What’s different now that data is ubiquitous? - When data is ubiquitous, using data well is essential to competitiveness - Using data well means working smarter on a daily basis (rather than “occasionally” transforming the business) - Working smarter is about using the “little” data that has become abundant to enhance both operational and strategic decision making © 2013 MIT Sloan CISR – Ross, Quaadgras

1. SSRC Conversations on Sociotechnical Systems
Making Data Work:
Organizational Practices for Getting Value from Information
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras
Dr. Anne Quaadgras
aquaad@mit.edu
February 12, 2014
This research was made possible by the support of MIT CISR sponsors and patrons.
Jeanne Ross, Peter Reynolds, Barb Wixom (MIT CISR), and Cynthia Beath (University of Texas) participated
on the research team.

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© 2013 MIT Sloan CISR – Ross, Quaadgras 2

3. What’s different now that data is ubiquitous?
§ When data is ubiquitous, using data well is essential to
competitiveness
§ Using data well means working smarter on a daily basis
(rather than “occasionally” transforming the business)
§ Working smarter is about using the “little” data that has
become abundant to enhance both operational and
strategic decision making
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras 3

4. Working smarter entails culture change
§ Strategic Experiments
§ Business Intelligence and Analytics
§ Customer Segmentation/
Mass Customization
§ Single Source of Truth
Strategic
Agility
§ Single Face
to Customers
§ Component Reuse
CULTURE
OF HEROICS
§ Task Automation
IT Solutions Digitized Working
Center for Information Systems Research (CISR)
EVIDENCE BASED
MANAGEMENT
CULTURE
§ Business Ownership of Information
§ Process Optimization
Efficiency
DISCIPLINED
PROCESS
CULTURE
§ Straight-through
Processing
§ Scalability
§ Common
Processes
Platforms Smarter
Relationships depicted in this graphic are indicative of findings in three MIT
CISR studies: Enterprise Architecture as Strategy, IT Savvy, and the MIT
CISR Value Framework.
© 2013 MIT Sloan CISR – Ross, Quaadgras 4

5. IT’s role is necessary but not sufficient
IT Solutions Digitized Platform The Smart
Organization
§ Working smarter: an organization-wide habit of using data from a
digitized platform to optimize each individual’s contribution to enterprise
business objectives (i.e., use people’s smarts more effectively)
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras 5

6. Operational decisions execute strategy:
Three keys to effective operational decisions
§ Single source of truth
– The sole accepted reference for decision-making and performance
management data
– Declare it
§ Scorecards
– Summary of daily operational activities capturing the activities that
best predict short- and long-term firm performance; serves as daily
feedback on individual performance
– Emphasize daily feedback
§ Business rules
– Specified actions, proven to be successful in meeting strategic
objectives, that address a given business circumstance
– Assign owners
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras 6

7. How to work smarter: Key requirements
People
Working
Smarter
Single Source
Management of
Business Rules
§ Standardize data
§ Optimize process
§ Provide operational data
§ Find
§ Automate
§ Analyze
§ Improve
Center for Information Systems Research (CISR)
Scorecards and
Accountability
Structure
§ Establish and track daily
metrics
§ Clarify roles
of Truth
Talent
Cultivation
§ Coach decision makers
§ Give feedback
§ Hire and develop talent
Source: J.Ross, C. Beath, K. Johnson, “Driving Value from the Data Deluge:
Lessons from PepsiAmericas,” MIT CISR Research Briefing, Vol. X, No. 3, March
2010.
© 2013 MIT Sloan CISR – Ross, Quaadgras 7

8. How Allstate builds the smarter workforce
Management of
Business Rules
[1a] Design business rules
to work within NextGen
[7b] Improve rules based
on analytics
Single Source
[2] Build NextGen platform & single data
repository
[5] Build analytics team, tools, processes and
standards
[6] Create standard and ad hoc analytics
reports
Center for Information Systems Research (CISR)
Scorecards and
accountability
structure
[1b] (Re)design processes & metrics to
work within NextGen
[4] Create processor teams
[7a] Improve processes based
on analytics
People
Working
Smarter
of Truth
Talent
Cultivation
[3] Initial training & coaching
[8] Ongoing coaching on new
processes and rules
Source: Ross, J. W. and A. L. Quaadgras (2011). "Working Smarter: The
Next Change Management Challenge." MIT CISR Research Briefing 11(1):
1-4.
© 2013 MIT Sloan CISR – Ross, Quaadgras 8

9. Working Smarter is profitable
4
3.5
3
2.5
2
1.5
1
0.5
0
-0.5
Bottom Quartile on
Working Smarter
(Score = 45%)
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras
3.6%
above
0.3% average
below
average
Net Margin
(%)
Top Quartile on
Working Smarter
(Score = 84%)
MIT CISR Value Framework Survey, N = 212,
Top Performer = Top quartile of Net Margin, adjusted for
industry. Working Smarter is calculated by averaging 11
items. Mean Working Smarter Score = 65%
Industry-adjusted
Average

10. Assessment questions:
In your enterprise, to what extent (not at all ….. to a great extent):
a. Do findings from post-implementation review inform future projects?
b. Are key stakeholders engaged in major projects as needed throughout a project lifecycle?
c. Have business leaders accepted ownership of key data?
d. Is there a digitized platform(s) that supports the enterprise’s key business processes?
e. Is there a data asset specifying enterprise master data, transaction data, and historical data?
f. Do you rely on a single source of truth for data?
g. Do you empower operational decision makers with clear business rules?
h. Do you create and revise business rules based on business analytics?
i. Do you empower operational decision makers with useful information?
j. Does feedback relate individuals’ actions to the enterprise’s goals (e.g., scorecards, sales/profit reports)?
k. Do employees openly discuss and work together on risks?
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras

11. Useful steps in creating a culture of working smarter
§ Optimize processes that capture data
– SEC revamps Tips, Complaints, Referrals
§ Identify “sacred data”
– Southwest Airlines focuses on customer reservation
§ Ensure world class stewardship
– PepsiAmericas establishes revolving data governance
§ Identify customer segments
– Foxtel rethinks product design/marketing
§ Automate business rules
– Citrix’s rules engine
§ Track operational performance
– Insurance claims processing analysis exposes many variations
§ Digitize feedback
– Protection One creates a daily scorecard
§ Enhance visualization
– Guess reimagines how to present top sellers to decision makers
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras 11

12. References
§ Ross, J. W., C. M. Beath, and A.L. Quaadgras (2013). "You May Not Need
Big Data after All." Harvard Business Review 91(12): 90-98.
§ Ross, J. W. and A. L. Quaadgras (2012). "How Business Rules define your
business strategy." MIT CISR Research Briefing 12(12): 1-4.
§ Ross, J. W. and A. L. Quaadgras (2011). "Working Smarter: The Next
Change Management Challenge." MIT CISR Research Briefing 11(1): 1-4.
§ Ross, J. W., C. M. Beath, and K. Johnson (2010). “Driving Value from the
Data Deluge: Lessons from PepsiAmericas,” MIT CISR Research Briefing,
10(3).
Center for Information Systems Research (CISR)
© 2013 MIT Sloan CISR – Ross, Quaadgras 12