There’s a ton of data out there—so now what? How can it make a difference for you? That depends on your goals, the resources you have, and how much effort you’re willing to put into maintaining a data-driven approach long term. Keep in mind that there are plenty of options for solutions, some more labor-intensive than others, but only a few will help you turn the data that matters into valuable insights. To do this, you need a solid data strategy.

A good data strategy should consider several key factors that will influence its implementation. Some of these factors are basic requirements, like understanding how data will flow, how it will be visualized, and how different users will interact with it over time. But a truly effective strategy also explores new data-driven possibilities and helps you choose the right approach for your needs. Here are some essential things to think about to develop a great strategy:

Clarifying Current and Future Goals
It might surprise you how often people skip over clearly defining what they want their data strategy to achieve. Many rush into designing systems without thoroughly considering what’s possible or aligning their goals. A great strategy will encourage you to ask thoughtful questions, helping you move beyond what you already know and think about future possibilities. Once you understand what you want to achieve now and in the years ahead, you can narrow your options to something realistic that meets your current needs and positions you for future success.

Understanding Your Business Processes
This may seem obvious, but it’s crucial. When designing a data-driven strategy, it’s easy to focus solely on the immediate data flows, but a great strategy goes further. It looks at how your organization’s overall goals and processes, both now and in the future, might be impacted by data. It examines how users interact with data today and how they’ll engage with it tomorrow. The best strategies dive deep into these processes, revealing ways data can offer multiple insights and help save time and resources over the long run.

Auditing Your Data Inventory
One of the biggest advantages of data-driven approaches is the ability to assess your current data and see how it can be enhanced with new data sets and sources. New data might come from tools that tap into untapped internal sources, external vendor feeds, the Internet of Things, or even unstructured data from the web. A solid data inventory covers what you already have, but a great one also helps you understand what’s out there and what will become available soon.

Choosing the Right Tools and Techniques
There are countless tools and techniques out there, and picking the right ones is crucial. It’s not always obvious which will work best for your needs. Some might be more advanced than necessary, while others might not be enough. A great strategy will go beyond simply explaining how tools should work together—it will consider potential challenges and offer solutions to ensure your approach is successful based on real-world experience.

Considering Legal and Policy Issues
Data governance and policies are still underdeveloped in many industries. While some strategies can be built with minimal consideration for regulations, the landscape is changing fast. With increasing data breaches, cyber-attacks, and calls for regulations, external factors will inevitably impact your approach. A good strategy might overlook these issues, but a great strategy anticipates them, assessing risks and preparing flexible plans to minimize negative impacts.

Adapting to Different Locations
With a more mobile and global workforce, your data strategy must be adaptable to different operational environments. It’s not enough to apply a one-size-fits-all approach. The strategy must consider the local differences in infrastructure, bandwidth, user behavior, and cultural norms. Whether you’re working in a small village in Sri Lanka, a manufacturing hub in the Baltic States, or a tech firm in North Carolina, these local variations can significantly affect how your data strategy is implemented.

Understanding How Your Target Market Will Interact with Data
Data-driven approaches are only beginning to unlock the full potential of user interaction with data. Designing interactive experiences goes beyond knowing user preferences within your industry—it involves looking at how users engage with data across different sectors. Drawing inspiration from a wide range of industries can help develop unique experiences that will enhance how your target market interacts with your data.

Ultimately, investing time and resources into developing a strong data strategy before jumping into implementation and testing is essential. Even if you’re just getting started, a smaller investment upfront will save you from costly modifications later.

However, if you’re going to invest in a data strategy, make sure it’s a great one. A good strategy ensures that your approach works within your current business processes and can grow with you in the short, medium, and long term. But a great strategy helps you explore all the possibilities, showing you what’s achievable and how to unlock the full potential of your data to drive business success.