Why data strategy matters: 3 key business benefits
A 2019 McKinsey survey made it undeniably clear that businesses that implement and adhere to a long-term data strategy outperform competitors that don’t. The reasons boil down to the impact of data strategy in three key business areas: decision-making, competitive edge, and operational efficiency.
1. It helps you make smarter business decisions
The ultimate goal of data strategy is to improve your ability to solve problems on the basis of empirical data that you’ve collected, organized, and analyzed. A data-driven approach not only leads to better business outcomes and improved efficiency, but also aids in monetizing data stores and improving compliance. But this comes with a caveat: in order for data strategy to help achieve business goals, data initiatives must be defined and prioritized on the basis of existing business strategy.
2. Discover new competitive edges
Once a data strategy is in place, you can identify trends, customer preferences, and market opportunities you would otherwise miss. Plus, advanced technologies like AI and machine learning can magnify your advantages by predicting future trends and recommending strategic courses of action in both the long and short term.
3. Improve your efficiency and profitability
A comprehensive data strategy can significantly improve your operational efficiency – especially at the enterprise level. From supply chain management to sales, manufacturing processes to human resources, the insights you glean from your properly managed data stores can pinpoint inefficiencies, uncover hidden opportunities, and pave the way for sustainable improvement.
The 3 pillars of data strategy
Implementing a data strategy means initiating changes at three different levels of an organization.
People
Just as you can’t implement a marketing strategy without a marketing team, you can’t implement a data strategy without first assembling a data governance team. But not only do you need the right people, you need the rest of the organization to understand and support their work. Getting that buy-in requires organization-wide training to boost data literacy, which may take the form of workshops, online courses, or seminars that keep your team agile and informed in a rapidly evolving data science landscape.
Process
For CEOs and CDOs wondering where to start, establishing an effective data governance framework is key. When you combine that framework with quality assurance and lifecycle management, this foundation ensures your data is as useful as possible. AI-driven tools and automated workflows can help to further streamline the process, enhancing data quality and governance efficiency.
Technology
Technological solutions, ranging from day to day analytics software to data architecture optimization to robust data security implementations are integral to a winning data strategy. Keeping an eye on emerging trends, like edge and quantum computing, will ensure your organization remains at the cutting edge of data management practices.
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Data Governance Strategy — where to begin?
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