As the data guru Clive Humby astutely observed in 2006: “Data is the new oil”. 17 years on and it is now clearer than ever that the architect of the Tesco Clubcard – one of the earliest and best examples of big data generation – was speaking the truth…
More recently, a study by IBM found that poor data quality costs global businesses an estimated $3 trillion annually; lost productivity, lost revenue and incorrect decision-making all occurs much more readily when decisions are being made blindly.
Organisations that effectively manage and leverage data can make informed decisions and gain a competitive edge. They can improve operational efficiencies and drive growth and revenues. Recently, Roberts Group partnered with an international fast-moving consumer goods brand to establish an effective data strategy for their franchise business model.
Data Strategy… treat data as the jewel in your crown
A data strategy is an approach for organising, collecting and analysing data to maximise its value. A good data strategy will help organisations to make better decisions and grow business in the short and long term. Without a solid data strategy, it can be difficult to have proper oversight over data and know that it is being used accurately and for maximum value.
It goes without saying that the value of data lies in the insights that can be derived from it. With the right tools and techniques, organisations can turn raw data into actionable insights that inform and drive their business strategies and growth plans. By analysing data and identifying patterns, trends, and relationships, organisations can gain a deeper understanding of their operations, customers, products and markets. This enables data-driven decisions that improve efficiency, increase competitiveness and drive growth. The insights derived from data can also help organisations to identify new opportunities, optimise processes, and better serve customers. The world’s most advanced companies see data as a differentiator, and they view their data as a critical business asset. The data strategy is how the data is managed to influence strategic decisions and enhance overall business performance.
The Challenge of utilising data to maximise business results
RGC recently worked with an FMCG client to articulate and implement their digital vision across the region, enabling them to take full advantage of digital technologies and transform their business for the future. We then co-created a data strategy, bearing in mind their franchise model. The final objective was to optimise the digital lab processes and operating model, to ensure the right tools, systems and processes to harness the power of data.
RGC’s approach to achieving these objectives consisted of 5 workshops:
- Building the Vision: We explored the importance of data for the business and created an ideal state for how data should be managed and utilised. This involved identifying opportunities and challenges and developing a roadmap for achieving the desired state.
- Identifying Data Use Cases and Users: We identified internal and external stakeholders and their needs and expectations with respect to data. This ensured that the data strategy was aligned with the organisation’s goals and objectives and that all stakeholders were engaged and supportive.
- Assessing Project Capabilities and Current Situation: We assessed the current state of data management and governance, technology infrastructure, and data analysis capabilities. This provided a foundation for developing a data strategy that is realistic, feasible, and aligned with the organisation’s goals and objectives.
- Exploring Shared Resources and Capabilities: We worked with the client to understand opportunities for pooling resources, leveraging existing investments, and partnering with external organisations. This helped the client to optimise their investment in data and leverage the power of data to drive business success.
- Building a Governance Framework: Finally, we defined and agreed on a governance framework to manage existing and future projects and resource allocation. This included data governance processes and management structures, defining roles and responsibilities, and establishing a framework for decision-making and resource allocation.
The outcome of the workshops has resulted in a clear and actionable plan for leveraging data and digital technologies to drive business success, aligned with the company’s goals and objectives. Moving forward, the firm was in a better position to drive growth, improve efficiency and build a competitive advantage in its market.
The importance of an effective data strategy
The rapid growth of data in recent years, stimulated by the digital revolution, has made data a vital resource for organisations large or small. To stay ahead in today’s ruthless business environment, it’s essential for companies to adopt a data-centric mindset. Gartner argues that by the end of 2023, data literacy “will become an essential and necessary driver for business value.” Ultimately, organisations that prioritise proactive and strategic management of data – and use it to know their market, ecosystem and customers best – will have a competitive advantage in staying ahead of the competition.
