DataIQ members have regularly discussed their experiences – past or present – working in data at businesses that have only just started a data office or founding one from scratch, and the problems are always similar: there is a lack of investment in tech to utilise the data. Businesses do not know how to handle the data they currently have, but are driving towards accumulating more data, leading to a situation where they are not getting the most out of their data. So how can businesses embrace this new era of data-driven action, but ensure they are getting the quality insights required? There is no one answer, but investment in technology and tools suited specifically for each operation will make great strides in solving the problem.
If businesses are not able to access the true potential of their data in the near future, the problem will become exponentially worse in the coming years with the gulf between data accumulation and data use growing to a point where it becomes insurmountable. There is already a skills shortage for data professionals and as data become more sought after, and this will get exacerbated by outdated or unsuitable tools and technologies being used by businesses that do not see the value in tech investments.
“Without the appropriate technology investment in data technologies, business will miss opportunities that their competitors may already have acted upon,” said Chris Stephenson, chief technical officer at Sagacity. “The data tech landscape has undergone significant transformation over recent years. So, whether you are looking to enhance your current capabilities or starting with a green field, if you are not able to take advantage of these innovations, you may be disrupted.”
Understanding why tech is needed
There are some key reasons why there should be a constant – yes, constant – investment in technology. Spending a huge sum of money one year and then hoping that will allow your business to coast for the next decade is simply not going to happen. Technology is rapidly evolving, as are businesses, and what was cutting edge last year may not even be suitable for the direction an operation is taking this year. Because of this, business decision makers must understand why a steady trickle of investment purely for data tools and technology is needed, not just for the data team, but for the success of the wider business.
Six of the top reasons for integrating new technology includes:
“Businesses must be looking at strategic investment in data, for many it is not a just a case of gaining a competitive advantage but one of outright survival,” said Stephenson. “One needs to consider carefully how that investment is made however, there has been a significant proliferation of data related technologies in the previous decade, selecting the right technologies and partners will be critical to the success of your data strategy.”
Delivering evidence of improvement
Too often, non-data professionals can think that simply incorporating a new piece of technology means that results will immediately start pouring in – unfortunately, this is not the case. DataIQ members often discuss how to improve their storytelling, their data visualisation and getting their voices heard at the big tables to ensure stakeholders can appreciate and understand how and why the investments are leading to improvements.
“Businesses must make data and the insights it brings visible to all stakeholders in the business, and in particular, those stakeholders who are funding data programmes,” said Stephenson. “Ensure that the data and data teams lying behind every business case and successful post investment review are recognised.”
Stephenson added, “Surfacing the data in the appropriate platforms/tools for the appropriate audiences from data teams to senior executives is also important. Stakeholders will come to rely on the data and tools to support them and should in turn, support the investment in data within the business.”
“The same way on any investment, but here it’s a case of ‘eating one’s own dog food’. Clear articulation of goals, success criteria/metrics, collecting the data and communicating the results. The important thing for decision makers is to understand is the value of the data capabilities which underpin almost every business decision.”
Thanks to the Covid-19 pandemic, businesses have had to experience and weather overnight changes to their operations, capabilities and business outlooks – those that have succeeded best (and even flourished) are those that were willing to invest in technology in a time of uncertainty. It is therefore imperative that businesses continue investing in the tools and technology that is being developed for data optimisation as it is here that the insights into accelerating business success can be found. A successful and well-resourced data team means that all areas of a business can be catered to when it comes to analysing their own objectives and efficiencies which creates greater return on investment.
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