IBM presentation at the Chief Data Officer Forum

IBM IOD 2011

Chief Data OfficerThe Unbiased Navigator to Business GrowthReto Gruenenfelder, IBM 2014 IBM Corporation

2015 IBM Corporation

2015 IBM Corporation#Introductions:

I have the best role at IBM. I run the Emerging Roles Program which includes Chief Data Office, Chief Analytics Office, Chief Data Scientist.

Cortnie Abercrombie, incite innovation at Verizon, Citi, NTT using data and analytics. As a segment analyst at IBM, I put together Cross-sell heat maps that identified over $4B for one of our largest software brands. In 2012, I moved into DB2 and PureData Product Marketing and helped launch DB2 with Blu. Then did something brand new. Led the strategy and operations area for the Big Data & Analytics category.Now where I began identifying areas of growth for the company by looking at Emerging Roles. I became so passionate about what a Chief Data Office could do for a company, that they finally said here, just go do it.

So now Ive been working with Chief Data Officers, Aspiring Chief Data Officers, Chief Analytics Officer, Chief Data Scientists. We finally have Data and Analytics at a senior level with senior level budgets and staff. Instead of all things data and analytics being run by committee or even by default, we now have companies that recognize this Data Stuff could be a competitive advantage; and they are appropriately appointing leaders of it.

Ive co-authored two papers on the Chief Data Office now: The Institute for Business Value Report, The New Hero of Data & Analytics the Chief Data Officer and IBMs Center for Applied Insights: Your Chief Data Officer Re-imagining the Business of Data.

IBM IOD 20127/3/2015Drury Design Dynamics1

Reto Gruenenfelder

CTO Financial Services,IBM Asia Pacific

Elevate the CDO in the marketAnalyticsdrives CDO SuccessEmail: [email protected]: @regruenen#DataOfficer, #ibmCDO

2015 IBM Corporation#

IBM IOD 20127/3/2015Drury Design Dynamics2

2015 IBM Corporation#Why this topic?Elevate to the SENIOR EXECUTIVE TABLECreate C-Suite CHAMPIONSStake your own TRANSFORMATIONOur data is an asset, make money on it What does a CDO do?Get me SOCIAL dataWhat are we doing on BIG DATA?


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Technical Motivation

2015 IBM Corporation#Institute for Business Value, Reinventing the rules of engagement, CEO insights from the Global C-suite Study, October 2013

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CEOs agenda. To build traction with the CEO, focus more on creating higher business value for customersCEO: How do you see the landscape changing over the next 3 to 5 years? Efficiency andcost reductionHigher business value23%66%No changeLessMoreInspiration

Perspiration

Source: Institute for Business Value, Reinventing the rules of engagement, CEO insights from the Global C-suite Study, October 2013

2015 IBM Corporation#Institute for Business Value, Reinventing the rules of engagement, CEO insights from the Global C-suite Study, October 2013

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Board of DirectorsCorporate strategyNon-executive leadershipKey business partnersParent companyFor CEOs, the customer is second only to the C-suite in terms of strategic influence

CustomersC-SuiteCEO: Who has the most influence on yourstrategic vision and business strategy?Question CEO1Who has the most influence on your strategic vision and business strategy?78%55%53%44%26%25%23%Source: Institute for Business Value, Reinventing the rules of engagement, CEO insights from the Global C-suite Study, October 2013


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oversee the company's data strategy, provide enterprise data governance, and determine ways to leverage data for improved risk management and customer experiences CEO of Wells FargoWells Fargo Press Release on new CDOs Role, Feb 25, 2014 Wall Street Journal, http://online.wsj.com/article/PR-CO-20140225-907958.htmllead the development of Cambias data strategy, and help drive the transformation of the companys consumer experience strategies CEO of Cambia Health SolutionsApril 09, 2014, Inderpal Bhandari Joins Cambia as Chief Data Officer, Cambia Health Solutions Press Release, http://news.cambiahealth.com/news/inderpal-bhandari-joins-cambia-as-chief-data-officerWith both technical and business know-how, understanding customers is a gap that CDOs are uniquely able to fill in the company and CEOs are turning to them for answers


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CFOCIOCMOCOOSegmenting the C-suite, the needs of CMOs and COOs go together, while generally the needs of CFO and CIO are similar

Efficiency andcost reductionHigher business value23%66%No changeLessMoreInspiration

Perspiration

We need more customer transparency, more customer insightsWe need more metrics, controls, integrationsCDO


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CDOCDOCOOCMOCFOCOOCIOCHRAcquisition

Personalization

Profitability

Retention

Acquire, grow, retain customersOptimize operations; counter fraud & threats

Maximize insight, ensure trust, improve IT economics

Transform management processesCreate new business models

Business process operations

Infrastructure & asset efficiency

Counter fraud

Public safety & defenseHarness andanalyze all data

Enable full spectrum of analytics

Govern & protect all data

Optimize Big Data & Analytics Infrastructure

Planning & performance management

Disclosure management & financial close

Incentive compensation management

Human capital managementData-driven productsand services

Non-traditionalpartnerships

Massexperimentation

Manage risk

Risk adjusted performance

Financial risk

Operational risk

Financial crimes

IT risk & securityCMOSIX IMPERATIVES capture how leaders innovate and transform their businessCOOCDOCIOCFOCROCDO


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Chief Data Officers lead data-driven transformation for competitive advantage and set the bar for their industries

2015 IBM Corporation#Coffee Case

TwitterDemographicEconomicWeatherSocial MediaPartnerEngagementPromotion Activity

Be cold when its hotHabla Espaola?Look at all the holidaysIntuition saysChange the merchandiseIts the Barista

The data says

2015 IBM Corporation#Five ways CDOs drive growth and innovation

2015 IBM Corporation#Data leverage use existing data assets to advance goals of the organization. The objective may beto uplift operational efficiency or productivity, boost the brandimage, improve top-line revenue, or innovate for competitivedifferentiation and analytic advantage. One of the first justificationswe heard for creating the role of a CDO was ensuringthat an organization is designed to make data-driven decisions hence, the need for an executive who drives theorganization to focus on leveraging data and addressing somefundamental questions: How can we do more with the data we have? How can we augment that data, by supplementing andcomplementing it with data from partnerships or otherexternal sources? How can we derive viable insights from that data? How can we take advantage of those insights in the existingbusiness model? How can we leverage those insights across existing and newbusiness partnerships? How can those insights open new opportunities and businessmodels for our organization?Seven out of twelve CDOs we interviewed said they were ableto create low-hanging fruit successes through data leverageby deriving meaningful information and viable insights fromdata that already existed within their organization. Sometimesthey even created new business models whereby the data couldbe sold, leased or used to create additional enterprise offeringsand revenue streams.

Data monetization is an extension of data leveragethat focuses on finding new avenues of earnings and revenueopportunities outside existing processes and functions veryoften with direct impact on existing business models andorganizational strategy.Data Monetization example, a bank may be looking to monetize its credit carddata to open new revenue streams by selling insights to itsecosystem partners, within the customer-approved privacyframework. A telecommunications company might augment itslocation data with other customer demographics to offer moreconvenient mobile banking. And a mobile handset manufacturingcompany could try to collaborate or bypass the telecomservice providers for new revenue through mobile channeladvertising dollars. We observed successful CDOs focused ondoing the right things, including integrating and collecting theright data, to leverage and monetize this strategic asset.

Data enrichment whereby existing datasets areaugmented through the combination of fragmented internaldata sources, the acquisition of external data from governmentfeeds or social media sources, and the integration of a businesspartners data.

Data protection is a special aspect of data upkeep. It is ofparamount importance to any organization, given the highrisks associated with failure to protect data as an asset. If theone who has the data is the king, then the king needs toprotect his kingdom. Typically, this protection is exercisedthrough collaboration with another executive role responsiblefor information security, a.k.a. the Chief Information SecurityOfficer (CISO).

Data upkeep refers to managing the health of the data undergovernance. With the growing data explosion and datamashing over websites, companies and consumers, there is aclear need for new and different methods that address dataquality and governance as a positive differentiator for customersand citizens. The CDO is ultimately accountable formultiple aspects of data maintenance like data integrity,veracity, value, semantics and overall health.

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Driving business value is CDOs first priority

scarceCustomer/ Citizen experience

Increased operational efficiencies

Enhanced ability to innovateTop Three CEO Drivers


The Basics Data StrategyData GovernanceData ArchitectureData StewardshipData IntegrationData Management

Advanced

Business AnalyticsData Acquisition & LicensingInnovationNew Products and ServicesRisk ManagementCustomer ExperienceMachine learningData Security & Privacy

The CDO Role: Accurate, accessible, and actionable data & analyticsCDOs are learning there is no value from data without analytics and many are adding analytics and data science to their role as a way of expanding scope and creating an innovation agenda

2015 IBM Corporation#Based on collective information from Peter Aiken, President of Data Management Association (DAMA), news articles, interviews with Chief Data Officers, and Where does your Chief Data Officer work?Three organizational models, Anne Duffy, November 2013, Information Management.com, www.information-management.com/news/where-does-your-chief-data-officer-work-3-organizational-models-10025061-1.html?zkPrintable=1&nopagination=1

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The role should report to the CEO for the tightest linkage to business value1. Direct report to CEO3. Report to functional area CEOCIO CXOCDO

CEOCIOCXOCDO

CEOCIOCXOCDO

2. Integration within ITRaise data to CEOs agenda for full empowermentEnsure data ownership independence from individual business unitsRisk power issues between CIO and CDO+-+Leverage data as an operational enabler for business decisionsEasily coordinate data management, architecture and ITRisk loss of business relevance for data +-+Provide data independence from ITEnable cross-BU functions for data managementRisk diminished operational effectiveness caused by loss of IT contact+-+

2015 IBM Corporation#CDO Operating Model

CDO

Data Governance

Data Strategy

Data Innovation

Data Architecture

Line of Business(s)

Finance

Compliance

Risk

EnterpriseData Governance Council (Executive)

EnterpriseData Governance Council (Working)

EnterpriseDataGovernance Stewards

Data Architecture

Analytics Community

Data Communities

CIO

Data modelsMaster dataReference data

Data qualityData policyCommsStakeholder relationsEducationData Technology Platforms PartnerData scienceBI & AnalyticsData Development

2015 IBM Corporation#Three steps accelerate growth and innovation led by the Chief Data Officer

2015 IBM Corporation#Visit the new IBM Chief Data Officer websitehttp://ibm.biz/ChiefDataOfficer

IBM CDO Thought Leadership Institute for Business ValueCenter for Applied Insights

If a CDO, request membership to the CDO Community, THINK Datawww.think-exchange.com

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