N🚫 data governance and strategy can create business value without focusing on business operations driven by business decisions.
🤔What business does not want innovation, optimized operations, boosted profitability, and better customer experience and satisfaction? With these intentions and goals, organizations build the data functions to leverage Data and Analytics.
🚩Building data function in many organizations such as #insurance #financialindustry #banking #government is done with the hope that they can improve operations by making better business decisions. So they put together teams of #DataArchitect, #DataAnalyst, #DataEngineer, #DataScientist, to empower business. However, without a dedicated focus on understanding the business operation, no role in this function can help organizations achieve their goals and improve decision-making.
✨Understanding the business operation is not possible without understanding the decisions they make every day that influence the business operation. Those decisions are called operational business decisions. Though there is not a clear line between different types of business decisions (operational, tactical, and strategic) in a fast-paced business, they all have overlaps.
The way I 👀see it is organizations have two options to attempt to improve operations by leveraging Data and Analytics:
1️⃣ Data-Centric Approach: this is a traditional way for organizations to build data functions. Based on their investment capacity, they put together multiple roles and teams, and they work across departments to create value for organizations. The teams mostly focus on infrastructure, data management, reports, insights, model building, data collection, cleanup, validation, etc. (of course, with the involvement of domain experts and SMEs)
2️⃣ Decison-Centric Approach: In this approach, the team still builds what they need to build but with the guidance of business decisions. The core and dedicated focus of the team is to understand the business operation from the lens of business decisions. This understanding will guide the whole team and process of what to build, what to collect, how to validate, where to store, and what business metrics to improve.
The Data-Centric Approach hopes data enables businesses to respond rapidly to business opportunities by improving decision-making in business operations. However, it will not improve decision-making in business operations without knowing what decisions influence operations, and how those decisions are made and executed.
🚀Decision-Centric Approach #decisionintelligence is a practice that enables the Data and Analytics team to systematically use #data #algorithms #rules #optimization and other relevant technology to improve decision-making in business operations effectively and efficiently.
💣The data and analytics, not guided by business decisions, for business decisions, will not improve business operations in any meaningful and significant way. #decisioncentric
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Published April 10th, 2024 at 07:30 am
