managing information in the digital age

© InfoSight Partners, 2016, All Rights Reserved

A new Information Approach for the Digital Economy Welcome to the Exponential Age

Exponential Age

Do you know which information yields the

highest value?

The Exponential Age is the Fourth Industrial Revolution

Mark AlbalaPresident, InfoSight Partners


Exponential AgeIn the Fourth Industrial

Revolution, Information is the enabler

Information is the key to success in the exponential age

We are in the midst of what is called the fourth industrial revolution Information is the great enabler, but few manage it as an enabler

Each phase of the Industrial Revolution builds on its predecessor

Enabler1st Machinery2nd Mass Automation (Electricity)3rd Computer Aided Automation4th Systematized Process (Information)

INDEXThe Exponential Age is the Fourth Industrial Revolution

The purpose of this material is to derive a roadmap to managing information as an organizational asset

Processes change more regularly when information is reconfigured rather than machinery requiring reconfiguration


Time is a Major Factor Information Assets

Because it takes less time to repurpose information, disruption will be more commonplace in the fourth industrial revolution

Companies that thrive in the fourth industrial revolution will manage information as an organizational asset

Those who Flourish in the Fourth Industrial Revolution Wield Information

In the Fourth Industrial Revolution, information used in business the right business processes is worth more, understanding which ones is key and is one of the major roles of the Chief Data Officer

INDEX


Strategy

Organize

Orchestrate

Measure

Govern

The strategic approach and business case for managing information as an asset for the organization

How to measure the value of information assets

The required shift in leadership roles required to manage information assets differently

The new focus of information governance

The formulation of a required highly predictable and repeatable valuation process

Introduction An Introduction and welcome to the Exponential Age

Journey The roadmap to migrate to this new approach specifically devised for the exponential age

Index

Click to navigate to the sections


Leader in the 3rd Generation

An example of a leading disruption

Disruptions in flight

More examples

In 1998, Kodak had 170,000 employees and sold 85% of all photo paper worldwide. Within just a few years, their business model disappeared and they went bankrupt. What happened to Kodak will happen in a lot of industries in the next 10 year, and most people don't see it coming. Did you think in 1998 that 3 years later you would never take pictures on paper film again?

Yet digital cameras were invented in 1975. The first ones only had 10,000 pixels, but followed Moore's law. So as with all exponential and disruptive technologies, it was a disappointment for a while, but within a few short years became mainstream.

It will now happen with Artificial Intelligence, health, autonomous and electric cars, education, 3D printing, agriculture and jobs. Welcome to the 4th Industrial Revolution. Welcome to the Exponential Age.

The ability to wield information will disrupt most traditional industries in the next 5-10 years. Uber’s product is excellence in managing information. Uber is the biggest taxi company in the world, yet does not own cars, they own information. Google and Amazon manage information. Airbnb is now the biggest hotel company in the world, although they don't own any properties, what they own is information.

There is a Chinese blessing and curse: May you live in interesting times. Welcome to some interesting times.

Welcome to the Exponential AgeIntroduction

INDEX


We are in the midst of a major shift

The four phases of the Industrial Revolution (each phase is 50 – 100 years)

First1760 - 1850

Second1870 - 1930

Third 1940 - 2005

Fourth2010 – 2060 (?)

Railroads

Steam Engine

Mechanical production

Electricity

Assembly Line

Mass Production

Computing & Internet

Semiconductors

Computing Aided Processes

Mobile

Internet of Things

Systemic Intelligence

Source: The Fourth Industrial Revolution, World Economic Forum, 2016

Each phase of the industrial revolution was met with a high degree of disruptions. We are in the midst of a highly disruptive period. The first phase was mechanical, where those who were able to wield mechanics flourished.The second phase was electronic, where those who could make their processes repeatable flourished.The third phase was computing, where those who could wield computing technology flourished.The fourth phase wields information, where those who could wield information in their value propositions are flourishing.

OU

TPHASING O

F SLAVERY

DEPRESSION

2008 MELTDO

WN

Major Economic Disruptions

COLO

NIALISM

Mechanical Electricity Computing Information

INDEX


ACTIVE INTERNET USERS

TOTAL PO PULATION

ACTIVE SOCIAL MEDIA USERS

UNIQUE MOBILE USERS

ACTIVE MOBILE SOCIAL USERS

GLOBAL DIGITAL STATSHOTTHE NUMBER OF PEOPLE USING DIGITAL, SOCIAL & MOBILE MEDIA AROUND THE WORLD

Source: see We Are Social’s Digital in APAC 2016 report: bit.ly/DSMAP16

SEP 2016 7.44

8BILLION

3.630

BILLION49%

2.671

BILLION36%

4.779

BILLION64%

2.438

BILLION33%+1% +14% +21% +28% +27%

INDEX

GrowthRate(YOY)

Penetration


The Disruptions Have Started Companies which live in the digital ecosphere were first; their product is information (e.g., Google, Facebook, Amazon, Adobe, etc.)Postal DisruptionPostal Services have been disrupted by email, which is being disrupted by instant messaging and Social Media

Publishing DisruptionThe publishing industry has gone from a paper model to an electronic one, effecting postal services

Entertainment DisruptionThe traditional model of a few advertising avenues has mushroomed, thereby driving advertising revenues lower. Netflix, Hulu and others are disrupting this model even further

This level of Interruption is not an outlier

Uber, the taxi company owns no taxis. AirBnB owns no hotels.What they own is information.

INDEX

“We’re seeing brick-and-mortar retailers meld with the digital as more locations offer in-store pick-up for online orders, while on the other side, virtual-only services, such as Birchbox, open physical stores” Trends, 2015


A rapidly changing business environment

Manage Information

Assets Differently

The high speed of business change in the marketplace, thanks to the digitization of most markets requires a very fluid information fabric tightly aligned with the processes that use it by the actors who execute the processes.

Few if any companies are equipped to deal with this level of upheaval.

To complicate matters, the time it takes to identify, model and publish information for this new world order, which is ill equipped to handle the speed of the marketplace.

It is not that the processes cant handle the rapid flow, it’s that they are focused on what is aligned and the clutter that is not aligned nor capable of producing any value.

Left without change, the process actors will have a choice:

Slow down processes to identify, validate and use information

Introduce risk by using information that may indeed be noise to the process

Have data scientists perform the data to information transformation

Use information but make decisions based on what “feels right”

Few if any companies are equipped to deal with this level of upheaval.

The high speed of business change in the marketplace, thanks to the digitization of most markets requires a very fluid information fabric tightly aligned with the processes that use it by the actors who execute the processes.

To complicate matters, the time it takes to identify, model and publish information for this new world order, which is ill equipped to handle the speed of the marketplace

It is not that the processes cant handle the rapid flow, it’s that they are focused on what is aligned and the clutter that is not aligned nor capable of producing any value.

The SolutionThe Solution

Manage Information

Assets Differently

Manage Information

Assets Differently


Slow down processes to identify, validate and use information

Introduce risk by using information that may indeed be noise to the process

Have data scientists perform the data to information transformation

XXX

Use information but make decisions based on what “feels right”X


The ability to wield information is a key differentiator

Data Information

Organization Aligned to sources to optimize drill back to source data

Aligned to business processes that consume the information

Governance Resolve definitional conflict, prioritize reference data & metadata initiatives

Eradicate resistance to using information in business processes

Clutter Improve the analysis capabilities to be able to find identified patterns

Eradicate clutter through a number of techniques

Context Provide context to data warehouses, subject data marts and analytic models

Provide context specific to information as it will be used in business processes

Most organizations manage data and organize it so it can fit a large number of analytical needs. They do not manage information, which is organized to be consumed by business processes specifically devised to deliver on a value proposition. It is for this reason that information is heavily utilized for reporting, basic analysis and Business As Usual (BAU) situations, leaving process actors to corral their own information in Non-BAU and disruptive situations.

The new approach for managing information mandates migration from a storage paradigm to a usage paradigm

INDEX


Internally Sourced Data, storage organized

Internally Sourced Data, usage organized Market Sourced Data, usage organized

Market Sourced Data, storage organizedInformation made available to analysts is tightly controlled and published from internal production applications.

To facilitate drill through to data, the organization of data is tightly coupled to the data sources and data owners of the applications souring the data.

Information internally and externally sourced goes through a transformation process which is regularly updated to align to the current portfolio of business processes which yield the value propositions of business models.

Transactional internal data and heard and learned inferences are synthesized to meet the needs of business.

Information made available to analysts is consumed from sources outside the organization. While transaction data is important, the data made available from outside the organization (heard and learned inferences) is much more prized than the introspective information available from internal transactional systems. Information is stored by the source of the data.

Internal, mostly historical, master and reference data are used to derive directional guidance to identify anomalies from internal transaction streams. The organization of the results are aligned to processes which yield the value propositions of business models.

Data lineage is stored to meet the needs of drill through because data organization does not align to sourcing.

Typical DriversData Scientist driven integration

Data Lineage

Information Usage Resistance

Typical DriversData Quality

MDM

Data Lineage

Typical DriversInformation to Business Model Alignment

Information Gap Remediation

Information Usage Resistance

Typical DriversSocial Media

Log Analysis

MDM

Data Alignment

Clutter Mgmt

Which most typically represents your management of information?Typically Blindsided by disruptions

Typically Exploits Disruptions

The Four Quadrants of Information Management

Target Quadrant

Typical IT Driven Quadrant

Typical CAO Driven Q

uadrant

Typically Late to Disruptions

Thrives in disruption, but not stable markets

Opportunistic Q

uadrantINDEX


Measure the potentially consumed and actually consumed information by usage scenario (marginally aligned, BAU, NON-BAU, disruptive)

Switch the focus of the technology organization from managing data sources to managing consumable information products

Change governance intents from improving sourced data to eradicating resistance to consuming data in business processes

Ensure information made available to business process is prepared in a way that is orchestrated through controls that are repeatable

Meter the consumption of information by business process using a managed repeatable process

Organize to manage information assets consumed by process, not as sourced data

The New Strategic Intents of Information Management

Manage

Meter

Orchestrate

Govern

Engineer

Measure

INDEX

STRATEGY:Manage information as an intangible, non-depleting (but expiring) asset of the organization aligned to the organization’s current value propositions

Strategy


Process

InformationA non-expiring

asset consumed in business processes

Methods

Prepared byInventory Machinery

Strat

Influenced ByNot all use of information is

equal

Realized

Realized byInformation not measured has limited value

When is it Information?

Information is a non-expiring asset of an organization that only obtains value when it is consumed in business processes associated with a value proposition.

Machinery is applied to convert data into information. The machinery must be able to prepare information faster than the business process cycle time.

Information is worth more when it influences realization of large amounts of value. This realization is stratified by the use class of information.

The value attributable to information must be measured or achieved value will be applied elsewhere

Information is constructed from data; machinery is used to align information with processes orchestrated by a business model that produces value for the organization

Value

Value AppliedInformation

receives a % of the value of

business models

While information value is measurable, there are too many soft measures in measurement. Rather, an approach similar to royalties will be applied.

INDEX


Information InventoryThe finished goods inventory which is managed similarly to other non-depletable intangible assets of the organization. In a perfect world, all impediments, such as information trustworthiness, are removed from information in the WIP processes.

Work in Process InventoryThe interim state which is processed by the machinery which prepares data for tight alignment with processes specifically devised to deliver organizational value per the value propositions of business models.

Data InventoryThe corporate knowledge, heard inferences, learned inferences and innovations not yet aligned with business processes. The raw materials of data must continually be managed in WIP processes to ensure alignment with business processes as they are transformed into consumable information.

Exactly what are information assets?Data is the raw material asset which is constructed into information

Information is the finished goods inventory which is consumable by business processes

Value of the Information Assets

INFORMATION INVENTORY

WIPINVENTORY

DATA INVENTORY

INDEX


The platforms adopted by your stakeholders will be complexBelow is a list of technologies available to one of the functions, marketing, each having its own underlying data requirements

INDEX


CHANGE

VISION

CLUTTER

MAPPING

Because business process changes more rapidly, the mapping of information will similarly change. This will require information models to be highly fluid.

Algorithms to serve as early warnings using information created outside the organization will serve as triggers to action

Information no longer mapped is clutter and will be either archived or de-emphasized

Information is mapped to business processes as part of a CDO blueprint. This blueprint is foundational.

THE NEW ORDERMapping to process, not information source

In order to participate in the digital age, information must align to business processes, not data sources

INDEX

Bringing the information house in order will necessitate major changes to the way information is managed, it is not simply a document that maps source to use but a more fundamental shift in managing information assets.


USABILITY

ACTIONABLE ACCESS

CLUTTER FREE

The technology to insulate process actors from the complexities of information must be available at the convenience of process actors

The information must be organized in such a way so that it can be accessed for action without transformation at the convenience of process actors

The information must be clutter free so it and its context can be found without significant effort

Managing Resistance

CONTEXT

Context for the scope, derivation, definition and applicability of information must be available at all times

TRUST

Information published for consumption must be considered de facto trustworthy

INDEX

The governance function should be mandated to identify and eradicate resistance to using information in non-BAU and disruptive scenarios


Measure

Influence

Accelerate

Optimize

Metrics

• Measure the value of information consistent with the methods used for other organizational assets.

• Positively influence the impact of information as a competitive weapon.

• Accelerate the processes used to deliver information.

• Optimize the value of information (CDO Blueprint, Governance elimination of resistance).

• Publish metrics to drive the new strategy

Managing Information AssetsIn the digital economy, while most organizations believe information is a valuable asset of the organization, few have found a way to measure the value of information

Measure INDEX


1 2 3Finished Goods Inventory of information is engineered from the CDO blueprint and aligned to a value proposition .

The value propositions of business models are dependent on usage scenarios (BAU, Non-BAU, Disruptive). Information carries the same usage dependency.

A proactive repeatable process which manages the consumption of information assets and records value is required. This generally does not exist today.

4The new strategy will require re-alignment of roles to shift from managing information by source to managing information by use.

Some basic tenets of the new strategy INDEX



t

FV = PV(r) ∑ t=0

PV(r)+ Tax

Benefit

Revenue

Expenses

CapEx/WC

Taxes

The case for a royalty approach to attributing value to informationInformation is an intangible asset which is allocated a pre-determined % of a value proposition

tFV = PV1(r) ∑

t=0

Expenses

CapEx/WC

Taxes

Revenue

t– PV2(r) ∑

t=0

Revenue

Expenses

CapEx/WC

Taxes

Benefit

PV3(r)+ Tax

While the math is entirely possible, the measurement of the percentage of

value proposition attributable to the information consumed is still going to

be subjective.

A much more defensible approach is to use a royalty type approach to measuring information value.

Innovated ValueNon-Innovated Value

INDEX

Source: Canadian Institute of Chartered Business Valuators


Producer SplitGovernance, machinery

costs offset

Incremental Value recognized revenue split

Promotion Split CDO, DAM Cost Offset

Production CostsProvisioning + Machinery

DevOps

Operations CostsContinuous realignment of business process with information, operations

associated with algorithms

Promotion CostsProcesses to ensure the

availability of the appropriate fully

contextualized, just-in-time, trustworthy,

actionable information

The Data Asset Manager (DAM) orchestrates the Information Asset Royalty Recognition (IAR) processes

The net value of information assets is the equal to the recognized revenue split (as defined in the IAR processes) less the production and promotion cost offsets

Costs Revenues

People

Process

Gove

rnan

ce

Mac

hine

ry

Registration

Recognition

Recognition of value associated with information

assets

Royalty Approach to Information (Click the center circle for more information)

Production Costs are:• The costs to obtain raw materials

(data), • Standardization instructions (reference

data),• Developed Code used to align

information with processes,• Instructions required to eradicate

resistance• And operational instructions to ensure

that information is available just in time for processes

Production CostsProvisioning + Machinery

DevOpsThe promotion costs are those spent on the publication of a catalog which is used to communicate• What information is available• What has been done to improve the

context, trustworthiness and action-ability of the information

• What has been done to ensure the alignment of process with information

• Communication of the information lineage and proof of it’s accuracy

Promotion CostsProcesses to ensure the

availability of the appropriate fully

contextualized, just-in-time, trustworthy,

actionable information

The operations Costs are related to the operational controls put in place to ensure that information is available for manually and automated processes (models, algorithms) just in time for the execution of the business processes

Operations CostsContinuous realignment of business process with information, operations

associated with algorithms

Production Costs

Promotion Costs

Operations CostsValue

Recognition

Recognizing RevenueProducer Split

Promotion SplitMost organizations do not measure the sharing of value produced by the consumption of information in business processes.

By using a royalty approach to measuring this information, a pre-determined split based on how information was consumed (reports, BAU, non-BAU, disruptive) is applied to compute a value for information used in business processes.

How it’s done

Most organizations would consider themselves delirious if they did not actively manage inventories or receivables.

But that is exactly what they are doing with information. That is because they do not treat information as an asset of the organization.

Just like a person is assigned to manage inventories and receivables, a person is required to manage the information assets of the organization, the Data Asset Manager (DAM)

A repository containing what information is consumable by process is available to the data asset manager.

When information is consumed, it’s use is recorded (new capability), and the Data Asset Manager will use the repository to assign value to the consumption of the data asset.

The data asset manager administrates data, WIP and information inventories.

Click here to continue

INDEX


The recording of the availability and use of Information Assets is at the heart of the information value recognition process

Potential and actually achieved information value is recorded in the registry

CDO

DAM

DGC

CAO

CRO

CIO

Administering the Royalty Approach to Information

The Information

Asset Registry

ActorsThe people who are accountable,

responsible and participate in a business process

ProcessesThe processes that participate in achieving a business model value

proposition

InformationThe information consumed in a business

process

PotentialThe value that can be achieved when

information is consumed

ActualThe value of information actually achieved by being consumed in

business processes

ResistanceInformation that can be consumed by business processes but for one reason

or another was not consumed

Attributes of the mandatory process:

Administered through a repeatable orchestration layer that ensures uniformity in the value recognition process

Utilizes a central repository shared by all who participate in the information creation and valuation processes

Records the results of the information valuation process so that it can be reviewed by third parties

INDEX


Business ModelThe Business Model and business model components that encompass the strategies and tactics that create, capture, extend and protect organizational value.

ProcessThe processes that are executed as a means to realize the strategies and tactics of the business model.

InformationThe information consumed in processes used to capture, enhance, expand and protect organizational value.

ResistanceThe items that discourage usage of information in processes, such as information clutter, lack of context, trustworthiness and other factors.

A Model to Map the Value of InformationProcesses consuming information within business models

Ways to Obtain Value

CREATE

CAPTURE

EXTEND

PROTECTThwartRisk

Cross/ Upsell

CaptureOpportunity

Innovate

Business Models represent the intents of the business. They are

executed by business processes of the organization, and each of

those processes source and/or produce information (not data)

The value of information is measured as an enabler of the

processes consuming the information. The information is

an intangible asset which has value by the fact that it was instrumental in making the

outcome of the business process successful.

Value: % split of value propositions which protect, extend, capture or create value

Potential: CDO consumption map Resistance: The forces that make it difficult to use information in business processes.

Strategic: Eradicate resistance to enable use of information when it is worth most, namely in non-BAU and disruptive scenarios.

Accountability: Governance

Metrics: % Potential Value (CDO map) Realized

INDEX


Mapping the intersection of processes and informationThe potential value of information is registered at the intersection of processes and information.

Through use of benchmarks, interviewing and other methods, an inventory of processes, information and actors (RACI) is constructed.

Key initiatives that will improve the use of information in situations where premium value is achievable are prioritized.

Resistance, or the items which impede the use of information at the most critical times, are identified and prioritized by governance for elimination.

The potential value of information is equal to the consumption points of information in business processes devised to obtain a value proposition.

Business Models and

Associated Processes

Information Assets and Source Data

Actors and Accountabilities

Potential Value (Possible Intersection)

Actual Value (Consumption of Information)

Resistance (impediments to using information at critical times)

Less

Equals

INDEX


Mapping Information Flows to Business Processes

Each process orchestrated to complete the expected outcomes of the business model either consumes, creates or dispatches information.

Each of those information flows are associated with achieving value to the organization.

A set agreement detailing how value will be associated with the consumption of information is negotiated and the value.

There are information inputs and outputs from each business process. The consumption of these information assets as inputs and outputs of the business process are registered as achieved value of the information assets.

The value of information is the accumulation of information consumed in business processes, either as input, output or process managed information.

Information Input(used for analysis)

Critical Information Input

Process

Information Output

(execution plan)

Process Managed Information

Execution Feedback

CollaborationInformation

Triggering Information (critical info)

Closure Information

Process Managed Information

Information Output

(execution plans)


Critical Information Input

Execution Feedback

Some important notes:

The triggering process is information used to identify when a process should be triggered

In Non-BAU and disruptive scenarios, this triggering information is an early warning system and has exceptionally high value if utilized.

Some important notes

Critical information will be obtained from a variety of sources as deemed necessary to identify what has happened, derive and test hypotheses, and derive and coordinate action plans.

Algorithms and models are vehicles to pre-wire information in a specific way so that it can be consumed quickly.


The ability to collaborate execution plans quickly so that the information is used in a consistent manner is as much a determinant of success as is utilizing the right information.

Algorithms and models force a level of consistency, as long as they are aligned to the process they are integrated into.

Without this integration, they are little more than another reporting source.


An alignment validation is a process which uses the repository of processes and information as its source and validates that the alignment baked into the information and the algorithms and models that automate the consumption of this information still holds true.

If there is a misalignment, then the information machinery is adjusted, the information is recast and any automation is retrofitted.

This process should occur regularly.

Alignment Validation

Collaboration Fit (RACI validation)

Information Output

(execution plans)


INDEX


The process to record information value

1

The Chief Data Officer (CDO) records the potential value achievable into the Information Value Base based on the Information / Process / Actor Map and the agreed to information value % allocations of value propositions

2

When a process is run, a call to an object is made which records a transaction of when the process was executed and whether information available to the process was retrieved

3

The Data Asset Manager (DAM) uses the information / process / actor map and the usage transactions through an analyzer application (a function of the orchestration process) to determine the appropriate royalties for the period.

The repository is central to the recognition of information consumption

4

The Data Asset Manager (DAM) uses an orchestration process to record information value for the period and computes resistance based on processes executed but information mapped to a process not consumed.

Info / Process MapRoyalty Splits

Potential Information

Value Base

Step 1

OBJ

Step 4Value is assigned

Royalty Analysis Application

Step 3

Analyzer

Process

Step 2Usage of a

information is recorded

Information

INDEX


The information leaders in the digital economyNew roles for the digital economy

CRO CAO

CIO

DAM

CDO

DGC

Chief Data Officer (CDO)The CDO is accountable for managing and directing the alignment of information and process and is measured by the value achieved through the use of information.

Chief Risk Officer (CRO)The CRO is responsible for identifying and prioritizing the eradication of systemic risks to the organization, which have information centric implications.

Chief Information Officer (CIO)The CIO is the engineer for the machinery that turns data into information and eradicates resistance from the information.

Chief Analytics Officer (CAO)The CAO is accountable for the automated models and algorithms used to achieve information value, which consume information, not data.

Data Governance Council (DGC)The DGC is accountable for eradicating resistance in the overall framework.

Data Asset Manager (DAM)The DAM is accountable for managing the information assets of the organization and recording a revenue split for use of the assets.

OrganizeINDEX



Some Key Metrics in Information Valuation

WHO WHAT METRICS USED FOR MEASUREMENT

Chief Data Officer Responsible for elevating the potential value of information, forging information valuation splits

Year over Year change in information asset valuation, % of non-actionable information recorded as potential value

Data Asset Manager Maintain the repository used for recording potential information asset valuation

% of processes mapped, % of adjustments made to the information valuation process

Data Governance Council Identify and eradicate impediments to using information in business process

Actual / Potential Information Value

Data Governance Council Identify and foster the repeatability of analytic models and algorithms

% of models and algorithms automated

Chief Information Officer Develop and Maintain the processes that transform data into aligned information with minimal usage resistance

% of Transformations managed by Data Scientists, business professionals

Chief Risk Officer Assess the % of disruptive (require business model innovation) uses of information

% Disruptive Index, by Internal (Fraud, etc.) and External (competitive) Disruption


INDEX


In the digital economy, the repository is a central requisite to managing information

The repository houses the

basis of information

value

CDO

I eradicate resistance and foster

repeatability

I define the alignment

I find risks

DGC

CRO

DAMI administer the assets

and the repository

CIO

(Engineer)

INDEX


Architect how value will be Obtained from the intersection of

Business process and information Devise Information’s value split Value propositionsValidate alignmentIdentify Clutter

Major Organizational Roles INDEX

The Chief Data Officer (CDO)


Devise models and algorithms

to be consumed by processes Publish a catalog of models and algorithmsEncapsulate repeatable modelsCollaborate with the CDO to

identify new analytics


The Chief Analytics Officer (CAO)


Engineer machinery used to transform data into information Implement the governance

Blueprint to eradicate resistanceEnsure availability of lineageManage metadata,Master data and reference data


The Chief Information Officer (CIO)


Administer the repository used forRecording potential and

achieved Information value Devise means to eradicateUsage resistanceCollaborate information

Valuations with CFOPublish governance Effectiveness statistics


The Data Governance Council (DGC)


Record the potential and achievedvalue of informationManage the raw, in process

and finished goodsinformation inventory Publish the informationvaluation metrics


The Data Asset Manager(DAM)


Identify operational and systemic risksMaintain a list of disruptions,

their sources and their resolution for analysis Prioritize privacy and security

issues and collaborate with the CIOPublish risk metrics


The Chief Risk Officer (CRO)


Business Process

01Business ModelsBusiness Models are collections of business processes which together reap incremental value for the organization.

04GovernanceGovernance is the body accountable to eradicating obstacles that prevent consuming data as part of the business processes.

02InformationInformation is a collection of non-expiring assets aligned to business processes.

03 DataData is the raw material which is transformed into information through governed machinery.

The altered Role of GovernanceGovernance is the body that eliminates obstacles to using information in business processes and improves repeatability in analytic models and algorithms

IT IS IMPORTANT

Just like electricity, resistance is highest when the flow, or need for information, is greatestGovernance’s worth is earned with eliminating obstacles on disruptive and non-BAU situations

The consumption of information by process yields value

Machinery

GovernINDEX


01

Data Quality Programs

Data Lineage Programs

04Alignment and

Prioritization programs

02

Information Half Life Programs

03Metadata, Reference Data and Master Data Programs

TRUSTWORTHINESSInformation can not be put to work quickly if it is not trustworthy.

ACTIONABLEHaving information trivia, expired information and easily misused information hiding a pathway to what is actionable is a great source of information resistance.

CLUTTERIf what is important is hidden with information clutter, then finding what is important will be an impediment to using information at critical moments.

CONTEXTAn understanding of the context and scope of information is necessary to properly use it at critical moments.

What does eradicating resistance mean?The Information / Process map defines what resistance needs to be addressed

CDO Information / Process Map

Governance’s primary role is prioritizing and sponsoring the efforts to eradicate resistance.

INDEX


Mapping Resistance as a Prerequisite to Eradicating itThe more critical and time sensitive a business process is, the higher the effects of resistance to the use of information in business processes. It is a primary role of governance to eradicate resistance through well defined programs. In this way, governance directly impacts the value of an organization’s information assets.

Trustworthiness Information is de-facto expected to be validated prior to consumption by business processes.

Clutter More is not better, especially when clutter obfuscates the important information that would make a difference.

Context Providing meaning to the information through metadata and semantics gives the necessary context to use information.

Expiration Information has a half life, and keeping expired information available to analyses compromises trustworthiness, adds to clutter and often leads to inappropriate actions.

Trustworthiness

Clutter

Context

Alignment

Expiration

Alignment The alignment and timing of information to business processes changes regularly as market forces change, not performing the necessary adjustments leads to misalignment.

The cost to fix a data error at the time of entry is $1. The cost to fix it an hour after it’s been entered is $10. And the cost to fix it several months later is $100+.

Trustworthiness Factoid to think about

Stephen Hawking

Clutter Factoid to think about

Trying to drink from a firehose of information has harmful cognitive effects.

Newsweek

Measuring Information Expiration

All information expires, and it’s expiration is based on its quantitative value. The quantitative value decay is called the information half life, which is measured by the following formula:

Qualitative Data Value = ((Data Usefulness) X (Loss to Competitive Advantage) X (Timeliness))

INDEX


Valued Actual

Information is constructed from heard inferences, learned inferences, the body of enterprise knowledge and innovations

Data transformed by machinery administered by the CIO to align to business processes and eradicate usage resistance

Information (transformed data) cataloged for consumption by business processes

Information that has been consumed (it can be consumed more than once up to the expiration date)

Information whose consumption has been recognized by the Data Asset Manager

The Data Asset Manager (DAM) administrates the inventory of information assets

Actual

Potential

WIP

Data

The Classes of Information Assets managed by the DAMINDEX


Governance’s ToolkitGovernance eradicates resistance through several programs

Quality

Governance ensures consistent operational quality of data and information

Quality must be encapsulated in a repeatable, measurable process

Clutter

The culling / demotion of expired and once required information.

Meta, Reference & Master Data

The metadata, master data and reference data programs that ensure consistent definition of information

Enlightenment

Governance promotes the use of the information catalog as a vehicle for finding the right information

Context

The context of information available for analysis made available through metadata and other means.

Conflict

Governance ensures the publication of metadata lineage and operational lineage, where available

Lineage

Governance ensures the publication of metadata lineage and operational lineage, where available

It is important for organizations to determine whether they will deliver operational lineage (procedural exceptions)

Security & Privacy

The assurance that information made available is protected from influencing damage through reputation, breach regulatory and other security and privacy concerns.

The effectiveness of governance is measured as actual value achieved / potential value achievable

INDEX


Valued Actual

If data aligned with its sources is not transformed into information aligned with business processes then it wont be used at the critical moments.

The time available to re-align data into information in lockstep with business process changes is critical to ensure usage of information

Eradicate resistance and enhance re-usability of models and algorithms

Ensure that information is utilized in BAU, Non-BAU and disruptive business scenarios

Information usage not captured will not be recorded

Governance needs a repeatable framework to ensure trustworthiness of created metrics

Actual

Potential

WIP

Data Information

What and how does Governance Orchestrate

Govern the rate of change and % non-actionable information (clutter)

Govern the time required to alter the processes

A repeatable governance facility and associated orchestration layer (workflow) is required to

Govern the ratio of actual to potential information value

Govern the value achieved by type of business scenario

Orchestrate the process to recognition of information value through a repeatable process

INDEX


For Information to be managed as an assetThe governance mandate requires redirection

Eradication of Resistance

Eradication of resistance to using information when it is most valuable is the means in which governance will participate in value creation.

Agent for RepeatabilityEnsure as much information alignment to process, particularly in the cases of analytics, is repeatable.

Marketing the CatalogFacilitating the ability for business process owners to know how to find the information they need .

Resolving Information Conflict

The traditional governance role survives but for information aligned with process, not all data.

Coordinative RoleThe coordinative glue between the CIO, CDO, CRO and DAM.

Governance Effectiveness % equals (actual value achieved divided by potential value achievable)

INDEX


Measuring Governance EffectivenessExtending the role of governance for managing information assets

Cost of Data AssetsThe cost of obtaining and maintaining data

Governance provides organizational value by culling out processes that propagate machinery used to construct information no longer aligned to business processes

Agreements to acquire data no longer used will be cancelled

1

2Eradicating ConflictThe traditional definition of governance is eradicating conflict in the definition and use of data, not information (data is not aligned with process, information is)

3Eradicating Resistance

The difference between potential and actually achieved value associated with information assets

4RepeatabilityEnsure as much analytics are repeatable as possible to enable their prep time to be minimized, required for disruptive and NON-BAU situations

Governance Effectiveness % = (actual value achieved / potential value achievable) * 100

INDEX


Information has value only when consumed by business processesThe value of information is highly correlated with the value propositions of business models

Value Category Information’s Role Business Terms Value Measurement

Capture(% of Incremental value)

Sales Campaign InformationIdentify Opportunistic Items

Sales Campaign ResultsOne Time OpportunitiesSystemic Opportunities

Present Value of the information’s role in identifying and capturing value from others

Extend(% of Incremental value)

Identify Extensions to customer relationships

Up Sell and Cross SellSales Funnel Activities

Present value of the information’s role in identifying and capitalizing on deeper customer relationships

Protect(% of Incremental value)

Eradicate risks which would otherwise erode value

Opportunity RiskOperational RiskFraud and Process Aberrations

Present value of the information’s role in protecting from other’s attempts to capture value and protection from regulatory fines

Create(Greenfield)

Innovate which in best cases, ripples a disruption through the marketplace

Innovation IntroductionsNew Product LinesNew Methods

Present value of the information’s role in realizing discounted cash flows associated with market revenues realized from the innovation

INDEXOrchestrate


ValueMetrics

Royalty approach to measuring information value

The registry is the central repository of information that can be consumed by processes mapped to business models (BMC)

A pre-arranged % split of value propositions is applied to the information consumed by business processes used to execute a business model, the % split is potential information value.

The value is highly dependent on the situation in which it is consumed (static or standard BI, prescriptive and predictive analytics in BAU situations, and NON BAU situations.

Chief Data OfficerOptimize the Value Framework

Obtain Information Value Split agreements

Data GovernanceEradicates Resistance

Influences Analytic Repeatability

Data Asset Mgr.Administers Repository

Manages Inventory

Records Value

INDEX


CDO Tool: A representation of business models and consumable information: The BMC

Rivers of information flow through the processes that together form the business models of the organization.

In order to manage the information assets and optimize their value, it is important to understand how information is used in processes.

While the traditional business model canvas (BMC) does not discuss information, it is easy to map the rivers of information that flow through the business model using the BMC.

Strategyzer, 2012

INDEX


© THE GROVE CONSULTANTS INTERNATIONALDESIGN A BETTER BUSINESS

The 5 bold steps vision canvas was originally designed by David Sibbet

5 BOLD STEPS VISION® CANVAS

COLLABORATION How will you collaborate your actions?

SUCCESS CRITERIA How will you measure the success towards this vision statement?

VISION STATEMENT What is the vision you are planning to execute? BUSINESS THEMES What are the themes of the playbook used to realize this vision?

5 BOLD STEPS What are the big steps towards your vision and who is accountable ?

SUPPORTS What are the supports that improve the chances of reaching your vision?

CHALLENGES What are the challenges that hinder reaching your vision?VALUE PROPOSITION What is the value proposition for this vision?

THIS VERSION BY INFOSIGHT PARTNERS, LLC 2016

INFORMATION What information is used to identify supports and challenges?

In Collaboration with business strategy leaders, the CDO maps vision and value propositions to information via a business model

INDEX


SOURCE

PLANNING OUT MARKET DISRUPTIONS

What new consumer needs, wants and expectations are created by the changes?

Where and how does this trend satisfy them?

Which (new) customer groups could you apply this trend to? What would you have to change?

How are other businesses applying this trend?

Which deep consumer needs & desires does this trend address?

Why is this trend emerging now? What’s changing?

Shifts: Long-term, widespread macro changes Incremental changes and sentiments serving as the impetus for the disruption

Emerging Consumer Expectations

Basic Needs Drivers of Change

How and where could you apply this trend?

Innovation Potential

Inspiration Who

Innovations and planned disruptions

TREND CONTEXT

Planned target equilibrium Triggers and Tipping Points

INDEX

This version by InfoSight Partners, 2016

INFORMATION

Identifying

Tracking

Visioning

Driving


BY DESIGNABETTERBUSINESS.COMThis work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. http://creativecommons.org/licenses/by-sa/4.0 or send a letter to Creative Commons,171 Second Street, Suite 300, San Francisco, California, 94105, USA.

DESIGN A BETTER BUSINESS

WHAT IS THE SCENE FOR EXECUTION?

VISION SUBJECT What is the vision about?

VISION STORYTELLING CANVASThe CDO maps information to the vision statement, processes used to execute the vision and supporting information

This version by InfoSight Partners, LLC 2016

VISION GOAL What should be achieved by this vision? VISION AUDIENCE? Who is the audience?

EXECUTIONCONDITIONS

WHAT IS THE AUDIENCE A -HA MOMENT?

WHAT IS THE CALL TO ACTION?

WHAT ARE THE DESIRED AUDIENCE REACTIONS?

SUPPORTING INFORMATION

TRIGGERING INFORMATION

AUDIENCE CONTEXT

ACTION MODELS

MEASUREMENT CRITERIA

INDEX

PROCESSES ENLISTEDThe storytelling canvas represents the list of processes that support a vision, which when executed properly result in successfully realizing a value proposition.

The processes utilized consume information as detailed in the storytelling canvas.

The vision represents the means and conditions under which a value proposition will be realized.

http://creativecommons.org/licenses/by-sa/4.0


Contents of the Registry

Actors (RACI) Information

Business Process

Registry

Data

The RegistryThe Registry is the central repository used to record potential (information poised to achieve value in business processes) and actual (value achieved by information being used in business process) value, and represents the intersection of information, business processes consuming information and people using information within business processes.

Data = InformationData is the raw materials of information. It becomes information through the machinery managed by the CIO to align it to business process, align it to master, meta and reference

data, add context to it’s use and scope and provide details of its quality, vintage,

integrity and lineage.

Business Model (BMC)

Value Proposition

Machinery

INDEX


An Information Valuation Situational Framework*

Value influenced by redirecting business model based on NON-BAU forces

Value influenced by maintaining business model trajectory

Information used to steer in an expected business trajectory

Profit center aligned

Activity and other reports

Cost center aligned

Capital and expense used to produce information

Information Alignment

What returns value?

Value Participation

DISRUPTIVE

NO

N-

ACTION

ABLEBAU

NO

N-BAU

Not Yet Aligned

Forces at Work Info Use

Value influenced by recasting business models caused by disruption

Algorithms triggered to create / respond to disruptions

Information used to collaborate actions based on NON-BAU forces

Risks Value

J JL

J K J

L J K

L

?

J

K

L

There is a tight correlation between the situations in which information is used and the value the information can provide

* Assumes alignment to business processes devised to fit business models Half Life React TimeResistance

Minor

Minor

Half Life Impact

Half Life Cause

Resistance to using information increases from information appearing on reports to information associated with disruptive forces.

Amount of value achieved:1. The least resistance and lowest value recognition is associated with reports (not specifically

mapped), because the likelihood of them being directly consumable by business process is low.

2. Business as usual scenarios receive value as mapped in the business process. There are no extraordinary gains because the value achievable by the value proposition is as expected.

3. Non-BAU scenarios potentially have added value because there are added value opportunities.

4. Disruptive scenarios have the highest potential value.

Resistance increases as scenarios go from reporting to BAU to Non-BAU to disruptive scenarios.

The mission of governance is to eradicate information resistance and ensure the information made available for consumption as devised by the CDO’s playbook is not derailed due to resistance.

INDEX


Analytics and valueMaking as much of analytics repeatable as possible

Non-repeatable analytics best fit BAU situations

There is not time to form and populate analytic models in

disruptive situations.

Governance prioritizes

repeatability of analytics.

What Why How

RepeatabilityMethods, models and algorithms ingest information in predictable and repeatable ways

Manual processes do as well, but it is left up to the analyst to ensure consistency

Analytics requires information

Governance is accountable for prioritizing the selection of analytics targeted for repeatability and possible automation.

Governance is accountable

Governance drives the repeatability metrics of analytics

The time required to identify the data for an analytic model, ensure the appropriateness of the collected information and fit it to a model is not available for explosive, disruptive circumstances

By ensuring repeatability where models and algorithms are either executed through automated means or are wired for execution at a moments notice, the population of analytics available for disruptive circumstances will be increased.

INDEX


Business ModelThe Business Model and business model components that encompass the strategies and tactics that create, capture, extend and protect organizational value.

ProcessThe processes that are executed as a means to realize the strategies and tactics of the business model.

InformationThe information consumed in processes used to capture, enhance, expand and protect organizational value.

ResistanceThe items that discourage usage of information in processes, such as information clutter, lack of context, trustworthiness and other factors.

A Model to Map the Value of InformationProcesses consuming information within business models

Ways to Obtain Value

CREATE

CAPTURE

EXTEND

PROTECTThwartRisk

Cross/ Upsell

CaptureOpportunity

Innovate

Business Models represent the intents of the business. They are

executed by business processes of the organization, and each of

those processes source and/or produce information (not data)

The value of information is measured as an enabler of the

processes consuming the information. The information is

an intangible asset which has value by the fact that it was instrumental in making the

outcome of the business process successful.

Resistance is the forces that make it difficult to use information in

business processes. These forces can be lack of trust in the

information or inability to find the necessary information due to

clutter.

In this asset management strategic approach to information

management, governance is directly accountable for

eliminating resistance that prevents the use of information at

critical times. By eliminating resistance, governance is directly

impacting the value of information.

INDEX


The expected outcome of the orchestration effort

1

The repository represents the CDO’s blueprint and changes to the blueprint, which are codified in the data to information processes.

2

The engine, the OBJ in the process, is a callable module which captures information requested for business process so that value can be applied to it. The analyzer is the process run by the DAM to apply value to consumed information.

3

Today, the benefits of capturing information value are purely for internal purposes. However it is not inconceivable that there will be at some point external reporting of the effectiveness of the information assets of the organization.

The repository contains proof of an auditable repeatable process used to orchestrate valuation of information assets

4

The value base becomes the central repository of the basis applied for information valuation, whether reported as a metric for potential investors, management use or other purposes.

CDO Blueprint(Info / Process Map

Royalty Splits)

Information Asset Value Repository

CDO Blueprint Potential Value Actual Value Resistance Metrics

Step 1

OBJ

Value is assigned

Royalty Analysis Application

Step 3

Analyzer

Process

Usage of information is recorded

Information Step 4

Step 2

INDEX


Information Assets

Registering Value to the use of Information

When Information is consumed by a business process, its use is recorded and a pre-determined percentage of value associated with the business process is assigned to the information.

A pre-determined premium is assigned to the use of the information in Non- BAU and Disruptive instances of business process.

A new role, the Data Asset Manager, is accountable for recording the recognition of value associated with information.

When information is used in business processes as prescribed in business models mapped to information, the value of that information is recorded and tracked. The cost of obtaining data and transforming it into information is subtracted from the value recorded for the use of information. The remainder is information’s net contribution to an organizations achieved value.

The Information Assets of the organization can be recorded as a balance sheet item of an organization.

Potential Information Value Registry

Information Consumed in a business process is

recorded

Record Information value associated with business

process instance

Recognized Information Value

Business Process

Source DataMachinery

The Data Asset Manager (DAM) administrates the

Potential information value registry (1),

Records recognized information value (2),

And measures the information use resistance (potential (1) less actual (2)).

1

2

Journey INDEX


Click the roles (1 – 6) in order

for more information

CDO CRO

DAM DGC

Information Assets

Own and

oper

ate

mac

hiner

y

Align with Business Processes

Eradicate

Resistance

Record Use of

Information

Protect the

Information Assets

CIO

Accountability for the Information AssetsNew Strategies demand new roles (click roles for more information)

Chief Data Officer

Chief Risk Officer

Data Asset Manager

Data Governance Council

Chief Information Officer

Strategic : Direction Setting

Tactical : Enhance Value

Operational : Own Machinery

The CDO is responsible for aligning information with business processes in ways that maximize information value

The Chief Risk Officer is responsible for protecting the information assets and use of information assets

The Data Asset Manager is the inventory manager of Information Assets

The Data Governance Council is responsible for eradicating resistance, or impediments to using information at critical times

The CIO is responsible for the machinery that transforms data into information and eradicates information use resistance

The non-depleting but expiring

intangible assets of the organization

(raw materials data, WIP & finished

goods information inventory).

1

2

3

4

5

6

Click here to continue

INDEX


Putting it all together

The Business Model Canvas is an visual model that graphically depicts business model.

From an information vantage point, the BMC is being used to determine and register information consumed within business processes.

The valuation of information consumed in business processes will be determined by the criticality of the specific instance of a business process.

The Business Model Canvas (BMC) is an easy to explain graphic depiction of business models. Information only has value if it is used in realization of a value proposition. Rivers of Information flow through the components of the BMC, which should be mapped and registered if information value is to be measured.

Information valuation will be recorded similarly to processes used for royalty recognition of digital assets.

Business Model Canvas

Processes Supporting BMC

Information Consum

ed in Processes

Machinery used to transform the raw materials of Data into Information

The resistance to using information at critical and time sensitive times

The willingness to use information at critical and time sensitive times

The ability to meter the use of information in business processes

The conversion of potential value to achieved value for the organization’s information assets

INDEX


MachineProcess Potential Record

Initiate a program that maps the potential value achieved from information within business processes.

Create a facility that is used to record the potential value achievable from information and a corresponding process.

Develop the facilities and accountabilities to recognize value when information is consumed in business processes.

Identify and prioritize the eradication of roadblocks impeding the conversion of potential to realized value from information.

Map Information flows in business processes through the business model canvas.

Record the potential value of information by mapping information to process and the source data used to manufacture consumed information.

Assign accountability to record the use of information in ways similar to royalties associated with digital assets.

Fine tune the machinery so that information can be used in situations where premium value is achievable.

Adopting A New Information Asset Management Strategy

Map information to business process

Develop processes to register potential value of information

assets

Ensure the information machinery is capable of operating in situations

of premium information value

Develop processes to record the use of information in business

processes

The first step should be to devise a roadmap to a new information strategy which values the wielding of information similarly to recognition of royalties from digital assets

INDEX


Assign a Data Asset Manager (DAM) and organize to perform the information asset management processes

Select and use a catalog that captures potential and actual use of information(Note: The catalog must track, information, business models, processes, actors, resistance, etc.)

Incentivize your CDO to relentlessly identify and preference uses of information that enhance organizational value (Note: This is not a pitch to perform more analyses, produce more reports, nor store more information. If the information is not consumed in business processes, it generates cost but does not generate value.)

Architecting your next-gen information strategy INDEX


Return to the Index

Q & A


InfoSight Partners’ mission is to facilitate the journey companies take to gain focus into the value of their information assets.

Once this journey is started, a new approach to managing the organization’s information assets gains clarity.