Data Strategy

Executive Summary

Becoming a data leader in the industry

is one of the industries to experience digital transformation. There is no question
that the sector will undergo future digitisation. This trend is evident in other parts of
the world, as seen with and in the increasingly crucial role of data
in the which is typical in . In proactive
response to this trend, key industry bodies such as the UK Government,
are increasingly pursuing digital agendas.

If you woke up as an industrial company today, you will wake up as

a software and analytics company tomorrow.
Jeff Immelt, CEO at General Electric.

Data is a key asset which when used intelligently, is proven to drive more efficient outcomes by guiding
decision making and creating new business opportunities which may not have previously existed. Effective
data management is key to unlocking those opportunities, by allowing us to better support and develop
relationships with . functions at the forefront of
and our dominance in the market gives
us unique access to more data than any other organisation in our sector. In order to maintain this position, it
is critical that we invest in a data strategy that underpins our future operational effectiveness by ensuring
that we continue to meet the expectations of our customers and consumers and take a leading role in the
future digital transformation of .

This data strategy outlines our data vision and defines how to achieve that vision by developing strengths in
a range of capabilities aligned to data operations, compliance, governance and value.
A phased roadmap of initiatives is proposed, which is designed to deliver benefits by working towards the
realisation of a target-state where:

1. Strong data leadership is established in a new dedicated data function.

2. Enterprise data standards are defined, agreed, documented, and published.
3. Our data assets are identified and catalogued.
4. People’s roles and responsibilities towards data quality are clearly defined and adopted.
5. Data operations are optimised through standardised policies and procedures.

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Table of Contents

Executive Summary ................................................................................................................................................................. 2

The Scope of This Document .............................................................................................................................................. 4

Why Data Is Important to ................................................................................................................... 4

How data excellence supports our strategic goals ............................................................................................... 4

Data Vision ............................................................................................................................................ 5

Why must embrace the role of data in our digital future ................................................ 5
envisioned data driven benefits.............................................................................................. 7

Strategic Data Objectives ...................................................................................................................................................... 9

The scope of what this strategy aims to achieve .................................................................................................. 9

Data Capabilities .................................................................................................................................................................... 10

Hallmarks of a data driven organisation ................................................................................................................ 10

Data Capability Assessment ...............................................................................................................................................12

data capabilities ..........................................................................................................................12
The goals of each group of data capabilities ........................................................................................................ 13
The description and goals of each data capability .............................................................................................14
Current and target state capability maturity .........................................................................................................21
Current and target state capability scores ............................................................................................................ 22
Current and target state capability analysis ......................................................................................................... 23

Target State Analysis ............................................................................................................................................................ 24

Acquiring the data capability to deliver the data vision .................................................................................. 24

Strategic Roadmap ................................................................................................................................................................ 25

The way forward to achieving target data capability maturity ..................................................................... 25
Phased objectives ............................................................................................................................................................ 26
Implementation Roadmap ........................................................................................................................................... 27
Supplementary documents ......................................................................................................................................... 28
External references ......................................................................................................................................................... 28

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The Scope of This Document
This document does:

• Explain the components of a data strategy, specifically aspects which are relevant to
.

• Set out the desired level of data capability required to meet strategic goals.

• Assess the current state of data capability maturity.

• Propose a phased approach to improving data capability.

This document does not:

• Depict plans, timelines or specifications for activities relating to specific projects or solutions.

Why Data Is Important to

How data excellence supports our strategic goals
The Group Business Plan sets out which support our purpose:
. These are:

While data is explicitly mentioned it important to recognise the critical dependence all
aspects of the strategy have on robust, available and high-quality data.

To highlight one example, to open potential new commercial opportunities such as offering data
products to our customers, any supporting data needs to be compliant, reliable and available at the point
of need. This can only be achieved by having a clear data strategy for the organisation, agreed across all
the functions, and implemented and maintained as part of the way works, every day.

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 Data Vision
Why must embrace the role of data in our digital
future
An almost unparalleled set of conditions all apply to , which combine to form a
prodigious level of opportunity to achieve data driven business benefits. Together, those three
conditions can be expressed as

The conditions are:

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 s Data Vision

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 envisioned data driven benefits
These are some high-level examples of benefits that could achieve through realisation
of the data vision, which should be analysed further to develop into more specific business cases:

1. Reduce the burden of effort on individual teams to find and avoid or fix data issues.

2. Increase the effectiveness and reliability of reports and analysis.

3. Underpin regulatory compliance and reduce data risks.

4. Reduce the size of the claims book.

5. Enhance our premium pricing through the application of data science.

6. Increase claims prediction accuracy through the application of machine learning.

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7. Grow new data-driven streams of revenue, by delivering rich insights on

8. Reduce costs and increase efficiencies in the process.

9. Help to better manage their data and become a leader in data solutions for the
industry (and in the process acquire even more data).

10. Increase the size of our customer base (and in the process acquire even more data).

11. Reinforce our reputation and expand our influence in our industry.

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Strategic Data Objectives
The scope of what this strategy aims to achieve

This data strategy identifies objectives in four key aspects; Compliance

Compliance, Governance, Value and Operations. These four
aspects combine in a strategic approach which seeks to:
Operations Governance
A. Ensure that we hold and use data safely.
B. Assure the quality and availability of data.
C. Generate business benefits from data. Value
D. Manage data efficiently and cost-effectively.

Str bjectives are:

Compliance: Ensure that all data created & managed by the organisation is compliant with external
(regulatory) and internal standards, and that all relevant structures, ownership and procedures are in
place to protect data going forward.

Governance: The organisation controls all data creation, processing and deletion within an agreed
framework of standards and processes supported by assets such as a data catalogue, along with the
relevant policy and process documentation. There will be clear roles and responsibilities specifically
related to data governance, including the ongoing monitoring and reporting of data quality against
agreed quality measures.

Value: Exploit data internally and externally to drive efficiency and maximize commercial opportunities.
This will include the application of data science, provision of business intelligence, and support for
operational excellence activity.

Operations: Enable, support and optimise enterprise data activities through a

centralised foundation of core data management capabilities.

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Data Capabilities
Hallmarks of a data driven organisation

This data strategy focuses not just on a vision, but also on implementation. To achieve the vision and
the underlying business benefits, it’s crucial to translate high-level objectives into practical and realistic
initiatives that our organisation can realise.

The implementation aspect of this strategy therefore describes a range of capabilities in which
must acquire a sufficient level of maturity in order to achieve the data vision.

Data capability covers a broad range of organisational structures and activities. To understand the
impact of effective data capability, it is first useful to envisage ten general characteristics of an
organisation that is ‘data driven’.

1. Someone is responsible for the safety, quality and value of data.

2. With any new project, questions of using, creating and maintaining quality data are asked from
square one.

3. Whenever someone offers an opinion, it’s accompanied by numbers and data.

4. Numbers are communicated, even if they illustrate poor performance.

5. Everyone can access the data that relates to them.

6. Each objective has an associated indicator and target to be reached.

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7. Teams receive data analysis training.

8. Data collection projects have no trouble getting financed.

9. Data is not used to point fingers in case of failure.

10. Relying on tests has become second nature.

A final point…

We must be careful about the meaning of ‘driven’, as it can be the source of some misunderstanding
regarding the expression ‘data driven’.

If by ‘driven’ we mean ‘directed’, ‘led’ or ‘guided’, then ‘data driven’ does indeed mean that data points
our business in the right direction and leads behaviours. If on the other hand we interpret ‘driven’ as
‘propelled’ or ‘motivated’, this can create confusion. Data is at the service of company projects. It allows
our business to know where it is, and the distance that remains toward reaching its goals. But a
company will never be motivated by numbers. It will be motivated by a vision – a vision that gives
meaning to the work of each employee. It’s therefore preferable that aims to be both
‘vision driven’ and ‘data informed’.

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Data Capability Assessment
data capabilities
To understand the current capability of the organisation alongside the required capability to achieve the
strategic objectives, a structured assessment was conducted based on interviews and evidence gathered
across all departments. Additionally, a SWOT analysis was conducted to support the overall current state
assessment and inform definition of the target state.

Information gathered was collated and evaluated against set criteria, across the main aspects of data
capability; compliance, governance, value and operations. A range of capabilities which are relevant to
data objectives were identified and are illustrated here in Data
Capability Model.
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The goals of each group of data capabilities

Capability Goals

Compliance The organisation and its customers, suppliers and partners are protected from
data risks by complying with external regulatory requirements and internal
architectural standards.

Governance Data accessible by the organisation are of sufficiently high quality and
availability to support effective data-driven activities, processes and objectives.

Value Data and data expertise are used in ways that create optimal value for the
organisation, while maintaining data compliance and governance objectives.

Operations Effective and efficient enterprise data activities are enabled, supported and
optimised through a centralised foundation of core data management
capabilities.

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The description and goals of each data capability

Compliance Capabilities

14
15
Governance Capabilities

16
17
18
Value Capabilities

19
Operational Capabilities

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Current and target state capability maturity
Based on information gathered from extensive consultation and observation, the current and target
maturity of each capability has been assessed on a five-point scale. Criteria defining each level of
maturity are specific to each capability and are recorded in the supplementary Data
Capability Framework document. As a general summary across all capabilities, the maturity scale is as
follows:

Maturity Level Maturity Assessment

The organisation is experiencing frequent issues in its attempts to work with or
1 generate value from data, and recognises the need for improvements. The
Struggling business also recognises potential opportunities to increase data driven benefits
but does not possess the means to achieve them.
The organisation has implemented localised enhancements in data processes
and services, and data issues are managed reactively. Projects and business
2 processes aim to minimize data issues, but seldom aim to create new data driven
Surviving benefits. Efforts to reduce data issues and increase data benefits are siloed within
separate teams.
Data issues are quickly and effectively resolved by processes established across
multiple business functions. The business achieves basic-level benefits from data
3 and builds plans for increasing data driven benefits. Projects and business
Striving processes strive to increase data capabilities and deliver or enable new data
driven benefits.
Data issues are minor and infrequent as a result of effective data quality
monitoring and proactive data issue resolution. The business displays a culture
4 of data driven operations and behaviours which propagates exceptional benefits
Thriving from data. Data impacts and opportunities form part of standard procedures in
projects and business processes.
The business has established a deep and respected data driven culture. The
5 organisation is recognised as an industry leader in data driven practices and
Excelling collaborates with the wider industry to extend data driven best-practice and
benefits to industry peers and customers.

As presented in the supplementary Data Capability Framework,

overall data capability maturity is This assessment reflects poor strength in many areas,
alongside the presence of localised modest capability in analysis and reporting, data cataloguing, risk
management, data quality monitoring, regulatory requirements and commercialisation.

To achieve our strategic data vision, must attain an overall capability maturity of
This reflects our need to not just achieve intramural data excellence, but to also position
as a leader of data driven digital solutions in the industry.

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Current and target state capability scores
Our current and target state maturity for each data capability is presented in the supplementary
Data Capability Framework document, and summarised in the following table:

Category Capability Current Strength Target Strength

Compliance

Governance

Value

Operations

Overall (Mean) Maturity

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Current and target state capability analysis
Analysis of our current and target state maturity for each data capability is presented in the
supplementary Data Capability Framework document, and illustrated in the following
diagram:

Current and Target State Data Capability

5 4
4
4

3
5 5
Data Data
2
Operations Compliance
2

2
1 1 1
1
5 4
3
2
Data
0
Value
1
2 1
1 1
4
5 2 Data
Governance

5 5

4
5

Data Compliance Data Governance Data Value Data Operations Current State Target State

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Target State Analysis
Acquiring the data capability to deliver the data vision
As a summary of our target state data capability maturity, these are the aspects which stand out as
needing to be addressed as a priority.

• Leadership.

• Data Standards.

• Data Catalogue.

• Innovation in the use of machine learning and data science.

• Roles & Responsibilities.

• Operational Excellence.

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 Strategic Roadmap
The way forward to achieving target data capability maturity
The path to target state capability and achievement of the data vision, should naturally be approached
through a series of incremental phases, as illustrated in the following diagram:

Incremental Increases in Data Capability Maturity

Data Operations Data Compliance

e 3

Data Value

Data Governance

Current state Phase 1 (3 to 6 months) Phase 2 (9 to 12 months) Phase 3 (18 to 24 months) Phase 4 (24+ months)

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Phased objectives
The goals of each phase are expressed here as objectives themes. The specific goals and timescales may
fluctuate as a result of more detailed planning. But in general terms, the following phased objectives
represent an appropriate approach to achieving target state data capability.

Months
from Objectives Theme
Start
Phase 1

3 to 6
Phase 2

9 to 12
Phase 3

18 to 24
Phase 4

24+

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Implementation Roadmap
This high-level roadmap illustrates an appropriate sequence of activities throughout the four phases. In
general terms and reflecting the objective theme of each phase, initial focus should be on data
operations and data governance. Then after basic foundational strength has been achieved in those
areas, focus should widen to include data compliance and data value.

Phase 1 (3 to 6 months) Phase 2 (9 to 12 months) Phase 3 (18 to 24 months) Phase 4 (24+ months)

Legend
Data Governance Activity
Data Compliance Activity
Data Value Activity
Data Operations Activity
Current State

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Supplementary documents
The following documents exist in support of this strategy and should be reviewed in conjunction with
the content of this document.

• SWOT Analysis (pdf).

• Data Capability Framework (xls).
• GBP Alignment Analysis (pdf).
• Data Strategy PowerPoint Presentation (ppt).
• Data Governance Organisation Structure (pdf).

External references
The following resources were referenced during the development of this data strategy.

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