Rapid Fire with Prashanth Southekal: Data Strategy and Analytics Insights
Prashanth Southekal recently joined Steve on Rapid Fire. Prashanth runs the DBP-Institute, is an accomplished author & instructor and a global leader in the Data and Analytics space.
He responded to these questions on Rapid Fire
⚪ How can data be a liability for a business?
⚫ What is the purpose of a data strategy?
⚪Who should be at the center of our Data & Analytics initiatives?
⚫What qualities are required to successfully apply Data & Analytics in your business?
⚪What are the top 3 reason CFOs succeed in their Data & Analytics initiatives?
Imagine collecting data like a kid in a candy store – scooping up every gummy bear and chocolate bar without ever checking the price tag or considering the sugar rush aftermath. This colorful chaos perfectly mirrors the dilemma companies face with data today. Lucky for us, Prashanth Southekal, a data virtuoso with a globe-trotting resume, dished some golden nuggets on managing data on the latest episode of CFO TALKS, hosted by Steve Rosvold. Fasten your seatbelts as we zoom through the highs of data strategy and why, in some cases, it’s like hoarding a tub of junk food.
Data: The Hidden Liability
Prashanth explains how data can become a liability faster than you can say “SQL injection.” While conventional wisdom dubs data as the “new oil,” Prashanth flips the script, warning that data, when left unmanaged, could be a company’s Achilles heel. Sure, having reams of data might seem enticing, but here’s a dose of reality:
1. Storage Costs Piling Up: Much like hoarding items in your attic, simply collecting data can lead to skyrocketing storage costs. Every byte of data needs space, and managing this ocean of information isn’t cheap.
2. Eco-Guilt: Did you know your server farm has a carbon footprint? Data centers consume energy – a lot of it. And as ESG (Environmental, Social, and Governance) considerations become crucial, your data’s carbon footprint could jeopardize capital investments.
3. Hacker Magnet: Picture Fort Knox packed with gold bars; now replace those gold bars with data. Cybercriminals find a treasure trove of data irresistible. More data means bigger bullseye for hackers, who’d love to plunder your cache.
4. Privacy Tightrope: The more data you store, the more you’re entangled in compliance and privacy regulations. Just ask Cambridge Analytica; mismanaging data privacy can send your reputation into a nosedive.
Every Business Needs a Data Strategy
Prashanth’s wisdom is a wake-up call – a data strategy isn’t a luxury; it’s essential. And it doesn’t start with trying to exploit data for all it’s worth. Instead, it starts with a clear purpose. Data is necessary for three primary reasons: operations, compliance, and performance management. Everything else is secondary. Think of it as needing a shopping list before storming the supermarket – without it, you’re either overstocking or forgetting essentials.
Customer-Centric Data: The True North
Your entire approach to data should orbit around one celestial body: the customer. Just as planets revolve around the sun, your data initiatives should center on delivering value to your customers, be they external paying clients or internal stakeholders like employees. Here’s how:
- Performance Management Culture: Measure and improve – that’s the mantra. Use data to objectively track how well you’re meeting customer needs.
- Education: Equip your team with the skills to leverage data effectively. Knowledge gaps can derail even the best data strategy.
- Data Quality: Garbage in, garbage out – poor quality data will lead to poor decisions. Invest in ensuring your data’s reliability.
Why CFOs Often Lead the Pack
CFOs are uniquely positioned to champion data initiatives, blending fiscal prudence with strategic insight. But why do some CFOs thrive in this role while others stumble? Prashanth reveals three keys to success:
1. Alignment and Engagement: Synchronizing business objectives with IT and data teams is paramount. Misalignment is like rowing a boat in circles – you expend effort but get nowhere.
2. Leadership and Accountability: Clear leadership and accountability ensure that data initiatives have direction and momentum. Without dedicated leadership, initiatives falter.
3. Process and Quality Data: Good processes yield good data. CFOs with a knack for process optimization are typically better at harnessing data, enabling meaningful insights and, ultimately, better decision-making.
The Road Ahead
In an era where data is proliferating and AI is redefining industries, Prashanth’s insights couldn’t be timelier. His guidance on cultivating a purpose-driven, customer-centric data strategy that balances innovation with pragmatism serves as a reminder: it’s not about hoarding data; it’s about harnessing it to fuel growth and innovation responsibly.
So, the next time you’re tempted to treat data like unlimited candy, remember – a data diet might be just what your organization needs.
For more treasure troves of wisdom, dive into our CFO TALKs, and raise a toast to your data strategy!
Cheers!
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