A load of DS: Data strategy made easy

Data strategy is the process of defining the data types important to an organization, determining how that data will be collected and managed, and establishing systems and processes for using that data to make informed decisions. Data strategy is especially important for small and medium-sized businesses (SMBs) because it can help them gain a competitive edge in the era of big data, where data volumes are growing exponentially and data sources are diversifying rapidly.

By leveraging data effectively, SMBs can enhance their operations, lower their costs, elevate their customer experience and drive their growth. However, developing and executing a data strategy is not a simple task. It requires a clear vision for what you want out of your data, some form of data architecture (or a system of organization) and a data-driven culture. Let's look at some steps and best practices of how SMBs can harness the power of data, without a data specialist on staff.

Steps to develop a modern data strategy

• Assess your current state: understand what data you have, where it comes from, how it is stored, who uses it and what challenges you face. Evaluate your tools, skills and processes to identify gaps and opportunities. If this first step is overwhelming, consider hiring someone to help.
• Define your desired state: envision what data you need, where it will come from, how it will be stored, who will use it and what benefits you expect. Define measurable goals, timelines and priorities.
• Design your data architecture: design your infrastructure and organizational system — sources, platforms, pipelines and storage — plus governance policies, standards, roles and responsibilities for quality, security and compliance. The smaller the company, the less intense this needs to be.
• Implement your data solutions: create a process for data integration, processing, analysis and visualization. As an owner, you're mostly interested in the output — often a dashboard — but the output is only as good as the input.
• Monitor and improve your data outcomes: check in on accuracy, reliability and relevance. Evaluate performance, identify issues and improve your strategy over time.

Developing and executing a modern data strategy can be challenging for SMBs, especially if they lack the resources, expertise or time. However, there are many solutions and partners that can help SMBs overcome these challenges and leverage the power of data and strategy. The ROI on a solid data strategy with consistent execution can be surprisingly high!