As the volume of data continuous to surge at a rapid pace, it is becoming increasingly difficult to obtain actionable insights at a concurrent speed. Hence, it is critical for CDOs to reassess their traditional analytics practices and to strengthen their analytics strategies.
The contribution of chief data officers (CDOs) over the past decade has been well recognized for the value they bring to an organization. In fact, New Vantage Partners’ ‘Big Data and AI Executive Survey 2021’ found that 65% of enterprises now have a CDO, a significant increase from 12% in 2021. Today, CDOs are responsible for all the data strategies of an organization including data management, governance, privacy and analytics. CDOs also have a major role to play in monetizing the data of enterprises, as per ManageEngine’s ‘The 2021 Digital Readiness Survey’ that shows 89% of enterprises are leveraging some form of business analytics. Therefore, it is important for CDOs to create and enhance their existing strategies to strengthen their analytics capabilities. If implemented incorrectly, these strategies could create unexpected costs and slow down their decision-making process.
To avoid pitfalls that analytics could create, CDOs and other IT decision-makers should consider the following strategies to utilize the value of the data to its extent:
Knowing the ins and outs of business use cases
The first step to strengthening the analytics strategy involves CDOs to fully understanding their data. This enables them to strategically lay the foundation from the ground up, with consideration on how it will impact and interact with different verticals of the enterprise. Additionally, they should only integrate cutting-edge technologies after pairing it with a specific use case; otherwise, the new technology could result in a loss on investment.
Protecting data as the top business asset
CDOs should frequently collaborate with their counterparts to discuss better practices to strengthen their data. As the surge of ransomware attacks is on the horizon, CDOs should take steps to implement zero-trust data management strategies for inbuilt protection. As large enterprises need multiple teams and applications to successfully execute data analytics strategies, CDOs should take steps to protect data against corruption across multiple verticals. This way, CDOs can be assured that their assets won’t turn into a loss
Prioritizing Data Governance
According to industry experts, many IT leaders often overlook the importance of data governance that plays a critical role in maintaining data as an asset. Not having a proper governance infrastructure in place can result in precious man hours wasted in locating and structuring data before it can be leveraged for actionable insights leading to decision making.
Additionally, unorganized data can also lead to inaccurate results that may negatively impact the overall performance of the organization. Hence, to protect its integrity and arm their fellow executives with the best information, CDOs should consider the full scope of data governance. They should ensure if every department in the organization is leveraging the same information by implementing master data management strategies and a single source of truth analytics. Additionally, while establishing a governance practice, CDOs should map back to the business use case defining the analytics strategy.
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Have a robust privacy plan
With customers becoming increasingly concerned about their data privacy, adopting new analytics strategies without accounting for privacy regulations not only increases the risk of legal issues, but also damages the reputation of the enterprise. Therefore, CDOs should integrate privacy considerations into every part of their analytics strategies. They should only allow provide access to those users who absolutely need it to perform their task and should prioritize privacy from early days of strategy planning.