Industry Leaders discuss data as a business-enabling asset at the CDO Midwest Summit 2022, organized by CDO Magazine and ComSpark. The session, “How to Get the Organization to View Data as an Asset with a Value and as a Revenue Center vs. Cost Center,” features the following panelists:

• Marcel Mutsindashyaka, Executive Director, IT & Analytics, University of Cincinnati Foundation
• Michael Reznik, Managing Director, Data and Analytics, Millennial Specialty Insurance
• Rick Vando, Sr Director, IT Infrastructure & Operations, Veritiv Corporation
• Edward Scott, CEO, ElectrifAi

Robert Lutton, VP of Sales & Marketing at Sandhill Consultants, moderates the session.

Scott introduces the discussion by stating that customer data is an unused asset on the balance sheet in the current economic scenario. He notes that one way to increase enterprise value is to segment customer data using analytics and machine learning, then use that segmentation to reduce costs and increase revenue.

According to Scott, an organization’s inability to define the problem is the reason behind its failure to benefit from data. “It starts with the precise definition of the problem and the precise understanding of the data required to solve it,” he says.

Vando maintains that businesses need to realize the value of their data and the strength of merging disparate data.

In Reznik’s opinion, it is a literacy and culture issue. He suggests that the problem arises when businesses monetize data by selling to third parties rather than utilizing data internally.

Mutsindashyaka underlines the limited understanding of data and asks experts to explain the data value. He deduces that the answer lies in creating an ROI strategy and presenting it to the C-suite to get buy-in. "You do co-creation with employees, and then you take both the strategy and the co-creation together," Mutsindashyaka explains.

Reznik believes that the key is to constructively engage the business and show them how data can be a resource. He emphasizes that a business’s maturation curve and choice of issues are crucial.

"Understand what data is bringing — what value to what constituent of that data," Vando adds. He explains that the goal is to understand data users and the areas in which it can be useful.

According to Scott, the right strategy is to start small and gain support. C-level executives need evidence that data can be leveraged quickly to generate value. In his opinion, it is essential to have accurate definitions and use cases and comprehend the significance of delivering immediate value.

Next, Mutsindashyaka states one of the difficulties in establishing a solid foundation is the need for more awareness regarding data governance. He suggests having ambassadors and champions who understand the value of data governance. “Show them this is one thing that we achieved, and then advertise it everywhere,” he says.

Reznik continues by mentioning that something as simple as a data dictionary can improve executives’ comprehension of data terminologies and, as a result, ensure their participation in data governance. Scott advises businesses to employ a multidisciplinary team.

According to the panelists, the overwhelming volume of unstructured data in the environment prohibits using data as a resource. “How do you turn that unstructured data into structured data that you can do something with to either drive revenue or cost reduction or risk reduction,” Scott ponders. “How do you turn that into an asset to drive business value?”

Machine learning can transform unstructured data into structured data, panelists note. “You don’t treat all your data as an asset,” Reznik emphasizes. “You gotta be strategic and selective about what data should be treated as an asset. Let’s do that to start generating that ROI, that value for the organization.”

Using data as an asset is a new concept, Mutsindashyaka says, offering two possible reasons:

• A problem with the organization’s culture
• A lack of strategy

He advises organizations to create a single platform that consolidates all the data. Reznik strongly emphasizes data literacy as a tactical tool, while Vando suggests assembling a leadership team to generate value.

To avoid taking a risk that would be more expensive than the solution, Mutsindashyaka encourages enterprises to think about regulations before action.

In conclusion, Reznik discusses the difficulties associated with risk and compliance and asserts that dividing data into sensitive and nonsensitive categories simplifies the conversation.

 Watch other CDO Midwest Summit 2022 sessions HERE