Case for an Information Value Chain

Michael Porter introduced the concept of the Value Chain in his 1985 classic Competitive Advantage: Creating and Sustaining Superior Performance. He described the notion of how a product gains value by activities conducted within the chain. By assigning costs and value drivers at each step, organizations can create a framework to enable powerful analysis and insight into synchronized collaborations, both within the organization and amongst business partners. The concept has been embraced by management strategists worldwide.

Data and information required to support business functions, promote innovation, reduce costs, improve collaboration and enhance responsiveness to marketplace changes can benefit greatly by extending the same concept to establish a business sponsored "Information Value Chain".

The goal behind the value chains - improve visibility, demonstrate value that exceed costs and improve profit margins - allows organizations to strengthen its core competencies and manage competitive differentiators.

Major business data domains of Customer, Supplier (Vendor), Product (Material) are candidates that should be evaluated within the value chain. In my blog on data ownership I identified roles that should participate in each of the standardized elements of the value chain. These roles should be supported by IT roles of architects, administrators, stewards and analysts.

By creating an enterprise data strategy, identifying key information management activities within the chain and enabling performance visualization through periodically evaluated metrics, an Information Value chain will bring improved information awareness, provide actionable insight and help your organization separate information "cash cows" from investment "duds".

In the process they uncover two important truths. All data is not created equal and all data does not contribute equally to the profitability of an organization.

With these truths alone, we begin to answer a very important question. Why dedicate our resources and capital to manage all data equally if they are not equal contributors?

Trustability - Super KPI of your data

Organizations that view information as a strategic asset, assign the ultimate responsibility of managing their data resources to data stewards. In reality, they are delegating the critical ownership of improving the "Trustability" of data.

Trustability is a super KPI (key performance indicator) of all data. It is also a silent killer of many a data warehousing and business intelligence initiatives.

Metrics of accuracy, timeliness, completeness, availability, accessibility, reliability and supporting elements such as proper definition and classification contribute to trustability. Long term usage, viability and success of any information you want to share (and benefit) with your information consumers depends on this super KPI.

A well thought out architecture, robust design, world class statistical constructs, superlative presentation layers and leading edge technologies will not help if end users do not have confidence in the data they are given and decide to not trust what is given to them next.

The first woman Prime Minister of India, Indira Gandhi, once said "You cannot shake hands with a clenched fist". Make trustability an important factor of your information management initiative and improve your success monitoring it closely.

Magnificent Taj Mahal and agonizing truths about your information organization

How many employees and vendors does it take for your organization to do reporting? Is it 10? 50? 100? greater than 100? You will be surprised by the staggering number of people - working everyday - across the organization collecting, modifying, integrating, modifying (again), aggregating and modifying (once again) their data using corporate applications, departmental systems, mighty spreadsheets and the occasional calculator to provide their customers with "what happened" reporting.

Then for valid reasons an important report or two does not reach the target audience by certain time. Let us say, the risk exposure report to the Chief Risk Officer by 8a.m. and decisions are made without the accurate knowledge of market risk, credit risk or operational risk.

Then there are errors that creep in from data modifications, conflicting data from violent disagreement over fundamental definitions (such as net income) and from mismanaged information delivery. Reports reach executives who do not need that information or worse, they reach managers that are not empowered to take actions.

The cycle repeats, the next day, this time with other variables in the mix.

Add to this, reporting on "how did it happen" and "what can be done" reporting and you see where I am going with this. Want to play Sherlock Holmes and find the money drain in your organization?


It took about 20,000 people and 23 years to build the magnificent Taj Mahal. Even today, people around the globe watch it with awe and admiration.

Is the rest of your organization looking in awe at your information management organization - particularly the reporting and analytics group - for creating a world class marvel or are they agonizing over eroding value of their investments over the years?

Data organizations and world class museums

The magnificent British Museum draws millions of visitors each year. I have had the opportunity to visit this finest collection twice. 2 million years of human history; ancient and living cultures all in one reputed landmark. Wow !

The museum of the world, for the world, British Museum says it with pride .. " In the collections of the British Museum the world can write new histories that it needs to understand its past and shape its future" (Source: British Museum)

I draw parallels to organizations managing data and information.

The museum engages people of all backgrounds (and ages) in an almost unprecedented way. The stories and their interpretation unlocks cultural, situational and territorial dimensions in the context of today. You don't have to be a museum lover to absorb the amazing information and a window to your experiences of tomorrow.

Your organization has internal data and data acquired from third party providers. The museum has acquired assets, touring exhibitions and loans from other institutions. You have collaborative projects to address operational and tactical needs. The museum has similar collaborations with National Geographic, curators and researchers around the globe. You have strategic alliances with partners, vendors and the academia. The museum has worldwide reach for its collections, acquisitions, doctoral studentships and a strategy for the future.

Our data organizations share identical dimensions of collecting, integrating, packaging, delivering, governing and improving the value of assets. We must engage our employees, partners and vendors to collectively benefit from unlocking the values of these information assets.. and encourage them to contribute, enrich the experience and benefit from the outcome.

Is your data and business intelligence organization a stodgy collection of artifacts or is it a British museum ?

Managing your information as an asset-Part 1

"Manage your information as an asset" - You see this mantra flashed on every presentation on information management these days. Senior executives have this on their agenda. Business leaders are eager to aggressively plan a coordinated move with current information to respond to marketplace. Operational leaders want to optimize. Green leaders want a smaller carbon footprint of their data centers. Product and services vendors want to capitalize on the theme. It sounds contagious and it should be.

How are we manifesting this powerful idea? How can organizations, both big and small, lay the foundation and go on such a journey ?

1. Evangelize what exactly do you mean by an asset and communicate the approach and benefits of making information as one. Keep it simple, crisp and yet powerful.

2. Categorize your information. If you hear "it is all data and .. it is all the same" you are several zip codes away from your destination. Seriously !

3. Discuss and plan the ownership and stewardship of this asset. If you already have a data governance framework this should not be difficult.

4. Create instrumentation for periodically measuring the value of your asset. Very similar to how you measure and balance your investment portfolio. If your governance framework has achieved creation of actionable metrics then you just moved one step higher on the information maturity model.

5. Effectively translate the measures into business understandable benefits. "Speak English" a mentor of mine used to say several years ago.

6. Create joint ownership of this program between producers and consumers of information. Is the balance 50/50 ? 40/60? it depends on your industry/sector. If you are a conglomerate, you have to address this differently.

7. Show your business leaders that you can (and later in the program, you are) making money with this venture. This can be done in several different ways.

I can help you create a strategy, establish business case, build project charters & supporting cost models, define metrics to quantify progress and provide hands-on leadership in this exciting journey.

Information is your most powerful asset, capitalize on it in this downturn !

Gen Matthew Ridgway

What has a Korean war general got to do with information or insight ?

General Matthew Ridgways' leadership as a commander of the 8th Army during the Korean war is well documented. I was particularly drawn to his recognition and pursuit of intelligence. I hope as practitioners, managers and leaders of information in your organization you relate to the excerpts below. I was inspired into Twittering as I was reading it !

Some excerpts from the book ...

(1) On arrival Ridgway almost immediately started to tour forward positions. He'd go out all day with the troops, then when he came back at night, he'd have to be briefed - on everything .. As information leaders do you prefer a birds' eye view or do you take time to visit the trenches to understand what is happening at the grassroots level of data collection and data integration?

(2) ... He was appalled by what he found .. almost no intelligence of any significance. He visited one corps commander who did not even know the name of a nearby river. "My God almighty!" he said later of that particular piece of ignorance.
Sound familiar ? How many times have you gasped at the fact that your teams have limited or incorrect information to make meaningful decisions

(3) .. Not to know the location and strength of the enemy was in his eyes as great as a sin as a commander could commit. He changed that quickly. He visited each headquarters, not just division and regimental, but sometimes battalion and company, arriving in his little plane, landing where no airstrip existed. ... "Nothing by your love of comfort binds you to the roads"..

An IT leader has the greatest responsibility of providing the right information at the right time to the business. As a business leader, your awareness about the information your organization is collecting is paramount.

(4) ... "Find it ! Fix it !! Fight it !!! Finish it !!!!" ...

Need I say more ? When it comes to quality and completeness of information there is a continuum to discover, reinforce, monitor and deliver on your strategic asset.

Are you effectively managing your information hot spots and winning like Gen Ridgway ?

Twitter readers have asked me for reference to the book. Here it is.. Coldest Winter, The: America and the Korean War

Note: I draw parallels in information management from my readings, observations across a variety of topics. Hope your takeaways and feedback are in the same context.

Data - Code of Conduct

Concerns raised regarding ethical behavior in business and in public life rightfully receive a lot of attention. Although millions of business transactions are conducted daily, only a few remain tainted. Financial management mandates a checklist of acceptable behavior, penalties for violation and standards for broader use of assets.

If your organization plans to manage data as an asset, shouldn't you have a Data Code of Conduct ?

Introducing "Drishti"

Drishti means "vision" or "insight" in Sanskrit. It also means "a point of focus". Thus, focusing on Drishti aids concentration. Businesses need Drishti to be profitable, to align and to be competitive.

Does your Business have Drishti to take advantage during the downturn ?