Confessions of a Data Geek

As a self-proclaimed datavangelist, I often find myself drawn into (or leading) conversations about the value of data. I work with many companies that begin with an understanding that product data is important, but are unable to articulate precisely why. These are some typical scenarios by which data classification, cleansing, and normalization can provide clearly demonstrable ROI to an organization.

For manufacturers, cleansed data can provide a complete picture of what they buy to support their operations. The data provided by suppliers is often incomplete or cryptic, making it impossible to analyze in any consistent way. The size of the investment can be measured against the relative size of the spend. I've worked with companies with lots of plants and facilities, spending hundreds of millions annually to sustain their organization. It's not atypical of these companies to achieve 5 to 15% savings in annual spend, just by better understanding of the data. This can translate into tens of millions of dollars of cost reduction opportunity.

The "low end" estimates are achieved with minimal effort and impact to business as usual. The high end estimates require more tools and technology, but also enable the sustained maintenance of cleansed data. In other words, if you fix the problem on the cheap, you'll probably need to fix it again soon.

For distributors, enriched product data drives sales. eCommerce is a way of life, and customers cannot buy what they cannot find. Your products need to be classified, cross-referenced, attributed, cross-listed, and have images and other support collateral. Enriched product data isn't optional anymore, it's an expectation from an increasingly demanding (and large) audience. In speaking with many VP's of eCommerce, I've noticed a resounding theme. There is often a resignation to do their best with the data that the rest of the organization provides. This paradign needs to change; eCommerce needs to drive data standards throughout the rest of the organization. Tying search logs into an effective master data management strategy can often increase online sales by 10 to 15%, depending on the technologies in place at the time.

Both areas of improvement require little to get started, and can provide incremental value to more than justify the cost of getting started.

Yes, these are very real conversations I have at work, on the train, and even at parties. I'll post more information on where, when, and how to party with datavangelists in my next blog entry...

Rob Stowell
Strategic Solutions