Modern Data Strategy on AWS: Importance & Benefits
Tags: aws
Published: 2022-09-08 11:36:56

## What is Data Strategy?
As the name suggests, Data Strategy is an organization’s long-term strategy plan dictating the people, processes, technologies, and regulations required to manage their data assets.

We all know that businesses generate huge sets of data from multiple touch points on the daily basis. Without knowing what to do with this data, it will be overwhelming for businesses to manage and strategize their data assets in the long run to achieve business goals.

A strategic, well-integrated data strategy and analysis plan will help organizations leverage optimal tools and use the collected information in the right way to make informed decisions. In other words, data strategy will summarize how an organization plans to collect, share, store, use and manage its data assets in the long run.

AWS offers a wide range of services to help organizations reinvent their data infrastructure. Businesses can leverage innovative AWS Data Infrastructure Modernization services that offer secure, reliable and highly scalable cloud platforms to deliver enhanced customer experiences altogether.


## Why Data Strategy is Important for businesses?
Leveraging data strategy is the key to success for businesses, as this will help them gain a competitive edge and employ innovative and efficient methodologies across their stack. To unlock the full potential of the large amounts of data collected, organizations must plan a well-thought data strategy to systematically organize, manage and act on the data. This will eventually help them achieve their business objectives with better operational efficiency.

An optimal data strategy will help enterprises achieve the following:

- Optimization of processes
- Better operational efficiency
- Boosted customer satisfaction
- Improved team productivity
- Accelerated decision-making
- Increase in revenues
- Competitive advantage over others
Data strategy aligns your data governance and business strategy with innovative data management. It gives you a competitive edge, because of two main reasons:

## 1. Take better data architectural decisions
The data architecture heavily determines how efficient an organization is in collecting, managing, storing, and distributing large sets of data. Data management mainly revolves around the following technical factors:

- File systems and databases
- Data governance rules and regulations for storage formats
- Network system between databases and business applications
Your data strategy will outline the framework with the help of which data engineers will be able to make better architectural decisions to achieve business objectives.

## 2. Consistent data management
A well-thought data strategy will empower the entire IT infrastructure to consistently and collaboratively manage data.

It will help you identify crucial data, approve optimal data operations, understand the core objective of collecting and storing data, set up data governance policies for processes, and derive valuable insights from existing data.

## Benefits of employing a Data Strategy for Businesses:

## Enhanced customer satisfaction
Organizations can leverage data strategy and analytics to derive insights from existing data and ultimately deliver pleasant customer experiences. Data strategy helps you understand customer behavior, so you can address their demands proactively and deliver value in the long run.

Adding to this, data strategy also helps enterprises deliver personalized products and services as per the customer requirements.

## Mitigate risks involved in data management
Organizations often have to deal with common data management bottlenecks such as data duplication within business stacks, data silos, inefficient data flow across units, poor data clarity, and lack of data priorities.

Data strategy can help you mitigate these challenges as it makes your large sets of data more accessible, manageable, secure, and organized.

## AWS Analytics at its Best
Data strategy helps organizations attain analytical maturity. This means that organizations can leverage not just primary ‘diagnostic analytics’ but also ‘predictive analytics’ to understand what will happen in near future. After this, comes ‘prescriptive analytics’- which is the strategic use of data to attain pre-set goals.

All in all, a well-planned data strategy will outline a roadmap based on insights instead of hindsight to help you make the right decisions. It is a founding element to inculcate ML (Machine Learning) and AI (Artificial Intelligence) in your business strategies to achieve better business intelligence.

## Set up the right Data Culture
A data strategy lays out a detailed roadmap to promote data efficiency, data priority, and data literacy across all business units. This in turn creates an optimal data culture and aligns organizational teams to improve the quality and accuracy of collecting data.

## Regulatory Compliance
A good data strategy employs data security measures to restrict unauthorized access to your important data assets. It aids data governance by helping you define better policies for your business processes.

Business operations are strategized in such a way that data management succeeds in retaining IT integrity, security, and privacy of organizations consistently.