Knowing the True Value of Business Data with Data Architecture

A recent study by McKinsey recently stated that in the future, data will play an even more important role in the workplace, and organizations will need to focus on improving their data quality in order to stay competitive.

Data architecture is a strategy that can help reduce misunderstandings and errors in data generation, processing, and transformation processes. By outlining the benefits of data architecture and providing steps on how to build a data architecture, this article demonstrates the value of this strategy for business professionals.

Technically, What Is Data Architecture?

Data architecture is a plan that shows how an organization will store, organize, and use its data.

It helps companies to develop data-driven strategies by providing a clear overview of how data is collected, stored, and used. This makes it easier to govern data and make sure that it is used effectively.

What Is the Significance of Data Architecture?

It is important for businesses to have a way to access and use all of their data easily and effectively. A data warehouse is a type of database designed to hold data from multiple sources so businesses can access and use it for analysis and reporting. Data warehouses provide a single, centralized view of data that businesses can use to make better decisions.

Data architecture is the blueprint for categorizing, integrating, and storing data. It helps ensure that data is accurate, consistent, and accessible to those who need it.

The Main Advantages of Data Architecture for Businesses

1. It Provides a Comprehensive View of a Company

The data lifecycle describes the different stages data goes through, from its creation to its eventual deletion. In order to manage data effectively, it is important to have a unified view of data that takes into account all the different stages of its lifecycle.

Besides that, data architecture is the backbone of an organization’s data strategy and helps ensure that data is consistently collected, managed, and accessed across the enterprise.

2. It Helps Companies Make More Accurate Decisions

Many B2B companies are expecting to increase their investments in predictive analytics, but according to McKinsey, their return on investment falls short.

The unified and consistent availability of data enables businesses to get more relevant information from data. It helps professionals make better decisions since data architecture makes data more usable.

3. It Enables Business Analysts to Improve Their Processes

The unified and consistent availability of data enables businesses to get more relevant information from data. It helps professionals make better decisions since data architecture makes data more usable. Data architecture can be seen as the backbone of an organization since it ensures that data is easily accessible and can be used to drive business decisions.

Data observation allows analysts to see how data travels through each stage of the data life cycle. By doing this, they can identify any bottlenecks or issues that might be present. This information can then be used by business leaders to improve overall processes.

4. It Helps CMOs to Get More Accurate Customer Insights

Focusing on your current customer base is more beneficial than trying to constantly acquire new customers. Your existing customers are more likely to spend more money with your company, so increasing customer satisfaction should be a priority. This will, in turn, increase your marketing ROI.

Data architecture also allows marketing teams to collect and access accurate data within the business. This provides consistency for marketing departments when analyzing customer interaction data and gaining insights into customer behavior.

Conclusion

Indeed, data architecture is critical to business success. By understanding the true value of data, businesses can make informed decisions that drive growth and profitability. The right data architecture allows businesses to collect, store, and analyze data efficiently and effectively.

Overall, by leveraging data architecture, businesses can gain a competitive advantage and improve their bottom line.

If you need help with your company’s data architecture modernization, look no further than our expertise here at Newcomp Analytics. We help organizations tap into their data by leading with a mix of strategy and development expertise, using data science, machine learning & AI. Call us today for more information about our data modernization strategies and other related services.