How to Implement a Data-Driven Business Strategy

Big data is here to stay, and there's no doubt about that. The ability to mine, monitor, and analyze data is putting many businesses ahead of the curve. Implementing a data-driven business strategy isn't something that every CEO is uniquely capable of doing, however. That is to say, you can't simply buy data analytics software and think all your data problems are going to be solved.

A true data-driven business strategy actually has to be a strategy with clear-cut goals and a roadmap to achieve those goals. Whether you have a vast IT department or are just a business professional with analytics software, it's exceedingly important to know where you're going when it comes to data.

INSEAD recently broke down a study by AT&T relating to big data. It stated, "Companies without standardized digital platforms and processes could find themselves with a much lower chance of getting value out of their investments in ICT and at the same competitive level as companies that don't make any IT investments at all." This shows the importance of collecting data, but what about utilizing it?

There is so much data out there to be mined and understood that it can seem difficult to pin down which pieces of data are right for your business. Try to think about which pieces of information will actually be useful to those in decision-making positions.

It's also important to home in on acute areas of focus. There's so much data available that this can be difficult to accomplish. But, try to pinpoint the data that will produce appropriate and actionable data visualizations. Getting bogged down in numbers and statistics isn't going to help anyone.
Many companies avoid comprehensive data analytics upgrades because accumulating data can be costly and often isn't one of the core strategic areas. In order to make analytics work in your favor, it's vital to make the data business-relevant. The data itself needs to be relevant, but the manner and timeliness in which it is delivered is also important.

Utilizing dashboards can be an efficient way to deliver data that doesn't interfere with standard processes. Integrating data analytics into everyday business practices can make the decision process smoother and more efficient.

Take a look at datapine for example, a company that has made it easy for companies to sort through data. Its dashboard is customizable and allows you to use customized charts and graphs to easily display the data you collect. Other companies such as Oracle have seen the important of visualization and are playing catch-up to offer it to their clients.

To put it plainly, some IT infrastructures aren't up to snuff. Some businesses are still working off Excel spreadsheets as their delivery system for making sense of data. But, software architecture is being designed for this specific purpose all the time. It may also be in a company's best interest to expand their IT department to include professionals who can make the most out of a vast array of data.

Standards and best practices need to be employed when your business is looking at analytics strategies. It's best to prioritize your company's data management process so that it doesn't get muddled by confusion.

Make sure your analytics department is on the same page with other departments so that they can deliver the most actionable and relevant data. Certain individuals should be assigned to certain initiatives, and they should also be responsible for seeing them through.

There's nothing particularly easy about a data-driven business strategy, but the results can be well worth the risk. Being able to effectively mine and visualize data to foment effective business decisions and models is a key to success in this day and age.