What’s Your Data Worth? How Different Sectors Set Goals with Data

Modern businesses and organizations recognize the immense value of data. From multinational corporations to public-sector bodies, non-profits, and healthcare institutions, organizations recognize that quality data has become a cornerstone of strategic decision-making, revenue generation, and operational efficiency. 

However, regardless of the type of organization, one theme that keeps coming up in conversations with our customers is the importance of aligning data investments with specific organizational goals – and finding a way to track this attribution. This alignment not only ensures that data teams are working in sync with the organization's greater goals but also helps identify critical data infrastructure and its non-obvious value.

Data may have some intrinsic value, but more often it is most valuable when applied to processes, initiatives, and decisions. Our customers often tag or track data used in critical initiatives in their catalogs to ensure that upstream systems are credited with the value that is generated in downstream processes, initiatives, and decisions. 

How businesses measure and attribute value to data

In the corporate world, data serves as a critical asset for achieving business objectives. These objectives can be at the functional or the cross-functional strategic level. Companies use data to understand market trends, customer behaviors, and operational inefficiencies and take action to improve revenue, reduce costs, and reduce risk. By aligning data analytics with strategic goals such as increasing market share, improving customer satisfaction, or optimizing supply chains, corporations can derive actionable insights that drive growth.

For example, an online retailer aiming to enhance customer experience might use data analytics to track shopping patterns and improve demand marketing efforts. An industrial manufacturer may use data to measure the effectiveness of their outbound sales efforts and help the sales team prioritize leads. In these examples, it's easy to tie data to tangible revenue generated, and we’ve seen that sales and marketing often become major focal points for any data project.

Measuring data ROI in the public sector

Public sector organizations utilize data to meet public service goals and improve governance. Data-driven decision-making enables governments to craft policies that are more effective and responsive to citizens' needs. Aligning data usage with public service objectives, such as reducing crime rates, improving healthcare access, or enhancing education systems, allows public-sector bodies to measure the impact of their initiatives and refine them for better outcomes.

For instance, a highway administration that uses data analytics to optimize traffic flow and reduce congestion can directly link these efforts to its goal of improving mobility for the public. The resulting decrease in travel times and pollution levels clearly demonstrates how data alignment with goals adds value to public service initiatives.

Measuring data ROI in healthcare 

Healthcare organizations rely heavily on data to enhance patient care and meet health outcomes. By aligning data usage with goals such as reducing hospital readmission rates, improving diagnostic accuracy, or personalizing treatment plans, healthcare providers can significantly improve service delivery and patient satisfaction.

For example, a hospital that uses data analytics to predict patient readmissions can implement preventive measures that improve patient outcomes and reduce costs. Aligning data with healthcare goals enhances the quality of care and supports the hospital’s financial sustainability. However, this opportunity must be balanced with more stringent compliance and governance requirements. 

Challenges in data valuation

While the benefits of aligning data usage with organizational goals are clear, several challenges can hinder this process. One significant challenge is the difficulty in quantifying the value of data. Unlike physical assets, data’s value is often intangible and context-dependent, making it hard to measure without an attribution methodology. This is why identifying what processes and initiatives are supported by data and attributing them to different sources is so powerful—it allows the data team to draw a direct connection between somewhat abstract investments and the organization’s goals. 

Privacy and security concerns also pose challenges, especially when handling sensitive data. Organizations must navigate complex regulations and ethical considerations to ensure data usage aligns with legal requirements and organizational values. These challenges necessitate robust data governance frameworks to maximize the value derived from data while minimizing risks.  

Future trends in data valuation

Emerging technologies such as artificial intelligence (AI) and machine learning (ML) are transforming how organizations align data with their goals. These technologies enable more sophisticated data analysis using metadata about how data is being used and by whom, allowing organizations to uncover deeper insights about the data itself. Also, using AI agents will reduce the manual effort required to identify and attribute initiatives to data. 

Practical tips and applications

Organizations should map their data strategies to specific business objectives. Start by identifying key goals and determine how data can support these objectives. Regularly review and adjust data initiatives to ensure alignment.

For instance, a company aiming to improve customer retention could track and analyze churn rates, using insights to develop targeted retention strategies.

Consider challenges such as data silos or lack of clear attribution. Overcoming these requires cross-departmental collaboration and implementing robust data governance frameworks.

Utilize data cataloging tools to track and manage data assets. Leverage analytics platforms that support goal-oriented data analysis.

Conclusion

Data's value is maximized when aligned with organizational goals. Across sectors, from corporate to public and healthcare, data's true potential emerges when it supports specific objectives. As technology advances and data governance improves, organizations will continue to innovate in leveraging data, ensuring it remains a vital strategic asset.

Curious to learn how you can use a data catalog to track the ROI of your data management efforts? Book a demo with us today.