In today’s world, the responsibility for Data Management is crucial and most companies own very large amounts of information gleaned from different sources. In order to successfully manage and utilize this data, organizations appoint a domain manager who is the custodian of the all the information within the company. It is however believed that this data can be used more optimally were it to be the responsibility of the Chief Marketing Officer.
In recent times there has been a shift in priorities for the corporate world. With escalating competition in all areas, companies have begun to realize the value of big data analytics in an effort to block competition and shore up their own operations. This has seen the appointment of senior level executives as heads of information or marketing viz Chief Information Officer CIO), Chief Marketing Officer (CMO).and the like.
Poor quality data management
However this does not appear to have benefited organizations to a very large extent. Data monitoring and control systems are weak resulting in heavy financial loss. Companies are believed to be losing around $13.5 million a year due to poor quality of data. India is not far behind global companies when it comes to poor quality data management which eats into the companies’ financial resources. Tragically, most organizations have very inadequate accounting systems for information and data owned by them – resulting in ineffective and flawed data management.
With a staggering increase in the use of smart phones, the internet, social media, social networking sites – helped by the reduction of cost – there has been an explosion of digital data and information. However there has not been a corresponding increase in the effective and meaningful use of this flood of information. CMO’s claim lack of access and hence usage.
Value of data
The value of data drew attention post the 2008 financial crisis and companies started taking steps to use the available information for consumer analytics and risk management. Large companies have allocated the responsibility to dedicated Chief Data Officers (CDO) who however are seen to use just a small fraction of the data in the information bank. Inaccurate and poor quality of data and data silos lead to regulatory dangers and erroneous business decisions.
A pleasant surprise is how small start-ups have used big data more resourcefully and proficiently by understanding and reacting to customer needs. It is suggested that the area of data management be handed over to CMO’s who will be more driven to satisfy customer needs, who will use their expertise and market experience to gain insights and plan marketing strategy basis the data and their knowledge. This becomes even more necessary in countries like India who have entered the data management field rather late and then been in a hurry to catch up with the rest of the world.
Lowering of risks and costs
Having a CMO leading data mining and management will lead to lowering of risks and costs; it will ensure better utilization of information and will lead to quicker response to changes in customer needs and desires thus paving the way for research, development and innovation.
It is only when users of data, like CMO’s are put in charge of data management that organizations will learn how to appreciate the intrinsic benefits of the large body of information that is available out there.