Foundations for success in the new data era
To extract maximum value from data, organisations are reshaping their data strategies. Westpac’s DataX offering is helping Australia’s top businesses and Government embrace the change.
Data is now widely accepted as being critical to strategic success across all business sectors and is evolving the way governments approach policymaking.
But simply capturing data is not enough for sustained advantage; developing quality insights from data and translating this into actionable steps is required.
The pandemic only served to reinforce the power of data insights, in particular as an antidote to wide-ranging uncertainty. It necessitated the proactive use of data in strategic decision-making, and in turn led to a tangible shift in many organisations’ focus from lagging indicators towards anticipating, understanding and acting on leading, data-driven indicators.
For example, in the retail sector, the importance of online distribution channels for maintaining market share and customer loyalty was highlighted and for many, required digital transformation roadmaps to be fast-tracked.
Westpac has been partnering with Australia’s leading organisations over the last few years to help them enhance their data capabilities. Recently, we launched Westpac DataX to take this expertise and our client partnerships even further.
Our new analytics offer reflects growing recognition that unless decision-makers understand what the data is revealing, and how to operationalise those insights through effective problem solving and meaningful next steps, then it has limited strategic value.
Reshaping business culture
There are several lessons that can be drawn from the organisations that have effectively embedded data-driven insights in their business.
First, establishing the right foundations through relevant technology, business intelligence tools and establishing a data analytics capability either directly in-house or through third parties. This investment is critical, even in a tight data labour market.
Second, dividends from these investments can only be realised if there are ‘business translators’ who can effectively interpret and apply the data insights in day-to-day business operations.
Organisations are starting to remove the strict separation between 'data specialists' and 'decision-makers' and foster the emergence of ‘data savvy decision-makers’ and ‘commercially-driven data specialists’. It is this more complex cultural change that the leading companies have successfully undertaken and will become the hallmark of the future ‘data-driven organisation’.
The close partnership between expert data and business teams is underpinned by a shared understanding of the levers that can drive business success and growth.
Actively integrating this emerging talent base of commercial data experts, and empowering operational teams with relevant insights, is crucial to surviving and thriving in an increasingly complex world.
Third, as the data economy matures, our clients are increasingly using more sophisticated approaches. They realise that using data from within the organisation, while crucial, only provides part of the picture. Blind spots can be eliminated by integrating strategic third-party data sets – like those provided through Westpac DataX. Our de-identified and aggregated datasets are amassed from millions of customer touchpoints, including over six million daily card transactions.
Fair exchange of value
Through Westpac DataX, we partner with clients enabling them to leverage the enormous depth of Westpac’s data assets and combine it with the power of their own data. Designed to enable faster, data-backed decision making for the bank’s institutional and business clients it supports self-serve analytics by both data and business teams in over 17 sectors.
Crucially it is built on strict adherence to privacy obligations and reflects a commitment to the principle of ‘fair exchange of value’.
We recognise it’s not just about how we use the data within our own business to drive internal transformation and optimisation. It is about how we leverage the data to deliver real value back to our customers - by reducing information asymmetry and empowering their own decision-making.
With over 200 years of experience in supporting our clients to grow, Westpac DataX is a natural evolution in our relationship with our clients, building on the deep knowledge of our clients’ businesses and the sectors they operate within.
The transformative power of data for our customers, our economy and society is undeniable. Data, when used effectively and appropriately, provides immense value. Ultimately, improvements in our collective use of data will help Australia’s global competitiveness through a more innovative and productive economy.
However, to achieve this vision, trust and confidence in the protection and sharing of data across the Australian economy must be increased. This can be achieved by ensuring privacy, identity and security credentials underpin an organisation’s foundational capability and are appropriately reflected in the legislative and regulatory settings of our nation.
There must also be a shared objective by both government and industry to improved consumer ‘data literacy’ and the understanding of rights and responsibilities, risks and rewards by everyone. If the right balance is struck, the rewards for our nation will be immeasurable.
This article was originally published in the AFR
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