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Data Strategy i PRAISE FOR DATA STRATEGY ‘Algorithms will control every aspect of our lives. This book is the 2017 how-to guide to take advantage of data to out-think, out-compete and out-perform.’ Henrik von Scheel, Advisory Board Member, Google ‘Data Strategy isn’t just for data people. Bernard Marr shows that a data strategy deserves attention on the same level as a company’s marketing, customer, product, and talent strategies. In my experience, a data strategy is critical to the success of all of these efforts. I believe Marr’s book is a valuable starting point for developing your data strategy. I found it brought together a number of lessons I’ve learned. If you’ve never developed a data strategy, it’s worth reading twice.’ David Purdy, Data Scientist, Uber ‘If you’re a person in charge of data strategy for your company, but still struggle to articulate the size of the task and subsequent reward for building a data-driven culture, this book can help provide a well-rounded pulse on the change that is happening in business today, and arm you with the beginning of a structure to tackle it.’ Jake Williams, Retail Strategy, Amazon ‘A complex topic with many strands made simple – packed with accessible examples from global household brands, right down to smaller chain stores. Bernard Marr’s latest book on data strategy covers many critical elements for anyone trying to get to grips with the data-driven economy in an accessible, conversational style that means that this book will be an interesting read for those who wish to know more about how the human race is evolving supported by data and devices, and what they might need to think about within their own organization to align with this agenda.’ Gareth Mitchell-Jones, Cognitive Systems, IBM ‘A clear, concise and exciting road map for maximizing value from data in today’s hyper-competitive business landscape.’ Ralph Blore, Leader, Central Analytics, Visa ‘As we enter the Fourth Industrial Revolution, Bernard Marr tells us that it will be those companies that view data as a strategic asset that will survive and ii thrive. He helps us understand how data can improve decision making, improve operations and be monetized in products or services. His latest book is both a reference manual for all aspects of understanding big data and a guide to how to use it to create value in any organization. Whatever your view of the increasing use of data and automation, Marr’s expertise will help you shape your own future using data.’ Andy Rubin, Chairman, Pentland Brands ‘Bernard Marr has a rare ability to make complex topics understandable for even the least technical among us. Bernard’s insights in data strategy are invaluable because he truly understands how to create a comprehensive data strategy and, importantly, how to explain it to others. I highly recommend this book to anyone seeking a practical guide to the world of big data.’ Stuart B Frankel, CEO, Narrative Science ‘Leveraging data to drive competitive advantage has shifted from being an option to a requirement, and Bernard Marr provides a comprehensive roadmap for leaders focused on mapping and assessing their journey. His range of case examples, spanning the digital natives to small businesses, are engaging and informative, reinforcing the importance of starting from a business orientation. This should help readers accelerate business value as well as navigate the crowded landscape of technology, support and data options.’ Andrew Salesky, SVP, Global Data Officer, Charles Schwab ‘Bernard Marr provides a sound, thorough overview of the key elements that shape data strategy, and he weaves in compelling real-world examples that highlight the importance of building a data-driven business to excel in today’s data economy.’ Brent Dykes, Director, Data Strategy, Domo ‘Bernard hits the pulse of one of the largest transformations impacting all businesses with this book. Having a robust data strategy and data science roadmap has become an essential part of every organization’s DNA. This book provides a roadmap on how to get there with key insights from leaders in the space.’ William Merchan, Chief Strategy Officer, DataScience ‘Bernard Marr perfectly distils the need for well-formulated business questions in a time when virtually anything can be measured and analysed.’ Dan Morris, Senior Director, Data Platform at Viacom iii Data Strategy How to profit from a world of big data, analytics and the internet of things Bernard Marr iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or the author. First published in Great Britain and the United States in 2017 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 2nd Floor, 45 Gee Street c/o Martin P Hill Consulting 4737/23 Ansari Road London 122 W 27th St, 10th Floor Daryaganj EC1V 3RS New York, NY 10001 New Delhi 110002 United Kingdom USA India www.koganpage.com © Bernard Marr, 2017 The right of Bernard Marr to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 7985 5 E-ISBN 978 0 7494 7986 2 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. Library of Congress Control Number 2017001789 Typeset by Integra Software Services, Pondicherry Print production managed by Jellyfish Printed and bound by CPI Group (UK) Ltd, Croydon CR0 4YY v This book is dedicated to the four people that are my world: My wife, Claire, and our three children, Sophia, James and Oliver. vi THIS PAGE IS INTENTIONALLY LEFT BLANK vii CONTENTS About the author xi Acknowledgements xiii 01 Why every business is now a data business 1 The astonishing growth of big data and the Internet of Things 1 A brave new (data-driven) world 2 Are we nearing artificial intelligence? 5 How data is revolutionizing the world of business 7 Every business must become a data business 16 Endnotes 19 02 Deciding your strategic data needs 21 Using data to make better business decisions 22 Using data to improve your operations 25 Transforming your business model: data as a business asset 31 The importance of the right data, not all data 33 Making a strong business case for data 35 Endnotes 36 03 Using data to improve your business decisions 37 Setting out your key business questions 37 Questions related to your customers, markets and competition 40 Visualizing and communicating insights from data 50 Endnote 55 04 Using data to improve your business operations 57 Optimizing your operational processes with data 58 Using data to improve your customer offering 66 Endnotes 71 05 Monetizing your data 73 Increasing the value of your organization 74 When data itself is the core business asset 74 viii Contents When the value lies in a company’s ability to work with data 77 Selling data to customers or interested parties 78 Understanding the value of user-generated data 82 06 Sourcing and collecting data 85 Understanding the different types of data 86 Taking a look at newer types of data 93 Gathering your internal data 96 Accessing external data 97 When the data you want doesn’t exist 99 Endnote 100 07 Turning data into insights 101 How analytics has evolved 102 Looking at the different types of analytics 103 Advanced analytics: machine learning, deep learning and cognitive computing 114 Combining analytics for maximum success 117 08 Creating the technology and data infrastructure 119 ‘Big data as a service’: the one-stop solution for businesses? 120 Collecting data 122 Storing data 124 Analysing and processing data 129 Providing access to data 132 Endnote 135 09 Building data competencies in your organization 137 The big data skill shortage, and what it means for your business 138 Building internal skills and competencies 140 Outsourcing your data analysis 145 Endnotes 150 10 Ensuring your data doesn’t become a liability: data governance 151 Considering data ownership and privacy 152 Tackling data security 159 Practising good data governance 163 Endnotes 165 Contents ix 11 Executing and revisiting your data strategy 167 Putting the data strategy into practice 167 Creating a data culture 172 Revisiting the data strategy 173 Endnotes 179 Index 181 To accompany the book, the author has prepared an additional online resource, Beyond the Big Data Buzz, which can be found at: www.koganpage.com/beyond-the-big-data-buzz. x THIS PAGE IS INTENTIONALLY LEFT BLANK xi ABOUT THE auTHOR Bernard Marr is an internationally bestselling business author, keynote speaker and strategic adviser to companies and governments. He is one of the world’s most highly respected voices when it comes to data in busi- ness and has been recognized by LinkedIn as one of the world’s top five business influencers.
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