Data Foundations - Building Our Future

From buildings to businesses to governments, everything we create rests on foundations. As we progress through the 21st century, a new foundation is emerging beneath our decisions: data. Companies analyse target markets and run the numbers before building a business, and even political campaigns have been shaped by data. But as data becomes the bedrock of the modern world, one question demands an answer: are we sure those foundations are solid?

The DIKW Model and the Data Building

This whitepaper introduces the DIKW pyramid, a structure of Data, Information, Knowledge and Wisdom, described here as a 'Data Building'. Raw data yields information, information becomes knowledge, and knowledge produces wisdom, often called business insight, which decision makers rely on for strategic planning. Yet just like any other building, if the foundations are slightly off, the pinnacle ends up far from where it was intended to be.

When Data Foundations Crack

The paper draws a striking comparison between data and concrete. The Leaning Tower of Pisa, built on poor foundations, needed years of remedial work to remain standing. Decisions built on poor data behave the same way: the wisdom gained sits far from the truth, and outcomes drift far from what we set out to achieve.

A Business Use Case: Comsoft and Pear Systems

A hypothetical acquisition brings the risk to life. When IT giant Comsoft acquires competitor Pear Systems, its customer base appears to jump from 100,000 to 200,000, suggesting revenue will double and comfortably beat the 75% growth target the deal required. Emboldened, the board begins negotiating its next major acquisition. The reality is very different:

• The two companies shared 40% of the same customers, creating 40,000 duplicates.
• The real customer increase was 60%, not 100%, leaving revenue 15% short of the deal's success threshold.
• The board's 'wisdom' pointed towards a risky, potentially ruinous second acquisition instead of fixing the current situation.

The consequences ripple outwards: shocked accountants, disgruntled shareholders, questions asked of leadership and jobs lost, all because the data foundations were off.

This whitepaper is essential reading for forward-thinking managers, analysts and decision makers who build strategy on data. If your organisation depends on insight drawn from customer records and integrated systems, download it to understand why high-quality data foundations are the ground your future is built on.