The Economics of Data, Analytics, and Digital Transformation

The Economics of Data, Analytics, and Digital Transformation

by Bill Schmarzo
Released November 2020
Publisher(s): Packt Publishing
ISBN: 9781800561410

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Book description

Build a continuously learning and adapting organization that can extract increasing levels of business, customer and operational value from the amalgamation of data and advanced analytics such as AI and Machine Learning

Key Features

  • Master the Big Data Business Model Maturity Index methodology to transition to a value-driven organizational mindset
  • Acquire implementable knowledge on digital transformation through 8 practical laws
  • Explore the economics behind digital assets (data and analytics) that appreciate in value when constructed and deployed correctly

Book Description

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."

What you will learn

  • Train your organization to transition from being data-driven to being value-driven
  • Navigate and master the big data business model maturity index
  • Learn a methodology for determining the economic value of your data and analytics
  • Understand how AI and machine learning can create analytics assets that appreciate in value the more that they are used
  • Become aware of digital transformation misconceptions and pitfalls
  • Create empowered and dynamic teams that fuel your organization’s digital transformation

Who this book is for

This book is designed to benefit everyone from students who aspire to study the economic fundamentals behind data and digital transformation to established business leaders and professionals who want to learn how to leverage data and analytics to accelerate their business careers.

Table of contents

  1. Preface
    1. What this book covers
    2. Get in touch
  2. The CEO Mandate: Become Value‑driven, Not Data-driven
    1. The Data- and Value-Driven Mindsets, Defined
    2. Understanding the Big Data Business Model Maturity Index Phases
    3. Navigating the Big Data Business Model Maturity Index
    4. Transitioning from Business Monitoring to Business Insights
    5. Transitioning from Business Insights to Business Optimization
    6. Transitioning from Business Optimization to Insights Monetization
    7. Transitioning from Insights Monetization to Digital Transformation
    8. Testing the Big Data Business Model Maturity Index
    9. Summary
    10. Further Reading
    11. Homework
  3. Value Engineering: The Secret Sauce for Data Science Success
    1. Step 1: Identify a Strategic Business Initiative
    2. Step 2: Identify Key Business Stakeholders
    3. Step 3: Brainstorm and Prioritize Decisions (Use Cases)
    4. Step 4: Identify Supporting Analytics
    5. Step 5: Identify Potential Data Sources and Instrumentation Strategy
    6. Step 6: Identify Supporting Architecture and Technologies
    7. Summary
    8. Homework
  4. A Review of Basic Economic Concepts
    1. The Economic Value Curve
    2. The Law of Supply and Demand
    3. The Economic Multiplier Effect
    4. Marginal Costs and Sunk Costs
    5. Scarcity
    6. Postponement Theory
    7. Efficiency
    8. Capital
    9. Price Elasticity
    10. The Economic Utility Function
    11. Summary
    12. Further Reading
    13. Homework
  5. University of San Francisco Economic Value of Data Research Paper
    1. Introduction
    2. Creating the Collaborative Value Creation Framework
    3. Chipotle Use Case
    4. Summary
    5. Citations
  6. The Economic Value of Data Theorems
    1. EvD Theorem #1: Data, By Itself, Provides Little Value
    2. EvD Theorem #2: Predictions, Not Data, Drive Value
    3. EvD Theorem #3: Predictions Drive Value Through Use Cases
    4. EvD Theorem #4: The Data Economic Multiplier Effect is the Real Game-changer
    5. EvD Theorem #5: Predictions Enable "Do More with Less"
    6. The Economic Value of Data Calculation
    7. Summary
    8. Further Reading
    9. Homework
  7. The Economics of Artificial Intelligence
    1. Orphaned Analytics
    2. Role of Analytic Modules
    3. Composable, Reusable, Continuously Learning Analytic Module Architecture
    4. A Quick Primer on Deep Learning, Reinforcement Learning, and Artificial Intelligence
    5. Case Study #1: Google TensorFlow
    6. Case Study #2: Tesla Autonomous Vehicles
    7. The Autonomous Holy Grail of AI
    8. Summary
    9. Further Reading
    10. Homework
  8. The Schmarzo Economic Digital Asset Valuation Theorem
    1. The Economies of Scale
    2. The Economies of Learning
    3. Digital Economics Effect #1: Marginal Costs Flatten
    4. Digital Economics Effect #2: Economic Value of Digital Assets Grows
    5. Digital Economics Effect #3: Economic Value of Digital Assets Accelerates
    6. Implementing the Schmarzo Economic Digital Asset Valuation Theorem
    7. Summary
    8. Further Reading
    9. Homework
  9. The 8 Laws of Digital Transformation
    1. DX Law #1: It's About Business Models, Not Just Business Processes
    2. DX Law #2: It's About Digital Transformation, Not Digitalization
    3. DX Law #3: It's About Speaking the Language of Your Customers
    4. DX Law #4: It's About Creating New Digital Assets
    5. DX Law #5: It's About Transitioning from Predicting to Prescribing to Autonomous
    6. DX Law #6: It's About AI-driven Autonomous Operations and Policies
    7. DX Law #7: It's About Identifying, Codifying, and Operationalizing Sources of Value
    8. DX Law #8: It's About the 3 Horizons of Digital Transformation
    9. Summary
    10. Further Reading
    11. Homework
  10. Creating a Culture of Innovation Through Empowerment
    1. Team Empowerment History Lesson
    2. Empowerment #1: Internalize the Organization's Mission
    3. Empowerment #2: Speak the Language of the Customer
    4. Empowerment #3: Empowering Teams Through Organizational Improvisation
    5. Empowerment #4: Embrace an "AND" Mentality
    6. Empowerment #5: Embrace Critical Thinking
    7. Summary
    8. Further Reading
    9. Homework
  11. Appendix A: My Most Popular Economics of Data, Analytics, and Digital Transformation Infographics
  12. Appendix B: The Economics of Data, Analytics, and Digital Transformation Cheat Sheet
    1. Chapter 1: The CEO Mandate: Become Value-driven, Not Data-driven
    2. Chapter 2: Value Engineering: The Secret Sauce for Data Science Success
    3. Chapter 3: A Review of Basic Economic Concepts
    4. Chapter 4: University of San Francisco Economic Value of Data Research Paper
    5. Chapter 5: The Economic Value of Data Theorems
    6. Chapter 6: The Economics of Artificial Intelligence
    7. Chapter 7: The Schmarzo Economic Digital Asset Valuation Theorem
    8. Chapter 8: The 8 Laws of Digital Transformation
    9. Chapter 9: Creating a Culture of Innovation Through Empowerment
  13. Other Books You May Enjoy
  14. Index

Product information

  • Title: The Economics of Data, Analytics, and Digital Transformation
  • Author(s): Bill Schmarzo
  • Release date: November 2020
  • Publisher(s): Packt Publishing
  • ISBN: 9781800561410