A new economic paradigm is emerging where data is not just a by-product of transactions. Rather it has immense monetary value, ranging from savings on efficiency to enabling innovative ways of working and opening new sources of revenue.
Driven by the creation, capture and analysis of data for not just decision making but also for driving autonomous processes and things, the data economy is creating new opportunities for growth. Driverless cars, digital stores, machine human interaction, self-learning systems etc. are some initial manifestations of the data economy only, a lot is yet to come. Thriving in a data economy requires readiness on part of the enterprise leaders to understand and deal with the new imperatives. Value shall be unlocked only for the initiated.
The new economic paradigm is making the strategies and approaches of the past era redundant. How?
In the past, a lose connection existed between the growth strategy and the transactional layer driven by IT. It was an era of process automation that started in isolated domains but over time the need for integration emerged. There was also a need felt for aligning two separate monoliths of business and IT. Data remained mostly underutilized and under-leveraged in the enterprise databases.
With the advent of digital technologies (social, mobility, analytics, cloud, IoT, bots etc.), two things started changing – creation of more data in terms of speed, volume and variety; and agility in IT and business. The slew of digital technologies can bind people, process, data and things in novel ways, which can be strategically leveraged as new business competencies. The strategists can now base decisions on well informed perspectives and verified hunches.
This resonates well with the external environment that is only getting tougher with time. Growth is now a result of dynamic strategic posturing possible only with a strong strong connect with the organization. And as organizations are increasingly driven by digital, it means growth strategy also has a strong connect with digital.
The figure THRIVING IN A DATA ECONOMY draws a parallel between the old and the new paradigms, it very clearly highlights the importance of building a data management layer that can address the Eleven Data Imperatives of Digital Transformation.
We intend to build an intense debate around these eleven data imperatives of the new economy in our inaugural LEADDDING THOUGHTS series that will be launched on the 17th of November 2017 in New Delhi. Hope you see you there.