CFO’s and COO’s are increasingly being asked to approve more sophisticated and larger investments in data-centric innovation projects and digital data assets.
Additionally CFO’s and COO’s are seeking business performance improvements in the way staff leverage technology to create productivity and customer value uplift.
Digital Assets are undergoing massive restructuring and change, often requiring a critical investment review to assess viability and productive service life.
Leveraging AASB 138 Intangible Assets (USA IAS 38)and AASB 136 Impaired Assets (USA IAS 36) ClearDQ is able to automatically measure and discover the commercial impairment of your digital assets to drive mature investment, replacement or retirement options to improve your business performance. For this reason we avoid wasting time engaging with IT/CIO groups without sponsorship from the CEO/CFO/Financial Controller (or Chief Risk Officer). ClearDQ may also qualify as an annual audit measurement activity to credibly recalibrate data asset impairment and carry value.
(We are software engineers, not accountants, so seek advice from your auditor or accountant.)
CFO’s and COO’s need to listen carefully to “keyword” phrases when reviewing digital data investments and initiatives such as: Master Data Management (MDM), Reference Data Management (RDM), Data Analytics, Big Data (including Hadoop), Business Glossary, Data Visualization, Data Reporting and Metadata Management.
These initiatives are all subject to the high risk of failure due to poor quality data. This is globally well known and well understood, but often glossed over by IT departments and business cases. COO’s and CFO’s globally are trending toward taking more of a “hands-on” approach to these investments and holding CIO’s to closer account for business value statements.
Unfortunately what COO’s and CFO’s are NOT being told is the extent of the incumbent damage caused by existing system/people/process failures that result in approximately 20% of their workforce being unable to perform their primary job function due to poor quality data.
IT leaders globally, in general, have no idea how to measure this damage, identify the root causes or remediate the commercial damage, hence the CIO may attempt to gloss over this damage.
Worse still, IT leaders are rarely incentivised or motivated to even measure or pursue the data cleanup effort, as it often exposes the immaturity of the IT leadership. CIO’s don’t like CFO’s and COO’s to be too educated in these matters, as the CIO cannot simply “wave through” new technology changes, or investments.
CFO’s and COO’s need to insist on greater visibility and unfettered access to the metrics and facts surrounding the organizational damage of poor quality data, and an understanding of how data is an “engineered-product” that has a specific lifecycle to capture and unlock it’s business value.
It is most likely that a business leader, such as a COO or CFO will drive the ClearDQ engagement to hold the CIO to account, relative to the IT spend velocity and IT project priority. The CIO will not like this, but globally, this is common emerging trend.
CIO’s will typically posture against CFO’s and COO’s using ClearDQ as it swings the “power and control” over digital information squarely away from IT and deep into the business.
If you are a CFO or a COO of a commercial (listed or non-listed) enterprise, a not-for-profit or government agency, we’d encourage you to download our briefing paper and arrange a confidential discussion with us to begin the journey of repairing the damage to your organisation due to poor quality data and malfunctioning digital assets.
Call us today for a confidential discussion on the investment return of your digital asset class.