Unit-1 Disruption

Disruption:
Disruptive change occurs because of innovation in industries, change in the
company’s structure, or transformation in business models. These fundamental
changes disrupt the way an organization conduct business.

In recent times the rate of disruptive change in business has increased exponentially.
Organizations now feel that they are always undergoing change and this has brought a
new culture where change is not meant for coping but to thrive.

The organizations that think otherwise has faced failed with their change
efforts. According to Forbes 70% of organizations fail with their transformation efforts and
eventually with change.

Whenever a change hits a business the process gets better, the revenue gets improved
and the employees become efficient. If none of this happens, the business becomes
invisible.
Disruptive change business examples

Disruption occurs because there is a need to innovate in industries. Business leaders

take part in managing disruptive change, whether it's a change in company structure or
rebuilding business models. Disruption and innovation may mean the same, but in truth,
it has different effects on their respective industries.

Streaming services - Netflix and HBO Go are among the services that are in the process
of disruption in the entertainment industry. They have changed the viewing experience
and how the audience consumes media.

Video chatting platforms - Skype is one of the earliest video chatting platforms
available. Google Teams and Zoom are now becoming popular, setting perfect examples
of business disruption. With the pandemic, video chatting platforms have more users than
ever.

Transportation industry - Uber revolutionized the transportation industry. It saves time,

money, and the environment. The automaker companies are going to get disrupted
because owning 1 or 2 cars per family won't be necessary anymore.

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The data-driven organization: building a data strategy

A data-driven organization fosters the culture of leveraging data and business intelligence
to make all corporate decisions. Its goal is to design a structure where everyone in the
organization approaches each decision by exploring and analyzing relevant data. It
strives to make data-driven intelligence a natural component of the organizational
workflow. Data-driven organizations encourage all stakeholders to base their daily
business activities on data and insights instead of mere gut instinct. Besides, data-driven
organizations are highly resistant to changes in the economy, technology, or competitive
landscape and are operationally more predictable. Data helps organizations perform
better by proactively highlighting the areas of improvement and providing insights to
strengthen current and future decision-making. With continuous improvement and
accurate forecasting, organizations enhance innovation, attain a competitive advantage,
and become more profitable.

Let’s take a quick look at common characteristics of successful data-driven organizations.

• Centralized and Organized Data: Well-structured data from internal and external
sources is aggregated centrally to serve as a single source of truth.

• Easy Data Accessibility: All the employees across departments have access to
the necessary data and insights to improve their day-to-day decisions.

• Standard Policies to Govern Data Quality Set of policies & procedures help
establish governance mechanisms, helping to maintain superior data quality for
deriving data-based business intelligence.
•
• Integrated Data Analytics: Embedded data analytics tools encourage easy
adoption and ensure seamless data correlation across functions to derive
comprehensive valuable insights.

Identify hurdles (challenges) to becoming data-driven

Privacy regulations
The rise of data-driven organizations ultimately creates a more transparent world and
increases trust between businesses and the market. The risks of invasion of privacy,
market manipulation and monopolization, however, have dominated the news for quite
some time. That’s why data-driven organizations need to have a profound knowledge of
new rules, like GDPR, to avoid steep fines and sanctions or even lose their license to
operate.

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Lack of data integrity
Most companies already have ample data to make insightful decisions, but most of that
information is poorly managed and exploited. In other words, there is a clear need
for better data management and governance

Having the right skills

According to a study by Gartner, companies struggle to meet the data skills requirements
they need. More than just number-crunching, there is a fine art to data science. Finding
the data-savy people who understand the company and have profound technological
knowledge as well is not an easy feat.

Identifying the right technology

And finally, due to the overabundance of data solutions, many companies today are
struggling to find a good fit for their specific case. Identifying the best-fitting technologies
and implementing them successfully remains one of the top challenges on the road to
data-driven greatness.

Business Value from Unstructured Data

Insights generated from unstructured data can be monetized by the organizations More
than 80 percent of new data extracted from various industries encompasses the
unstructured data which unveils individuals preferences, likes, dislikes, interests, opinion
and intentions Enterprises should strive for adapting advanced analytical tools to analyse
new data and extract critical and actionable insights.

Data Management and Protection Cost

Enterprises collect and store sizeable data which could be overwhelming for traditional
data centers and network infrastructures. Constantly storing, securing and backing up
historical data can impact IT budgets and resources as well as posing threats like data
breaches. Also, companies are reluctant to invest millions on data warehouse.
With modern approaches to data management and protection which enables
business defined workflows, organizations can easily orchestrate backup, business
continuity and disaster recovery at lower cost, complexity and risk.

Technology Integration
Companies innovate and add new technologies in their portfolios annually that include
mobile management platforms, virtualized servers, cloud deployments and edge
networks. The process to integrate different components with multiple interfaces might
not be seamless and might also threaten the security of data and devices. During planning
phase, organizations should take an inventory of software applications from each
department, mapping the technology stack alongside its processes to understand how
existing resources are used and how they would interact with future IT investments

Data Silos
Most organizations are still analyzing their structured and unstructured data in silos which
can lead to incomprehensive view of data, data inconsistencies, wasted resources &
inhibited productivity. Adopting the right platform and techniques such as Hadoop,

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advanced analysis, artificial intelligence, machine learning and natural language
processing can help businesses streamline all the data and make it easier to share data
across different departments, thus creating a more collaborative company culture,
ensuring wide-scale analysis by truly understanding data, finding internal efficiencies and
improving abilities to meet strategic goals.

ANALYZE DATA PRACTICES IN THE ORGANIZATION

The real data-driven, measurable growth, and development come with t establishment of
data-driven company culture. This type of culture actively uses day resources as a
primary asset to make smart decisions and ensure future growth When is more, utilizing
data as the foundation of the corporate strategy helps to boost prof and sales, increase
both employee and customer satisfaction, enhance productivity establish a strong
corporate culture and ensure efficient decision-making, planning and risk assessment
processes. Stages of Analyse the data
According to Christopher S Penn, every data-driven organization passes through
five evolutionary stages:
1. Data resistant. The business does not use data for any purpose.
2. Data-curious. The business sees an opportunity to integrate and use datas enhance
the success of its operations.
3. Data-aware. The business starts using data analytics for some of its operational
processes.
4. Data savvy. The business starts using data analytics in multiple areas of operation
and across different departments. It also starts deriving data insights and use them for
decision-making
5. Data-driven. The business uses data as a primary asset for establishing strategy
planning, setting objectives, and assessing future risks.

Best Practice for adopt the data driven company

The best practice for adopt the data driven company is as follows:
1. Adopt data-governance policy
it is not enough only to collect, store, analyze, and interpret data. It is essential to ensure
that the available data is trustworthy, consistent, transparent, and with high quality. The
best way to achieve this is to adopt a Data Governance policy. By doing so, we set clear
guidelines on how to manage the data from the collection process through processing to
deriving insights.

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2. Establish data democratization.
Any data-driven company should adopt data-driven decision-making processes at all
organizational levels, including departmental, team, and managerial level. To achieve
this, the available data resources should be accessible to, and readable by everybody in
a particular company: in other words, the business entity should establish data
democratization, naturally keeping legal limitations in mind.
Such practice facilitates the planning processes, ensuring transparency in data
management, limits the occurrence of any misunderstandings, eases communication.
prevents any duplication of tasks, and as a result, saves time and optimizes jobs.
3. Choose the data storage database
The company stores the data is a crucial factor when you decide it to become a data-
driven business entity. And it is essential to choose storage that best suits your company's
needs. Based company capacity company can choose best data storage database. This
is the best way to ensure data democratization, as data-sets stored in those lakes are
accessible to employees of all organizational levels. This database system can ensures
transparency, security, and flexibility of data.
4. Gain business clarity from the data
Having access to vast amounts of business-related data can bring many new benefits
and opportunities, including:
• Derive Insights
• Identify trends and tendencies in operations and customer behavior
• Understand clients' desires and needs better
• Measure performance efficiency
• Recognize operational systematic and non-systematic errors
• Identify market gaps
• Measure employee satisfaction

5. Base your decision-making on data insight

Data-driven companies should use data as a primary tool for decision-making planning,
strategy building, and risk assessment processes. To achieve this, we have to make sure
that all the departmental and operational units take data-driven actions. which are not
only aligned across departments but also with the main organizational objective, goal,
mission, and vision. These goals can be met by providing high-quality data integration
software and user-friendly tools and platforms, available to all users.

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Identify how data can benefit the organization
Data Helps you make Better Decisions As the Deloitte survey respondents made clear,
even small startups generate data. Any business with a website, a social media presence,
and accepts electronic payments of any kind collecting data about customers, user habits,
web traffic, demographics, and more. All that data filled with potential if you can learn to
get at it
SMBs can gain the same advantages as larger organizations when using data the right
way Businesses can harness data to make decisions about:
• Finding new customers
• Increasing customer retention
• Improving customer service
• Better managing marketing efforts
• Tracking social media interaction
• Predicting sales trends
In sum, data helps leaders make smarter decisions about where to take their companies.
Data Helps you Solve Problems
After experiencing a slow sales month or watching a poor-performing marketing
campaign, how do you pinpoint what went wrong? Tracking and reviewing data from
business processes helps you uncover performance breakdowns so you can better
understand each part of the process and know which steps need to be fixed and which
are performing well.
Data helps you Understand Performance
Simply put, data helps you see performance. Sports teams are a great example of
businesses that collect performance data to make their teams better. There is not a
professional team, today. that does not employ a team of data collectors and analysts to
help support and improve play on the field. They are always updating data about who's
doing what well and how that can help the team excel, overall.
Data helps you Improve Processes
Data helps you understand and improve business processes so you can reduce wasted
money and time. Every company feels the effects of waste. It depletes resources,
squanders time, and ultimately impacts the bottom line.
For example, bad advertising decisions can be one of the greatest wastes of
resources in a company. With data showing how different marketing channels are
performing, however, you can see which ones offer the greatest ROI and focus on those.
Or you could dig into why other channels are not performing as well and work to improve
their performance. This would allow your budget to generate more leads without having
to increase the advertising spend.
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Data helps you Understand Consumers
Without data, how do you know who your customers are? Without data, how do you know
if consumers like your products or if your marketing efforts are effective? Without data,
how do you know how much money you are making or spending? Data is key to
understanding your customers and market.
However, it can be easy to get lost in all the data you have if you don't have the
right tools to help you understand it. Especially for SMBS, a BI solution designed for them
is the best way to access and interpret consumer data so you can leverage it for higher
sales.

Distinguish how to be a proactive data practitioner:

1. Validate data at the start of every pipeline

Often, data originates from a single source before flowing into multiple systems. So
checking its quality at the source is the best way to prevent low quality data from
multiplying and spreading through your data pipelines. So before you allow your data to
roam freely throughout your organisation give it a ‘sense check’.

This means checking everything is correctly formatted, de-duplicated and is relevant to

your business strategy, as soon as it becomes a part of your core processes.

2. Validate data upon ingest

Automatically validating data when it arrives in your environment can be incredibly

valuable to your firm. In fact, it saved our client $800,000 and increased marketing
effectiveness by 12 percent.

Here are a few basic validation checks that can save you trouble down the line:

• Date validation. Make sure all dates are in a relevant format (e.g. dd/mm/yyyy).
You can also approve future or past dates, depending on what information you
want to gather.
• Value verification. You can create a list of accepted answers like country or
state names or country phone codes. That way you only get information which is
useful to you.
• Reasonable value. Ensure all form fields only accept relevant information. For
example, don’t allow ‘n/a’ as a surname.

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3. Carry out Data Quality Monitoring

You wouldn’t let a bull wander around a china shop unattended. And the same rules
apply to your data. Even if you commit to validating data on input, you still need to
monitor its integrity over time. This keeps your data healthy, relevant and actionable
throughout its lifecycle.

But be sure to only monitor the data that drives your business decisions. If you cast your
gaze too wide, you run the risk of information overload and may miss important data
quality issues in mission-critical services.

To identify mission-critical data you need to prioritise information and then classify it.
First you need to prioritise all information based on criteria such as:

• Impact on revenue and productivity

• Back-up recovery time
• Application performance and data retention
• Security requirements

Then you can classify such data as either:

• Vital. You would notice the data was missing almost immediately.
• Sensitive. It would take a few days for you to notice this data was missing.
• Non-critical. Even if you didn’t notice the information is missing the impact to
your business would be minimal.

Focus on the data you would classify as either vital or sensitive. Anything else is not
important enough to justify continued monitoring.

4. Ensure your reporting is timely and effective

Reporting on data migrations and integrations is rarely done well. You need to give
stakeholders timely information so they can react quickly to any critical issues. The best
reporting pipelines assign tasks, so everyone knows the next steps. Some common
report examples are:

• Data quality reports

• Effort reports
• Resource utilization reports

When you deliver these reports, make sure they contain only relevant and actionable
information. Don’t cover up the signal with too much noise. If business leaders can’t
prioritise data quality actions, you will struggle to make the strategic changes you need
to succeed.

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