On Thursday 27th April, the State of Data roundtable and dinner was hosted by Dufrain’s CEO, Joseph George and DataIQ’s Chief Knowledge Officer and Author, David Reed. Data leaders were invited to come together, share experiences and reflect on the findings of the State of Data report.
Joseph and David discussed everything from getting the foundations right to talent shortages, and the future of roles and AI with top financial services leaders.
David shares his key takeaways and highlights from the event below.
Becoming a data-driven organisation
Most organisations strive to become data-driven. This is what Americans call a “motherhood and apple pie” statement, which is used to represent things that everybody feels they should consider to be important.
Becoming a data-driven organisation can be challenging and complex for many reasons. From unstructured data to a lack of data-driven culture, there are usually many obstacles to overcome before this becomes a reality.
How leadership changes can affect the data conversation
Whenever an organisation goes through a change in leadership or CEO, it presents an opportunity to have refreshed data conversations. This could shift strategic goals, priorities and decision-making processes; new leadership may redefine the organisation’s data needs and objectives. On the other hand, leadership changes may result in a stall in progress.
Legacy complications with data
Over time, businesses accumulate large amounts of data that may be stored in outdated or incompatible systems, making it difficult to access or integrate. Legacy complications are common and can negatively affect data transformation, leading to new data solutions becoming “grey IT” – operating outside of the organisation’s formal tech strategy.
Communicating the value of data
It is increasingly important to “add in more sizzle” when communicating the value of data. In sectors like insurance, organisations tend to be wary of innovation and implementing approaches like data science, resulting in cultural conservatism. On the other hand, gaining investment into better data foundations can be a hard sell due to the lack of “sizzle”.
It’s time to talk about data differently, reducing the jargon-heavy language of the data office and integrating the business goals into conversations.
Data transformation challenges
“Any organisation that designs a system (defined broadly) will produce a design whose structure is a copy of the organisation’s communication structure.”
— Melvin E. Conway
Organisations need to recognise the influence of Conway’s Law and consider it within data transformation strategies. If the structure of an organisation is siloed, it can lead to fragmented data, and if an organisation doesn’t communicate effectively, then data transformation may be inefficient. Implementing Conway’s Law can support the success of data transformation.
Communicating the value of data
It is increasingly important to “add in more sizzle” when communicating the value of data. In sectors like insurance, organisations tend to be wary of innovation and implementing approaches like data science, resulting in cultural conservatism. On the other hand, gaining investment into better data foundations can be a hard sell due to the lack of “sizzle”.
The rise of AI
Most of the organisations present are not ready for the new wave of data-driven technology, such as generative AI. Some businesses have locked down access via company devices and have policies warning against sharing company information with platforms like ChatGPT.
However, tests and proofs of concept are underway in a controlled manner, such as comparing the results from large language models against those from natural language processing. This poses the question, are there additional roles to be created? One business has recently hired a data and ethics manager.
Advanced analytics: a help or hindrance?
An underlying concern for all organisations, especially those within financial services is valueless complexity. Will advanced analytics prove to be a better solution for the business or just an extra layer?
Advanced analytics can be both a help and a hindrance depending on how they are utilised. Organisations must invest in the necessary resources to maximise the benefits while mitigating potential drawbacks.
“It was a great evening of open and candid conversations, which was great to see. A lot of the conversations reflect what we see in our client partnerships – we all concur that getting the foundations right is imperative to success.”
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For more information about Dufrain or to register interest for future roundtables, please contact us.
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