Andy Scott, CTO, on Data-Driven vs. Non-Data-Driven Companies

In this installment of our Expert Insights Series, Jon Thompson hosts technology and operations leader Andy Scott to discuss the role of data in business. Andy has 35 years of experience across multiple industries holding positions that include Chief Technology Officer, Chief Product and Technology Officer, Chief Information Officer, VP of Digital Product Management, and Board Director. He is known for his track record of delivering growth and empowering leadership through digital transformation.

Prior to starting Cognitival Consulting, Andy served as Chief Technology Officer of Hydromax USA, a private equity backed company providing field services and solutions for gas, water, and wastewater infrastructure. Blue Margin worked with Hydromax to help improve operations and productivity through data visibility, and through that partnership Andy’s expertise became apparent. Blue Margin invited Andy to share his insights on data, digital transformation, and technology leadership. The episode covers the difference between data-driven and non-data-driven companies, the role of quality data in AI readiness, Hydromax’s recipe for dashboarding success, and how companies can succeed with data where others have failed.

Watch the full interview on YouTube, listen to the podcast, or read the highlights below.

Data-Driven vs. Non-Data-Driven Companies

Over 35 years in tech leadership, Andy has observed a clear difference between data-driven and non-data-driven companies.

“The non-data-driven company is running around in firefighting mode.”

Andy Scott

Companies without BI tend to be buried in Excel, often after failed BI initiatives. While it is possible to get some data insights through Excel, leaders without dashboard reporting are largely flying blind. This lack of visibility creates uncertainty, tension, and angst, and leaders find themselves stuck in firefighter mode. As an aside, Blue Margin has observed that clients who use an agile approach in their data projects experience greater success than those who attempt the ERP-style waterfall approach.

“The data-driven company can focus on growth and performance.”

Andy Scott

In contrast to uncertainty and tension, data-driven companies have clarity into leading performance indicators. That visibility allows leaders to be proactive and step out of reactionary mode. Jon discusses the crucial role of data visibility in this CFO webinar.

AI Requires a Strong Data Foundation

When embarking on a data strategy, it is not uncommon for companies to want to jump to advanced technologies like artificial intelligence and machine learning. Andy offered a clear explanation of both technologies and the use case for AI and ML within business intelligence. Although AI and ML are powerful, they both require quality data. Andy says, “If your data is no good, the conclusion that your brilliant piece of software is going to come to is fundamentally flawed.” If you do not have the core data to power AI and ML, start lower down on the value chain. If you have access to good data, it can make sense to deploy value-creating solutions, as they did at Hydromax. For a broader view on this topic, read our perspective on building an AI-ready data platform.

Hydromax’s Recipe for Dashboarding Success

While Andy was CTO at Hydromax, he worked with Blue Margin to increase data visibility with the goal of improving productivity. Several elements contributed to the success of the project: a willingness to seek outside help, the intuitive interface of the dashboards, and cultural accountability.

Get Outside Perspective

Before working with Blue Margin, Hydromax had attempted internal BI initiatives without success due to scope creep and conflicting priorities. Hydromax leadership found value in objective consultants who challenged them at key points in the process to focus on the highest value issues. The Dashboard Effect podcast explores the internal vs. external BI team question in depth.

Keep Dashboards Simple and Intuitive

Data must be easy to use to have an impact. Thoughtfully planning how the data would be accessed by different users and on a variety of devices helped drive adoption and data collection. Andy reflects on the impact and how he became an evangelist by the end.

“It was an eye opener. It showed me how quickly dashboard technology, and working with an external partner, could actually help you achieve that.”

Andy Scott

Create a Culture of Accountability

In previous BI efforts, dashboards were initially adopted but waned with time. Blue Margin’s dashboard design was easy to understand, useful, and accessible by all, so adoption levels were high and stayed that way. As an added benefit, Hydromax was able to develop incentive programs for employees thanks to precise performance metrics.

Why Data Initiatives Fail and How to Succeed

Change Management

Andy recommends leaders think about the culture, understand how the change will impact individuals, and focus on communication throughout the process. Employees must be involved throughout the change management process to experience the best organizational outcomes.

Keep It Simple

Andy is a promoter of Dr. John Gall’s foundational principle that complex systems which work have always evolved from simple systems that work, and that complex systems designed from scratch never work and cannot be made to work. Andy advises, “Build a strategy that defines the destination, and then define the journey by building a roadmap that gets you there. The destination will move, and the journey will be a windy road, but you’ve got a vision of where you want to go.”

Use External Resources

Andy recommends that CTOs spearheading such projects ask for help when needed. The Dashboard Effect podcast explores the pros and cons of in-house data initiatives in detail.

Define Success in Measurable Outcomes

It is critical to align on goals and define the measure of project success up front. How are you going to manage the investment? What is the impact? What is the end goal? How will these be measured? These goals will vary from a specific IRR to employee retention rates to improved safety.

Go for Quick Wins

Andy says, “Don’t go for the behemoth of a project that will deliver something in a year.” He emphasizes the value of smaller, faster projects that deliver visible results early and build momentum for subsequent initiatives.

Andy’s firm, Cognitival Consulting, caters to small businesses, PE firms, and startups, helping leaders navigate the digital transformation and technology landscape. If you would like to connect with Andy, he welcomes your call at 281-684-7673 or your email at ascott13611@gmail.com.

If you would like to explore how Blue Margin’s managed data service can help you use data visibility to drive growth and team accountability, contact our team here.