Step 2: Select High-Value Domains Using a Value Matrix
To systematically identify which domain to select, employ a Value Matrix that evaluates each domain based on specific weighted criteria. This quantitative approach ensures resources are allocated to the area that most aligns with your strategic objectives and offers the highest potential return.
Having assessed your current data landscape and identified the key challenges within each domain, the next step is to select the domain you will focus your first data improvement efforts on.
To systematically identify which domain to select, employ a Value Matrix that evaluates each domain based on specific weighted criteria. This quantitative approach ensures resources are allocated to the area that most aligns with your strategic objectives and offers the highest potential return. Domains scoring highly here are more likely to yield data assets well-suited for advanced analytics and machine learning initiatives later.
Value Matrix Components
Evaluate each domain against the following criteria, assigning scores and weights to calculate a total value score:
- Strategic Alignment (30% Weight):
- Definition: The extent to which addressing the domain supports the organization's strategic goals.
- Assessment: Rate how critical the domain is to achieving key objectives.
- Considerations: Does improving this domain enhance market position, customer experience, or operational excellence?
- Potential ROI (30% Weight):
- Definition: The expected financial return from investing in this domain, through revenue increase or cost savings.
- Assessment: Estimate the financial impact of solving the identified challenges.
- Considerations: What is the magnitude of potential gains or savings?
- Data Availability and Quality (25% Weight):
- Definition: The accessibility, completeness, and reliability of data required for the initiative.
- Assessment: Evaluate the current state of data within the domain.
- Considerations: Is the necessary data readily available and of high quality, or will significant effort be required to prepare it?
- Ease of Implementation (15% Weight):
- Definition: The complexity and resource requirements of implementing solutions in the domain.
- Assessment: Assess potential obstacles, resource needs, and timeframes.
- Considerations: Are there existing systems and processes that facilitate implementation, or are major changes needed?
Applying the Value Matrix
- Step 1: List all potential domains and their specific challenges.
- Step 2: For each domain, assign a score from 1 (lowest) to 5 (highest) for each criterion.
- Step 3: Multiply each score by its corresponding weight to calculate the weighted score.
- Step 4: Sum the weighted scores to obtain the total value score for each domain.
- Step 5: Rank the domains based on their total scores to prioritize them.
Record and Validate Results
The domain with the highest total score represents the best opportunity for immediate impact. Discuss your findings with key decision makers and conclude the highest value domain.
Once you’ve selected the highest value domain, move on to Step 3: Specify the Minimum Viable Product (MVP).
Not sure which domain to tackle first?
If you want to avoid investing in the wrong domain, book a free 30-min chat with our Head of Data. We’ll guide you to the domain with the best immediate ROI, saving you time and resources.
🟢 Step 2 in Action
Here’s how this looked at a mid-sized packaged goods company:
Value Matrix
| Domain/Challenge | Strategic Alignment (30%) | Potential ROI (30%) | Data Availability (25%) | Ease of Implementation (15%) | Total Score |
| Supply Chain Optimization | 5 (1.5) | 5 (1.5) | 4 (1.0) | 3 (0.45) | 4.45 |
| Marketing Effectiveness Analysis | 4 (1.2) | 4 (1.2) | 3 (0.75) | 4 (0.6) | 3.75 |
| Financial Reporting Accuracy | 3 (0.9) | 3 (0.9) | 5 (1.25) | 5 (0.75) | 3.8 |
Note: The numbers in parentheses represent the weighted scores for each criterion. Each category is scored out of 5 and weighted according to the value matrix.
Validate Results
In the example above, Supply Chain Optimization is the top priority.
⚠️ Common Obstacles & How to Overcome Them
| Concern | Solution |
| Disagreement on Priority Domains | Involve key leaders early, share scoring criteria, and tie choices to strategy. |
| Difficulty Assigning Accurate Weights | Use historical data or experts to validate weights, adjust as needed. |
| Overlooking Less Obvious High-Value Areas | Revisit the list post-scoring to see if patterns warrant re-ranking. |
| Narrow Focus on ROI Only | Consider data quality, strategic importance, and feasibility, not just profit. |
Get it right from the start
Unsure which domain deserves your attention first? Book a free 30-minute chat, and we’ll help you choose the one that promises the best immediate payoff.