Your company is moving forward with a data analytics strategy. That is a smart move, and it promises to have a major impact on your performance. In one recent survey, 50 percent of the respondents reported that analytics has fundamentally transformed their approach to sales and marketing.
Understanding the opportunity presented by analytics is important. Equally important is understanding that not every data analytics strategy is successful. As with any strategy, some work and some do not. If they are poorly planned, implemented, or managed, they can actually cause more harm than good.
Don’t feel the need to put your analytics initiative on hold. Conversely, don’t assume that your strategy is sound from the start. Take the time to ask these critical questions about your present strategy and future goals:
Can You Turn Data into Insights?
Data is an incredible asset, but not until it’s turned into insights. When it’s just an ocean of facts and figures it has little to offer. Look at the resources you have in-house, and assesses whether analytics is even possible. It either takes additional staff with specialized experience and expertise. Or, it takes analytics tools that offer superior accessibility, flexibility, and ease-of-use.
Is Your Data Safe?
The more time you spend collecting and analyzing data, the more it’s exposed to cyber threats both accidental and malicious. Analytics does not necessarily put data at risk, but it does create the need for stronger protections and better oversight. Companies that have not planned for this aspect could be setting themselves up for an embarrassing and expensive data breach.
Do You Have the Technical Know How?
An analytics strategy requires an understanding of data science, but it also creates a number of IT issues. Without in-house support, the strategy could be plagued by bugs and setbacks. Once again, the strategy is to either recruit the right talent or select the right solution. Small and mid-sized solutions typically prioritize tools built for non-technical users.
Can You Keep Costs in Check?
Analytics has a lot to offer, but the ROI is not automatic. Companies could find costs spiraling out of control and benefits falling short of expectations. That does not mean companies should minimize their investment. Rather, they should invest in support and solutions the deliver the highest-value possible. For instance, data visualization tools are a relatively basic feature that manages to bring analytic insights alive.
If Your Business Case Valid?
Lots of companies benefit from analytics, but it’s not a universal asset. Some companies don’t have a compelling business use case, or else can’t justify an expansive strategy. They may move forward with this strategy yet never impact the bottom line. The solution is not necessarily to abandon the strategy outright. Rather, it’s to find more organic and accessible ways to utilize data and uncover insights.
It never pays to follow a strategy blindly. In fact, just the opposite is true. The companies that get the most from analytics are the ones who are consistently critical of their efforts. Instead of assuming that something is working, they insist on getting empirical evidence. Then, when changes are necessary, they know how to do things better and not just do things differently.