What is a data strategy and how do you create one?

Published: 7 February 2025

 

 

 

In today's data-driven world, a data strategy is no longer optional. Companies need to do well in competitive markets. From streamlining operations to informed decision-making, the potential of leveraging data is huge, so having a strategy for it will be a game-changer! In this blog, we'll unpack what a data strategy essentially is, why it's crucial, and how to create a tailored approach for your business needs.

 

 

What is a data strategy?

 

A data strategy is a prepared plan that tells an organization how it collects, manages, and uses data toward its business goals. Think of it as a blueprint for the coordination of data-related initiatives that are there to help you reach your business objectives. It ensures that data is accessible to your needs and also action-oriented when needed.

 

 

A data strategy typically includes the following key components

  1. Data collection: Defining what data is being collected, for what purpose and how it's being sourced.
  2. Data governance: Ensuring that the data collected is accurate, secure and compliant.
  3. Data storage: Choosing the right kind of storage system and infrastructure for your data, such as cloud-based, on-premise or hybrid.
  4. Data analysis: Analyzing the data with the proper method suitable for the data collected. The same can be used for decision-making processes.
  5. Data monetization: Using data as an asset to accumulate profit and lower costs.

 

Why is a data strategy essential to your business?

 

A well-defined data strategy is essential if you want to stay competitive in a data-driven world. By leveraging insights from data, you can make more informed decisions, gaining a strategic edge within your industry. A structured approach to data helps your business streamline operations, save valuable time and resources, and ensure compliance with regulations like GDPR, reducing legal risks. Beyond efficiency and compliance, a data strategy fosters innovation, enabling your business to stay ahead of the curve. And in the long-run, you'll see a higher return on investment by turning raw data into actionable insights that drive growth and success.

 

 

How to develop a data strategy

 

1. Define objectives

Begin with your business aims. Do you want to improve customer experience, increase the efficiency of your operations, or boost revenue? Your data strategy should directly contribute to your desired goals.

 

2. Assess current data capabilities

Examine the current infrastructure, processes, and tools that constitute your data management. Pinpoint areas of shortcomings or inefficiencies.

 

3. Identify key data sources

Map out the sources of data, both internal and external. The data you collect should be relevant, of high quality, and timely.

 

4. Implement data governance policies

Define who owns the data, who can access it, and how it's going to be protected. Put measures in place for non-compliance with regulations.

 

5. Employ the right technology

Invest in tools for data storage, analytics, and visualization, such as dashboards, cloud platforms, machine learning models, etc.

 

6. Ensure a skilled team

Assemble a team of data experts such as data analysts, engineers, and scientists who can handle and interpret your data.

 

7. Implement and monitor the strategy

Deploy your data strategy in phases while monitoring them continuously for effectiveness and adjusting it to improve them as suggested by feedback and outcomes.

 

Learn more: What is data storytelling and why is it important?

 

 

A data strategy can be your strongest strategic asset

 

A data strategy is your organization's roadmap of using data as a strategic asset. It will make sure that your business objectives meet actionable insights, enhancing better decisions, and giving a competitive advantage. By following the steps outlined above, you can craft a data strategy that empowers your business to thrive in an era centered around data.

 

 

Need help setting up a data solution that fits your strategy?

 

Nytt IQ is a small-scale IT consultancy firm with big ambitions – to drive the digital and technological evolution. With cutting-edge expertise in data analytics and AI, we build innovative solutions that help your business stay ahead. Get in touch here!

 

 

 

 

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