Bridging Worlds: When Data Science Meets Domain Expertise
Companies are obsessed with being “data-driven”. They increasingly say they rely on data to drive decisions. They widely boast that data increases their sales and lowers the costs. They say data is at the centre of their business decision-making. All strive to use more data as part of their daily activities.
In the data industry we love coming up with new catchy terms. For data-driven, I’ve seen at least three flavours: data-informed, data-enabled and data-led. Whatever. The key here is that companies are bringing data to the forefront of their decision-making. This is a very good thing. Data-driven companies tend to outperform their competitors who are lagging behind.
The use of data for decisions is nothing new, however. Despite what the hype may lead us to believe. Businesses have been at it for decades. “Databases” existed on paper if you really want to go back. Of course, we have more quantity and variety of data available to us today. More data sources that generate it. Mostly in digital form too. We also now have much better tools to access and process it.
But the practice of using data for decision-making has been around for a long time. It’s just the use of it is not uniform across organisations and depends highly on the domain and culture.
The corporate sea
Most business insights are produced within domains, using highly localised (read siloed) tools and systems. The knowledge resides with the domain experts. They are career professionals who specialise in a particular area. Finance people do finance. They do it better than anyone else (often must obtain formal qualifications). HR specialists do recruitment, training, onboarding, payroll. Sales and marketing drive revenue.
Each area focuses on their remit, producing or consuming data that relates to their core activities. They all have different data requirements, use different systems, report to different managers, adhere to different KPIs and cater to different audiences. Islands in the corporate sea.
Underpinning this “sea” are central data teams that support all departments with their data and technology needs. These folks are data professionals. They know all things related to infrastructure, data engineering, management and governance. They architect efficient data estates, run data warehouses, do data migrations, perform complex integrations, etc. They manage data at an enterprise level.
Domains vs central data teams
Domain experts are very good at making decisions relating to their domains. They are well-versed in the data they use. They understand its limitations and know what “good” looks like in terms of data quality. But the domains know nothing about data technology.
On the other hand, the central data teams know everything about data technology. But they possess very little domain knowledge. They view all data the same, regardless of what it is used for downstream. It flows from source to consumer, must be managed, governed, and adheres to the domain requirements. What the domains do with it is generally not their concern. In this regard, central data teams act a support function for the domains, interacting only when things go wrong (i.e. service desk) or new data/system requirements arise (project delivery).
Yet, in the modern enterprise, we need to bring both the domain expertise and the data knowledge together. To get the most value from the data, the domains must be able to quickly obtain and iterate new data sources, seamlessly share data with other departments, develop apps and data products, etc. Without having the required technical expertise, they will never get there.
Understanding the divide
In most companies there exists a fundamental divide in perspectives and languages between business domain experts and data teams. Business domain experts are doing business things. They operate within a realm of strategic objectives and KPIs. Data teams, on the other hand, deal with data models, algorithms, and analytics, focusing on the “how” of data manipulation and interpretation.
The goal is to bring them together in a harmonious fashion to foster better collaboration and communication. So that everyone works towards the common set of objectives of adding higher business value.
Bridging the divide
How do we go about effectively bringing the data expertise and domain knowledge together? That’s a million-dollar question! Bridging the gap between these two realms isn’t straightforward at all (be very suspicious of claims that state otherwise).
But one thing is clear: businesses must bring these teams together. With the increasing demands for broader analytics use cases and the advent of GenAI, leaving things the way they were is unworkable in the long run.
There are several approaches to combining these skills, each with its own benefits and challenges. None are perfect and all require a strategic vision from the business top leadership.
Embedding data experts into domain teams
This approach, I find, worked best where I saw it implemented. But it requires time and careful implementation.
Pros:
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Cons:
Training domain experts in data and tech skills
There are certainly many technically apt domain experts out there. However, from what I’ve observed, the skills required to be a proper techie take years to achieve. A data engineer skillset takes a lot of effort to earn.
Pros:
Cons:
Hybrid teams with cross-functional roles
On paper, this sounds like a sound approach. In practice, it’s very hard to implement effectively.
Pros:
Cons:
The technology angle
But what if give the domain teams easy-to-use tools, train them and let them get on with their work themselves?
Pros:
Cons:
What’s the answer?
The best way, I believe, is to embed data experts into domains and empower them with appropriate tech. Over time, they will gain a sufficient understanding of the domain knowledge to help move the analytical dial.
The data experts will gradually disseminate their knowledge with the domains. They will manage the data, apply governance policies liaise with the central data teams. The domains, on the other hand, will be free to get on with what they do best. But this time, they will be fully supported and technologically empowered to iterate faster, make more informed decisions and drive the business forward. The domain and data experts working in harmony towards the common goals.
Bridging the gap between business domain expertise and data teams is not a one-off effort, mind. The senior management needs to understand this clearly. It is a continuous journey towards a more integrated, data-driven organisation. It requires strategic vision and investment in time and people. Only then, the business will truly become data driven.
If you are undertaking a journey to your data enlightenment, don’t hesitate to get in touch. At IOblend, we have many years of experience developing effective data capabilities in various organisations. We have developed cost-effective technological means to make the transitions to data-driven businesses easier.
AI Digital Twins | Simulate business ideas in minutes with AI, Data Products and Data Object Graphs (DOGs) | Agent DOG Handler | Composable Enterprises with Data Product Pyramid | Data Product Workshop podcast co-host
1yLike this a lot Val Goldine and thanks for the tag. I totally agree about combining the domain expertise with tech and data. But I guess my experience is that companies have different org structures that fit the different molds you have but one thing is always the same there needs to be an e2e delivery operating model. So it’s not one size fits all (love the way you break down the pros and cons). And it’s about reducing the friction and avoiding the handoffs if there isn’t one team doing the work. Hybrid models generally are the most flexible but totally take the point, the infra needs to do a lot of the heavy lifting, The aspect most data infr misses is the operating model including UX. databases get wired to technical orchestration but but very little of the user journey is included. It’s a massive missing piece imho
Thanks for the mention, and for joining our LinkedIn Live yesterday and participating in the discussion! 🙌