Book Image

The Economics of Data, Analytics, and Digital Transformation

By : Bill Schmarzo
5 (2)
Book Image

The Economics of Data, Analytics, and Digital Transformation

5 (2)
By: Bill Schmarzo

Overview of this book

In today’s digital era, every organization has data, but just possessing enormous amounts of data is not a sufficient market discriminator. The Economics of Data, Analytics, and Digital Transformation aims to provide actionable insights into the real market discriminators, including an organization’s data-fueled analytics products that inspire innovation, deliver insights, help make practical decisions, generate value, and produce mission success for the enterprise. The book begins by first building your mindset to be value-driven and introducing the Big Data Business Model Maturity Index, its maturity index phases, and how to navigate the index. You will explore value engineering, where you will learn how to identify key business initiatives, stakeholders, advanced analytics, data sources, and instrumentation strategies that are essential to data science success. The book will help you accelerate and optimize your company’s operations through AI and machine learning. By the end of the book, you will have the tools and techniques to drive your organization’s digital transformation. Here are a few words from Dr. Kirk Borne, Data Scientist and Executive Advisor at Booz Allen Hamilton, about the book: "Data analytics should first and foremost be about action and value. Consequently, the great value of this book is that it seeks to be actionable. It offers a dynamic progression of purpose-driven ignition points that you can act upon."
Table of Contents (14 chapters)
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Appendix A: My Most Popular Economics of Data, Analytics, and Digital Transformation Infographics

Step 2: Identify Key Business Stakeholders

Once we have identified the targeted business initiative and the metrics against which we are going to measure progress and success, next we want to identify the Business Stakeholders who either impact or are impacted by the targeted business initiative. The stakeholders typically represent 4 to 5 different business functions in order to yield a diverse set of perspectives on how the organization plans to address the targeted business initiative.

Ideally, we want can create a Persona (a Design Thinking tool) for each potential stakeholder to help us better understand their individual as well as the overall organizational challenges, roles, responsibilities, pain points, and key operational decisions for the targeted business initiative (see Figure 2.2).

Figure 2.2: Stakeholder Personas

As you build the Stakeholders Personas, be sure to ask and understand "Why is this business initiative important to them?" and "What is their personal win condition or personal benefit from the successful execution of this business initiative?"


It is critical to give all the key stakeholders a "voice" in exploring, ideating, and defining the criteria against which progress and success will be measured. While it is important from a data science perspective to have a diverse set of criteria against which to optimize, organizationally it's even more important that everyone feels aligned and committed to moving forward together. More digital transformation journeys die due to "passive aggressive" behaviors than inadequate technology.