best practices

How to build a modern data team: Best practices to follow

Ask any data leader how to beat the odds, and they’ll say it starts with the right strategy. Sure, strategy sets the direction. But let’s be honest: that’s the easy part.

The hard part? Making it actually happen.

According to Gartner, only 48% of enterprise digital initiatives actually deliver on their business goals. That means more than half of those bold plans and roadmaps go nowhere. 

If you want real impact, you need a data team built to execute. One that’s not just technically sharp, but embedded, accountable, and trusted across your business.

This guide is your blueprint for building the kind of data team that doesn’t just build reports but drives actual business outcomes.

Table of contents:

How do data teams actually work?

Data teams collect, organize, analyze, and operationalize data that helps businesses move faster and make data-driven decisions

Their job is to make insights accurate, accessible, and actionable. That means building scalable infrastructure, monitoring data quality, and implementing tools that empower anyone to explore answers on their own.

Great data teams are also champions of data literacy, helping business users ask better questions, spot new opportunities, and drive meaningful impact at every level.

Legacy data team vs. modern data team

Remember when data teams were just the ‘report shop’? Always buried in silos, scrambling to finish ad-hoc demands, and churning out dashboards no one really used?

Yeah, those days are long gone. 

As more businesses embrace a data-driven culture, modern data teams aren’t just supporting decisions; they’re shaping them. They're actively discovering opportunities, guiding strategy, and helping every team move with clarity and confidence.

Forget building reports, they’re building the engine that powers your business growth.

Let’s take a closer look at how the role of data teams has evolved: 

Aspect Legacy data team Modern data team
Core role Report creators, task-driven support function Strategic business partners, proactively driving business decisions
Mindset Reactive, execution-focused Outcome-oriented, value-driven
Tools and technology On-premises data warehouses, legacy BI tools, batch processing Cloud-native stack, real-time data pipelines, AI-powered analytics, autonomous agents, and self-service tools
Data scope Structured data only, mostly from internal systems Structured, semi-structured, and unstructured data from diverse internal and external sources
Role in company culture Risk-averse; focused on volume over quality Focused on learning, iteration, speed-to-insight, and fostering data literacy
Change responsiveness Slow, rigid processes, siloed structure Agile, iterative, adaptable to evolving business needs and data sources

How to build a modern data team: A step-by-step guide

In a world where data drives everything, the structure of your team determines how far and how fast you can go.

Here's a practical blueprint to help you get it right:

Step 1: Define the business outcomes first

You can't build a data team in isolation. For your team to drive real impact, it needs to be rooted in the outcomes your business actually cares about. These could range from accelerating product development, scaling AI-powered analytics, or expanding into new markets.

Before you bring in new talent or sign up for yet another data tool, nail down three to five business outcomes your data team is responsible for. Those goals should shape everything, from who you hire to how you scale your infrastructure. 

Step 2: Assess where you are today

Next, take a hard look at your data landscape. Maybe your team’s stretched too thin, or your tools can’t keep up with the business.. These bottlenecks may seem small, but they pile up fast.

Identifying the friction points is the first step toward building a leaner, faster, and more strategic data operation.

💡 Take Cox 2M, for example. Their data team was stuck in a loop, spending over five hours a day just to answer one-off questions. Once they switched to ThoughtSpot, business users could simply ask questions in natural language and get instant answers. 

The payoff? $70K+ saved each year and a data team finally free to focus on high-impact work.

Step 3: Decide on your team’s structure

Even the best data strategy can lose momentum if your team isn't organized to support it. How you organize your data function plays a huge role in how quickly insights surface and how well they scale.

Here are three common models:

  • Centralized structure: All data roles sit within a core team. Great for consistency and governance, but it can be slow to meet fast-changing business needs.

  • Decentralized structure: These roles are embedded within each business unit. It's fast and responsive, but often leads to data silos and duplicated efforts.

  • Hybrid structure: A centralized team owns infrastructure and standards, while analysts work directly with business teams to deliver insights. 

While there’s no one-size-fits-all answer here, the right structure depends on how your company operates, what your business priorities are, and how quickly you need to move.

Step 4: Build a scalable tech stack

If your team needs five different tools just to get clean data that you can actually use, your stack isn’t built to scale.

A scalable tech stack reduces friction, automates routine work, and gives everyone—from analysts to business users—direct access to the answers they need. With the right systems in place, your team can shift from chasing one-off requests to driving real outcomes: improving data quality, increasing ROI, and applying AI where it matters most.

🔍 With Spotter, as your AI Analyst, you simply ask a question and it instantly surfaces anomalies, trends, and deeper insights that explain what’s really going on in your data.

Asking questions in Spotter

Step 5: Operationalize collaboration with the business team

Your data team can’t create real business value from the sidelines. To solve problems, they need to be in the room, working shoulder-to-shoulder with product managers, marketers, finance teams, and operators.

That means participating in planning sessions, understanding the context behind KPIs, and helping shape the decisions that turn data into action.

When collaboration becomes part of the daily rhythm, your data team shifts from a reactive support function to a strategic partner.

💡 Just look at Publicis Sports & Entertainment. With ThoughtSpot Embedded, they reduced reliance on manual ETL workflows, unlocking automated insights at scale. More importantly, their data team can work directly with marketing to track sponsorship performance in real time. 

With that, the team was able to save over 1,000 hours of effort in 2024 alone. 

What are the challenges in building a data team?

1. Getting executive buy-in

Research by Gartner shows CIOs who clearly connect tech value to business outcomes secure 60% more funding than those who don’t.

And if you're a data leader trying to grow your team? The same rule applies.

You won’t get buy-in by talking about dashboards built or queries optimized. That language keeps data stuck in the ‘cost center’ category. 

⛏️ Fix: Schedule recurring syncs with senior leaders where you share opportunities, wins, and risks tied directly to business outcomes.

2. Balancing speed with rigor

Everyone wants fast answers. But when speed takes priority over accuracy, you risk trust.

Suddenly, execs stop trusting your dashboards. Business users question the numbers. And again, your data team shifts from strategic to reactive.

⛏️ Fix: Use analytics tools that offer data lineage and versioning to maintain trust, while accelerating faster, self-serve querying where precision isn’t critical.

3. Making room for upskilling

You don’t just need data talent, you need adaptable talent. With AI evolving fast, tools shifting, and business demands growing louder, your team needs to stay ahead.

But when every sprint is overloaded and headcount is stretched, learning is the first thing to fall off the roadmap. That’s how teams get burned out and fall behind.

⛏️ Fix: Think of upskilling as a strategic building exercise. Build 'learning sprints' into your roadmap. These short, focused blocks are essential for educating your team about exploring new tools, techniques, or business domains.

Empower your data team to become business catalysts

Big data and AI haven’t just rewritten business rules; they’ve raised the stakes. And if your data team is still buried in backlog, keeping up is tough. And getting ahead? That’s even more of a challenge. 

But with ThoughtSpot’s Agentic Analytics Platform, your data team can finally say goodbye to the backlog. It frees your teams from repetitive reporting, so they can focus on running advanced analytics, building smarter models, and crafting strategies. 

Ready to make data work for your business? Start your free trial today

Frequently asked questions

What roles are essential for a high-performing data team?

Most modern teams include a mix of data engineers, analysts, scientists, product managers, and domain experts. As AI becomes more prevalent, you’ll also want adaptable talent that can shift between technical depth and business context.

What are the key skills required for a modern data team?

A high-performing modern data team needs more than just technical chops. Yes, data engineering, analytics, and AI/ML expertise are table stakes, but what really sets great teams apart is their ability to connect data to outcomes. That means strong business acumen, a knack for storytelling, and the soft skills to collaborate across functions and influence decisions.

How can you measure the success of your data team?

Move beyond vanity metrics like the number of dashboards built. Instead, track business outcomes tied to data initiatives such as time-to-insight, campaign lift, customer retention, or new revenue streams. Also measure adoption: Are business teams actively using data to guide decisions? That’s a strong signal that your team is making an impact.

How does AI change the role of the data team?

AI is turning data teams from report builders into strategic enablers. Instead of spending time cleaning data or answering repetitive questions, teams can now use AI to automate routine tasks and focus on higher-impact work. But AI doesn’t replace the need for critical thinking, domain knowledge, or ethical judgment. If anything, those skills matter more.