Does a Solid Data Strategy Mean Better Financial Performance?
Does a solid data strategy mean better financial performance?
As your business continues to grow, you will have decisions to make. One of the most important decisions is how to manage big data. A 2015 study conducted by The Economist Intelligence Unit with more than 500 global executives found that a well-defined big data strategy is associated with strong financial performance. So, what makes for successful strategic data management? Let’s take a close look.
Many companies today are entering the data adolescence phase, and have moved past the initial excitement around the potential of big data, realizing that it is time to set priorities. Companies in this nascent stage typically have an elevated stature and ownership of a big data strategy and a strong focus on the relevance of information and analytics and how these translate into measurable business results.
The key to a solid data strategy is to identify the business value of things that cannot be accomplished now but should be accomplishable, then specify how reaching these goals would give your business a leg up on competitors. Strategic data managers are not just better at strategy, they are also good at applying nearly all of the relevant data and analytics to real business problems.
There are a few issues that companies face when developing a solid data strategy:
- Collecting and managing large amounts of data
- Ensuring data security and privacy
- Maintaining the quality of the data
Who is in charge of the big data strategy?
Today’s executives recognize that a solid data strategy is necessary for better financial performance; as such, data has become a top priority and earned a spot in the C-suite. Business and IT now work together to design, prioritize, and carry out big data strategies. We are also seeing the emergence of a new role of Chief Data Officer. These leaders are taking control of engaging the company across organizational boundaries, mediating among different agendas and balancing priorities among big data initiatives.
The future of solid data strategy
Companies are continuing to evolve toward strategic data management. The ability to predict future outcomes based on the data and analytics will help energize the application of data to assist in decision making. Companies will have to keep reinventing themselves and as their business increases exposure to technology, the client value proposition will become increasingly driven by data.
The bottom line is that decisions that are backed by data and analytics often result in greater financial results. Data can offer predictability and facts so that executives can make decisions that will better both themselves and their clients. Companies that have not yet build a data strategy and a strong data management function need to do so or they will fall behind their competitors and could risk losing profits.
Knowing what data is needed and knowing how to apply the data to the business is something that will truly change the game when it comes to a company’s bottom line. A solid data strategy should be central to any and all businesses.
Beyond AP Automation: How AI and analytics unleash the power of finance data
Interested in learning more about how AP Automation supports your data strategy and helps improve financial performance? Watch our webinar on the future of accounts payable automation, the roles that artificial intelligence and analytics play in the evolution of these technologies, and the attainable ROI that comes from investing in powerful automation practices.