5 min read
What Is a Data Strategy?
Recently, you've probably heard this term more and more: data strategy. But what exactly is a data strategy? And what's it good for? Is data strategy a hype or a necessary step in the growth of your business? In this blog, we try to answer the questions about data strategies you never dared to ask.
First off: why a data strategy?
Data is everywhere. And data plays an increasingly important role in our daily lives. As a result, it has become an increasingly important asset for businesses, and in many cases an indispensable part of operations. On top of that, data is one of the few raw materials that multiplies through use. Data generates data. And it's precisely that growing quantity that makes it increasingly difficult to distinguish the truly valuable data from the 'noise'. Because as data grows, so does the amount of irrelevant data. This forces companies to make choices about which data they want to manage and analyze, and which information they want to keep available in the future. You can bring this roadmap through your data landscape together in a data strategy for your business.
That sounds logical. But what exactly is a data strategy?
'The' data strategy doesn't exist. What the right data strategy is for your business depends on your starting point and the goal you want to achieve with your data. There's also a good chance you've already factored possible data applications into your future plans for your operations. In that case, you've effectively already taken the first step of your data strategy. But a data strategy is more than that. New data can also be the trigger for a new revenue model, or give you new insights into existing processes. In short, your data strategy is a long-term plan that describes what steps you need to take to make the data relevant to your business available, manageable, and reliable (not necessarily in that order), and how you can generate and use new data flows in the future. Because by thinking ahead about which data will become available in the future, you can already prepare your processes now to use that data.
OK, but I already have all my data in Excel. Can't I just add a column to my spreadsheet?
In principle, yes. And if you love spreadsheets, manual data entry, and hunting down errors in formulas, you might get by with that for a while. But of course there are some risks involved. First, a spreadsheet isn't really a robust solution, especially not when multiple people need to work with it. On top of that, the options for feeding Excel with data are quite limited. And manually entering your data isn't always reliable either (or fun to do). Not to mention the ability to actually process large volumes of data, share that data with different users, and generate regular analyses and reports based on it. When do you hit your limit? An important step in your data strategy is therefore figuring out what you'll need in the future. With that knowledge in hand, it's easier to choose among the many technical solutions for data management, integration, storage, and visualization available on the market. That way, you can invest in what you actually need, instead of buying expensive systems that overshoot their purpose, or holding on too long to solutions that no longer meet your needs.
Isn't a data strategy more of a thing for multinationals?
Originally, yes, but of course they've had one for a long time now. All things considered, the reason companies like Google and Amazon are so enormously successful is that they started thinking about the possible added value of data years ago. And they've kept doing so, which lets them keep innovating. But even if your company isn't one of the world's leading tech giants, it can still be worthwhile to think about what's possible with data. From improving delivery time estimates for your customer orders to setting up an entirely new revenue model based on the data you gather from your own processes: your data is worth more than you think. By having that data readily available for all future applications, you make sure you can actually put that value to use.
Interesting… where do I start?
We start with your current situation. First, we look at where you stand now, which data you use and need, and how scalable the solutions you already have in place are. Then comes the fun part: figuring out what opportunities exist for the future. Because your data is unique. But where does it make the difference? What's possible with it? By aligning this with your company's goals and plans, you lay the foundation for healthy development of your operations, with data to support and guide it.
Of course, it's not equally relevant for every company to fully work data-driven, but in the end, few companies wouldn't benefit from managing their data well. Your data strategy should therefore be focused primarily on your specific situation, and help you make the most of the added value of your data.
Advice?
At E-mergo, we believe your data is there to help your business. So we're happy to think along with you about the best way to move forward with your data. Through inspiring workshops, clear advice, with scalable tools for small and large organizations. Think, for example, of a Data Strategy Workshop. With an approach scaled to fit your organization, we'll build a tailored data strategy together. No hype, just the most value from your data! Want to know more? Then schedule a no-obligation (digital) appointment through our online calendar.
