Many companies understand that data is a valuable resource, but they struggle with what to do with it after they have it. They face difficulties in identifying their goals, collecting data effectively and accurately and converting it into useful data, sharing it widely and deriving insights. A successful data strategy will give guidance on how to tackle these issues.
The data strategy of a business should reflect the business model as well as the requirements of the business. Companies in highly regulated industries may need to focus their efforts on defense strategies to avoid security breaches or violations of compliance. On the other hand organizations that depend heavily on departments that deal with customers (like marketing or sales) must focus on offensive strategies to increase revenue and profit through smart use of data analytics.
In addition, to establish an objective for the company’s data strategy, it is important to establish a consistent process to collect and share data. This includes everything from standardized spellings and formatting, to establishing an organized way to catalog information so that future references are easy. This will result in better data quality, less duplication and more convenient access to information.
It is essential to show the management how a data-driven approach can benefit their organization. This will encourage leadership to invest more resources and lend political support for initiatives. This can be accomplished by highlighting data-driven success stories and by providing transparent methods of assessing key metrics of analysis that indicate demand.