Journey data driven organization

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Copyright@STKI_2021 Do not remove source or attribution from any slide, graph or portion of graph
a Data-Driven Organization
T‫ם‬
The Journey Towards becoming
Einat Shimoni
EVP @ STKI
accelerated
STKI IT Knowledge Integrators
COMPANY CONFIDENTIAL

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The journey is now a RACE

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Data is the new ____________
Fill in the blank

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There are different “levels” of relying on data
Source: IDC
Strong data culture
throughout the entire
company
Data is used selectively,
partial adoption in some
parts of the company
Data is used mostly to
justify opinions

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Which one are you?
25%
50%
25%
Source: IDC

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Data culture maturity varies across industries
Source: IDC
Disruptors

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What are the characteristics
of Data-Driven organizations?

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Data is
managed and
measures as an
ASSET
4 5
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3
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2
8
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Data is
ACCESSIBLE
and trusted
Data used
FREQUENTLY in
meetings
Data is used in
MORE THAN
ONE WAY
Data is
INFLUENCING
major decisions
Data is a
competitive
differentiator
Culture of
curiosity,
innovation,
experimentation
Data skills
prioritized when
hiring new
employees
DATA DRIVEN
COMPANIES

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Source: IDC and MIT Sloan School of Management
+30%
Higher annual growth
6% higher profits
4% higher productivity
And it pays off, BIG TIME
+40%
Improved time to market
+35%
Increase in
employee retention
+35%
Rise in new
customer acquisition

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Source: IDC Data Culture
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How do data driven
companies excel at CX?

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We’re living in the
age of Ego-Systems*
*whether we like it or not
Source: Brian Solis
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Me

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Data driven companies can create
hyper-personalized experiences
“Magic moment” Concierge-based services
The highest level of experiences

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Data receptors
Access to data that feeds behavioral, contextual,
preferences and experience data
Insights
ML models
Fast Action
Change the product/Process FAST
What is needed for hyper-personalization?

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Care/Of StitchFix Starbucks
Wallet and Loyalty
Preferences
returns feedback
Lifestyles, goals,
continuous feedback
What is hyper personalization?
Originated from marketing, hyper-personalization means creating
custom experiences through the use of data, analytics, AI, and
automation.
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Source: Boston Consulting Group
“Successful personalization could represent an increase of 10% in a bank’s annual revenue”

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”One of the Top 20 business transformations
of the past decade” (HBR)
“World’s best digital bank” - Euromoney
“Most Innovative Financial Institution”
“Best Bank in Asia” 2020
CW awards winner
Hyper-personalized digital experiences
enabled by data and AI
The mission:
From a reactive “data service center”
To: 2 in a box: Shared KPI, ownership of the
problem, formulating business problems into
data problems done by analytics, measured
on actual use
‘Data Heroes’ literacy program: 16,000
employees over 18 months
Analytics CoE: Analysts from all 18 markets

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The most valuable AI use case:
Hyper personalization!

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47%
Source: STKI Data survey 2021
How many organizations have a CDO (Chief Data Officer)?
68%
Source: NewVantage Partners 2021

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2020 2021
Offense: 55% 70%
Defense: 45% 30%
Source: NewVantage Partners
CDOs focus shifting more and more to OFFENSE
Revenue Generation
Compliance Regulations

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100%
25%
50%
75%
Data-driven Competing
on Data
Managing data
as an asset
Have a data
strategy
Innovating
with Data
25%
41% 39%
30%
49%
The sad truth
Source: NewVantage Partners

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Why?
It’s complicated.

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Culture Governance
Make it
accessible
and trusted
Manage
the
change
Operations
Skills
Gather
data
All parts of the value chain must work
Organization
Extract
insights
Redefine
processes
Identify
use cases
Prioritize
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What is your weakest link?
Is it Data Culture & Literacy?
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Analytics is disruptive
Or is it resistance to changes in existing processes?
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2020-2021
were about planning a
DATA STRATEGY

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2022-2023 will be about
IMPLEMENTATION AND RESULTS
What is needed to
implement the strategy?
1.CoE
2.Playbook

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The CoE
Competency or capability center run by a group of multiple disciplines experts,
to help a company to adopt new tech & processes faster and reach goals
efficiently
CoE is an adhoc group of experts; they work in
projects but give part-time in order to establish
organizational excellence:
• best practices,
• leadership,
• research,
• training,
• support for a subject area.
Not a physical center/ Not a business
department

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Literacy
Improve data literacy on all
levels of the organization
Standards
Best practices and
methodologies
Architecture
Standardize and organize the data
architecture to align with business goals
D&A Tools
Tools standardization
Governance
Define policies, rules
and procedures for a
trusted and accessible
data environment
Use Cases Identification,
prioritization & Valuation
Proactively look for data problems,
prioritise use cases, measure value
Leverage synergy
Skills
Sourcing of new talent,
reskilling and upskilling
of existing talent
Processes
Redefine new processes
and manage the change
Data &
Analytics
CoE
CoE is an enabler

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The Playbook
A playbook contains all the pieces and parts
that make up your company’s go-to approach
for getting things done (“the play”)

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BI department are
responsive,
waiting for
framed data
requests
Identify
Identify
Proactive mindset
Data unit identifies
business problems
and turns them
into data problems
Implement
Implement value derived from
D&A initiatives is
measured;
CDO is a “P&L” center;
People encouraged
and rewarded for
curiosity &
experimentations
Adapt
Adapt
From a reactive to a proactive mindset
The Data Playbook

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Data platform is
monolithic,
centralized, not
very accessible
and requires
specialized teams
(bottlenecks)
Identify
Identify
New data
platform
architecture
that is open,
trusted and
accessible
Implement
Implement
What is the “right”
model?
- Short term plan
- Long term plan
Adapt
Adapt
Create an accessible and trusted data platform
The Data Playbook

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“If you’re not in the cloud, good luck with this”
- Joe Caserta
DATA FORECAST
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55%
<60% in financials>
28%
17%
Already on the
cloud for D&A
No and are not
planning to
Planning to enter
public cloud for
D&A soon
Source:
STKI Data survey 2021
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Data platform is
monolithic and
centralized,
specialized
teams
Identify
Identify
Composable data &
analytics
Distributed data
model
Decentralization
Implement
Implement Adopt data fabric
tools
Examine data mesh
principals
Adapt
Adapt
From Monolithic to Distributed
The Data Playbook

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Three types of data uses:
Operational Analytical Analytically
Operational
P

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V1
V2
V3
ETL Streaming ODS
Operational Architecture

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ODS – Operational Data Store
• Copy of online transactional data
• Ready for use by the application consumer

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BOI Open Banking Regulation
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ODS – the hottest project in the market!
I’m Hot!
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V1
V2
V3
ETL Streaming ODS DIH
V4

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DIH – Data Integration Hub
Same as ODS but:
• Data is stored in Data Grid HPDS – High Performance Data
Store and not DBMS
• Data is stored in the original format
• Schema on read
• Data is consumed via API request and not via DBMSODBC link
• Enables write

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V1
V2
V3
Data Fabric
ETL Streaming ODS DIH
V4
V5

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Data ingestion

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Not one but many:
ETLs,
Dblinks
CDCs
Streaming
API calls

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For each
data move:
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Data Fabric
What if we could seecontrol
everything from one place?
• All data sources, injection
instances
• Set/monitor security,
QAenrichment, governance,
migrations (of tools) in all data
environments?
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E

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What’s the next
data architecture?
V1: DW
Single version
of the truth
V2: Data Lake
Pockets of R&D
analytics, Data
Eng. bottleneck
V3: Multi Model
Cloud and
Lakehouse
Real time streaming
DE still bottleneck

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Data platform is
monolithic,
centralized, not
very accessible
and requires
specialized teams
(bottlenecks)
Identify
Identify
New data
platform
architecture
that is open,
trusted and
accessible
Implement
Implement
What is the “right”
model?
- Short term plan
- Long term plan
Adapt
Adapt
Create an accessible and trusted data platform
The Data Playbook
P

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Current situation
The traditional “data” architecture (warehouse, lake, cloud)
is centralized (=monolithic)

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Problems with traditional data architecture:

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This created a disconnect
data
engineer
data scientist
business analyst
operational data
consumers
E

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And then, one day, software people looked at data people
And said “Hey, you’re doing this all wrong!”

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Data Mesh: A Paradigm Shift
P

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Data Mesh Principles
1. Domain-oriented decentralized data ownership and architecture. Driven
by microservices, it provides more flexibility, is easier to scale, easier to
work on in parallel and allows for the reuse of functionality
2. Data as a product where data products comprised of clean, fresh,
analytics-ready data – are delivered to any consumer, anytime, anywhere,
based on permissions & roles
3. Self-serve data infrastructure as a platform that enables the businesses
use to run, maintain and monitor their services
4. Federated computational governance that set rules and regulations to
govern the data mesh operation

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DATA MESH MOST DISRUPTIVE PARADIGM SHIFT:
Business departments should be able to access and control
their own data and analytics
BI LOB
DATA
PRODUCT
DATA
PRODUCT
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Data Mesh open questions:
How will this “federated governance” model
work?
What will happen to the “single version of the
truth”?
Will CDOs embrace this change or resist it?
E
?

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Operating model is
not agile enough
or iterative
Lack of skills
Lack of automation
Identify
Identify
DataOps & MLOps
CI/CD iterative
processes
Attract data talent
Upskill and reskill
Implement
Implement
Change hiring
methods
Ongoing training
efforts
“Data as code”
Adapt
Adapt
Change the Operating model
The Data Playbook

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The data talent war

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Analysis skills now needed even more than Engineers!
Source: Deloitte ML, Data science, data engineering, visualization
*
*

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Research tasks
Build/plan models
Statistical
languages
Prototype ML
models
DATA
ENGINEER
BUSINESS
ANALYST
DATA SCIENTIST
Ingestion
Storage
Transformation
Preparation
Virtualization
Enrichment
Business Logic
Understand
the impact
on business
Python
Hadoop
Spark
Kafka
ML, DL
Data Visualization
Unstructured data
Storyteller
DB Administration
Storage
Visualization
SQL
Data Pipeline
Business understanding
Communication skills
Data Architecture
NoSQL
Data Integration, ETL, APIs
NLP

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will look for
other jobs if
their current
company
stops remote
work
27%
65% 42%
willing to take a
10%-20% pay
cut to have the
benefit of
working from
home
want to
become full-
time remote
employee post-
pandemic
*30% already
approved
Source: Flexjobs
Employees’ expectations have shifted

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New
employee
journeys
Sourcing
models
Flexible
work
model is a
MUST
Reskill
and
Upskill
Automation
of (certain)
tasks
What can you do?

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Operating model is
not agile enough
or iterative
Lack of skills
Lack of automation
Identify
Identify
DataOps & MLOps
CI/CD iterative
processes
Attract data talent
Upskill and reskill
Implement
Implement
Change hiring
methods
Ongoing training
efforts
“Data as code”
Adapt
Adapt
Change the Operating model
The Playbook

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Source: Towards Data Science
Data as code
starting point

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An approach that gives data teams the ability to process,
manage, consume, and share data in the same way we do for
code during agile software development.
Data as Code enables iterations and increases collaboration.
Data as Code
• Continuous integration
• Continuous deployment
• Version control
• Packaging
• Traceability and lineage
• End-user managed
• Distributed collaboration
Source: Arrikto

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The weakest link:
Culture is the top
barrier!
Literacy (especially
among top
executives) very
low
Identify
Identify
Measure current state
Identify data champions
and influencers
Literacy and data skills
workshops and
courses
Implement
Implement Ongoing (never
ending) effort:
Measure (and
market) data
initiatives success
Adapt
Adapt
Improve literacy and culture
The Data Playbook

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Data Culture encompasses the values, behaviors, and
attitudes of executives and employees around data used in
decision making
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70

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Identify influencers
assign data champions
Market the results Be Patient!
Up/reskill
Prioritize
data skills in
new hires
Measure value
Of D&A initiatives
How can you influence data culture?

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The sexiest job of the 21st century?
What is a data translator?
Source: Bernard Marr
1.Identifying and prioritizing business use cases
2. Helps in collecting business data
3. Ensures the solution solves the business problem in the most efficient form for business users
4. Validating and deriving business implications — synthesizes complex analytics-derived insights
into easy-to-understand, actionable recommendations that business users can easily execute on
5. Implementing the solution and executing on insights — drives adoption among business users
Source: McKinsey

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ML projects are
failing! Orgs still
experimenting
with very little
value.
ML processes are
broken and still
“waterfall” in nature
Identify
Identify
Prioritize 3-4 use cases
Focus on real business
problems
Establish the DS process
Implement
Implement Pay special
attention to
process
redefinition and
change
management
Adapt
Adapt
From POCs to significant value
The Data Playbook

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“If it’s written in Python, it’s ML.
If it’s written in Powerpoint,
it’s probably AI.”
- Curt Simon Harlinghausen

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14% 27% 28% 31%
86% of organizations have access to data
science skills
Have 1-3
data
scientists
Have >4
data
scientists
Using external
Data Scientists
No access
to data
science
skills

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• 85% of ML projects fail
• Average ROI on AI 1.3%
• Average time to value: 17 months!
ESI Thoughtlab and Gartner
But…

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21%
>4 ML
Models in
Production
31%
1-3 ML
models in
production
48%
No ML models
in production
Not many models make it to production

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It pays off to get a head start

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a Data-Driven Organization
T‫ם‬
Good luck on your journey Towards becoming
Einat Shimoni
EVP @ STKI

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Don’t forget
to enjoy the ride

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How will Digital Transformation transform all of us
Thank you!
EinatShimoni
EVP @ STKI

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