By Vanya Jakovljevic, Vice President, Channel Partnerships, Claravine
The growing reliance on data by businesses and marketing professionals, exemplified by industry giants like Amazon and Netflix leveraging data to drive their strategies, has highlighted the transformative potential of effective taxonomy and metadata management. This recognition has spurred a trend towards developing comprehensive data management plans. These strategies address the challenges of maintaining consistent data standards across diverse brands and markets, and emphasize the importance of change management and expert guidance.
The future of business and marketing success lies in managing data as a strategic asset, ensuring accuracy, consistency, and accessibility across the organization.
The Challenge
The modern data landscape, characterized by a proliferation of sources, formats, and regulations, presents a formidable challenge for global enterprises. Fragmented data management practices often lead to siloed data and inconsistent standards, hindering effective decision-making and collaboration. The influx of data from digital channels, social media, and emerging technologies necessitates flexible and scalable data standards, while disparate tools and varying formats further complicate aggregation and analysis.
For global enterprises, managing data standards across diverse brands, markets, and languages is particularly challenging, with cultural, regulatory, and linguistic differences impeding the implementation and enforcement of consistent practices. This constant need for adaptation and the complexities of a global operation environment underscores the critical importance of robust data management strategies for organizations aiming to maintain a competitive edge.
And these challenges are not static; they’re escalating. The rapid evolution of technology, expansion of global markets, and increasing regulatory scrutiny will only intensify these issues in the coming years. The cost of inaction is substantial. Every year, poor data quality costs organizations an average of $12.9 million – as highlighted by Gartner. Addressing these challenges proactively is not merely an option; it’s imperative for businesses aiming to thrive in the data-driven era. By adopting a standards-driven approach, organizations will overcome these challenges and unlock the full value of their data. Let’s explore three key strategies that can pave the way to success.
Centralized Governance and Leadership
Companies must establish a dedicated data governance representative or team who is responsible for overseeing and enforcing data standards across the organization. Key areas of expertise include data management, data quality, and data governance. This team or member needs to be empowered to make decisions, allocate resources, and drive change and be accountable for ensuring data consistency, accuracy, and compliance with regulatory requirements.
Consider the example when Coca-Cola restructured its marketing organization to enhance collaboration and efficiency across its global operations. By centralizing governance, the company aimed to create a unified marketing strategy that aligns with its overall business objectives while allowing for local adaptations to meet regional consumer needs. This centralized approach has enabled Coca-Cola to streamline decision-making processes, reduce redundancies, and improve brand consistency across diverse markets. The integration of data analytics into this framework has further empowered the marketing team to make informed decisions, ultimately leading to more effective campaigns and enhanced consumer engagement.
Comprehensive Data Strategy
Crafting a comprehensive data strategy encompassing taxonomy, metadata management, data quality, data governance, and data security, aligning with broader business goals is also necessary for success. Include an implementation roadmap detailing steps, resources, and timelines for achieving data standardization. Regularly review and update the strategy to adapt to evolving business needs and technological advancements. Leverage technology platforms to automate data management processes, ensuring consistency, accuracy, and compliance while integrating with existing systems for seamless data exchange.
Change Management and Consulting Expertise
Change management plays a crucial role in the successful implementation and adoption of new data standards practices within the marketing metadata industry. Large enterprises need to be engaging with change management consultants to facilitate the adoption of new data standards and address resistance to change.
Change management is essential for mitigating risks, minimizing disruptions, and maximizing the benefits of adopting new data standards practices in marketing. And these changes are not confined to how data is managed, but also how people think about managing data.
For example, a major U.S. mortgage provider partnered with a change management data solution to address inconsistencies in its data taxonomy that had developed across its brand portfolio over many years. By implementing a new taxonomy solution and strategy, the provider was able to cut data cleaning time in half within six weeks, resulting in streamlined data collection and increased confidence in their advertising and marketing data.
This illustrates how consultants can become invaluable partners by guiding teams through the complexities of change, addressing resistance, and fostering stakeholder buy-in. They design training programs and help overcome barriers like organizational culture and technology resistance, fostering a supportive environment for change. Their efforts ensure long-term success, including ongoing monitoring, evaluation, and improvement of data standards.
By addressing the people side of change, organizations can increase the likelihood of successful implementation and achieve their data management goals.