In today’s fast-changing corporate landscape, globalisation and virtualisation are reshaping the business world. Consequently, digital transformation and disruption have become critical priorities in boardroom agendas. Companies require innovative business solutions that enhance operational efficiency and improve customer engagement to stay competitive with digital-first organisations, regulatory bodies, and tech-savvy customers. It is essential to have a well-defined data strategy in place, one that transcends the limitations of being a static document and instead thrives as a dynamic, living guide for your organisation’s path to success in these dynamic times.
The Data Challenge
Organisations face significant challenges in managing their data. Surveys across various industries reveal that less than half of an organisation’s structured data is utilised for decision-making, while only 1% of unstructured data is analysed. These statistics highlight the enormous untapped potential present in these datasets.
Data security and access control have become growing concerns in recent times. Shockingly, over 70% of employees have access to data that exceeds their permission level, creating vulnerabilities and escalating the risk of data breaches and compliance violations. Such risks can severely damage a company’s reputation and financial stability. Additionally, discovering and preparing data consumes a significant portion of analysts’ time, accounting for 80% of their workload. Analysts could deliver better value to the organisation with more time spent on data interpretation and informed decision-making.
Challenges Faced by Data Leaders
A clear data strategy is vital for companies to protect and efficiently utilise their data. However, many organisations need help implementing a data system due to their experts’ challenges when trying to derive value from data. To emphasise the extent of the situation, Gartner reports that the average tenure of Chief Data Officers (CDOs) is just 2.4 years, contrasting the 4.9 years average tenure for other c-suite roles. Therefore, organisations must establish a comprehensive data strategy to ensure the longevity and effectiveness of data leadership roles.
The Living Data Strategy: How to Create and Sustain It
To transform your data strategy from a mere document to a living, breathing guide that fuels your organisation’s success, you must address critical questions and delve deeper into the ‘how’ and ‘why’ of the eight core benefits while considering who should be involved.
How to Create a Data Strategy:
To develop a robust data strategy that aligns with your business and technology goals, it is essential first to outline the steps involved. It is crucial to have a clear understanding of why this process is necessary. A data strategy is not a stand-alone effort but an integral part of your business’s success.
Building It in Conjunction with Business and Technology Strategies:
To fully benefit from your data initiatives, your data strategy must align with your overall business and technology strategies. This connection will ensure that your data management efforts are consistent with the core functions of your organisation, resulting in a more streamlined and efficient approach to handling data.
Getting Critical Buy-In Across the Business:
To ensure the success of your data strategy, it is imperative to involve stakeholders from all levels of your organisation in its development. By collaborating and incorporating diverse perspectives, you can create a stronger and more effective strategy everyone is committed to. In essence, the more involvement you have, the more success you are likely to achieve.
Making It a Living Document:
A successful data strategy needs to be a dynamic and flexible document that can adapt to the changing needs and goals of your organisation. By being proactive and constructive in your approach, you can ensure that your strategy remains relevant and valuable over time. Your guide should focus on capturing the “what,” “why,” “how,” and “next steps” and should be able to grow and evolve with your organisation. This way, you can have a clear and actionable plan to adapt to the ever-changing business landscape.
Defining the ‘What,’ ‘Why,’ and ‘How’:
Clarify the ‘what’ of your data strategy by defining its objectives, the ‘why’ by explaining its significance, and the ‘how’ by detailing the methods and tools involved. You should intrinsically link each aspect to your organisation’s overarching goals.
Identifying Key Stakeholders:
When developing a data strategy, it’s essential to involve a diverse group of individuals with different backgrounds and expertise. The data team shouldn’t be the only ones included but also representatives from other departments. By bringing together a wide range of perspectives, you can ensure a comprehensive strategy that takes into account the needs and goals of the organisation.
Continuous Improvement and Innovation:
It is crucial to foster a work culture that values continual improvement and innovation. Use data insights as a driving force to encourage this culture. Remember that this is an ongoing journey towards progress and development, which can ultimately result in exceptional growth and success for your organisation.
Measuring Success:
It’s essential to establish clear KPIs and measure their impact and effectiveness to ensure the success of your data strategy. Regularly evaluating your progress against these indicators will help you stay on track and identify areas for improvement.
The Benefits of a Living Data Strategy
A well-crafted data strategy that closely aligns with your business and technology strategies offers numerous advantages.
- Data Quality and Reliability: A living data strategy ensures that data is accurate, consistent, and reliable, aligning with the data strategy’s objectives.
- Reduced Operating Costs: Effective data management lowers operational costs by streamlining processes, eliminating redundancies, and optimising resource utilisation in line with your broader business strategy.
- Transparency, Regulatory, and Legal Compliance: A living data strategy establishes a framework for transparency and compliance with data regulations and legal requirements, safeguarding your organisation as per the legal and regulatory goals of your business.
- New Markets and Customer Segments: Data-driven strategies enable organisations to identify untapped markets and customer segments, aligning with the business’s expansion and growth objectives.
- Agility and Time to Market: Agile data management processes align with your technology and business strategies, enabling businesses to respond swiftly to changing market conditions and emerging opportunities, reducing time to market.
- Customer and Product Insights: A living data strategy allows organisations to harness data to understand their customers and products better, in line with your customer-centric business approach.
- Employee Engagement and Collaboration: Empowering employees with access to relevant data fosters collaboration, engagement, and creativity, supporting the culture of innovation outlined in your business strategy.
About Arreoblue
At Arreoblue, we specialise in fast data project execution from concept to delivery. Focusing on Retail, Manufacturing and Financial Services, we help our clients become data-driven and make more effective decisions through data. We focus and measure ourselves on delivering fast Time to Value. We work with our clients to ensure that value is clear and everything is understood, leaving them with a platform for success that they can continue to build on.
Want to find out more? Contact one of our experts today to see how we can create your bespoke solution!