models Half Life React TimeResistance Minor Minor Half Life Impact Half Life Cause Resistance to using information increases from information appearing on reports to information associated with disruptive forces. Amount of value achieved: 1. The least resistance and lowest value recognition is associated with reports (not specifically mapped), because the likelihood of them being directly consumable by business process is low. 2. Business as usual scenarios receive value as mapped in the business process. There are no extraordinary gains because the value achievable by the value proposition is as expected. 3. Non-BAU scenarios potentially have added value because there are added value opportunities. 4. Disruptive scenarios have the highest potential value. Resistance increases as scenarios go from reporting to BAU to Non-BAU to disruptive scenarios. The mission of governance is to eradicate information resistance and ensure the information made available for consumption as devised by the CDO’s playbook is not derailed due to resistance. INDEX
  52. 52. ©InfoSightPartners,2016,AllRightsReserved Analytics and value Making as much of analytics repeatable as possible Non-repeatable analytics best fit BAU situations There is not time to form and populate analytic models in disruptive situations. Governance prioritizes repeatability of analytics. What Why How Repeatability Methods, models and algorithms ingest information in predictable and repeatable ways Manual processes do as well, but it is left up to the analyst to ensure consistency Analytics requires information Governance is accountable for prioritizing the selection of analytics targeted for repeatability and possible automation. Governance is accountable Governance drives the repeatability metrics of analytics The time required to identify the data for an analytic model, ensure the appropriateness of the collected information and fit it to a model is not available for explosive, disruptive circumstances By ensuring repeatability where models and algorithms are either executed through automated means or are wired for execution at a moments notice, the population of analytics available for disruptive circumstances will be increased. INDEX
  53. 53. ©InfoSightPartners,2016,AllRightsReserved Business Model The Business Model and business model components that encompass the strategies and tactics that create, capture, extend and protect organizational value. Process The processes that are executed as a means to realize the strategies and tactics of the business model. Information The information consumed in processes used to capture, enhance, expand and protect organizational value. Resistance The items that discourage usage of information in processes, such as information clutter, lack of context, trustworthiness and other factors. A Model to Map the Value of Information Processes consuming information within business models Ways to Obtain Value CREATE CAPTURE EXTEND PROTECT Thwart Risk Cross/ Upsell Capture Opportunity Innovate Business Models represent the intents of the business. They are executed by business processes of the organization, and each of those processes source and/or produce information (not data) The value of information is measured as an enabler of the processes consuming the information. The information is an intangible asset which has value by the fact that it was instrumental in making the outcome of the business process successful. Resistance is the forces that make it difficult to use information in business processes. These forces can be lack of trust in the information or inability to find the necessary information due to clutter. In this asset management strategic approach to information management, governance is directly accountable for eliminating resistance that prevents the use of information at critical times. By eliminating resistance, governance is directly impacting the value of information. INDEX
  54. 54. ©InfoSightPartners,2016,AllRightsReserved The expected outcome of the orchestration effort 1 The repository represents the CDO’s blueprint and changes to the blueprint, which are codified in the data to information processes. 2 The engine, the OBJ in the process, is a callable module which captures information requested for business process so that value can be applied to it. The analyzer is the process run by the DAM to apply value to consumed information. 3 Today, the benefits of capturing information value are purely for internal purposes. However it is not inconceivable that there will be at some point external reporting of the effectiveness of the information assets of the organization. The repository contains proof of an auditable repeatable process used to orchestrate valuation of information assets 4 The value base becomes the central repository of the basis applied for information valuation, whether reported as a metric for potential investors, management use or other purposes. CDO Blueprint (Info / Process Map Royalty Splits) Information Asset Value Repository  CDO Blueprint  Potential Value  Actual Value  Resistance  Metrics Step 1 OBJ Value is assigned Royalty Analysis Application Step 3 Analyzer Process Usage of information is recorded Information Step 4 Step 2 INDEX
  55. 55. ©InfoSightPartners,2016,AllRightsReserved Information Assets Registering Value to the use of Information When Information is consumed by a business process, its use is recorded and a pre-determined percentage of value associated with the business process is assigned to the information. A pre-determined premium is assigned to the use of the information in Non- BAU and Disruptive instances of business process. A new role, the Data Asset Manager, is accountable for recording the recognition of value associated with information. When information is used in business processes as prescribed in business models mapped to information, the value of that information is recorded and tracked. The cost of obtaining data and transforming it into information is subtracted from the value recorded for the use of information. The remainder is information’s net contribution to an organizations achieved value. The Information Assets of the organization can be recorded as a balance sheet item of an organization. Potential Information Value Registry Information Consumed in a business process is recorded Record Information value associated with business process instance Recognized Information Value Business Process Source Data Machinery The Data Asset Manager (DAM) administrates the Potential information value registry (1), Records recognized information value (2), And measures the information use resistance (potential (1) less actual (2)). 1 2 Journey INDEX
  56. 56. ©InfoSightPartners,2016,AllRightsReserved Click the roles (1 – 6) in order for more information CDO CRO DAM DGC InformationAssets CIO Accountability for the Information Assets New Strategies demand new roles (click roles for more information) Chief Data Officer Chief Risk Officer Data Asset Manager Data Governance Council Chief Information Officer Strategic : Direction Setting Tactical : Enhance Value Operational : Own Machinery The CDO is responsible for aligning information with business processes in ways that maximize information value The Chief Risk Officer is responsible for protecting the information assets and use of information assets The Data Asset Manager is the inventory manager of Information Assets The Data Governance Council is responsible for eradicating resistance, or impediments to using information at critical times The CIO is responsible for the machinery that transforms data into information and eradicates information use resistance The non-depleting but expiring intangible assets of the organization (raw materials data, WIP & finished goods information inventory). 1 2 3 4 5 6 Click here to continue INDEX
  57. 57. ©InfoSightPartners,2016,AllRightsReserved Putting it all together The Business Model Canvas is an visual model that graphically depicts business model. From an information vantage point, the BMC is being used to determine and register information consumed within business processes. The valuation of information consumed in business processes will be determined by the criticality of the specific instance of a business process. The Business Model Canvas (BMC) is an easy to explain graphic depiction of business models. Information only has value if it is used in realization of a value proposition. Rivers of Information flow through the components of the BMC, which should be mapped and registered if information value is to be measured. Information valuation will be recorded similarly to processes used for royalty recognition of digital assets. BusinessModelCanvas ProcessesSupportingBMC InformationConsumedinProcesses Machinery used to transform the raw materials of Data into Information The resistance to using information at critical and time sensitive times The willingness to use information at critical and time sensitive times The ability to meter the use of information in business processes The conversion of potential value to achieved value for the organization’s information assets INDEX
  58. 58. ©InfoSightPartners,2016,AllRightsReserved MachineProcess Potential Record Initiate a program that maps the potential value achieved from information within business processes. Create a facility that is used to record the potential value achievable from information and a corresponding process. Develop the facilities and accountabilities to recognize value when information is consumed in business processes. Identify and prioritize the eradication of roadblocks impeding the conversion of potential to realized value from information. Map Information flows in business processes through the business model canvas. Record the potential value of information by mapping information to process and the source data used to manufacture consumed information. Assign accountability to record the use of information in ways similar to royalties associated with digital assets. Fine tune the machinery so that information can be used in situations where premium value is achievable. Adopting A New Information Asset Management Strategy Map information to business process Develop processes to register potential value of information assets Ensure the information machinery is capable of operating in situations of premium information value Develop processes to record the use of information in business processes The first step should be to devise a roadmap to a new information strategy which values the wielding of information similarly to recognition of royalties from digital assets INDEX
  59. 59. ©InfoSightPartners,2016,AllRightsReserved Assign a Data Asset Manager (DAM) and organize to perform the information asset management processes Architecting your next-gen information strategy INDEX
  60. 60. ©InfoSightPartners,2016,AllRightsReserved Return to the Index Q & A ©InfoSightPartners,2016,AllRightsReserved InfoSight Partners’ mission is to facilitate the journey companies take to gain focus into the value of their information assets. Once this journey is started, a new approach to managing the organization’s information assets gains clarity.

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