Many people would be surprised to come across a business with no strategy. The idea of a business with no marketing, sales, or human resource strategy would seem totally ludicrous. However, only a handful of people would be shocked to find a business with an outdated or no strategy at all.
Research states that about 95% of organizations agree that data is a crucial tool yet almost 70% of businesses have not updated their existing data strategy.
Yes, each department needs to manage its own data. But for data-driven businesses, updating their data strategies is crucial in ensuring the organization makes the most out of this vital asset.
Let’s take an in-depth look at a few reasons why every business needs to change its data strategy to adapt to the ever-changing business environment.
1. Make Crucial Decisions, Faster
Having a comprehensive data strategy is great. However, it can create so much data from so many departments that assessing and analyzing the data can be slow and tedious. Ultimately, this will make it hard for business heads to make the right insight-driven decisions for the business.
By updating your data strategy, you can make the data supply chain more efficient, thus reducing the time-to-insights needed to make crucial decisions for the company.
2. Effective Customer Acquisition
Collecting customer data such as their email or contact information is one thing. However, leveraging the data to increase the company’s revenue margins is another thing altogether.
Organizations need to be able to respond in real-time as customers bounce between one touchpoint to the next. A modern data strategy with all data sources integrated into a single data supply chain will improve how the company analyzes and engages consumer behavior.
Insight derived from the data analysis can be used in personalized marketing since the business will know what high-value customers look like and can predict how they will act.
3. Manage Data as per Regulatory Policy
One challenge organizations struggle with is adapting their existing data strategy to suit the seemingly dynamic regulations. By operating within an outdated data framework, companies risk breaking the law because the data strategy was not modeled according to current data policies.
For instance, the General Data Protection Regulation (GDPR) came into effect in May 2018, replacing the 1995 Data Protection Directive, which was enacted when the internet was in its early stages of development.
The GDPR aims to give consumers more control over their data. Not complying can result in heavy fines amounting to millions of Euros.
Updating Data Strategies Will Do Businesses a World of Good
Organizations that fail to update their data strategies might be in significant trouble in the next decade or so. Hiring a data scientist is a great idea but won’t be of much help in a conventional data strategy.
However, an updated data strategy will help all stakeholders involved in the strategy see the picture to make the right decisions that will steer the company forward.