How to create an effective data strategy for your business
Whether you are a big company or a small startup, all intelligent business decisions begin and end with a solid strategy, especially when it comes to effective data utilisation. Most companies recognise data as an asset to increase productivity, improve their bottom line and stay ahead of the competition. However, many businesses are failing to reap the potential benefits due to a lack of effective planning and valuable foresight. So, for those looking to enhance their business through data, here is how to create a data strategy that works.
Define clear objectives and goals
As the old adage goes, by failing to prepare, you are preparing to fail. For a data strategy to be successful, it needs to begin with clearly defined objectives and goals. What is the purpose of my data strategy? What do I want my data strategy to solve? These are the questions businesses need to be asking themselves in order to outline a strategy that is both clear and meaningful. Once your goals have been crystalised, you can begin deciding on the best ways to accomplish them.
When deciding on how to create a data strategy, make sure that it is strictly aligned with the overall objectives of your business. At MDRx, our discovery phase allows us to drill down into the core of your business to fully understand what you are looking to achieve, and create a strategy that will get you there.
For example, we have used data analytics and machine learning to create more accurate ways to measure carbon within the natural capital market, helping to tackle climate change. We have also developed a data pipeline for the UK’s Ministry of Justice to meet their objective of making court judgments more transparent and accessible to the public.
Data can be used in a myriad of ways, so choosing a strategy that is tailored to your business goals will ensure a purposeful and effective use of your data, whilst a poorly thought-out strategy will inevitably lead to wasted time, resources and, of course, money.
Assess your current data landscape
Any effective strategy starts by understating the current state of your data. This begins with conducting a comprehensive audit of your existing data sources and infrastructure to identify any gaps you may have. Understanding the data you have at your disposal as a starting point will help you set attainable goals for your data strategy along with giving you a realistic expectation of what you can achieve and how you are going to get there.
Ensure data quality and governance
Low data quality can result in flawed analysis and bad decision-making. It’s important to establish data governance policies and standards to ensure that your decisions are not skewed. The relationship between data analytics and compliance is complex and can be a minefield to navigate.
Implementing measures to ensure data accuracy, consistency, and security is an absolute must when considering how to create a data strategy. Inadequate data security measures can lead to cybersecurity breaches and compliance issues that will have a major impact on your business, both in terms of top and bottom-line profits and consumer trust.
Invest in data integrity and interoperability
Investing in data integration and interoperability is critical for those looking to harness the full potential of their data. To gain valuable insights and make informed decisions, organisations must form a comprehensive view of their data. Integrating data from various sources provides a deeper understanding of your organisation, from customer behaviour to market trends, and ultimately to your overall business performance. This can be achieved through implementing robust data integration solutions as part of your strategy.
Organisations often use a variety of applications and systems to manage their operations. Investing in the right technology and ensuring interoperability allows these systems to work together in an efficient manner. Without proper integration efforts, insights become fragmented, and data silos are the inevitable outcome, giving you an incomplete picture of your business.
Implement advanced analytics and AI
When it comes to your data strategy, be sure to explore AI for automation and optimisation opportunities within your business. Leveraging the power of advanced analytics and AI for predictive insights can streamline your business process and turbo-charge productivity.
At MDRx, we are experts in building AI solutions for businesses across the globe. If you are still unsure of the true effectiveness of AI in business, read our blog to learn more about how to implement AI into your business strategy.
Foster a data-driven culture
Lack of awareness or understanding of data among employees is how great strategies end up falling flat when executed in real life. Providing training and support for employees to become data literate is key when considering how to create a data strategy that is not just an innovative idea but a practical solution for your business.
Ensure scalability and flexibility
Don’t get caught up in the hype of choosing the newest technology on the market, look for solutions that will stand the test of time and create future growth for your business. Failing to plan for future scalability will only result in increased costs and inefficiencies down the road. Ensure the solutions you choose have the flexibility to adapt to the evolving needs of your business and new technologies.
Looking to build a data strategy that provides real-world value to your business? At MDRx, we are experts in business strategy, data analytics and software engineering, creating world-class business solutions through emerging technologies. Backed by the Mishcon de Reya Group of industry-leading lawyers, our compliance-by-design approach allows us to implement data strategies in a safe, secure and legally compliant way.
Get in touch to transform your business now.