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The term digital transformation may mean different things to different companies. At its most fundamental, digital transformation is the movement of processes, actions, and tools from an offline to an online environment. 

However, digital transformation might involve anything from re-formatting and digitally enabling an entire organization to building up a mobile application, website, or process.

In particular, when considering a digital transformation that includes data, we think of digital enablement and augmentation throughout a business, providing value through improved comprehension, synchronization, and utilization of digital and offline data.

Data Strategy in Digital Transformation: Where to Start?

Before creating a digital transformation strategy for your brand, it’s critical to identify your objectives and comprehend why a transformation strategy makes sense.

An effective digital transformation plan integrates many components, including a tech enablement plan and a data strategy, while also considering overall structural, commercial, and marketing goals, such as enhancing the customer experience.

It can sound tough. Digital transformation, however, is a process meant to bring procedures, data, and technology together into a coherent, actionable layer that can be used throughout the enterprise.

Defining Your Goals

What is the driving force behind your company’s need for digital transformation? What are your goals for it, and in what sectors of the company? The goals of digital transformation may seem endless due to its seeming broad scope. Data engineering can play a crucial role in achieving these goals by providing robust data infrastructure and analytics capabilities.

All firms can experience change and the effects of digital transformation — from offline brands that are just beginning their digital journey to brands that are already online but would like to understand more about their anonymous online customers and the possibility of using data to discover customers more strategically.

Naturally, the elements and procedures of digital transformation will be influenced by your company’s particular priorities, aims, and ambitions. However, with the correct assistance to bring about change within the company, the outcome will be more distinct insights and intelligence throughout the business, indicating precisely where and how to cut costs, resources, and waste from processes — all while improving marketing strategy and customer experience.

Why Data-Driven Organizations Succeed

What is the reason for the superior performance of data-driven organizations? The main reason is that they can achieve long-term growth and increased efficiency. They have a greater ability to focus and act more quickly on all fronts. 

They also understand exactly what their customers want as well as the ins and outs of their goods and services. They find this information out by asking for input all the time, by interacting with clients, experimenting, and analyzing outcomes. This shows that they’re not afraid to fail. When something doesn’t work out as planned, it serves as feedback to try something a little different the following time.

This calls for two qualities: the guts to make mistakes and the self-control to collect and arrange feedback (for example, by conducting regular testing). The latter can still be unsettling for some people. Lastly, data-driven companies can execute changes faster because they are more flexible.

Four Components for an Effective Data Strategy Framework

A strong data strategy includes essential elements, from developing organization-wide enterprise data management procedures to encouraging data access and cross-functional collaboration.

Let’s examine some of the fundamental components of a framework for data strategy that dismantles expensive data silos and opens the door for efficient data utilization throughout the company.

1. A Cohesive Perspective

A robust data strategy, if irrelevant to the business, will not endure. Start by creating an ambitious future vision that encompasses every team, function, and department if you want to engage a larger portion of your workers.

Your ideal data approach might entail:

  • A compelling “Why?” that emphasizes the advantages for the business and offers ideas for integrating employees from different departments, places, and backgrounds. 
  • A compelling response to the query, “What’s in it for me?” that directly addresses the personal objectives and aspirations of each employee in the company.
  • Clearly defined end state, measurable goals, and outcomes before a strategic initiative can be declared “finished.”
2. Executive Support

Strong alignment at all levels is necessary for a transition to be successful — starting from the top. When top executives adopt the same changes, they ask their staff too — that way, transformations have a higher chance of success.

Even the most forward-thinking leaders within the company frequently feel that large-scale data strategy success is unreachable. A staggering 67% of senior leaders who have participated in at least two significant transformations in the past five years — of the 85% who have — have also gone through at least one underperforming transformation.

3. Clearly Defined Data Architecture

The many approaches to data architecture and technology are hot topics in today’s digital age. However, the quality of your tools depends on who uses them. Organizations that don’t have a staff who is confident in their data and don’t have clear instructions often invest in technology that doesn’t provide a significant return on investment (ROI).

Ensure your data strategy is supported by clearly defined data architecture (opens a new window) to maximize the return on your technological investments.

You may relieve pressure on your senior data team and leverage data to serve a range of business use cases throughout the entire company by taking the time to develop a comprehensive data architecture such as data mesh or data lake.

4. Identifying Success Factor

Remember that the post-launch period is a critical window of opportunity for accelerating activity if you’re introducing a new data approach. It’s essential to communicate regular updates on the value delivered to keep your data strategy moving forward.

Your data strategy will be more effective in breaking down current silos and aggressively identifying end-to-end problems and opportunities if it’s in line with your fundamental business operations. You and your staff will stick with the plan if you have a clear insight into what is working and a well-organized system for tracking your progress.

What are the Challenges Faced by Companies in Digital Transformation?

We are aware of the enormous potential for digital change. Nonetheless, the following are typical problems that businesses could try to address through digital transformation:

1. Connecting Online and Offline data

To take advantage of real-time capabilities, address fragmentation, and other issues, most businesses today, regardless of their industry, are aware of the need to align their offline and online data to digitize their existing data environment. 

Enabling the appropriate data infrastructure and procedures to transfer data to a digital environment, such as from on-premises to the cloud, may be the first goal of digital transformation.

2. Data Fragmentation and Data Silos

Modern, efficient client experiences are dispersed among numerous platforms, channels, and points of engagement. Consumers count on brands to stay relevant! The responsibility for delivering a consistent experience to customers across various touchpoints remains with the brand, even with increasingly fragmented paths to purchase. 

3. Data Management

Planning and data management are major challenges for many firms in digital transformation. It is a complex process to enable, activate, and implement the right data at the right size, in real-time, and in the right places. 

In addition to offering seasoned counsel on which platforms and solutions would be most advantageous, this partner may evaluate the company’s data ecology and can recommend ways to enhance it. 


Curiosity is the essential term when it comes to digital strategy. Everyone participating, not just the initiators, should be curious and willing to offer feedback. Additionally crucial is a feeling of urgency. To do it, examine a business unit where improvements could be made and where data could be useful. 

Remember that it’s usually a good idea to start small and dream large during this process. So, begin with an appropriate product, production method, or customer journey. A customer may visit your store or website, engage with you on social media, or receive a newsletter, and ultimately, they may purchase an advertisement on a third-party website.

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Hazel Raoult

Hazel Raoult

Hazel Raoult is a freelance marketing writer and works with PRmention. She has 6+ years of experience in writing about business, entrepreneurship, marketing, and all things SaaS. Hazel loves to split her time between writing, editing, and hanging out with her family.

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