Good Data Strategies in Action
"Without action, the world would still be an idea." - Georges Frederic Doriot, founder of INSEAD.
Portsmouth, in South England, holds one of the most iconic symbols of naval power: The HMS Victory. Onboard, I couldn't help but see it as a reminder of how strategy, like the intricate rigging of a ship, is what ultimately drives success. The Battle of Trafalgar was a testament to the power of using the right tools in the right way. The English were outnumbered 33 to 27, yet won decisively. Admiral Nelson's secret? It wasn't about inventing new strategies. It was knowing exactly which proven strategy to use and executing it flawlessly. He borrowed tactics from the Battle of Camperdown, showing that mastery of existing examples beats trying to reinvent the wheel. This is what great data strategies are about: understanding proven approaches and applying them to gain an edge.
In this article, we’ll explore a set of lessons that illustrate successful data strategies—each accompanied by examples from companies that have put these strategies into action.
Lesson 1: Good Data Strategies Are Aligned with Company Strategy
Good data strategies are like the rudder of a ship—they must be rooted directly in the company's overall course. Without alignment, all the data in the world won’t help you if you’re headed in the wrong direction. When top leadership integrates data into their strategic vision, data initiatives have the full backing of the organization. This alignment ensures that data efforts are like well-oiled cogs in a machine—each action contributing to the overall movement, driving meaningful and measurable results.
Take Airbnb, for instance. Riley Newman, the first data hire at Airbnb, was instrumental in aligning the data strategy with business needs. As Newman once said, 'Our job was not just to collect data, but to ensure it directly influenced decisions at every level of the company, making data a part of Airbnb's DNA.' Under Newman, data didn’t operate as a separate entity—it was embedded into Airbnb’s culture and decision-making from the top down, ensuring everyone worked towards the same goals.
Lesson 2: Good Data Strategies Are Driven by Leadership Across All Levels
Starting out as a young data product manager at Unite, a large B2B procurement platform, I tried to challenge the status quo. I knew we could achieve so much more if I only could get a change process going toward a more data-driven org.
And I failed, failed a lot.
Until I got the top leadership involved. It wasn't that I convinced the CEO to become data-driven. Rather, it was an alignment of insights; suddenly, everything moved in the right direction. It still took years to complete the transformation, but once leadership got involved, things started to move in the right direction.
For a data strategy to succeed, it must be championed not just by data teams but by all leadership, including product, tech, and operational leaders. Zalando, a German retail giant, pioneered the data mesh approach, much like a fleet adjusting its formation—not just a data-driven movement but a complete organizational shift that allowed data to flow where it was most needed. Dr. Alexander Borek, Head of Data Analytics at Zalando, once said, 'The key was involving all parts of leadership to ensure that data wasn't just centralized, but embedded within every business unit.'—not just a data-driven movement but a complete organizational shift that allowed data to flow where it was most needed. The drive for radical agility involved pushing all tech—including data—into business units, fostering innovation, and allowing data to support core operations.
Lesson 3: Good Data Strategies Focus on People
A good data strategy is like equipping every sailor on deck with the right tools—not just building more dashboards but giving people the power to make real, effective decisions. Riley Newman at Airbnb understood this. By democratizing access to data and empowering cross-functional teams, he ensured that data was a tool for everyone, from interns to CEOs, helping them make more informed decisions.
Tesla, too, demonstrates this well. As Elon Musk once said, 'The overarching goal is to make your car the smartest thing you own.' Tesla's data collection acts like a vigilant co-pilot, handling the tedious aspects of driving so that drivers can focus on the road ahead, ultimately making the driving experience smoother and more intuitive. This approach not only enhances safety but also embodies Tesla's mission to leverage data to improve user experience. It’s a perfect illustration of data strategies working for people.
Lesson 4: Good Data Strategies Look Simple
"Recommend great movies to people, and they'll watch more." - Netflixes complete business strategy (well, basically)
Good data strategies are like a sharp knife—they're deceptively simple but incredibly effective, cutting through the clutter and focusing only on what truly matters. Netflix is a great example—its strategy is built on personalization, an idea that sounds simple but has profound implications on how data is gathered, processed, and acted upon. As Neil Hunt, Netflix's former Chief Product Officer, once said, 'Personalization is not just a feature—it is the defining factor for keeping our users engaged.'
"Good strategy almost always looks simple and obvious and does not take a thick deck of PowerPoint slides to explain."- Richard P. Rumelt, in Good Strategy Bad Strategy
Lesson 5: Good Data Strategies Are Unexpected
A good strategy is like an unexpected maneuver—it catches competitors off guard, creating an advantage. If it sounds like what everyone else is doing, it probably won’t help you win. The most successful strategies make use of unconventional methods that others overlook. Zynga, for instance, used an unorthodox approach by building a massive analytics department to drive real-time game optimization—something considered excessive and even risky at the time, but it paid off in spades. As Mark Pincus, founder of Zynga, put it, 'Data was at the core of our decision-making. We invested heavily in analytics because we knew understanding player behavior would give us an edge.'
A good strategy should be surprising—if it sounds like everyone else’s, it’s not going to make you win. Successful data strategies often take unexpected paths that capitalize on unique opportunities. Think about how Zynga utilized data to drive its growth—its approach was unconventional at the time, focusing aggressively on real-time feedback loops to optimize games and user experience.
The founder of Zynga was called crazy for investing in such a large analytics department. If you’re not called crazy for your data strategy, it probably sucks.
Lesson 6: Good Data Strategies Are Actionable
A strategy without action is like a ship without wind in its sails—directionless and ineffective. Nelson not only understood strategy but knew precisely how to execute it. As Jeff Bezos once said, 'Ideas are easy. It's execution that separates the sheep from the goats.' Successful data strategies must turn vision into action with clear, defined steps that everyone can follow. Great data strategies break down grand visions into clear, executable steps.
Vision is great, but you need a step-by-step plan that people can execute. For instance, at one point in my career, I moved from a vague, broad data strategy to a focused, actionable one. The key shift was prioritizing "new data" that could help users make better decisions. The focus was clear, and it made all the difference.