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Data Offense and Data Defense: Balancing the Allure of Profits against the Risk of Losses
There are two ways to think about data: offensively and defensively, according to a strategy paper on Harvard Business Review by Leandro DalleMule and Thomas Davenport.
Data defense is what businesses need to do with their data to minimize risk. It includes complying with regulations, investment in security to limit and detect fraud, and validate the authenticity and accuracy of data sources. Data defense is primarily in the realm of legal, finance, and compliance.
Data offense is about maximizing revenue, profitability and customer satisfaction. It is about using data to gain information to get insights, to analyze, and to make better decisions. Data offense is often the realm of sales and marketing.
The large number of breaches and potential for large losses has spooked many businesses to put a focus on data defense. A study by InterSystems finds that at least 40 percent of data-related IT operating expenses go towards compliance and other defensive measures. The study suggests that businesses need to begin to shift their focus more towards the offensive.
But some analysts disagree now on the importance of distinguishing between data offense and defense.
Andrea Smith, Head of EMEA Data Strategy at investment banking company BNY Mellon, said that “I personally think we need to stop separating out ‘defensive’ and ‘offensive’. I think we need to appreciate that data is at the heart of everything we do.”
