Finding Direction in your Business Data Strategy

As a data architect I am tasked all the time to move data or enable reporting or investigate new data sources. There are so many different ways to do these tasks that if I did not have an over reaching strategy my work would become disconnected quickly. Doing these tasks without standards or direction would leave a mess of technical debt in my wake. I would certainty not be an effective architect or leader. But what formulates that strategy? How do we use it to validate our work and make sure we are working towards it? That is what I will spend the next few days discussing with you.

Where to start? The beginning:

To have a strategy first we have to know what a strategy is. Google will tell you that a business data strategy is a long-term plan that defines how an organization will collect, store, manage, and use its data to achieve its business goals. It is a critical component of any organization's overall strategy, as it can help to improve decision-making, increase efficiency, and drive innovation.

The difference between a successful data strategy and one that flops is how well it aligns with your business A good business data strategy should be aligned with the organization's overall goals and objectives. It should also be flexible enough to adapt to changes in the business environment. If you do not stop to focus on what the business is focused on it will not mater how many tasks you can tick off of your list. You will always miss the mark.

What goes into a data strategy?

So what parts of the strategy do you need to develop? A few of the main ones are:

  • Data collection: This involves identifying the data that is needed to achieve the organization's goals, and then collecting that data in a consistent and reliable way.
  • Data storage: This involves storing the data in a way that is secure, accessible, and scalable.
  • Data management: This involves managing the data throughout its lifecycle, from collection to disposal. This includes tasks such as data cleaning, data integration, and data security.
  • Data analysis: This involves using the data to gain insights into the business. This can be done through descriptive, predictive, or prescriptive analytics.
  • Data sharing: This involves making the data available to the people who need it, in a way that is secure and compliant with regulations.

Where to business goals come into play?

A business data strategy should be closely aligned with the organization's business goals. This means that the data strategy should be designed to help the organization achieve its specific goals, such as increasing revenue, reducing costs, or improving customer satisfaction.

For example, an organization that wants to increase revenue might use its data strategy to identify new customers, target them with relevant marketing messages, and track their progress through the sales funnel.

An organization that wants to reduce costs might use its data strategy to identify areas where it can streamline its operations, optimize its supply chain, or reduce waste.

An organization that wants to improve customer satisfaction might use its data strategy to track customer feedback, identify areas where it can improve its products or services, and resolve customer complaints.

The business goals drive the technology, not the other way around. A data strategy is not an excuse to try new tech. We have to make sure that whatever path we suggest will get us closer to what the business needs.

But Why?

A business data strategy is essential for any organization that wants to use data to achieve its goals. A well-crafted data strategy can help organizations to:

  • Make better decisions: By providing insights into the business, a data strategy can help organizations to make better decisions about everything from product development to marketing campaigns.
  • Increase efficiency: By automating tasks and streamlining processes, a data strategy can help organizations to increase efficiency and reduce costs.
  • Drive innovation: By providing insights into customer behavior and trends, a data strategy can help organizations to identify new opportunities for innovation.
  • Improve compliance: By ensuring that data is collected, stored, and managed in a secure and compliant way, a data strategy can help organizations to avoid regulatory fines and penalties.

Understanding what a data strategy is will not be enough. Tomorrow we will talk about how to generate excitement and buy in from your entire organization.

Location: North Carolina, USA

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