Almost every CIO says the same thing: Data is the key to creating competitive advantage. As many as 88% of IT decision makers believe that data collection and analysis has the potential to fundamentally change the way their companies do business in the next three years, according to Foundry’s Data & Analytics 2022 study.
However, data collection and analysis is just the starting point. Companies that want to get the most out of the data they collect need talented people who can use technology to turn information into actionable insights. So what are leading digital leaders doing to adapt and meet this challenge head-on, and what data skills are needed to get the desired results?
Rewind to advance
Nash Squared recruiter results also show that digital leaders believe data is essential to delivering competitive advantage, and the annual Digital Leadership Report refers to data as “the gem of the digital economy.”
However, while the importance of data is recognized, recruiter research indicates that polishing this gem is challenging. Only 21% of digital leaders feel their business is very or very effective at using data insights to increase revenue.
So there’s a paradox: companies know data matters, but they don’t necessarily know how to get the most out of it. The reasons for this discrepancy are complex, says Bev White, CEO of Nash Squared.
“Taking people on a trip often requires that you put your house in order first,” she says. Companies can have a lot of data, but it can also be very disconnected and inconsistent. So if you’re really going to benefit from it, you have to step back to move forward.”
For some people, this hindsight can feel like a step back. In the era of abundant data and emerging technologies such as artificial intelligence (AI) and machine learning (ML), why should companies focus on the less attractive areas of core infrastructure and data pipelines?
The reason, simply put, is that companies will struggle to turn information into insights without robust databases. Forrester warned five years ago that there was a risk that companies would forget to invest in the engineering capability that would help scientists create value from data.
Today, digital leaders understand that investing in critical capabilities is more important than ever. Foundry research also indicates that some of the most important skills digital leaders need to support their analytics software are data management, data integration, data engineering, and data engineering.
For savvy CIOs, backtracking involves building an internal engineering capacity to ensure that people across the organization have access to trusted sources of information. Take, for example, Barry Panayi, Director of Data and Insight at John Lewis Partnership.
“Ten years ago it was all about ‘becoming a data scientist,’” he says. “But really, you need to become a data engineer now. I want data people with a software engineering mindset. This is because you are building a product. Everything that becomes a product now has data.”
Panayi works with data engineers and Snowflake technology to create an integrated approach to enterprise information, a single version of the truth with which to deliver actionable analytics. “Then all your data will be in one cohesive ecosystem rather than relying on disparate structures from the past,” he says.
Jeff Syngeman, Executive Vice President of Technology at Arkos Health, is another digital leader who believes in laying the right foundation. Your organization manages data from a variety of sources, whether it’s hospital platforms or a patient’s mobile app.
“When you really break it down, you need an engine to capture, normalize, and transform the data,” he says. “I definitely want data engineers. And it’s not just about swallowing [de dados]. It is about data modeling and data schemas. So you need everything from focus on feeds and capture to a bunch of features that deal with normalization.”
Generate insights from information
The message so far is clear: CIOs need talented data managers who can ensure the integrity and organization of company data. Once that overload of structured and unstructured data is done, they need experts who can help turn information into insights. And as many digital leaders can attest, this is where the really tough challenge begins.
“The key is getting insights from the data,” says Prakash Rao, head of supply chain projects at retail and hospitality giant Landmark Group. “What problem are you trying to solve? When you have information, there are a lot of actions that can result from it—and if you do those actions right, it all leads to improvements.”
Rao says the search for people who can turn information into insights 15 years ago may have centered on their experience with Excel. Today, your business — like 30% of digital leaders in a Foundry survey — makes it a priority to find talented data scientists.
Mark Jennings, CIO of Analytics and AI at travel company TUI, says data science skills such as Python, SQL and R are high on the wanted list. However, he also understands that technical skills are only one component of a complete data specialist.
“What we hire at TUI is not just skills, but also attitude,” he says. “We’re looking for curious people who are constantly asking, ‘Why?’ “I want people who get to the bottom of the challenge. The technical skills are good, but you will help me a lot.
Those are sentiments echoed by Daniel Smith, global head of analytics and insights at apparel brand Pangaia. He sees many candidates as strong from a background standpoint. But where it is weakest is in data visualization, and the growing interdependence between IT and business means that lack of efficiency is an issue.
“Work jobs will ask questions,” says Smith. “If your expertise is all on the data science side and not the visualization side, there aren’t going to be many people in the business who will understand what you’re talking about.”
Bob Michael, Chief Data Officer at retailer DFS, is another digital leader who wants great communications. Yes, it has strong data management and analysis capabilities internally, but it also needs these technology experts to be the custodians of data and data collections.
Success provides the right tools to people across the company so they can access trusted data sources and answer their own questions quickly and effectively. “Basically, I don’t want a big 400-person team,” Michael says. “I want to shape the way people in a company use data. Ultimately, data should just be part of the business. I’m not looking for data scientists and statisticians who can’t communicate because they can’t help my cause from a data management point of view.”
Helping the company help itself
And therein lies the rub: The key to turning information into insights is ensuring that people across the organization have the tools and confidence to work with the data. More evidence comes from Foundry research, which indicates that the most important data skill for digital leaders is analytics training for non-IT professionals, as indicated by 41% of respondents.
The best way forward, says Mary O’Callaghan, director of technology engagement at the British Heart Foundation, is for data managers and their teams to take a collective approach. Data professionals such as CDOs, analysts, scientists, and engineers must work alongside their co-workers to help them explore information.
“Before people start thinking about how to use Power BI, they need to know how to ask the right questions,” she says. “I think sometimes it’s just a matter of trust because people, in their functional areas, are so confident and know what they’re doing. I think we need to allow people across the company to ask questions and then work with them to find the answers.”
This is a sentiment that resonates with Caroline Carruthers, former CDO of Network Rail UK and now CEO of Carruthers + Jackson. The Data Maturity Index, recently released by his consulting firm, indicates that nearly two-thirds of data leaders believe that most or nearly all employees in their organization are not data savvy.
This is a problem because companies with strong data knowledge are more likely to understand that information is not exclusive to data-savvy teams. Carruthers says digital leaders must work to build a culture of data across the organization.
“Less is usually more when it comes to data,” she says. “Effective use of data isn’t just about numbers. It’s the other things we can tell people — it’s insight and direction. It’s about creating a smart stack of data that people can draw on so they can do their work better.”
What’s clear, says Ashley Kearns, director of delivery at Carruthers + Jackson, is that the importance of being able to turn information into insight only goes one way: upward. So whether you’re a backend engineer or a customer service professional, everyone in the company must develop a mature approach to information.
“Data will be part of your daily working life,” she says. “Success gives everyone critical thinking and the ability to provide context for the story they are telling.”
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