Explaining data to the C-suite

Amol Punekar at AND Digital describes the biggest misconceptions about the value of data at board level

 

In today’s data-driven world, organisations recognise data’s critical role in shaping business strategy, driving efficiency and delivering a competitive edge. Yet, despite its immense value, many executive boards struggle to understand how to effectively leverage data for decision-making. Communicating the true value of data to the boardroom is no longer just an IT function; it’s a strategic imperative.

 

The reality is that data alone is not enough; its value must be articulated in a way that aligns with business outcomes, ensuring that leaders can translate insights into actions. For boards to make informed decisions, they need a clear understanding of how data contributes to the company’s overall success. Data-driven organisations are 23 times more likely to acquire customers and 19 times more likely to be profitable than their peers

 

Successfully communicating this requires addressing common misconceptions, aligning data initiatives with business objectives, tailoring messaging for different board members and demonstrating how data drives a competitive edge. 

 

 

The biggest misconceptions

Many executive boards hold misconceptions that hinder their ability to harness data’s full potential. One of the most prevalent is the belief that simply collecting data automatically generates value. In reality, raw data must be structured, analysed and integrated into decision-making processes before it can provide meaningful outcomes.

 

Another misconception is that having insights automatically leads to data-driven decision-making. While insights provide valuable information, many organisations struggle to operationalise them due to misaligned priorities, bureaucratic decision-making processes, or a lack of data literacy at leadership levels.

 

There is also a tendency to assume that all collected data is immediately ready for use. However, data often resides in silos and can be unstructured or lack the necessary governance frameworks to ensure accuracy and consistency and these challenges must be addressed before data can be effectively leveraged. 

 

Many executives believe that AI and data alone will solve all business challenges. But while AI has transformative potential its effectiveness depends on high-quality data and a well-defined strategy. Poor data quality can lead to biased insights and ineffective decision-making, potentially harming rather than helping the business.

 

Research from Gartner indicates that poor data quality costs organisations an average of $12.9 million annually, highlighting the financial risk of neglecting proper data management.

 

 

Framing data initiatives with business outcomes

For data initiatives to gain traction at the board level, they must be directly tied to measurable business outcomes. This means beginning with the organisation’s strategic goals, whether revenue growth, cost reduction, customer satisfaction, or operational efficiency, and demonstrating how data can support these objectives.

 

One effective approach is value mapping, which involves identifying how data impacts different aspects of the business. In the retail sector, for example, data can optimise inventory management, reducing stockouts and excess inventory costs.

 

Data can help predict customer churn and inform retention strategies in subscription-based models. By framing data’s role in tangible business improvements, leadership can see its relevance more clearly.

 

Boards respond strongly to financial metrics, so highlighting the financial impact of data investments is crucial. Arguing the ROI in terms of cost savings, efficiency gains and revenue growth strengthens the business case for data initiatives.

 

When data strategies are linked to bottom-line results, they become more compelling and actionable.

 

 

How to adjust messaging for different board members

 

To effectively communicate the value of data, it is important to tailor the message to the different board members, each with a unique set of priorities.

 

The CFO will be the most concerned with ROI, cost efficiency and financial sustainability. The CMO will focus on customer acquisition, retention and personalisation, and the COO will prioritise operational efficiency and risk mitigation. 

 

Recognising these perspectives and framing data discussions accordingly ensures greater engagement and buy-in.

 

Simplifying technical concepts is also essential. Many executives are not data specialists, so overly technical jargon can create barriers to understanding. Instead of using terms like “data lake,” it is more effective to describe it as “a system that ensures real-time decision-making with accurate data”, as clear, relatable language makes data concepts more accessible and actionable for decision-makers.

 

Appealing to both logic and emotion further strengthens the case for data investments. Real-world success stories and competitor benchmarks help illustrate the potential benefits of data-driven strategies. 

 

Additionally, demonstrating how competitors are leveraging data to outperform in the market can create a sense of urgency and reinforce the need for action.

 

A well-executed data strategy provides a significant competitive advantage in several key areas and one of the most impactful is informed decision-making. 

 

 

Data drives competitive advantage

Organisations that use data effectively can make accurate, real-time decisions that drive performance and efficiency. Leaders can act on current, data-driven insights rather than relying on intuition or outdated reports.

 

Customer personalisation is another critical area where data creates an edge. Leading organisations use AI and data analytics to tailor customer experiences, improve satisfaction and increase retention. 

 

Companies can deliver targeted marketing, personalised recommendations, and proactive customer support by understanding customer behaviour and preferences.

 

Data-driven automation also enhances operational efficiency by optimising supply chains and improving workforce productivity. This, in turn, can achieve cost savings and streamlined operations by reducing downtime. Whether it’s predictive maintenance in manufacturing or demand forecasting in retail, data-driven efficiencies lead to tangible benefits. 

 

 

The future of data in the boardroom

Data is no longer optional; it is the backbone of modern business strategy, and organisations that fail to integrate data into their decision-making processes risk being left behind. Leaders can ensure that data becomes a true strategic asset by dispelling misconceptions, aligning data initiatives with business goals, and building a data-fluent culture.

 

AI and automation are set to play increasingly central roles in streamlining decision-making processes and providing real-time insights that inform strategy. Organisations that invest in AI-powered analytics will gain a competitive edge in responsiveness and agility. 

 

Ultimately, effectively communicating the value of data at the board level requires addressing misconceptions, aligning data strategies with business objectives, tailoring messaging for different stakeholders, and showcasing how data drives competitive advantage. As data continues to shape the business landscape, organisations that prioritise data literacy and integration at the highest levels will be best positioned for success.

 

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Amol Punekar is Executive-Head of Business Unit for mainstream consumption at AND Digital

 

Main image courtesy of iStockPhoto.com and vitranc