It’s time to implement a Data Strategy – Here are the 5 reasons why
Globalization and technology have spurred the modern world, making data an integral aspect of running a business. It has become more important than ever for businesses to have a data strategy to understand the needs of their customers and make sound decisions that improve their operations and contribute to their growth. Data can help companies discover new market opportunities and better define their target audiences for more effective and efficient campaigns, saving them time and money in the process. If you haven’t prepared data strategy for your business yet, here are five reasons why you need to start seriously considering it:
1. Improved Speed-to-Value
The speed at which data technologies are evolving is staggering. As a result of this, many businesses, especially SMBs, have been struggling to keep up with their competitors who always seem to be two steps ahead of them. In order remain competitive and protect their market share, companies regularly end up investing in modern analytics tools and other technologies in a knee-jerk reaction, without a proper evaluation and plan in place. Often, this lack of planning results in these types of projects failing and costing the company valuable time, money, and human resources. Crucially, the basic objective of maximizing the value of one’s data is sometimes missed for this reason. A well-planned data strategy will ensure that a company seeking to monetize their data, does so in the most efficient way possible. Data strategies allow a company to identify their priorities, set a plan of action, and execute in the most cost-effective fashion.
2. Improved Data Security and Risk Management
Data strategies allow companies to plan and improve on their existing data management activities in a way that allows them to enhance their information security processes. This allows for the implementation of data defence activities that safeguard the company against compliance obligations, fraud and theft prevention, and overall corporate governance best practices. Additionally, analytical tools can be used to help monitor, identify, and prevent security risks in real-time. All these actions also help contribute towards more data integrity and quality for the organization, which further boosts the value of the company’s data assets (and the firm’s market value) in the long run.
3. Improved Decision Making
A data strategy enables the fostering of a more data-driven culture within the organization, which improves decision-making across the board. This is done by improving the access and availability high-quality data to the organization, which allows employees to make higher quality decisions that improve operational performance and profitability. Additionally, this data can be used to identify market trends and opportunities more consistently, improving the firms’ services and, in turn, improving overall customer satisfaction. This concept of a truly data-driven organisation, when integrated effectively into a company’s identity, has allowed firms to be better equipped than ever to retain and increase their market share in the long-term. In an era where entrepreneurship has become quasi-commercialised, market threats such as those posed by “blue-ocean” strategists can be alleviated through a strong commitment to data.
4. Improved Market Intelligence
Through an effective data strategy, the process of collecting and providing key data to the organization also improves its marketing capabilities substantially. For example, demographic data can be used to create more refined customer target lists based on location, age, or gender. Additionally, gathering and analyzing the data of existing competitors can help the company identify potential weaknesses or “holes” that can be opportunistically exploited to good effect.
5. Improved Operational Efficiency
Ensuring that data is accessible, refined, and automated provides a company with the ability to monitor and analyze internal operations more efficiently and effectively. One of the best ways to help improve efficiency is by looking at a firm’s supply chain. Data analytics can help more collaboration and quicker transfer of information between teams and organisations, thereby reducing the amount of time it takes to be productive. In recent times, this has become particularly important for those companies that have hybrid working policies, as it also offers reassurances to management. Thanks to recent major improvements to data tools’ governance, integration and communications capabilities, the risk of data losses or issues has also been addressed. When done well, this also ensures business continuity and gives executives the ability to monitor their business from anywhere in the world.
If you’re unhappy with your company’s current data capabilities, we strongly implore you to consider the careful planning of your Data Strategy. At iMovo, our primary focus is to help guide organisations towards being more data-driven with the goal of enabling their long-term success. We offer a technology-agnostic approach, with a focus on being as agile and efficient as possible when helping our customers define their roadmap.
Many companies are currently looking to invest in their digital transformation to combat the challenges that lie ahead. A Data Strategy will ensure that any capital is well-invested, and can be developed and produced in weeks, rather than months.
Get in touch here and request a free consultation with one of our data experts today.