VIDEO | Google Cloud Value Advisors Global Director: Data Strategies Should Be Aligned to Top Business Objectives

(US and Canada) Monisha Deshpande, Global Director, Google Cloud Value Advisors, and Joyeeta Banerjee, Global Solutions Value Practice Leader, Data Analytics and Security Solutions at Google, speak with Derek Strauss, Chairman, Gavroshe, in a video interview about effective data strategy, linking of data and business strategy, bridging the data value gap, and how CDO’s should align with CFOs and the board.

At the onset, Deshpande suggests five questions organizations need to address when it comes to the data strategy. They are:

• Have the right investments been made in the data strategy?
• How can data be better leveraged to create business value?
• How can AI and Machine Learning be used to make a step change with data?
• How can data be made accessible and usable to different teams?
• How can data access be effectively governed and managed?

Next, she explains how organizations need to assess the cost and capabilities of their data foundation compared to similar organizations. Secondly, data strategies need to be aligned to top business objectives to unlock true business value, adds Deshpande.

Expanding further, she states that having a reliable data foundation is essential to adopt AI and ML tactics. Deshpande maintains that data needs to be accessed meaningfully and consistently, across a variety of sources. Shedding light on the governance aspect, she highlights the need to implement a strong governance strategy to effectively manage access to data across the organization.

Moving forward, Banerjee speaks of the importance of linking data strategy with business strategy directly. She cites a recent Gartner study that revealed when CDOs set goals for a company and link data and business strategies, business production increases 2.6 times.

As data has grown, companies have realized that data strategy is integrally linked to enterprise growth, says Banerjee. She acknowledges that now data leaders have a seat at the table with CEOs, CFOs, and the board, to ensure linking data strategy for the company’s wider goals.

According to her, an effective data strategy stands on three vital pillars:

• Empowered people
• Governance and framework where insights can be gained and activated
• Right technology capable of accelerating business value

Considering these elements, data leaders can find the interlock between a data and business strategy and implement it for greater success, asserts Banerjee.

Commenting on closing the data value gap, Deshpande suggests that targeting both the technology cost optimization and data gap operational considerations is essential to improve organizational performance. It allows businesses to identify key use cases where data can have a lasting impact, such as predicting demand, optimizing inventory or labor costs, she says.

To ensure successful deployment, Deshpande recommends considering a three-dimensional matrix for value, feasibility, and actionability. From the people and culture perspective, she echoes Banerjee in noting that "the people implications are enormous."

Some of her key considerations include:

• Ensuring that the right individuals have access to the right information,
• Understanding the points of data handoff
• Comprehending governance framework, and the training plan
• Deshpande also suggests creating data champions for a successful people and culture outcome.

Furthermore, Banerjee shares that CDOs should adjust their conversations when aligning with CFOs and boards to reflect the financial value being brought to the budget. This includes making accurate predictions regarding expenses (CapEx vs. OpEx), and quantifying the four value levers when building a financial business case.

Delving further, she explains the four value levers being:

• Business agility: Unlocking new revenue streams is a cornerstone of data platforms as it helps create new customers, products, and audiences. Revenue upside can also increase with business agility, which is essential to adapt to trends in the market.
• Productivity: By leveraging the data platform, companies can repurpose people to higher value work and do more with less. Additionally, targeting and segmenting consumers also becomes possible, which ultimately leads to aligning with CFOs and boards.
• Operational resilience and security: Operational resilience and security are cornerstones of a CDO's values and need to be emphasized to minimize risk and revenue leakage.
• Total cost of ownership: CDOs are also tasked with ensuring a predictable cost to optimize their operations.

In conclusion, Banerjee states that by quantifying these elements, CDOs can enable better direction and decision-making for their organization.

CDO Magazine appreciates Monisha Deshpande and Joyeeta Banerjee for sharing their insights with the CDO Magazine global community.