Five Tips For An Effective Data Strategy That Can Save Costs In The Face Of A Looming Recession
11 August, 2022
Henri De Bruine,
Director of Data & Analytics
at Decision Inc. UK
Transform your Data Strategy for the future and recession-proof your organisation. Cut costs and improve your performance with an effective data strategy.
New challenges, such as the Ukraine-Russia war, the global supply chain crisis, the looming recession, and digital transformation are putting immense pressure on organisations today. All these factors highlight the need for business decision makers to make critical choices quickly, and data is a key enabler to do that.
As a result, a recent Gartner survey shows that almost two-thirds of organisations (64%) have implemented a data strategy. However, it is concerning to see that despite large investments, most of these strategies are not very effective.
In fact, only about 25% of respondents consider their data strategy to be “very effective”.
In this article, we share insights and practical tips on how you can build an effective data strategy to save costs in your organisation.
The following topics will be covered:
- Organisational buy-in is key for an effective Data Strategy
- Importance of data governance
- Specific goals are key
- Define successful data
- Understanding the costs of data usage
1. Organisational buy-in is key for an effective Data Strategy
Getting the organisation on board with a data strategy is essential for its success. Without the support of senior management, the data strategy will lack the resources it needs to succeed, and there will be a constant battle against internal inertia.
Many organisations are afraid of change, so the new data strategy will need a strong case. Emphasising the benefits it will bring to the company in terms of business drivers is essential. What are the company’s strategic objectives and how can data help to achieve them? Once the value of data in business outcomes has been articulated, the case for investment can be made. It would also be useful to show how the strategy can help save money, especially how it may save costs in a looming recession.
Once there is organisational buy-in, the data strategy can be implemented and real results can be seen.
2. Don’t ignore data governance
It’s easy to forget about data governance when you’re trying to save money. But if you don’t have a robust data governance strategy, you could spend even more money in the long run. According to Gartner poor data quality costs companies $13 million annually.
Apart from costs, data governance is essential for two reasons. First, it ensures that data is collected and used consistently and accurately. This helps to give business users confidence that the data they are looking at is correct and relevant.
Second, data governance can help to save money in a recession. By implementing tight controls on data collection and usage, businesses can avoid overspending on unnecessary data storage, repeated processes, or analysis. They may even be able to attract new streams of revenue, due to their accurate and relevant data giving them a competitive edge in making business decisions.
If you are not already implementing these, here are three tips for ensuring that your data governance strategy is effective:
- Make sure everyone understands the rules and procedures for accessing and manipulating data.
- Establish clear guidelines for data quality and accuracy.
- Implement a process for auditing data usage and tracking data leakage.
3. Be specific with your goals
When it comes to data strategy, specificity is key. One needs to be very clear about what needs to be achieved with the data. This means thinking about the goals that need to be accomplished, the questions that internal stakeholders want to be answered, and the problems that need to be solved.
Being specific will help the business focus its efforts and make the most of its data. Think about the specific goals that the data will need to help achieve: improved decision-making, increased efficiency, optimised marketing campaigns, data strategy to save costs etc. It will also help to avoid wasting time and money on initiatives that don’t produce results. Once there is a target in mind, a plan can be developed for how best to use business data.
Take the time to define the goals and make sure they are SMART: Specific, Measurable, Achievable, Relevant, and Time-bound
4. Define success – what “good-looking” data looks like
Now that the basics of an effective data strategy have been defined, it’s time to define what “good-looking” data looks like for the business. This is an important step, as it will help to measure the success of data initiatives and make sure that the business is getting the most out of its investment.
There is no one-size-fits-all answer to this question, as the definition of good-looking data will vary from business to business. However, there are a few key factors to consider:
-The quality of the data: Is it accurate and up-to-date?
-The completeness of the data: Does the business have all the information it needs?
-The timeliness of the data: Is it up-to-date and relevant?
Once the business has a good understanding of what success looks like, the metrics that will measure progress towards those goals can be defined. These metrics might be financial (e.g. savings on procurement costs), operational (e.g. reduction in data processing time), or strategic (e.g. increased market share).
Defining success in terms of good-looking data will help to stay focused on the goals and make sure that the data strategy is delivering results.
5. Make sure you understand the costs of data usage
When it comes to data, it’s important to understand the cost of usage. This includes the direct and indirect costs of data usage. Direct costs are easy to track and include items like storage and transmission fees. Indirect costs, on the other hand, can be more difficult to quantify and include things like lost opportunities and lower employee productivity.
It’s important to be aware of both types of costs when developing a data strategy, as they can have a significant impact on your bottom line. Many companies underestimate the cost of data storage and end up paying more than they need to or underestimate the effect of poor data on productivity.
Make sure you understand data usage costs and factor them into your overall plan. This includes factoring in license costs of data tools and data storage costs (cloud and on-premise), ensuring high data quality, and that all data stored is linked to business outcomes.
In order to save money in a recession, it’s important to be smart about your data strategy. Make sure you’re only storing the data you need and that it’s being used efficiently. Implementing a data governance plan can help to ensure that your data is being used effectively and efficiently.
A data strategy is a key to saving money in a recession. Businesses need to be able to cut costs and make decisions quickly and efficiently. A data strategy can help them do this by providing insights and understanding into customer behaviour, trends, and opportunities.
To jump start this processs towards an effective data strategy, businesses can prioritise:
1. Getting organisational buy-in from senior management.
2. Having a robust data governance strategy
3. Ensuring they understand the cost of their data usage
Once the business has a data strategy to save costs in place, they need to ensure its effective use by making sure they have the right tools in place to collect and analyse data. They need to train employees on how to use data as well as regularly review the data strategy to make changes as needed.
By taking the time to implement a data strategy now, businesses will be prepared for whatever the future may hold
GET STARTED WITH THE DEVELOPMENT OF YOUR DATA STRATEGY TODAY
Work with a partner you trust
When developing a data strategy, it is important to work with a partner you trust. At Decision Inc. we have a global footprint of over 400 clients. Our expert consultants have experience in creating and executing data strategies for a number of these clients. They will provide accurate information and support throughout the process.
We are the data strategy experts.
Contact us to help you cut costs and improve your data strategy today: Click Here
For more information about our Data and Analytics products:
Decision Inc. Pursuit of Progress
Decision Inc. helps organisations develop and deliver the Technology and Digital Operating Model to support their strategy. We create the capability for clients to innovate and compete by connecting the technologies, platforms and data they need to thrive in the Modern Era.
Decision Inc. brings a deep business and technology understanding and provides functional insights, embedded in the technology platforms of the industry, to help clients make an impact. We help the best businesses in the world to power their business, enable their people and accelerate digital progress.