Introducing a new approach for managing information in the digital economy

© InfoSight Partners, 2016, All Rights Reserved A new Information Approach for the Digital Economy

Welcome to the Exponential Age

Refocusing the management of information assets in the digital economy

Potential ValueBusiness Processes Information

Achieved Value

Raw Data

© InfoSight Partners, 2016, All Rights Reserved

• We are in the midst of what is being called the fourth industrial revolution. In the past, machinery and mechanical products could be redeployed for new purposes. Communication was limited by technology.

• The exponential age is different in that digital products can be deployed for new purposes. The technology barriers limiting communications are rapidly falling. In the exponential age, the deployment of new products and the wide disbursement of communications about these new products happens much more quickly in the past.

• In the exponential age, information is a key differentiator. However, most organizations are not equipped to wield information as an organizational asset with competitive implications.

• The materials provided to wield the information required for the exponential age are accessible through the following menu. Click on the title to access that section of materials..

What is the Exponential Age?

Uber, Google, Amazon and Airbnb manage

information assetsAre You Ready?


• Welcome to the Exponential Age

• Managing Information as an Organizational Asset

• Measuring the value of Information Assets

• Organizing to Manage Information Assets in the Digital Economy

• Governing Information Assets Differently

• Orchestrating the valuation of Information Assets in the Digital Economy

• The Journey to Managing Information Assets in the Digital Economy

Sections




• An approach to measure the value of information assets

• The leadership roles required to manage information differently

• The shifted focus in Governance

• Ensuring the process is sufficiently repeatable and predictable to stand up to an audit


To be addressed in migrating to a Information Management approachApproach

Strategy

Measure

Organize

Govern

Orchestrate

Journey


Thank You

Q & A


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.


Organizing to Manage Information Assets



Achieved Value

Raw Data









Sections


The information leaders in the digital economyNew 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.



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

YOY change in information asset valuation

Data Asset Manager Maintain the repository used for recording potential information asset valuation

% of processes mapped

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

©InfoSight Partners, 2016,AllRightsReserved

12


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

DAMI administer the assets

and the repository

CIO


Major Functions of the CDO

• Architect how value will be obtained from the intersection of business process and information by those who execute the processes

• Record the potential value of information, which is the integration of processes devised to achieve a value proposition of a business model.

• Validate the alignment regularly to ensure that information value can be achieved without process actors (those accountable and responsible for processes) resorting to personal data stores (excel and access) for the execution of processes

• Identify information no longer associated with processes devised to achieve value propositions

• Negotiate the % of value propositions associated for a business process


Major Functions of the CAO

• Devise models and algorithms to be consumed by business processes aligned with value propositions

• Publish a catalog of models and algorithms for use by data scientists

• Encapsulate repeatable models and algorithms

• Collaborate with the CDO to identify new algorithms which will positively impact information value


Major Functions of the CIO

• Construct the machinery used to transform data (aligned with sourcing) to information (aligned with processes)

• Following the governance blueprint, devise methods to eradicate resistance to using information

• Operate the machinery in as cost effective a manner as practicable

• Ensure the capture of a reviewable audit trail which details the application of context, rules and master and reference data to transform data into information

• Provide help and guidance resources in the usage of information assets


Major Functions of the DGC

• Administer the repository used for recording potential and achieved value of information assets

• Compute information usage resistance

• Collaborate information asset valuations with the CFO

• Publish governance effectiveness statistics


Major Functions of the DAM

• Identify and detail prioritized plans to eradicate resistance to using information

• Identify and prioritize the encapsulation of repeatable analytic models

• Manage a catalog serving as an index of available information to data scientists and process owners

• Prioritize the isolation, demotion, archiving and/or destruction of information no longer aligned to processes aligned to value propositions (clutter avoidance)

• Publish information asset valuation metrics


Major Functions of the CRO

• Identify operational and systemic risks

• Maintain a list of disruptions, their sources and their resolution for analysis

• Maintain cases of process exceptions (fraud, etc.) and collaborate with compliance

• Prioritize data privacy and security issues and collaborate with the CIO

• Publish risk metrics


Most organizations do not have the means to ensure alignment of information to process. Without this alignment, the availability of information, not misaligned data, will be haphazard.

Governance is often focused in most organizations on source (data), not the end product. It is the information that creates value that governance should be concerned in improving. If it leads to fixing the internally sourced information only, then it will be missing much required for Non-BAU signals.

The machinery is devised to store everything in a “prego, it’s in there” warehouse. Having a warehouse does little if anything in ensuring alignment.

Few if any organizations are in a position to measure the consumption of information. They are focused on producing he source and count on the actors of business processes figuring out how to align information with process. This is not sufficient for the digital economy.


Thank You

Q & A





Managing Information as an Organizational Asset



Achieved Value

Raw Data









Sections


Process

InformationA non-expiring

asset consumed in business processes

Methods

Prepared byInventory Machinery

Strat

Influenced ByNot all use of information is

equal

Realized

Realized byInformation 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 valueattributable 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 AppliedInformation

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.


Information InventoryThe 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 InventoryThe 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 InventoryThe 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

Value of the Information Assets

INFORMATION INVENTORY

WIPINVENTORY


The platforms adopted by your stakeholders will be complexBelow is a list of technologies available to one of the functions, marketing, each having its own underlying data requirements


• Organize to manage information assets consumed by business processes as opposed to sourced data

• Meter the consumption of information by business process and record it using an auditable process

• Ensure information made available to business process, whether via algorithms constructed by the analytics organization or information published to big data is prepared in a way that is repeatable

• Change governance intents from improving the sources of data to eradicating resistance to consuming data in business processes

• Switch the focus of the technology organization from managing data sources to managing the consumable information products

• Measure the potentially consumed and actually consumed information by usage strategy (marginally aligned, BAU, Non-BAU and Disruptive)

Manage information as an intangible, non-depleting (but expiring) asset of the organizationThe new strategic intents of information management

Manage

Meter

Repeatable

Govern

Engineer

Measure


•The mapping of information to business processes is different than mapping information to be useful to the most business consumers, as these data stores become complex and unwieldy

•Because business has sped up in the digital age, the rate of change to business processes, and hence, the mapping of information to process will change more frequently than in the past

•Rarely do early warnings of disruptions show up in transaction streams of internal systems. By the time the transaction cycle is complete, it is too late to make a difference. What is required is a complex weave of data into information that provides insight before warnings show up in transactions.

• If process actors are going to use this complex weave of information, they have to trust it’s accuracy, relevance and derivation. Facilities that garner the process actor’s trust is no longer an option.

•Because of the amount of information available to process actors, clutter will be the single largest distractor and potential source of resistance. The Prego, it’s in there approach to data management no longer works in the digital age.

•Technology that facilitates the quick conversion of data aligned to source into information aligned with use is mandatory.

In order to participate in the digital age, information must align to business processes, not data sourcesMapping to process, not information source

Technology

Clutter

Trust

View

Change

Mapping


• Information published for consumption must considered de facto trustworthy

• Context to the scope, derivation, definition and applicability of the information must be available

• The information required by business process must be available at the convenience of process actors (those accountable and responsible) at the speed of business

• The information must be clutter free so it and its context can be found without significant effort

• The information must be organized in a way that is actionable to the business process without additional transformation

• Technology must be in place that alleviates the process actors from becoming technicians to use the information

Resistance is futile only if you ensure that it is accessible and consumable at the speed of business. You must ensure:Managing Usage Resistance

Trust

Context

Access

Clutter Free

Actionable

Usability


Thank You

Q & A




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eserved A new Information Approach for the Digital EconomyWelcome to the Exponential Age



Achieved Value

Raw Data

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Sections

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• 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.

Welcome to the Exponential Age

Uber, Google, Amazon and Airbnb manage

information assetsAre You Ready?

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• The world has changed, it started with companies who had products that lived in the digital ecosphere, like Google, Adobe, Yahoo and others, but has become mainstream for all companies, and has caused a level of disruption that is seen only during periods of great shift. We are in one of those periods. Some examples of this shift are easy to spot.

• Not so long ago, the primary vehicle for sharing the written word was books and postal services. This business has been disrupted where email, the replacement for much postal services, is being displaced with Facebook, Instagram, test messages and a host of other services. The primary cost of a printed book was always the production of the book where it was printed, stored and distributed. Today, the printed book is in the midst of being disrupted through electronic distribution services, where the buyer can either read the book electronically or print it at their leisure. Of course, not having to distribute books as often has drastically reduced the need for sharing books using a media service from post offices.

• On the very near horizon is the emergence of digital services for automobiles (that is here already), smart home services and a host of other devices all of which will consume digital services and all of which will either participate through a mobile hub or have a digital identity (phone number) of their own. These services not only know who you are, but where you are. The consumer is more informed than ever before, with a variety of sources specifically devised to deliver targeted content to the consumer. The means to interface the consumer has changed forever.

This level of Interruption is not an outlier

Uber, Google, Amazon and Airbnb manage information assets

Are You Ready?

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• The touch points to the consumer have changed with a variety of services delivering information to the consumer with hopes of obtaining referral income from your digital transaction. Sometimes they will even use information that you made available to them to help them direct consumers to do business with you. This can be content which shows products you sell in a favorable light to competitive products or bundled products which make a transaction more enticing.

• If you booked a hotel or used some other reservation system recently, you have noted a large number of services who will share potential reservations with you, many know who you are without your entry of any information. They have partnered and have shared a community of information with a desire to direct referral income their way.

• But the one item that will negate this referral is incorrect or out of date information about the consumer. If the consumer’s name is misspelled, they will take note of that. If they moved and you had the wrong address on file, they will take note of that. And all of this impacts their willingness to complete the desired digital transaction.

• If digital transactions do not take place, then referral income does not take place, resulting in partnering organizations looking elsewhere for referral income. This information you have shared has a direct value in the achieved digital transaction, but few are equipped to measure it.

The age of consumerism requires you to get consumer information right

Uber, Google, Amazon and Airbnb manage information assets

Are You Ready?

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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

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The ability to wield information is a key differentiator

Data Information

OrganizationAligned to sources to optimize drill back to source data

Aligned to business processes that consume the information

GovernanceResolve definitional conflict, prioritize reference data & metadata initiatives

Eradicate resistance to using information in business processes

ClutterImprove the analysis capabilities to be able to find identified patterns

Eradicate clutter through a number of techniques

ContextProvide 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

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Most organizations do not have the means to ensure alignment of information to process. Without this alignment, the availability of information, not misaligned data, will be haphazard.

Governance is often focused in most organizations on sourcing of data, not the usage of information. It is the information that creates higher value that governance should be concerned in improving. Governance is focused on internally available information, but higher value uses of information (i.e., disruptions) are rarely identifiable from information available internally.

The machinery is devised to store everything in a “Prego, it’s in there” warehouse. Having a warehouse does little if anything in ensuring alignment. Big Data makes things worse.

Few if any organizations are in a position to measure the consumption of information. They are focused on producing he source and count on the actors of business processes figuring out how to align information with process.

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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 DriversInformation 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 ManagementTarget Q

uad

rant

Typical IT D

riven Q

uad

rant

Typical C

AO

Driven

Qu

adran

t

Typically Late to Disruptions

Thrives in disruption, but not stable markets

Op

po

rtun

istic Qu

adran

t

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• An approach to measure the value of information assets

• The leadership roles required to manage information differently

• The shifted focus in Governance

• Ensuring the process is sufficiently repeatable and predictable to stand up to an audit


To be addressed in migrating to a Information Management approach

Approach

Strategy

Measure

Organize

Govern

Orchestrate

Journey

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Thank You

Q & A

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