Getting value out of data: It’s about ideas, not investments

• Business leaders must look beyond savings: Commvault CMO
• Don’t just jump on the bandwagon, get smart people to advise you

 
BUSINESSES are cottoning to the idea that their data is an asset that can save them money and even generate additional revenue, but are still struggling to actually do it.
 
This partly due to the rapidly changing technology landscape – data no longer resides in traditional spaces, according to Chris Powell, chief marketing officer of data and information management company Commvault Systems Inc.
 
“Senior IT leaders tell us the challenge is that things have changed dramatically, from a world where they had most their data in datacentres, to one now where they have so many different types of data and much more data – most of which is sitting outside a traditional datacentre,” he says.
 
This is complicated by new data centre technologies such as hyper-converged infrastructure – which integrates compute, storage, networking and virtualisation resources in a single box – to flash storage.
 
Senior IT leaders “recognise they have a significant challenge in managing this environment, which is no longer a room in the basement with an air-conditioner,” says Powell, speaking to Digital News Asia (DNA) on a recent visit to Singapore.
 
Businesses trying to get value out of their data need to recognise this changing environment, and look for solutions, including the cloud, that can help them move to a “modernised environment,” according to Powell.
 
The first step in moving towards this environment would be figuring out how to do it with the most efficient use of resources; and the second would be figuring out how to do it without opening up the organisation to risk.
 
The third step? “Then they need to look at how they are going to derive value out of their data,” says Powell.
 
Data is the lifeblood of an organisation, and how it is managed will determine its future, he declares. Companies have to ensure they do not mismanage their data.
 
“Too many companies are trying to figure out the first two steps and haven’t even got to the third step yet,” he adds.
 
This is despite the fact that data is increasingly being seen as an asset, and is even appearing on some companies’ balance sheets, according to Powell.
 
“That is an interesting way to look at data, as just another asset to derive value,” he says.
 
Rethinking data
 
To be a leading company in today’s environment, or even tomorrow’s, you would need to fundamentally rethink how you are using the data you already have, according to Powell (pic).

“The reason we are collecting all this data today is to be able to derive business insights so we can have a competitive advantage.
 
“The foundation you need to have is one that takes the cost and risk elements and controls them in the most effective way possible – one that has the flexibility to look across modern environments, which includes the cloud, flash, hyperconverge, and service providers,” he adds.
 
Getting these things under control will allow the business to set up the right infrastructure to “build” its future, according to Powell.
 
You need to know where the data is, who has access to it, and how long you’re keeping it.
 
“Those are the basics, and companies need to get it under control,” he adds.
 
They also need to look beyond using data just to save money, but to generate new revenue streams.
 
“If companies are looking at this and continue to look at it as how they can save money, they are missing the point – they need to figure out ways to make money from their data,” says Powell.
 
This is especially important today because chief executive officers (CEOs) are increasingly expecting their chief information officers (CIOs) to help grow the business and not ‘just keep the lights on,’ he warns.
 
“The CEO doesn’t care any more about how you have created the most efficient system and lowered risk – they expect that.
 
“What they want is how you are going to drive value,” he adds.
 
Cutting through the hype
 

 
While the promise of deriving business value out of data has been around for some time, IT leaders are often instructed by management to get the latest technology, regardless whether the business is able to use it effectively.
 
“I worked in [German software giant] SAP in the 1990s and the reality was that we would have CIOs (chief information officers) say, ’I don’t know why I need this ERP (enterprise resource planning) thing, but everybody getting it, so I have to get it.’
 
“They didn’t even know why they were buying it, but they ‘knew’ they had to get it,” says Powell.
 
“It happens in many cases with analytics, where the appeal at the executive level seems real, but actually getting the value is not as simple,” he adds.
 
And to actually get that value, you need smart people to advise you, people who can cut through the hype and buzzwords, and who actually understand the jargon, says Powell.
 
“There are so many ways to get value, but you need smart people advising you.
 
“I hired a data scientist – I’m not the smart guy, I just have somebody who makes me seem smart, and I trust the data scientist to understand and cut through the hype to find value,” he adds.
 
Strong leadership requires people to know when they need outside expertise, Powell quips.
 
Related Stories:
 
The changing value of data
 
Could we be heading into data dystopia?
 
APAC organisations can see US$65bil productivity boost with data: IDC
 
 
For more technology news and the latest updates, follow us on Twitter, LinkedIn or Like us on Facebook.