For a company to be successful, it needs to manage data properly especially in the age of Chief data officers. However, most companies remain behind the curve despite the available data management functions because they barely utilize the structured data in decision making, thus ends up using less than 1% of the data. There are two types of data management strategies; offensive and defensive. They help companies to analyze the primary use of their data. This means that companies should consider when and when not to use either of the two strategies to maintain balance.
Data defense aids in decreasing downside threats in a business. It comprises of activities such as guaranteeing regulations submission, identifying and restraining fraud using analytics, and averting theft through ventures that encompass building systems. In a non-profit organization, defensive data is used in responding to today’s needs and managing teams better to attain and improve efficiency. The data is used for action such that it establishes interventions that lead to long lasting changes, which pull donors and policymakers towards working on the mission and vision of the organization. It also helps in analyzing how much the organization spent, the work done, and how much it mattered. This helps in the prevention of fraud and theft.
Data offense encompasses different ideas such as consumer gratification, how to multiply returns, and productivity. It assimilates consumer comprehensions with market data to support the decision-making teams in making choices. Defensive activities weigh more on business functions that focus on customers such as sales and marketing. Nonprofit organizations such as in the health sector collect action oriented data, which is also seen as feedback. This is from the volunteers such as nurses and drivers who give information on the distance that is to be covered and the fleet available (Davenport). This helps in making informed decisions from managerial positions. For example, if there is an increase in availability of vehicles, medical personnel will reach more people, thus delivering more services.
35 banks passed the FEDs Comprehensive Analysis Review for the first time in more than seven years. In the past, these organizations struggled because they could not prove the accuracy of the reported data. This is contrary to the assumed capital management problem (Bartha). The banks, therefore, created a role for CDOs and invested massively into infrastructure that managed data. The institutions are, therefore, working towards creating a competitive advantage with the resources created. Zions Bancorporation wants to leverage data to accelerate growth and efficiency (Bartha). They have different options to choose from including personalizing customer experiences at every touch point, which could help in gathering customer information, thus help in making an informed decision. This could be configured under sales and marketing since it is where personnel interact with customers.
The CDO of GlaxoSmithKline, Mark Ramey, believes that data strategies translate to speed and responsiveness. Exploration of new options is paramount in innovation to allow for the achievement of a continuous learning and adjustment (Bartha). In case a step requires a long IT project for preparation and gathering of data, progress will be deterred. A well governed data environment, however, enables business users to enjoy the privilege of self-services. This is created as a defense mechanism. The success of any of these strategies depends on the insistence in application. If properly managed, they can be beneficial to any organization; profit or nonprofit.
Barth, Paul, and IDG Contributor Network. “Chief Data Officers Are Moving from Defense to Offense.” CIO, CIO, 7 Aug. 2017, www.cio.com/article/3213220/chief-data-officers-are-moving-from-defense-to-offense.html.
Davenport, Leandro DalleMuleThomas H. “The 2 Types of Data Strategies Every Company Needs.” Harvard Business Review, 1 Aug. 2018, hbr.org/2017/05/whats-your-data-strategy.