Leveraging Information as a Valuable Resource: The Fundamentals
In our data-driven world, it's peculiar that most executives don't take ownership of information despite managing other corporate assets. Except for a few information-centric organizations like Google or Amazon, this isn't the norm.
Two main reasons for this, as I've observed, are the decline in IT's strategic role and business execs' immaturity regarding information. These factors have resulted in a toxic blend of poor focus and a "just manage it cheaply" attitude towards data and information.
To tackle this issue, organizations must redefine their culture to see information as an asset. Adopting cultural methods from Organizational Change Management can help achieve this. Start by emphasizing the value of this intangible asset we call information, treating it like a precious treasure.
This new value should be promoted through a "top-down, bottom-up, and middle-out" approach, engaging all key stakeholders simultaneously. Its effects should be visible in every aspect of business operations, such as customer interactions, supplier relationships, research, competitive edge, products, branding, and legal matters.
Only when the entire organization embraces "information is our most valuable asset" and "each of us has personal stewardship responsibilities" can you tap into the value hidden in information resources.
Applying the Techniques
I've used these cultural adoption techniques in several organizations over the years, and each case is unique. To gauge the challenge, consider identifying champions and enablers in the C-suite, assess the organization's willingness and ability to change, and locate hidden pockets of information exploitation to find change leaders.
The organizational structure needs only one change: establish a governance body focused on oversight (doing the right things) instead of operations (doing things right). This body guards the management and utilization of all information assets throughout their lifecycle.
There's no need for a "data czar" or "chief data officer" responsible for all data. This single-point-of-failure approach doesn't align with the idea that "information is an asset."
The CDO role, fostered by the technology side of the organization, ignores the central issue: the business must take the lead in managing and optimizing all information assets throughout their lifecycle. These stewardship responsibilities should be led by the business in partnership with technology and embraced by everyone personally.
Only then can an enterprise truly claim that "it treats information as an asset."
Richard Lee is the Managing Partner of IMECS, LLC, an executive consulting firm that collaborates with senior executive teams in the domains of business transformation, governance, risk and compliance, advanced analytics, and business Informatics. Before this, Richard served as the data governance officer at the Insurance Corporation of British Columbia (ICBC) and directed its enterprise information transformation program.
Further Insights:
- The success of a Chief Data Officer hinges on clear definitions, adequate support, and integration with broader organizational strategies. Lack of established governance, overlapping responsibilities, challenges in implementation, and evolving business needs can challenge the CDO role's long-term relevance [1][2][3][4].
- A data governance organization is present in only 39% of organizations, leading to poor data quality, weak security, and eroded trust [5].
The techniques used to redefine an organization's culture towards treating information as an asset can be applied with the aid of technology in data-and-cloud computing, such as in the implementation of advanced analytics and business Informatics. This approach necessitates a shared stewardship responsibility among business executives and technology professionals, as opposed to designating a single "data czar" or "chief data officer."
In the realm of data and cloud computing, the role of a Chief Data Officer (CDO) can only be successful when it is integrated with broader organizational strategies, has clear definitions, and receives adequate support. however, the lack of established governance, overlapping responsibilities, and evolving business needs can pose challenges to the long-term relevance of the CDO role.
