Be Very Intentional in Collecting and Using Data — Nationwide Chief Advanced Analytics Officer

(US & Canada) Shannon Terry, Chief Advanced Analytics Officer at Nationwide, speaks with Marty Poniatowski, Director at AMD, in a video interview about the concept of “business of promises” that drives the organization and the ideal approach to collecting and using customer data.

Speaking about the concept of “business of promises,” Terry explains that the insurance business involves products that require people to consider scenarios that are hard to imagine, like life insurance or retirement. These are deeply personal matters because they force individuals to think about what will happen to their loved ones or their financial security if they’re no longer around or in the distant future. He refers to this as thinking in “counterfactual universes,” where one must grapple with potential future outcomes that feel disconnected from the present.

Terry emphasizes the importance of creating a personal connection by treating data with care as if it were his own. He believes that transparency in privacy policies, and clear communication about how data is collected and used, should be natural for businesses, especially those like his that are built around protecting people, their businesses, and their futures. For him, this sense of responsibility is foundational to developing and pricing products while managing risks. He likes to use the language of "promises" because it resonates on a personal level and serves as a reminder that the mathematical and technological processes involved should never be handled recklessly, but with care and responsibility.

Sharing closing remarks, Terry advises viewers to understand that data should be viewed as a critical resource, no matter the type of business they are in. He stresses the importance of being intentional from the outset about what data is collected and how it is used. Rather than treating data as an afterthought or simply a byproduct of operations, he encourages a more purposeful approach. This includes carefully framing business problems and ensuring that the right methodologies are applied to solve them. He also points out the need to be cautious when using third-party data sources and emerging technologies like generative AI, especially when experimenting or being creative in business processes.

Additionally, Terry underscores the importance of using the right tools for the right problems. He urges data leaders to remember that while technology and data can provide powerful insights, the human ability for empathy and judgment still remains irreplaceable. In his view, a successful approach involves marrying the strengths of human intuition with data-driven insights. By being deliberate in how data is handled and applied, businesses can make smarter decisions and create more value while maintaining the human touch that technology cannot yet fully replicate.

CDO Magazine appreciates Shannon Terry for sharing his insights with our global community.

*Note: This interview was originally recorded on June 24, 2024