5 Things Every Business Leader Needs to Know About Data Strategy

WebinarDecember 2021

In this webinar, Dr. Hugo Bowne-Anderson, data scientist and educator at DataCamp, discusses 5 key aspects of data strategy and how to leverage the masses of data currently available to your business to gain a competitive advantage and build defensible moats. He’ll draw from conversations with industry leaders on the DataFramed podcast and his work in data strategy consulting. You’ll learn all about the common pitfalls in data strategy, such as the essential components of a data strategy; how data can ruin your strategy and the failure modes of data strategy; how to leverage data and computation to do their best work while enabling your employees to do theirs; and how to get seamlessly from data strategy to data execution. Grounded in real-world examples from finance, healthcare, tech, and other industries, Dr. Bowne-Anderson breaks up the buzz of the data strategy world and lets you know where data can provide value and where it can’t. When the data bubble bursts, what will remain and how can you utilize it? Watch this webinar to find out.

Summary

Data strategy is a vital aspect of contemporary business, covering various elements from data fluency to empathy. Hugo Bowne-Anderson, a data scientist at DataCamp, discussed five key components that business leaders should know about data strategy. These include understanding the application of the 80-20 rule in data science, the reality of big data, the future of data work as point-and-click, the role of data culture, and the importance of empathy in the data strategy for business leaders. Bowne-Anderson emphasized the significance of focusing on impactful data projects, the potential of small data to yield substantial insights, and the growing prevalence of non-coding data tools. He also highlighted the necessity of a strong data culture within organizations, where every employee is data literate, similar to the universal adoption of email. Lastly, he pointed out the need for empathy in data strategy, urging leaders to consider the diverse stakeholders affected by data-driven decisions.

Key Takeaways:

The 80-20 rule is essential in prioritizing data projects that can drive significant value.
Big data is not always necessary; small data can be powerful with the right analytical models.
The future of data work involves more point-and-click tools, reducing the need for extensive coding.
Establishing a data culture is vital for effective data strategy implementation.
Empathy is essential in data strategy, considering the impact on all stakeholders involved.

Deep Dives

The 80-20 Rule in Data Science

The Pareto principle, often referred to as the 80-20 rule, is a key concept in data sci ...
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ence strategy. This principle suggests that 20% of efforts can lead to 80% of the results, a notion that Hugo Bowne-Anderson emphasized as essential for business leaders. He explained that in data strategy, this means focusing on tasks that drive the most value, even if they are not the most glamorous. Examples include data infrastructure improvements and creating unified data sources to eliminate silos within organizations. Bowne-Anderson highlighted that these foundational tasks, although not immediately rewarding, can significantly enhance future data initiatives. He advised leaders to identify descriptive analytics projects that could inform decision-making and prioritize them based on potential impact. "Think about large, unsexy wins," he advised, pointing out that such initiatives often move the needle significantly.

The Role of Big Data vs. Small Data

While big data has been a buzzword for years, Bowne-Anderson argued that its importance is often overstated. He illustrated this by referencing historical examples where small data sets yielded substantial insights, such as Johannes Kepler's laws of planetary motion derived from limited data. He also mentioned Andrew Gelman's work on polling, which demonstrates how small samples can represent large populations with accuracy. Bowne-Anderson noted the diminishing returns of collecting more data when quality and representativeness are lacking. He encouraged leaders to evaluate the necessity of big data for their strategies and explore the use of qualitative 'thick data' to enhance decision-making processes. "It's not about mountains of data; it's about small, high precision data," he emphasized, advocating for a balanced approach to data collection and analysis.

Future Trends in Data Science Work

The area of data work is shifting towards more user-friendly, non-coding tools. Bowne-Anderson discussed how drag-and-drop interfaces are becoming prevalent in both business intelligence (BI) and machine learning domains. Companies like Google and Microsoft are investing heavily in these tools, making data analysis more accessible to non-coders. This democratization of data work allows various teams, such as marketing and customer success, to leverage data insights without deep technical expertise. However, Bowne-Anderson cautioned against potential risks, such as bias in automated tools, and stressed the importance of equipping users with the knowledge to interpret results responsibly. The rise of point-and-click solutions also poses questions about the future of data science careers and the evolving role of data professionals in organizations.

Building a Data Culture

Creating a data culture is fundamental to the successful implementation of data strategy. Bowne-Anderson described a data-fluent organization as one where every employee, regardless of their role, can access and utilize data necessary for their tasks. This involves not just technical training but also creating an environment where data-driven decision-making is integral. Bowne-Anderson referenced a survey revealing that many companies struggle with hiring top talent, suggesting that upskilling existing employees is a viable solution. He stressed the importance of communication and data flow within organizations, advocating for internal campaigns and learning platforms to promote data literacy. "Everyone should be involved with data, just like email became ubiquitous years ago," he remarked, pointing out the cultural shift required for data strategy success.

Empathy in Data Strategy

Empathy plays a vital role in shaping a responsible data strategy. Bowne-Anderson urged leaders to consider the human impact of data initiatives, highlighting that each data point represents real individuals. He cited instances where biased data products led to public backlash and regulatory challenges, such as the Apple Card's gender bias issue. Bowne-Anderson introduced the concept of the ethical matrix, a framework for evaluating the effects of data products on various stakeholders. He also discussed the importance of transparent communication with employees regarding automation and its implications on work. As data-driven decisions can have far-reaching effects, Bowne-Anderson advocated for a thoughtful approach that addresses potential biases and considers the well-being of all affected parties. "Data strategy isn't only about numbers; it's about people," he concluded, calling for a balanced and empathetic perspective in data-driven business strategies.