Data Maturity: Business Strategy
Where are we on our analytics journey? It’s a question we get asked all the time. In this series we will look at key questions to help you determine just this! We’ve graded common responses based on three levels of maturity: walk, run and fly.
Describe your business strategy in relation to your data:
Walk: We have a clear business strategy but we don’t yet know how data can support this.
Run: We aligned our data projects to strategic business aims but are unclear on what takes priority or where we should see ROI.
Fly: We have scoped data projects with clear links to business strategy and expected ROI.
See which answer most closely matches your current situation and scroll down for some crucial advice.
Your answer: We have a clear business strategy but we don’t yet know how data can support this.
Our advice: Before diving into the vast ocean of data, it is crucial to identify your business priorities and questions. What are the key challenges or opportunities your organisation is facing? What questions do you need answering? Don’t just focus on the problems though, consider the levers and decisions that you can make to affect those problems. It’s no use getting a lot of data on competitor pricing if you are ultimately not willing to change your own.
Your answer: We aligned our data projects to strategic business aims but are unclear on what takes priority or where we should see ROI.
Our advice: The #1 thing that all data team should strive for is to be: Value-Driven. It might seem vague at first but it is an important mentality to embed in your team that everything they do serves a purpose. Every data project needs to drive value for the business and its success should be evaluated in this manner. You also need to be specific in evaluating the success (or failure). For example, you embedded a propensity scoring model into an automated churn prevention CRM, which led to a 10% reduction in membership cancellation. Based on the current size of your subscription base and pricing, it is estimated to be a $5m addition to your ARR. Be specific and objective in terms of the outcomes.
Your answer: We have scoped data projects with clear links to business strategy and expected ROI.
Our advice: Fantastic! This puts you on the right foundation to get value from data. One aspect that we’ve often found is overlooked is the speed to value. How long does it take for the business to benefit from your current initiatives? There is an opportunity cost when you don’t get to incremental value quickly. Opportunities cost both for the business to action on insights and for the data team to demonstrate impact. To get to incremental value quickly, you need to create a clear data roadmap, prioritise the low-hanging fruits and iterate from there. Break the project down into smaller milestones and deliverables.
If you want to understand where you are on your analytics journey. Our Data Maturity review offers a holistic and independent assessment of the strengths and weaknesses of your current technology, processes and people.