The board should require the management to map out a visionary core data strategy identifying high-priority use cases that create value with data centricity in mind. The strategy must also involve a robust data governance plan, high-level architecture that enables the execution of use cases and a plan to increase data literacy.
Accelerate data transformation
In many organizations, data exists as disparate bits of information. Such silos not only block interoperability and integration, but also prevent insights from being generated at the enterprise level and create conflicting data.
How would the transformation of data look like? Instead of static facts, data is now managed by artificial intelligence (AI). Real-time data feeds replace stale reports. Instead of being used as an application, AI now serves as a foundation for other technologies. Rules-based analytics becomes neural and intuitive.
To catalyze the shift, the board should request the management to start assessing its technology stack today — including the infrastructure, cloud, AI, data and analytics — to identify gaps and determine where each of these components should be in the future. It is important to aggregate and curate data from a vast array of enterprise information systems, suppliers, customers, markets, regulators, internal control systems, Internet of Things (IoT) devices and sensor networks. Given the expanded user base of data, democratizing data is a must. The management should also consider using emerging technologies that rationalize data flows and improve their management.
While the benefits of data transformation will be profound, achieving it is not without challenges. Thirty-two percent of Asia-Pacific respondents in the EY study cited high technological cost as the number one challenge to achieving transformation. The need for higher computational power, complexity of connecting and integrating diverse data systems, and greater consumption commitments to cloud service providers all lead to increased costs. Migrating legacy systems (28%) and building complex security and privacy requirements (26%) were other top challenges cited. Board support for a dedicated data team empowered by leadership backing to disrupt and transform can move the needle in addressing these challenges.
Put humans at the heart of data transformation
The EY study found that enterprises that put the human element at the center of data transformation tend to succeed in digital transformation. In terms of data centricity, this highlights the need for strong leadership, the spread of data literacy and digital mobilization of the wider workforce. Such transformation will see the ranks of knowledge workers expanding across the organization.
However, the skills shortage is a clear barrier to achieving this vision, exacerbated by the prevailing Great Resignation. Keeping employees, particularly the digitally skilled, engaged and fulfilled is crucial. Upskilling and retention has become a top priority, with 70% of Asia-Pacific companies in the EY study focused on plugging the technology skill gaps of existing employees. Key actions include assessing skill gaps (31%), providing mandatory training programs (26%) and offering incentives to encourage learning of desired skills (24%). The figure below shows other actions that companies in the Asia-Pacific region are taking to secure digital skills needed to drive their transformation.
Actions companies are taking to secure digital and technology-related skills for transformation
Boards should assess the effectiveness of the enterprise’s talent ecosystem approach (i.e., a hybrid of hiring new talent, upskilling employees, adopting third-party solutions, automation and gig workers) and the extent to which it supports the achievement of data centricity.
Companies that are agile in transforming data while putting humans at the center will be well placed to become data-centric. A visionary data strategy is a must and boards must start to look at decision audits, with a percentage of decisions driven by data itself as the organization progresses. Such organizations will be well positioned to reinvent themselves and use technological disruption as an enabler to unlock new value sources.
Boards should consider the following questions:
- Are the innovation and corporate governance teams aligned so that technology is developed with strong governance?
- How is the company embedding data centricity into the customer experience across the entire organization?
- Does the company’s data strategy consider opportunities for new revenue-generating operating models, including the monetization of data?
- What training programs and incentives are in place to increase upskilling and retention of the current workforce?
- How is the board composition evolving to include the right expertise to strengthen oversight of opportunities and risks in digital transformation?
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Summary
Data-centric companies are well placed to stand out from their peers. The board can help accelerate the organization’s journey toward data centricity by requiring the management to map out a visionary core data strategy, speed up data transformation and put people at the center of such transformation.
