Why is Data Strategy Essential?

Data has earned its well-deserved place among the factors that can steer a company's success in the right direction. There’s no way to go around it, not anymore. And that’s because data is also the first step towards building and benefiting from an AI-powered business. 

As Karim Lakhani, Chair & Co-Founder of the Digital, Data, and Design Institute at Harvard University, explains: 

AI is becoming the new operational foundation of business - the core of a company’s operating model. AI not only displaces human activity, it also changes the very concept of a firm.

But before integrating AI into your business model as a way to ensure steady growth and create a clear competitive advantage, data needs to become the driving force. 

According to Tableau, data-driven companies see a 35% increase in employee retention and a 40% improved time-to-market. They are also 58% more likely to surpass their revenue goals compared to other companies, as reported by Forrester Consulting. 

So what does it mean to be data-driven?

1. It means collecting and analyzing data regularly. A data-driven company counts on well-defined systems to collect data from multiple sources, including customers, employees, and market trends. Doing this consistently helps track key performance indicators and identify areas that need improvement.
   
   
2. It means putting data at the heart of the decision-making process. A data-driven company prioritizes data when making decisions, instead of relying on gut feelings and subjective opinions. So, regardless of how trivial a choice is, data will always back it up with valuable insights.
   
   
3. It means using data to drive innovation. A data-driven company doesn't rely on data only to inform decisions, but also to recognize growth opportunities. In highly-competitive markets, companies that find creative ways to solve complex problems gain the upper hand and quickly become top performers.
   
   
4. It means helping employees embrace data. A data-driven company has a strong data culture that values and uses data as a strategic asset. Employees leverage data in their daily tasks and believe in its exponential value.

The benefits of becoming data-driven and leveraging AI are countless. To unlock their potential, you need to make the first step. And it all starts with data strategy.