Themes & key insights from the Data Jam
Interview with Paul Willoughby and Ben Steele
In the ever-evolving landscape of data analytics, the conversation around data continues to grow louder - but are businesses truly capitalising on their potential?
Following the recent Data Jam in November, Jeremy Burgess sat down with Paul Willoughby CEO at Folio Group and Ben Steele, Head of Data & Analytics at BMS to discuss the state of data in the business world, the challenges companies face and to answer the question “isn’t it all getting a little bit boring?”.
The buzz around data analytics, but it isn’t new
Jeremy: This was the first Data Jam event that brought together practitioners, vendors and industry colleagues. What was your key takeaway?
Paul: I’m going to be a bit of a party pooper here as I went to the event with a heavy heart as I’ve been leading change and transformation activities for nearly 20 years and I’ve become a little bored with the lack of action. For years I've seen the same people on the same stages waxing lyrical about what we need to do but offering very little in the way of practical examples of how to change the status quo, so my expectations were a little on the low side.
But I’m pleased to say that there finally seems to be some new faces and some new perspectives, and thankfully a lot of the speakers gave very good practical advice to the practitioners in the room. I felt invigorated by a few of the sessions, Ben Bolton (of Gracechurch fame) gave a brilliant presentation on marketing which was 100% backed up by data that proved his perspectives. That was very refreshing.
Jeremy: Ben, you attended as a speaker, what were your thoughts?
Ben: For me, it highlighted the growing buzz surrounding data analytics. There was more of a vibrant atmosphere and some pretty intense discussions. The big question for me though is how do we capitalise on that buzz — whether it’s business demand, investor appetite, or vendors and suppliers delivering additional capabilities.
I think we just have to accelerate. To Paul’s point, how can we deliver faster than we have in the last 5 to 10 years and not fail at the same hurdles?
Do we really need more data?
Jeremy: One of the central themes of the Data Jam was whether businesses genuinely need more data, or if they simply need to better utilise what they already have. What are your thoughts?
Ben: I’m afraid that it’s my turn to be a little more candid. Most businesses already have plenty of data, if you're a sophisticated business exploiting your current data capabilities, then maybe you can afford the time to look for more externally. But my philosophy is to focus on getting the most out of what you currently have. It highlights a widespread issue in data analytics which is the endless pursuit of more data without fully leveraging existing resources.
Paul: Do we really need as much data as we think we do? I don’t think so – I think we have more data than we know what to do with, but I’m okay with a thirst for more. I speak to clients all of the time wishing that their underwriters would be more data curious - so if we have to run a few experiments to prove or disprove a hypothesis about new data sources then I’m ‘all in’ if it increases curiosity amongst our practitioners. This can only be a good thing for innovation.
The challenges of getting the basics right
Jeremy: So you’ve both cited that a significant barrier to effective data usage is the lack of foundational capabilities and industry maturity. How do we fix the basics?
Ben: There is a low maturity level within our industry. Even at a market level, data standards and foundational capabilities are still being talked about but not being implemented. I’m going to sound like a broken record: building foundational data capabilities is essential, but it’s not always straightforward.
At an organisational level, foundational work is hygiene work but still comes at a cost. Building a foundational capability is an enabler to value, but we won’t necessarily see value on its own. Companies need to understand that investing in foundational data work is different from pursuing specific business goals and these programmes have very different returns on investment.
Paul: I’m going to say that people are failing to recognise the importance of change management, something that is often overlooked in data teams. A great example is a few of my software clients who have rolled out the same data platform to multiple insurers, some have been extremely successful, but many have failed to get buy in from practitioners. The key differentiator in each of the success stories was the level of change management maturity within each company.
Those that treated the rollout of new data tools as a change programme and created a change wrapper were much more successful and delivered much better ROI.
Ben: I 100% agree with Paul on this one. There's not anywhere near enough focus on adoption and usage, which is where business outcomes are enabled. For data initiatives to succeed, the goal must be to seamlessly integrate data practices into everyday business operations.
The Impact of Martec Law
Ben: I saw a few themes around AI which I would liken to Martec's Law.
Source: https://www.rootinc.com/wp-content/uploads/2020/06/martecs-law-refresh-01.png
Martec’s Law is this idea that technology (and data) changes exponentially, while organisations change logarithmically. This creates a gap between the rate of technological change and the rate at which organisations can adapt. We are seeing so much change in our abilities to exploit data via the use of AI that I think people are a bit dumfounded on how to get started.
If businesses don’t prepare their people for new tools and systems, allowing them to create new case studies to experiment with, they risk diminishing returns on their technology investments (especially in the AI space).
Paul: I like that observation a lot. My perspective would be that sometimes there are too many options for people, and they are paralysed by the fear of choosing the wrong thing.
My answer is that you need to focus on the things that give you an ‘edge’ or differentiate you in some way as these are the things that create easy business cases rather than something that saves a few hours.
Moving people from conversation to action
Jeremy: You both started the interview by suggesting it’s all getting a little bit boring, do you still feel the same?
Paul: I’m a frustrated innovator who thrives on being a bit different, so I’m probably being a little facetious when I say that. But I do think there are a few of us in this market that have been around the block and have some fantastic stories to tell (and also carry the war wounds) so we need to stand up and help others get it right, which is why I started my business to be honest.
Ben: No, I’m never bored. Data drives me and I love creating and delivering data strategies… But like Paul, I’m a little frustrated with the decision paralysis. I’d be keen to work with some others in the market and create some sort of acceleration capability that we could all benefit from.
Paul: I know that you have established a Data Jam LinkedIn Group which will help connect like-minded data and analytics practitioners and experts. This is a great opportunity to continue the conversations started at the event and, importantly, move people into action.
My thanks to Paul and Ben for sharing their reflections from the day and how we move forward in this rapidly evolving, data-driven world.
Join the Data Jam LinkedIn Group to keep up-to-date with the latest developments in this field and join a progressive conversation on how data, analytics and AI are and will shape the future of insurance.
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