Minimum Viable Data

22 Jun, 2024

More data is better, or is it?

Data adds context and sophistication, but data also adds complexity and defect opportunities. Data comes with many strings, no pun intended.

Data ownership has significant extra costs:

1. Raising the bar of customer expectations. If you collect the data, you must use the data
2. Administering the data. What is the cost of managing this data? How does this relate to other data in the organization.
3. Reconciling the data. Does this data need to be validated against other sources? Which version of the data is the single source of truth
4. Securing the data. If you collect the data, you must protect the data.

The return on investment of data is also hard to track. Does data have much impact on the market size, market share or margin on sales of your business? In many businesses this is hard to see. Does data add cost and complexity to your business? In many businesses, the cost and complexity is easy to see.

This is probably why most companies hate spending money on information technology.