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