You’ve heard all the buzz over the years about the need for organizations to update the way they do business to keep pace with the ever-changing technology environment. Cloud computing, analytics, artificial intelligence—they all drive colossal amounts of data into the hands of executives. As more and more companies capture customer, market, operational, and financial data, the ability to leverage this data in actionable ways is becoming crucial to survive and be successful in a competitive landscape. Is your organization data driven? Today, more than ever, data needs to be part of your company culture.
The multibillion-dollar sales of Tableau and Looker are proof positive that data-driven companies are powering the marketplace and if your business isn’t on board, you’ll be left behind in terms of hard results and overall success in any industry. Why is this so important? How do you create a data driven environment in your organization?
The Importance of Data
Did you know the world produces 2.5 quintillion bytes of data every day, and 90% of all data has been created in the last two years?
How does your business manage and make sense of it all? With all the conversations about innovation and disruption, and the need to create a solid company culture, businesses should comprehend that they are all linked. Yes, your organization needs to be nimble, proactive, and transformational— and data is at the heart of all of it.
The outcomes speak for themselves:
Forecasting is more efficient
Data learning has been used to predict profits since technology became fundamental in business operations.
Assessing performance is easier
When you can interpret your data in meaningful ways in alignment with performance, you can act upon these areas of development and growth much quicker.
Developing a Data-Driven Company Culture
Data should be a driving force for every business decision to influence the direction of the company. This is the core of how to foster a data-driven culture.
This means that everyone within a company should be encouraged to develop a data-driven mindset. Data needs to be at the core of measuring growth, consistently leveraged for preparation and reporting, and data should also be evaluated against your company’s overall goals as well as for telling your story.
Collect and analyze data
Does your business collect data? If so, how does your business collect data? How are actionable insights distributed within the company and to the different cross-functional teams? Data should be accumulated in an organized, functional way, with an infrastructure that is established by qualified data engineers If this isn’t set up properly, you might have valuable data that you can’t extract any meaningful insight from. You’ll end up with innumerable hours of frustration trying to make sense of your data.
Ensure data literacy
Once you’ve set up your data to be collected effectively, you need to make sure it is available and understandable to everyone in your organization. Data scientists shouldn’t be the only ones who can decipher what’s going on with your data. If you truly want a data-driven company culture, each department needs to take ownership of the data. The results? They will be able to comprehend the data and make intelligent decisions in accordance with the findings. This would also mean that training staff members to be more data literate should be a top priority.
Designate data leadership
Bottom line, there needs to be data leadership within your organization. A sizable part of this responsibility will be the management and use of data as a strategic asset enterprise wide. Leadership should work with each department to plan communal methods to obtain, store, manage, share and utilize data. More importantly, leadership needs to make sure that the organization embraces a data-driven way of thinking throughout all operations and actions.
The New Era of Data
What’s the landscape like today, and where is it all taking us? Let’s paint the picture. The sale of Tableau for $15 billion to Salesforce and Looker for $2.6 billion to Google in June of this year indicates a new protocol for data. These acquisitions show that businesses can process large amounts of data better, and that the discernments from the data contain a powerful value.
The global business intelligence market is expected to reach nearly $29.48 billion by 2022, according to Statistics MRC. So, it is understandable that Google and Salesforce want a piece of that pie. (https://www.reuters.com/brandfeatures/venture-capital/article?id=5619)
The use of data is evolving, and your organization needs to evolve with it. Instead of only knowing the key points the data is showing you, you should be able to identify the gaps indata that impact development of your overall growth strategy. Your insights will not just be flat information lying on a page, but calls to action so you can move forward with definitive confidence.
The results? Getting ahead of the curve, being proactive, uncovering new opportunities quicker, making more intelligent decisions, forecasting more efficiently, and refining your analytics into meaningful insights.