Picking randomly from my last post on favourable data-to-value conditions, here’s an expansion (a la GPT) on principle #6:
‘Applications that Externalize Data as a Product and Internalize the Dollar Cost of Associated Data Work’.
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This principle emphasizes making data easily accessible for the organization while absorbing the costs and efforts associated with data management internally. Here’s an explanation:
### Externalizing Data as a Product
- **Data as a Product**: Ensuring data is well-organized, documented, and accessible via APIs, data streams, or other mechanisms.
- **Usability and Accessibility**: Standardizing formats and documentation to make data consumable and useful, enhancing data-driven decision-making.
- **Interoperability**: Promoting integration across systems within the organization, allowing departments to use data effectively for analytics and decision-making.
### Internalizing the Dollar Cost of Associated Data Work
- **Cost Management**: Application run and change TCO cover costs related to data preparation, management, storage, and processing internally, including data cleaning, transformation, storage infrastructure, and quality assurance.
- **Operational Efficiency**: Optimizing data-related tasks within the application’s management envelope to reduce redundancy and avoid unexpected costs elsewhere in the organization.
- **Data Governance**: Controlling the data lifecycle within the application’s accountability & responsibility envelope, to ensure fitness for purposes and consistent availability while optimizing resources and expenses.
### Contrast with the Opposite Approach
- **Externalizing Costs, Internalizing Data**: This alternative involves data remaining siloed within applications, requiring other parts of the organization to intermediate, bearing the costs and effort of extraction, processing, and management. This can lead to inconsistencies, inefficiencies, and higher overall costs to the organisation.
### Example
- **Externalizing Data as a Product**: A CRM system makes fit-for-purpose customer interaction data accessible via standardized APIs for marketing, sales, and support teams.
- **Internalizing the Dollar Cost of Data Work**: The CRM system handles all data processing and management tasks within its budget.
### Summary
This principle advocates for making data accessible across the organization while managing the costs and efforts of data preparation within the application. This approach ensures standardized, high-quality data, optimizing resource use and cost management, and leading to improved efficiency in data utilization across the firm.
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See the rest of the principles here:
https://lnkd.in/ejwn4-eU
#datagovernance
#techgovernance
#systems
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