Book Summary: Lesson 4 From Disrupting Digital Business – Know That Data Is The Foundation

Published on May 25, 2015 by R "Ray" Wang

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Get All 10 Lessons Learned From Disrupting Digital Business

As with the beginning of every revolution, those in the midst of it can feel it, sense it, and realize that something big is happening. Yet it’s hard to quantify the shift. The data isn’t clear. It’s hard to measure. Pace of change is accelerating. Old rules seem not to apply.

Sometimes when you are in the thick of it, it’s hard to describe what’s happening.  In the case of digital business, these models have progressed over the past 20 years.  However, non-traditional competitors have each exploited a few patterns with massive success. However, as the models evolved, winners realize there are more than a handful of patterns.

Lesson 1 – Transform Business Models And Engagement

Lesson 2 – Keep The Brand Promise

Lesson 3 – Sell The Smallest Unit You Can

Lesson 4 – Know That Data Is The Foundation Of Digital Business

Lesson 5 – Build For Insight Streams

Lesson 6 – Win With Network Economies

Lesson 7 – Humanize Digital With Digital Artisans

Lesson 8 – Democratize Distribution With P2P Networks

Lesson 9 – Deliver Intention Driven, Mass Personalization At Scale

Lesson 10 – Segment by Digital Proficiency Not Age

In fact, the impact is significant and now quantifiable with 52% of the Fortune 500 gone since 2000 and the average age of the S&P 500 company in 1960 is down from 60 years to a little more than 12 projected in 2020.  That is a 500% compression that has changed the market landscape forever in almost every industry.

Over the course of the next 10 weeks, I’ll be sharing one lesson per week.  For traditional businesses to succeed, they will have to apply all 10 lessons from Disrupting Digital Business in order to not only survive, but also relearn how to thrive.

Data Is The Foundation Of Digital Business

Lesson 4 Data Is The Foundation

We’ve all heard about the importance of data.  From big data to small data, the digital world relies on every interaction.  Digital enables every touch point, every click, every piece of digital exhaust to transform into right-time, relevant, and contextual insight.  In fact this data powers the ability to achieve a data driven decisions framework where data is transformed into information based on business process and context.  From campaign to lead, lead to opportunity, order to cash, incident to resolution, hire to retire, procure to pay, and concept to product, context enables relevancy of process which transforms data into information.  Context driven by role, relationship, business process, product, geo-spatial, time, sentiment, and even intent enable both real-time delivery and right-time relevancy.

We then take this information and analyze for patterns.  The bigger the data set, the more opportunities for algorithms to find patterns of insight.  The goal is to ask questions of the data and also take the surfaced up patterns.  From these patterns, systems gain the ability to guide the decisions and actions based on the data.  This is the data to decisions framework that guides digital business.

From data to decisions

Just having the data is part one. The next step is to build big data business models.  My December 6th, 2012 post on Harvard Business Review is great place to get started.

Homework

So where do we begin?  Best to start by identifying the questions you seek to answer.  We often have clients start by asking how do I know what traits make up my most valuable products, employees, customers, and suppliers?  This questions helps drive the questions around what context matters.  From there you can then figure out the information flows and business processes that drive that context. With this information in hand, then understanding the people and devices touched will provide the next level of design. Finally understanding the data source and channel of your data will provide you the reverse engineering required to succeed in getting the data to decisions framework.

Armed with this information, you can then start about how to create big data business models powered by insight.  Start by identifying what new brand promises can be delivered from insight.  Then identify what insight can be aggregated, benchmarked, or remixed for sale.  At the highest level, determine what marketplaces occur for that insight.

The Complete 10 Lessons Learned From Disrupting Digital Business

For those attending the full keynotes and book tours, you’ll get the complete session and in many cases a copied of a signed booked.   For those following virtually, I’ve provided the slimmed down slide share deck for your use.

You now have the 10 lessons learned to disrupt digital business in your hands. You can take this information and change the world in front of you or choose to sit on the knowledge as the world passes you by and digital darwinism consumes your organization.

I trust you will do the right thing. And when you want some company, come join us as a client at Constellation Research where we’re not afraid of the future and the art of the possible.

Get The Book Now Before Digital Darwinism Impacts You

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About Disrupting Digital Business

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Your POV.

Are you ready to disrupt digital business?  Have you ordered the book?

Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Please let us know if you need help with your Digital Business transformation efforts. Here’s how we can assist:

  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

Resources

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Disclosure

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

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