5 common data project challenges and how to avoid them

Any data project is filled with challenges; solving these problems or avoiding them altogether is the key to success. Narrowing this list down to just five was a challenge in itself!

Challenge 1: My data is getting too complicated

Our mantra is ‘keep things simple’. That applies to the amount of code we write as well as reducing unnecessary maintenance and management of technology. Unfortunately this isn’t everyone’s experience. For example, when you’re attempting to integrate a variety of existing systems it presents your average developer with a tempting challenge: ‘I know how to fix this,’ they immediately shout out, ‘but it’s going to take a while!’ Chances are, somebody, somewhere has already solved that exact same problem. Rather than waste time and money reinventing the wheel you can simplify these things by using out of the box connectors and automated data pipelines which allow you to connect to your source systems straightaway. They’re pre-built and remotely managed, so you can be working on your data in minutes not months! 

Challenge 2: Nobody’s using my dashboard

The dashboard is the place to splash your important findings in a way that is accessible and easily understood. So how come nobody is looking at it? It’s a gripe we often hear from stakeholders who’ve asked for the dashboard and the developers who sweat over them. The truth is, you can make the best, most functional dashboard in the world but nobody will look if it’s carrying the wrong information. The solution lies not in greater technical or creative prowess, but during the planning stages of your entire data project. First define the overall strategy and goals for the business and then ask how your data can help reach those goals. Secondly, identify those individuals in the business who are accountable for the numbers and targets. Without clear ownership of numbers and without insights that actually drive action, then why should anyone care what’s on the dashboard?

Challenge 3: The tech team is arguing with the business team

Traditionally there’s been ‘them’, the business team and ‘us’, the IT guys, and communication between the two can be more dysfunctional than a bad tempered debate in the House of Commons. Cross purposes and hidden agendas can make a long term data project a fraught affair, but there is a straightforward solution: nominate one developer with the appropriate people and communications skills to be embedded in the business to act as a single point of contact. This ensures that information and requests get passed on to all the relevant parties in a language they understand and you’ll avoid tedious delays and costly repetition of work.

Challenge 4: My data project is going over budget

This comes back to our golden rule of keeping things simple. Many data firms will spend three months or more setting up infrastructure and installing software before they even begin to analyse data. You needn’t do any of that if you use a data streaming service like Fivetran or a cloud data warehouse like Snowflake. Rather than wait until day 91 of a project you can start integrating data straightaway And the quicker you begin loading and looking at the data, the sooner you’ll start to see results. Beyond this we like to use the agile approach in any project, delivering in regular stages which gives us the chance to make mistakes and reset if need be. As we like to say: fail fast, but fail cheap.

Challenge 5: My data project is taking too long

This is perhaps the number one gripe for many companies involved in complex data projects. The causes are many, and can be solved by successfully overcoming the other challenges on this list. Making sure you clearly understand the requirements up front, and have a clear view of the problem you are trying to solve is key. In addition, we recommend clear planning with measurable outcomes at every stage and employing a good project manager to keep everything (and everyone) on track and to deadline. Find out how our own agile approach to analytics could help you quickly get the data your business needs. 

The four pillars of a data strategy

Mention data to some executives and you’ll get a range of reactions, ranging from evangelical to utterly perplexed. The latter group might know data is important to their business and understand that using it correctly can bring significant wins, but there is often considerable confusion over how to best implement it. Fret no more, as here are the four pillars you need to launch a successful data strategy. 

People 

First look around your organisation and assess existing strengths and weaknesses. Do your staff understand the power and value of data? You don’t necessarily have to run out and employ a team of experts, instead audit existing skills. If somebody is a whizz with an Excel spreadsheet, chances are you can train them up to become more data literate.   

Next take a step back and look at the structure of your organisation. Is there a divide between your IT department and your business people? If so, that needs rectifying. To get the most out of your data, everyone needs to work together. Rather than make it the sole preserve of techies, a joined up approach will spread the responsibility and offer the best chance of creating a successful data culture. 

Process 

One of the quickest wins is in the optimisation of existing business processes. One company we worked with wanted to create a more efficient system for posting journals in their finance system. At the time they had a 20 step process for this seemingly straightforward procedure; laboriously copying information into Excel, running four different reports, then ticking off a long paper checklist before finally postingThrough automation we were able to reduce that process down to two or three steps, while still allowing for all important checks to take place. 

Ensure automation is built into your data systems. It will transform the working lives of even the most data-phobic employees, providing alerts on anything from fluctuations in sales to customer complaints. Rather than finding out about this in the annual report or having to dig through the data for answers, a simple warning symbol in your regular reporting will alert you to potential problems before they cause too much damage.    

Data 

While it’s important to have everyone on board, it is crucial to have trusted individuals overseeing data in areas such as customer and product information. You need people who can own that data and be responsible for it. Ensure that they have clear strategies around managing data quality and data governance. This stuff is as important to growing your business as your staff and product – treat it with the same care and you’ll reap the rewards. 

Technology 

Once you have thought through all areas of your strategy, only then should you commit to spending money on the necessary tech. We often meet companies who have muddled through by bolting on extra systems here and there. What they should have done is to step back and ask whether it might be simpler and more efficient to just start from scratch? Often building on a legacy system is a false economy, while investing in the correct, modern system for your needs will save you time and money. 

If you take just one thing away from this, it’s that upfront thinking is absolutely crucial. We see so many companies who have taken bad advice and invested in a pricey data lake or warehouse that ultimately didn’t serve their needs. They then have to start over, or are forced to work with compromised systems. Never overlook the importance of starting with a defined data strategy, it is one of the most important business decisions you will ever make. 

What better way to kick of you data strategy that a FREE 90 minute Data Strategy workshop tailored to your business? Book your call with one of our data gurus now to understand how data can help you to achieve your goals:

https://meetings.hubspot.com/david-rice2/free-90-minute-data-strategy-call

How to grow your business 30% year on year

There is one abundant and seemingly inexhaustible resource available to every business on the planet – data. By this stage in the game everyone knows that it’s important, but many businesses still don’t know how to harness its undeniable power for boosting rapid growth.

A recent study by the market research company Forrester showed that companies driven by data insight grow faster – by nearly a third every year! They calculate that together these forward thinking businesses are on track to earn $1.8 trillion by 2021.

The alternative in today’s market is stagnation. A 32-year old McKinsey study of over 3,000 businesses showed that “If a software company grows at a rate of 20% a year, it has a 92% chance of ceasing to exist within a few years.” That remains true today. Suddenly 30% sounds less like a pipe dream and more an essential target for survival. So how can you use data to grow your business?

Interpret

Start right away. You don’t need a PhD in computer science these days to begin to interpret your data. There are many powerful – and often free – resources, such as Google Analytics, that can quickly give you an understanding of what your customers want. From here you can begin to investigate new products and services to meet those needs.

Now it’s time to get serious and employ experts who can really make your data work for you. The Forrester report says the best businesses use “data, analytics, and software in closed, continuously optimised loops to differentiate and compete.” Roughly translated that means you should target your analytics to focus on answering specific questions; as the business needs inevitably evolve, the analytics can adapt and react almost instantaneously in order to provide data to support the new focus.

Integrate

Making these insights a central part of your business is something which needs to come from the top. Make no mistake, if the leadership believes this is just ‘something for the IT guys’ then there is no chance that your company will be using data to its full potential. You need to make it part of your overall business strategy. This will allow you to focus on the data that will really make a difference to your company. 

Action

The more completely you act on these insights, the better your relationship with your clients. Retention of customers is of course hugely important to your long term success. According to customer relations experts SuperOffice, those who are most dedicated to creating an insight driven experience see 89% of their clients returning for repeat business.

Potential

Once you have seeded insight driven culture in your business, don’t assume it’s solely up to you to act on the findings. Data shouldn’t be the preserve of management or marketing, everybody needs to understand your business strategy and to become as data obsessed as you are. Only when everyone, from executives to interns, are accountable for measuring and reaching these targets will you fully reach your potential and become a truly insight driven company.

30% growth year on year will put your company among the best performing businesses on the planet. This success and the extra revenue it brings can be reinvested in innovating to keep ahead of the competition and rewarding all those employees who helped get you there. Make no mistake, data driven businesses are winning.

To find out how to unleash the power of your data, then book your FREE 90 minute Data Strategy call now ->

https://meetings.hubspot.com/david-rice2/free-90-minute-data-strategy-call