The Key Components of a Solid Data Analytics Strategy

data analytics strategy

Just as the various bones in your body are connected to each other, a business should connect its data strategy to its analytics strategy for success. Furthermore, their business strategy should have the support of both data and analytics strategies. To ensure that the coordinated approach works, a business will need participation – of the employees – and governance – from the executives.

Coming up with tactics without factoring in the contribution from data and its analysis results in disparate results. Such an ungoverned mess may even be good for meeting the initial needs of a company. However, it won’t be sustainable and more importantly, is unhelpful in an increasingly data-driven environment. Finally, it is possible to improve day-to-day operations by providing relevant key players in a company with actionable insights.

Therefore, a solid data analytics strategy is a crucial requirement of the day.

Components of a Data Analytics Strategy

There are two things of note when companies consider the components for their strategy. Firstly, defining the elements clearly is necessary for effectively communicating them within the organization. Each employee in the company shouldn’t be just aware of the approach taken towards analytics. They should also know where it will take the company in the future. Secondly, they should know the technology and tools that will be used to implement the said strategy.

Pitfalls to avoid here include choosing well-defined elements, but failing to take in everybody into the loop, except, say, for those in the IT department. This would limit potentially useful practices or assets that may be leveraged for the benefit of the whole company to just a single department. Just how much access is provided on each stratum is something else entirely.

A Data Analytics Strategy must include the following key components and practices:

Acquiring the Right Data and Managing it Efficiently

Analytics initiatives are built on data that comes via trusted sources. Only when there’s certainty about the data’s authenticity will its constant and relevant updating be useful. By relevance, we refer to the data individual departments need. Discussions on the final business outputs can clarify which data is pertinent for them. Thus, your strategy demands data to be both accurate and relevant to be right. Moreover, to make data-driven decisions that are rapid and collaborative, the source of that data needs to be common and trustworthy

Data Storage for Easy, Shared Access and Processing

Many organizations have the capabilities of identifying and managing the storage of various kinds of data, including analytical systems, transactional processing applications, and general-purpose. However, their approach to storage stems from the perspective of data creation. But what about sharing that stored data or using it?

Bulk sharing of stored data in an efficient manner may not have been important before. However, it isn’t a one-off or infrequent occurrence anymore. Companies need to be able to use the data that they have to make informed decisions.

Sure, not everyone will need access to all of the company’s data. Most of the time, they will require specific data that helps them fulfill their individual needs. All of that will only be possible if the data is stored in a practical manner, can be easily accessed, and is available for sharing.

Data Analysis and Integration of Findings for a Unified View

While individual departments within a company may only be concerned with data relevant to their needs, it doesn’t mean there will be no use for a unified view. The management, for instance, may want a global or integrated view to gauge the company’s progress. This is where companies realize they require tools for combining data from multiple sources. Cross-domain analytics of collected data can be both informative and beneficial for daily operations within a company.

Additionally, the pooled data should be clearly labeled and have reference data accompanying it. This would simplify the process of providing each department and line of business with information relevant to them. Hence, an efficient data strategy is both scalable and flexible.

Effectiveness of the Practices in Place

Data management outside the context of an application requires that organizations consider it more than a byproduct. If given a chance to access data from across the enterprise, they can improve business and drive sales.

However, equally important is setting the criteria for analytical effectiveness of data usage. How else would a company measure progress? Estimating how effective the current practices are would involve:

  • Knowing how many people are using the analytics
  • Finding the kind and extent of usage they are getting out of the data, i.e., is it actionable?
  • Measuring the increase in sales based on the analytics of the company’s data

Data Privacy and Security

As we enter the final half of 2019, it is important to consider the after-effects of the previous year’s data privacy and security initiatives, which undoubtedly played a vital role. While the implementation and integration of GDPR (General Data Protection Regulation), introduced by the EU, was in the limelight of the greater part of 2018, it is also important to consider these new set of rules and regulations for data protection was also responsible for triggering a towering wave of privacy policies, regulations, and updates throughout the rest of the world.

There is no question that working to implement GDPR compliance was a primary priority for a slew of businesses, as well as advertisers in 2018. However, GDPR is not the only regulation for data safety and privacy in effect today. California has also joined in, becoming a handful of US states that have launched a new set of regulations and data protection laws. California data protection laws dictate that all businesses operating across the state will be liable and legally be held accountable for the methods they utilize to gather, secure and share the personal information of their consumers.  

Our expert team of Data Analytics Strategy consultants makes it easier for businesses to manage client expectations and maximize your sales. Contact us to discuss the complete range of services we offer right away!

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