From directionless data to strategic smarts

HOW TO KICKSTART YOUR DATA STRATEGY (AND WHY YOU NEED ONE)

Data. You might have invested heavily in collecting it and be well aware of its power to inform and improve decision-making across the business. However, this formidable asset can often be the source of huge overwhelm while adding little tangible business value.

In many cases, this is caused by a lack of alignment within your business – different departments and managers will have their own perspectives, patch-protectionism and priorities. With these varying data targets and goals, many companies are drowning in data but struggle to draw any actionable insights.

For ambitious organisations, this is a problem well worth overcoming. Research suggests that data-driven businesses can expect to grow at an average of more than 30% annually and 20 times more likely to acquire new customers.

So, how do you go from just collecting data to actually drawing value from it? It takes a business that’s aligned on goals and a robust, hyper-focussed data strategy. Here’s what you need to know.

WHAT IS A DATA STRATEGY?

A data strategy (also known as an analytics roadmap) is the actionable plan your business needs to leverage data to its full potential. It lays a framework for everything from what data you collect and from where to how you organise, manage and analyse it. Without one, the data piles up, but you can’t extract real, actionable insights from it. By contrast, a robust data strategy aligned with your business objectives and data capability will unlock valuable information on where to go next.

GET PREPPED (INTERNALLY) WITH THESE THREE STEPS

While a data strategy is the best way to help your business reap the value of your data, it slips by the wayside. Here’s how to get prepped upfront for data strategy success: 

1. Get clear on your business needs

Many businesses hope that data will solve all their problems without ever fully defining them. Data and business goals need to be closely aligned, so before you do anything, get clear on your overall objectives and goals.

2. Understand the true cost of going without

From missed marketing opportunities to lagging operational processes and data security woes, sticking with the status quo can cost your business in many ways. It’s important to analyse what you could be losing by leaving your business as it is. This will help you prioritise actions according to your business needs and objectives rather than guesswork. It will also help you assess the value of the work and costs of implementing your data strategy.

3. Identify and prioritise roadblocks and potential solutions

Defining the barriers to your data strategy is only the first step. You also need to decide how best to solve each and which to tackle first. You may find your executive team has different opinions on the importance or urgency of each issue, often compounded by capacity and capability constraints. Bringing in a third party can help you reach alignment faster so you begin with a truly objective overview and a clear action plan.

    hOW IS A DATA STRATEGY BUILT?

A data strategy provides a framework for understanding problems and opportunities across your business. It prioritises your objectives, evaluates current data, and sharpens required tools and technologies. Bringing in a fresh perspective from an external, objective partner can ensure your team is aligned on long-term vision, opportunities and goals and how to deliver on them. That’s what the Datamine team delivers in our Envisioning and Solutions Development workshops. You’ll start your data strategy journey with a clear problem statement, the cost of the problem, and initial buy-in from your team to a proposed solution.

Whether you do it on your own or alongside external experts, here’s a basic overview of the steps to get to your data strategy.

1. Goals first – It’s worth remembering that data is a means to an end – not the goal itself. You’ll need to define the tangible business outcomes you’re working towards and then prioritise them against your overall business objectives.

2. Analyse current data and capabilities – The next step is to evaluate your existing data function and its ability to deliver on your goals. Are there gaps in capability, processes, infrastructure or data that can or can’t be overcome?

3. Get clear on governance and security – Data and privacy go hand in hand, so security and compliance policies need to be factored in upfront.

4. Create a roadmap – A tailored framework includes a series of recommendations and prioritised projects designed to strengthen your business across the board to deliver on your business goals.

Dive into the details – download the Datamine Guide to Data Strategy now.

gET READY FOR THE DATA-DRIVEN ROAD AHEAD

According to McKinsey Global Institute, data-driven organisations are 23 times more likely to acquire customers, six times more likely to retain those customers, and 19 times more likely to be profitable. This isn’t down to luck – it’s down to a data strategy. With Datamine’s decades-long experience, you’ll align your business leaders and departments to create a data strategy that paves the way for your organisation’s future success. Talk to Datamine today.

 Further reading