The Key to Developing a Powerful Data Strategy [Excerpt]
Editor’s Note: Below is an excerpt of an article written by Islam Salahuddin, a Business Research Analyst at The KPI Institute. “The Key to Developing a Powerful Data Strategy” is originally published in the 22nd PERFORMANCE Magazine – Printed Edition.
Amidst the buzzing world of data, companies may find themselves directly diving into analytics due to the fear of falling short and missing out. However, many resources can be spent on catching up on the race but end up with no real results.
That happened to 60-85% of big data projects, which IBM reported to have failed because they focused solely on technology. IBM added that the projects did not have a data strategy and a data-centric culture supporting business objectives.
Meanwhile, the Massachusetts Institute of Technology’s MIT Technology Review Insights survey of 357 business leaders and decision-makers in July 2021 has revealed that only 20% are implementing a data strategy. While 30% of the respondents have a data strategy in place, they believe it still has gaps.
What Makes Executing a Data Strategy at Scale Difficult
According to 42% of MIT’s respondents, the main challenge for implementing a data strategy is access to “more sources of data, including demographics, competitor, and geospatial information.” Thirty-four percent admit they need help with extracting meaningful insights from their data, while some believe they need “better tools and infrastructure for data storage and analytics.”
In the survey’s report, “in unpredictable times, a data strategy is key ,” says Ishit Vachhrajani, Enterprise Strategist at Amazon Web Services, emphasizing that all the challenges mentioned by the respondents can be blamed on “cultural obstacles” within their organizations.
“We talk a lot about technology, but one problem we hear from leaders is overly centralized, HIPPO-based decision-making that stands in the way,” Vachhrajani said. He also blames the challenges to governance structures that are no longer effective in bridging people who understand and work with data and frontline employees involved in decision-making and customer interaction.
In the same report, Jonathan Lutz, Director of Technology at Aquiline Capital Partners, describes the implementation of a successful data strategy as an “all-hands effort.” He recommends strong support from the top and buy-in across the organization.
For Vachhrajani, a successful data strategy is driven by leaders who invest in equipping people with the right skills and adopting technology across the company.
To learn more on how to establish an effective data strategy, read the full article in the latest edition of PERFORMANCE Magazine. The 22nd PERFORMANCE Magazine – Printed Edition caters the role that data plays in transforming organizations as they achieve excellence, growth, and success. Grab your copy in the TKI Marketplace now!