Why having a data strategy is important? And Why now?

Why having a data strategy is important? And Why now?

February 1, 2019 DATAcated Challenge 0

Data like oil originate in one place, flow through multiple systems, transform itself throughout the life cycle. It creates value not by its mere existence but by effective flow and transformation. Thus managing data through various phases is important to any business.

Why having a data strategy is important? And Why now?

Operational Efficiency in the changing IT Landscape

Any business transaction creates data. With organizations embarking into digital transformation journey, more data is created from large number of sources. These large set of data need to be stored and retrieved by multiple systems. Lack of an enterprise strategy leads to fragmented systems and organization silos. Obsolete data in the system can impact the effectiveness while driving costs.

An enterprise wide data strategy is a necessity to drive efficiency and reduce silos in IT and business functions.

Data is not just an IT asset but a Business Asset

According to Cross Industry Studies,

More than 70% of employees have access to data they should not, and 80% of analysts’ time is spent simply discovering and preparing data. Data breaches are common, rogue data sets propagate in silos, and companies’ data technology often isn’t up to the demands put on it

To ensure that the data is used properly across the organization and compliant to rules and regulations, it’s imperative to recognize data as an organization asset that has impact not only on IT but on business outcomes as well.

Using Data for Competitive Advantage

As mentioned earlier, data transforms itself as it flows through enterprise system and in each transformation it adds/ provides value. This can be understood by the concept of Data Value Chain.

Cross-industry studies show that on average, less than half of an organization’s structured data is actively used in making decisions—and less than 1% of its unstructured data is analyzed or used at all.

This is because of data management. We have seen lot of digital companies displacing the brick and mortar companies by effectively using value derived from data to gain competitive advantage. It’s possible only when data is the focus of strategic discussions.

Thus having a data strategy is required for a business to stay relevant, achieve business outcomes and gain competitive advantage.

References:

What is your Data Strategy? HBR https://hbr.org/2017/05/whats-your-data-strategy

Understanding the Data Value Chain – IBM https://www.ibmbigdatahub.com/blog/understanding-data-value-chain

By: Vetrivel Natarajan

 

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