CASE STUDY: What IS A DATA STRATEGY?

(GROUP ANALYSIS)

BUSINESS INTELLIGENCE (MSIT 3820)

Group – 2

DUE DATE: 02/11/2024

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I. Executive Summary

There are two cases given in the chapter of what is a data strategy. In the situation 1

(statistical Analysis) in this case the company lacks the important data that is needed to

conduct a comprehensive statistical analysis in the absence of data there would be less

accuracy in predicting the demand and it led to missed opportunities for data collection and

this is termed as “data debt” due to the absence of planning and anticipation. In the situation

2(Data Science Service for Start-up) In this situation the startup needs different types of data

to start the company on data science service, but they are facing lack of clarity for the

organization in terms of data collection and using it and without strategic methods in data

management the start-ups might be at risk in overlooking for potential revenue.

The recommended plan of action for the situation 1(Statistical Analysis) would be developing

and implementing the proactive data strategy that will tell us the projects planned for more

than a tear and assist us to find necessary data for the project, Right away they can collect the

important data like user demographics in improving the accuracy of statistical analysis and,

they can also hire a data scientist for better planning, For situation 2(Data Science Service for

Start-up) conducting a detailed analysis of the data requirements for the data science avenues

for revenue enhancement, finding a structured a data collection and data storage system and

add the collected data for future purpose and, brainstorming with the experts in their field

according to their plans.

II. Statement of the Problem

In the situation 1(Statistical Analysis) the company lacks the important data that is needed to

conduct a comprehensive statistical analysis especially the user demographics like age and

marital status the symptoms of the problems will be reduced in the accuracy in anticipating
the demands, unable to create personalized deals for the customers due to lack of data, lacks

the opportunity to apply the customer demographics that can improve the analysis. Lack of

proactive approach towards data requirements, inefficient data management process can be

the root cause of the problem. The short-term problems of this issue are minimal performance

in anticipating the demand, something should be done by the company to mitigate the data

gaps for the present projects. The long-term problems will be the accumulation of the data

debt that will hinder the for conducting the effective analysis and making informed decisions

and there is a risk of underperformance and lack of opportunity in future projects due to

inefficient data collection. The company should decide whether to look into the data

collection efforts and resolve the short-term problems or need to think about data strategy for

addressing long-term problems.

In the situation 2(Data Science Service for Startup) require different types of data to start the

company they lack clarity on the data collection and using it efficiently which hinders the

development of the service. The uncertainty of data requirements, lack of ability for data

monetization opportunities because it lacks the organized data, less understanding on revenue

strategies. The root cause of the problems would be lack of structured methods on data

strategy and planning, inefficient consideration of data needs, absence of expertise in their

field. Inability in delivering the requested data due to unclear requirements, limited efficiency

and scalability in data collection, the potential risk of overlooking valuable data driven

insights. The start-up needs to develop a comprehensive data strategy to optimize the data

utilization and revenue generation for long-term.

III. Causes of the Problem

The following are the main reasons why Situation 1 (Statistical Analysis) is problematic:

Absence of Proactive Data Strategy: Due to the company's inability to foresee and prepare for

its data needs, statistical analysis contains errors and gaps in data.
Ineffective Data Management Processes: Missed opportunities and a build-up of data debt are

caused by the absence of standardized techniques for data gathering, storage, and analysis.

The reasons for the issue in Situation 2 (Data Science Service for Start-up) are:

Uncertain Data Requirements: The startup is unclear about the kinds of data that are required

and how best to gather and use them for their data science service.

Absence of Structured Data Strategy: Ineffective data use and revenue strategies result from

the organization's absence of a thorough data strategy and planning framework.

IV. Decision Criteria and Alternative Solutions

Decision Criteria:

Time for Implementation: How soon can the fix be implemented?

Tangible Costs: What financial effects does each solution have?

Acceptability to Management: Will the suggested fixes meet the objectives and standards of

management?

Alternative Solutions:

Create and Put into Action a Preemptive Data Strategy:

Benefits: Meets long-term data requirements, increases analytical precision, and facilitates

better decision-making.

Cons: Implementation takes time and resources, and there's a chance that current procedures

will resist change.

Behavior Comprehensive Evaluation of Data Requirements:

Advantages: Makes data requirements clear and allows for focused data gathering and use.

Cons: It takes a long time, and it can need resources and experience that the startup doesn't

have at first.

Seek Advice and Experience from Outside Parties:

Advantages: Get advice and insights from professionals in analytics and data management.
Cons: Higher expenses, depending too much on other sources, perhaps contradicting advice.

V. Recommended Solution, Implementation and Justification

The suggested course of action is to create and implement a proactive data strategy.

Who: The data management staff of the organization, backed by upper management.

What: Create a framework for an organized data strategy that includes procedures for data

gathering, storing, analyzing, and using.

When: Start the implementation right now, and spread out the milestones over the next six to

twelve months.

How: Evaluate the state of the data processes that are in place, find any gaps, create a

thorough data strategy, and put the necessary adjustments into place.

Justification: By proactively addressing data demands, improving efficiency, and facilitating

well-informed decision-making, our solution tackles the underlying causes of both scenarios.

It offers a framework for long-term, sustainable growth and income generation and is in line

with management's goals.

VI. Additional Questions

What is the most important part of a data strategy?

The most important component of a data strategy in the case study setting is anticipating and

preparing ahead for data demands that are in line with company goals. This entails setting

precise guidelines for the gathering, storing, analyzing, and use of data as well as

guaranteeing ongoing development in response to changing business needs and technical

breakthroughs. Organizations run the risk of accruing "data debt" and losing out on

possibilities for innovative and well-informed decision-making without a flexible and

dynamic data strategy.

How can AI help or hinder the creation of a successful data strategy?

may be seen as a useful tool for improving data analysis skills, streamlining procedures, and

extracting useful information from sizable datasets. Organizations may increase the accuracy

of statistical analysis, expedite data management procedures, and identify important trends

and patterns by utilizing AI-driven tools and algorithms. But putting AI into practice also

means giving careful thought to things like security, privacy of data, and possible decision-

making biases. Although AI has the ability to completely transform data strategy, businesses

must integrate AI carefully and make sure it complies with legal and ethical requirements.

External Sourcing
1. From Business Models in Emerging Technologies: Data Science, AI, and Blockchain

By Stylianos Kampakis, Theodosis Mourouzis, Gerard Cardoso, and Marialena

Zinopoulou

(A Business Expert Press Book)

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3. What is Data Strategy? - Data Strategy Explained - AWS. (n.d.). Amazon Web

Services, Inc. https://aws.amazon.com/what-is/data-strategy/

4. DalleMule, L. (2023, October 9). The 2 types of data strategies every company needs.

Harvard Business Review. https://hbr.org/2017/05/whats-your-data-strategy

5. Data, S. (n.d.). Data strategy refers to the tools, processes, and rules that define how

to manage, analyze, and act upon business data. Stitch Data.

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