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Six-Step Data Strategy Framework

Key Points

  • A data strategy begins with “listening” to business leaders to pinpoint objectives—typically boosting revenue, reducing risk, or improving efficiency—and aligning data initiatives with those goals.
  • The “assess” phase examines the current state of data assets, governance, culture, and workflows across lines of business to uncover gaps and opportunities for better use of customer, employee, operational, transactional, and external data.
  • In the “apply” step, you translate insights into a formal data strategy that balances people, processes, and technology, avoiding a premature focus on just tools and instead emphasizing AI, automation, and organizational readiness.
  • “Test” involves piloting the strategy, validating data quality, privacy, and security controls, and establishing governance policies that both protect data and enable data scientists and business users to work more effectively.
  • The “execute” and “scale” stages prioritize quick‑win MVPs delivered in short sprints, iterating based on feedback to demonstrate rapid progress, reinforce alignment with business goals, and then expand successful solutions across the enterprise.

Full Transcript

# Six-Step Data Strategy Framework **Source:** [https://www.youtube.com/watch?v=ktnQb5yX93E](https://www.youtube.com/watch?v=ktnQb5yX93E) **Duration:** 00:07:38 ## Summary - A data strategy begins with “listening” to business leaders to pinpoint objectives—typically boosting revenue, reducing risk, or improving efficiency—and aligning data initiatives with those goals. - The “assess” phase examines the current state of data assets, governance, culture, and workflows across lines of business to uncover gaps and opportunities for better use of customer, employee, operational, transactional, and external data. - In the “apply” step, you translate insights into a formal data strategy that balances people, processes, and technology, avoiding a premature focus on just tools and instead emphasizing AI, automation, and organizational readiness. - “Test” involves piloting the strategy, validating data quality, privacy, and security controls, and establishing governance policies that both protect data and enable data scientists and business users to work more effectively. - The “execute” and “scale” stages prioritize quick‑win MVPs delivered in short sprints, iterating based on feedback to demonstrate rapid progress, reinforce alignment with business goals, and then expand successful solutions across the enterprise. ## Sections - [00:00:00](https://www.youtube.com/watch?v=ktnQb5yX93E&t=0s) **Designing a Six‑Step Data Strategy** - The speaker outlines IBM’s six‑step framework—listen, assess, apply, test, execute, and scale—to align data initiatives with business goals such as revenue growth, risk reduction, and operational efficiency. - [00:03:18](https://www.youtube.com/watch?v=ktnQb5yX93E&t=198s) **Iterative MVP Scaling with Governance** - The speaker explains how robust data and AI governance policies facilitate rapid MVP creation, sprint‑based iteration, and organization‑wide scaling to foster a data‑driven culture, illustrated through a bank’s fintech competition challenge. - [00:06:51](https://www.youtube.com/watch?v=ktnQb5yX93E&t=411s) **Scaling MVP for Enterprise Impact** - The speaker explains how a focused MVP can be expanded across business lines to improve customer experience, foster data literacy, and drive a successful data strategy, inviting viewers to consult IBM’s Data Differentiator guide. ## Full Transcript
0:00With the right data strategy, you can use data to impact the bottom line. 0:04But what does it look like in practice? 0:07Today, I'm going to show you how to design and implement a data strategy 0:16that delivers business value back to your organization and we're going to use a six step data strategy framework to do it. 0:27This framework has been created by IBM experts and used with our clients. 0:31I'll also apply it to an industry specific example later on, but to put it simply, 0:37the six steps are: listen, assess, apply, test, execute, and scale. 0:50And the first step is understanding your business objectives by listening. 0:54As most data leaders listen, they're asked to focus on one of three things, and it's typically a combination, 1:04so increasing revenue, decrease risk, and improve operational efficiencies. 1:14So talk to the C-suite about the top line strategy and develop relationships along the way. 1:19Make connections for where data can be used to help achieve goals. 1:23How digital transformation plays a role and note opportunities for alignment of your initiatives and business goals. 1:30Step two is assess. 1:33Look at the current state of your data use and data governance across your organization. 1:38Review your notes and host deep design thinking sessions to really learn more. 1:44The key is to foster an honest dialog about three key areas, so 1:48the types of data being used in your organization, 1:52the culture around data use within your organization, 1:58and different operational workflows that use data, especially when we think about opportunities to do it better, 2:04it'll give you that understanding of how customer, employee, operational, transactional and external data is 2:13and could be used across functional areas of your organization, different LOBs [line of businesses], and use cases. 2:27The next step is to apply what you've learned in steps one and two 2:30and actually outline it in a document that is truly your data strategy for moving forward. 2:36So it sort of line back to your business objectives, and definitely do not jump straight to a technology solution. 2:45Take a moment, pause and include the people, processes and technology 2:51needed to take advantage of all that data, AI, and automation has to offer your organization. 2:59Step four focuses on testing your data strategy and refining it to establish those controls that are needed to be successful. 3:07During these test scenarios, 3:09look for areas in your data strategy that need to be refined to ensure data quality, data privacy, and data security. 3:21Outlined findings with data and AI governance policy that actually helps protect your data. 3:26These policies also empower data scientists and business users to work smarter with greater data access. 3:34Now you can go ahead and prioritize and develop those small focus and MVPs [minimum viable products] and step five. 3:41Now, these MVPs, as we think about them, 3:44really need to go ahead and show progress in a short amount of time. 3:50Then then iterate along the way. 3:53Use these sprints to ensure that your MVP is aligned with business outcomes. 3:59And test and refine the solution until it truly meets your user's needs. 4:05These continual refinements encourage adoption, which is pivotal for the last step scale. 4:11You can scale your solution to other functional areas, lines of business, and use cases that we mentioned earlier. 4:25As you share the results of your solutions, you'll start to see a natural culture shift for your organization. 4:31Stakeholders will begin to come to you asking to scale your results to their LOBs 4:36as they see the value of and actually crave data-driven processes. 4:42Let's put this into practice with an example. 4:45Imagine you're a data leader at a bank. 4:48Let's say it's a North American banking organization. 4:53The biggest focus for your bank today is competing with 4:57and differentiating yourself from the customer experiences offered by fintech [financial technology]. 5:02But how do you tackle this problem through a series of quick wins in a comprehensive data strategy? 5:09As you listen to stakeholders in step one and assess the state of your current organization in step two, 5:15you're likely to see data silos across lines of business that are leading to operational efficiencies. 5:23So apply what you've learned in steps one and two to creating a data strategy that eliminates silos. 5:29Keep those natural data connections between the lines of business. 5:33Functional areas. 5:35Use cases and teams in mind. 5:38Ultimately, the entire plan should tie directly back to that enhanced customer experience 5:43that you'll deliver through data accessibility efficiencies. 5:50Now you can go ahead and test and refine the data strategy for KYC [know your customer] regulatory compliance and beyond. 5:58The focus here is integrating client datasets across the organization without sacrificing data quality data 6:05privacy and data security, and you'll do this through proper data sharing and permissions. 6:13Next as you execute your strategy, 6:17you start with that small focus MVP and let's say that we do the current mortgage underwriting process. 6:30So this is an area with high ROI [return on investment] but a short enough production time, 6:34you can show value quickly here. For example, in your first MVP, you not only integrate relevant data sets, but as you iterated, 6:43you were also able to implement a virtual assistant 6:46that quickly brings information that's relevant forward from each mortgage underwriter. 6:52Since you picked that MVP focus that could be scaled to other lines of business area 6:57and areas like let's say the credit card focus or, let's say, credit cards or customer service or sales. 7:12You can actually use that solution to help further streamline customer experience across the organization. 7:19As your solution demonstrates business value, 7:21you'll organically grow that culture of data literacy, and that's what we alluded to earlier. 7:26But that's a big factor in the success of your data strategy. 7:30To learn more, check out the Data Differentiator IBM's Guide for Data Leaders. 7:35Thanks so much for your time and don't forget to subscribe.