Unlocking the Full Business Value of Your Data
March 27, 2020
Maximizing the ROI of your institutional data begins with having a strong business data strategy. How is this done?
A strong business data strategy is created by first ensuring it is aligned with key strategic initiatives of the organization. Without this alignment, the business data strategy won’t support the organizational strategic goals. When these organizational goals are considered, it is important to remember that organizational goals may fall under different pillars – with a few highlighted below.
- Line of Business
- Cost Management and Transparency
- Merger and Acquisition or Divestiture
- Risk Management
- Operational Management
- Channel Management
- New Product Development
- Measurements and Metrics
- And Many More
Understanding the business mission statement and strategic goals of the strategic pillar is critical and will provide the context and focus necessary to create the business data strategy that supports the strategies.
This business data strategy can be developed for each individual strategy. However, if these individual business data strategies are developed in silos independent of each other, the result may be a set of strategies that may overlap, conflict, or compete with each other. Therefore, it is important to develop these business data strategies together in a holistic manner to leverage the data to the maximum degree.
This business data strategy must get developed in alignment with the organization strategies before creating the technical strategy. Too often, the technology strategy is developed first or without an understanding of the business data resulting in investment and projects that don’t yield useful results.
Some key questions that need to be answered to develop this business data strategy are provided below.
- Do we understand the strategic mission and objectives?
- What data sets are needed for the strategic objectives and mission?
- Do we have these data sets within the institution or do they need to be acquired from an external entity?
- How will the data be used?
- How often does the data need to be sourced to meet the strategic objectives?
- What level of data quality is necessary and what data quality operations are needed to achieve the objectives?
- What is the retention period of the data?
- Does the sourced data required additional calculations and manipulation?
- How will this data be packaged, presented or delivered?
- What is our current state of the above requirements in our organization?
The answer to these questions beginsthe process of developing business data strategies that will fulfill the organizational strategies.
AscentBT has a mature methodology that helps financial institutions develop business data strategies that are practical and actionable and will help these institutions achieve their strategic goals.