Source | LinkedIn | Bernard Marr | Internationally best-selling author, keynote speaker, futurist, and strategic business & technology advisor
Every business is now a data business. Data is a key strategic asset today whether you’re a large international conglomerate or a locally owned, family-run business. If you don’t have an effective data strategy—or one at all—your company is missing out on the huge potential business value data offers. To help you get on the right track and avoid common pitfalls, here are the 6 biggest data strategy mistakes every company must avoid.
1. Starting with an outdated business strategy
The world is changing quickly and a business strategy that hasn’t evolved to be relevant for the 4th Industrial Revolution won’t be effective. Your data strategy should support a business strategy that’s right and relevant to today’s world. It makes no sense to spend time and resources on collecting and analysing data in support of an out-of-date business strategy. Not only will you not get to where you need to be, but you will waste time and resources trying to get there.
2. Not starting with your business goals and challenges
There are many ways and reasons to analyse data but they aren’t all important to you achieving your business goals or helping you solve a business challenge. Too many companies develop their data strategy around use cases that are interesting or easy to implement rather than ones that get them to their goal. First, be clear on what business goal or challenge you’re trying to overcome. Then, figure out how you can use data to help you get there.
3. Not defining measures of success
How will you determine if your data strategy is successful? If you haven’t defined key performance indicators (KPIs) for your data strategy that link to a specific goal, it will be impossible to track and review your progress. It’s important that any data initiative has a business case with corresponding KPIs that the initiative will impact. This will help your organisation track progress and ultimately know if you achieved your objective or not.