Why Have a Data Strategy?

A well-formed Data Strategy, backed by a formal Data Governance organization endorsed by senior leadership, equips the enterprise to leverage data assets to their full potential by establishing resources and standards for users and consumers of data. These include a Data Literacy program to cultivate responsible usage (and entry) of data across the enterprise,  a program for data quality improvement, policies governing usage and sharing of data both internally and externally, and a data glossary & lineage catalog – an inventory of data elements and terms that includes definitions, provenance, and to whom any questions about the data should be directed –  among other capabilities and programs.

The economic benefits of implementing a Data Strategy are not limited to reducing opportunity costs (e.g., decision-making latency). By reducing the friction that impedes development of trustworthy analytics, the economic savings extend across the enterprise - enabling allocation of otherwise constrained resources to develop advanced analytics and identify additional economic streamlining opportunities as well as opportunities for leaders to improve the public standing of the enterprise through innovative, reliably-informed thought leadership.

A Data Strategy is not a one-size-fits-all template one can impose on an enterprise and assume positive results will follow. It is also something for which participation must extend well beyond the Information Technology/Systems (IT/IS) team. To be successful, designing and deploying the Data Strategy - including an organizational structure for Data Governance with defined responsibilities and decision rights - must take into account the culture of the enterprise and the strategic priorities of senior leadership as well as an understanding of the enterprise’s technology stack – including its current constraints and its roadmap for future evolution.