August's Insights for Data Leaders

Welcome to the August edition of the CDO Newsletter!

In this month’s newsletter, you’ll find an exclusive interview with Avanti West Coast train operator’s Head of Train Service Delivery, Ashley McKenna, in which we tackle implementing and leveraging AI in the travel and hospitality industry. In anticipation of CDO Travel & Hospitality Exchange 2024, we’re also taking a look at the top challenges and investment priorities of data leaders in this field. With the CDO Retail Exchange having wrapped up last month, we take a look back at some of the key learnings. Finally, we’ve collated some breaking industry news from the past month to keep you informed on all things data.

AI in the Travel and Hospitality Industry: An Implementation Roadmap

As AI and machine learning technologies become increasingly sophisticated, business leaders in the travel and hospitality sector are eager to leverage these advancements to enhance their products, services, and revenue.

Ahead of next month’s CDO Travel & Hospitality Exchange where the theme of artificial intelligence will be discussed in detail, we were fortunate enough to catch up with one of our speakers Ashley Mckenna , Head of Train Service Delivery at Avanti West Coast. In this exclusive interview, Ashley shares his vision of how AI can be implemented and leveraged to personalise customer interactions and improve customer experiences. Read a summary of the conversation below:

• Connecting the dots to improve customer experience: AI isn't just about selling train tickets faster or managing timetables more efficiently. It's about anticipating what customers want before they even know they want it. It's about connecting the dots between a train journey, a hotel stay, a restaurant reservation, and maybe even a local walking tour. The reason leveraging AI is so key for the travel and hospitality sector in particular is fairly simple: given the ever-growing complexity of both stakeholder expectations, contractual relationships and macroeconomic pressures on price sensitivity, getting the best experience for customers will be the only way to make true modal shift happen.
• Before implementing an AI strategy, data must first be securely organised at a company level: What makes data governance so complicated in the travel and hospitality industry is the disparate systems and data fragmentation, leading to a lack of interoperability, systems not set up for appropriate reporting, or outdated programme languages. The travel and hospitality sector relies on a multitude of systems. Each system often operates in isolation, using different data formats and structures, making it challenging to create a unified view of the customer journey and preferences. Data categorisation could take unlimited forms, with the diversity of data ranging from customer demographics through to booking details to real-time operational data. Different departments within a travel or hospitality organisation have varying needs for data. Balancing these diverse needs and ensuring data accessibility and relevance for all stakeholders adds another layer of complexity to the data landscape.
• To secure buy-in for AI initiatives, projects must be linked to an improved outcome: Without ROI, it is an impossible task to achieve buy-in from stakeholders for AI. The difficulty with a lot of AI projects is that the forecasted benefits are, broadly speaking, unproven and so there needs to be a different approach that speaks to leaders that isn’t just cost-centric. To demonstrate the legitimacy of the investment, there needs to be examples of similar case studies supported by a clear roadmap for implementation drawn back to some form of ROI – monetary or otherwise.

To read the full interview with Ashely McKenna, follow this link.

Investment Priorities for Senior Data Leaders in Travel and Hospitality

A recent CDO Travel & Hospitality Exchange survey revealed the top 10 investment priorities for senior data leaders in 2024.

Artificial intelligence was identified as the most important area of investment for data leaders in this industry, followed by data strategy, machine learning, and predictive analytics.

This shows a growth of investment intentions in artificial intelligence compared to 2023, when data science was identified as the number one investment priority, followed by artificial intelligence and machine learning in joint second position.

Respondents – all of whom are registered to attend the CDO Travel & Hospitality Exchange on 11-12 September in London – also identified the most significant challenges they are looking to address over the next 6-18 months. Notably, these included improving data management and quality, increasing data accessibility and usability, and demonstrating ROI of data initiatives.

To access the full survey results, click here.

Key Learnings from CDO Retail Exchange

Last month, the 2024 edition of CDO Retail Exchange took place in London, uniting 71 senior data leaders from some of the UK’s largest and most recognisable retail brands.

The expert speaker faculty comprised leading data voices from across the retail sector, with representatives from brands like Clarks, Swarovski, Tesco, and FatFace all sharing their insights and experiences. ???

Although the event played host to thousands of insightful and compelling conversations over the course of the two days, some key takeaways were:

1. Data quality and governance continues to be a top priority: Without robust data governance frameworks, the integrity and usability of data suffer, leading to misguided decisions and inefficiencies. There is a clear need for a unified approach to data management, ensuring a single source of truth across the organisation. By standardising definitions and practices, businesses can eliminate data silos and enhance trust in their data. Solid data governance is the crucial foundation needed on which to implement generative AI solutions.?
2. Creating a data-driven culture requires passionate data evangelists: The role of data evangelists is crucial when transitioning to a data-driven culture within an organisation. Enthusiasm is infectious, and by communicating in the language of different business units and showcasing successful use cases, data evangelists can inspire their peers to embrace data as a strategic asset. Overcoming resistance to change requires continuous education, transparent communication, and demonstration of the tangible benefits of a data-informed approach to decision making.
3. Getting started with generative AI: Generative AI holds significant promise for enhancing personalisation and customer experiences in the retail sector. However, for AI initiatives to succeed, businesses must first ensure their foundational data is accurate, comprehensive, and accessible. With so much noise out there around what AI can achieve, data leaders need to start by identifying the areas within the business where generative AI could genuinely deliver most value. Starting with small, manageable projects to demonstrate AI's impact can help secure buy-in from stakeholders for a wider generative AI strategy.

The CDO Retail Exchange team would like to extend a sincere thank you to all our sponsors, speakers and delegates for helping create such an inspiring event. We can’t wait to see how these themes will progress over the coming year and what kind of conversations will take place at CDO Retail 2025!

Data News in Brief

Google reverses decision to scrap third-party cookies

Having announced in 2020 that it planned to gradually phase out third-party cookies, Google last month reversed its decision and announced that it would not be replacing third-party cookies with its Privacy Sandbox as previously planned. According to a blog post, Google instead plans to introduce a new Chrome function that allows users to make an informed privacy choice that applies across their entire web browsing. While marketers and advertisers may welcome the continued ability to track users for targeted ads, the prolonged discussion around cookie depreciation has undoubtedly heightened public awareness of online privacy. As a result, a greater focus on first-party data is expected as more users opt out of third-party tracking.

CrowdStrike faces lawsuit after global IT outage

Cybersecurity firm CrowdStrike is being sued by its investors after after a faulty software update on 19 July caused a major global IT outage, affecting hospitals, airlines, banks, and other establishments. Filed in Texas, the lawsuit claims that CrowdStrike defrauded investors by assuring them that the adequate tests for the software update were in place. The lawsuit, and fallout from the IT incident itself, could have significant implications on CrowdStrike’s future reputation and profitability, with share prices reported to have dropped by 32% in the 12 days following the incident.

New proposal puts forward certification criteria to improve interoperability of health data

Last month, the US’ Office of the National Coordinator for Health Information Technology published its proposed rule on patient engagement, information sharing, and public health interoperability for public comment. Seeking to advance the access, exchange, and use of electronic health information, the proposed rule notably suggests the adoption of new certification criteria, and the expanded use of certified application programming interfaces for things like electronic prior authorisation, patient access, and care management and coordination. With interoperability between provider and public health data systems a continued challenge, the proposed rule has the potential to enhance efficiency, cost-effectiveness, and patient outcomes.?

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Have a story to tell? If you’re interested in contributing to a future newsletter, please contact editor Emma Pappenheim at [email protected]

View upcoming CDO Exchanges

CDO Travel & Hospitality Exchange – 11-12 September 2024 | Hilton Syon Park, London

CDO BFSI Exchange – 11-12 November 2024 | Hilton Syon Park, London

CDO Healthcare Exchange – 11-12 February 2025 | Le Méridien Fort Lauderdale, Florida, USA

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