May 24, 2022

This paid piece is sponsored by Eide Bailly LLP.

A version of this article appeared on eidebailly.com.

By Nate Allphin, Eide Bailly principal

According to IDG’s Data and Analytics Study, 78 percent of business leaders think that data and analytics are fundamentally changing the way organizations do business. Yet only 46 percent of those leaders say their organizations have a clearly defined and communicated data and analytics strategy.

This dynamic results in organizations that invest in tools to capture data but lack the strategy to gain valuable insights from that data. The No. 1 complaint we hear from business leaders – especially leaders stepping into a new role, investing in new technology or acquiring a new business – is that they have a lot of data and no time to figure out what to do with it. This makes it hard for them to stay competitive and adapt in an increasingly challenging market.

That is why we often recommend a data assessment. A thorough review of your data will help you understand the information available to you, where it is coming from and what actions you can take with it. In short, it becomes the backbone of your organizational data strategy, and it will enable you to make actionable decisions that will improve your overall business operations and performance.

What is a data assessment?

A data assessment is a structured review process that will provide a global view of your organization and outline the current state of your data, data challenges you’re facing and a map for moving forward with a data strategy.

You won’t be able to build a solid data strategy until you’ve done a full data assessment. A data assessment outlines your data sources, where and how information is being shared between systems and teams, and how the available data can be used to measure and track progress against organizational goals and priorities. Knowing the ins and outs of your data situation is imperative to putting a strategy in place that truly places your data at the core of how your organization operates.

How to know when it’s time for a data assessment

There are many factors that determine when it’s time for a data assessment. You should think about having a data assessment performed if:

• Your organization has no defined data strategy. That is to say, there are no set goals, metrics and responsibilities for your organizational data or a plan of action to ensure adoption and acceptance of the data as a core operating concept in the organizational culture.
• It has been more than five years since you have updated your data strategy.
• There has been a change in leadership at your organization, particularly in financial, operating or technology roles.
• You have merger and acquisition activity at your organization.
• You are looking to make investments in technology and analytics.

Who should perform a data assessment?

While it may seem like a good idea to have a chief information officer or IT manager perform a data assessment, it’s often a too laborious and time-consuming process for someone so entrenched in the day-to-day operations of the business. The benefits of hiring an external team to perform the assessment, however, reach much further than just time savings – a skilled outsider will provide a holistic view of processes, products and solutions to ensure your assessment is not conducted through internal blinders. Not to mention, an external presence also will enable employees to speak candidly without holding back in fear of damaging professional relationships.

Data assessment goals

Your data consultant’s role is to understand your business at a granular level so they can see the full picture of your needs, your current processes and technology, and how your data is currently being used. That will allow them to formulate a strategy to help you move forward. The first step in the data assessment will be defining the data goals for your organization.

Do you want to make changes and investments to unlock more valuable insights from your data? Are you looking to streamline your processes? Do you lack a single source of truth for your reporting? Do you want to improve operational and financial performance?

Defining these goals will make it easier for your consulting team to identify an effective strategy that will enable your organization to meet your goals.

Key findings and recommendations

The key findings and recommendations of your data assessment will detail a full picture of your organization’s data. Your data consultant will be able to determine what is working well with your current data processes and what needs to change, whether that means recommending ways to better utilize your current solutions, implementing new solutions or a complete overhaul of your data structure.

Building a data strategy

After you have reviewed your assessment, it’s time to take action. Your data consultant will help you make a plan for building out your data strategy and defining clear data goals to guide your analytics. If you’re going to need help implementing the recommended changes, a true data partner will have the skill set to put it all in place for you. They will be able to map out a timeline and cost, work with your team to ensure a successful transition and be by your side as your organization grows.

To learn more about creating a data strategy, visit eidebailly.com.