Why You Need To Align Data with the Business Strategy
By Samir Sharma
I met with a potential client in financial services last week and we were discussing a number of challenges in their business. As we talked about business and data she was curious to know how data strategy fits in with the overall business strategy.
I wanted to understand where that question came from, and she told me about an interesting debate that took place at a senior level about data, technology, digital etc.
I started to think about how this would be depicted and as my mind works in diagrams I put something together to convey this simply.
- The business strategy is the supreme being – the master of all (sometimes it can be called the corporate strategy)
- All strategies designed and created in the LOB (line of business) are supporting the supreme being (these are just my examples in the pic)
- Here is the clincher – the data, technology and digital strategies are the transformers / enablers / supporters for 1 & 2.
Everything hangs off the business strategy, the lines of business are key to ensure they feed up into the business strategy as these will drive the objectives. Everyone thinks that data reigns supreme and is above technology and vice versa.
This isn’t the case. Let’s be realistic – data and technology are on a par. They support each other and have to be in rhythm to ensure they are enabling the Line Of Business to start achieving their objectives which in turn feeds and drives the overall business strategy.
So, here is an example:
Say the CFO wants to look at Finance Transformation. They would be looking at how they improve processes (digitise), how they start to predict profitability or forecast budgets (data / insights) and how they can improve current platforms that are aging and need to be replaced (technology).
The CFO needs this to ensure she can move faster in line with revenue targets, understand the profitability of each product in greater detail and be able to drive growth. This is all part of the Business Strategy.
Are you struggling to align your data initiatives with your business strategy?
If you are and would like to know more drop me a line at firstname.lastname@example.org and we can set-up a 5-10 minute call.