The decision to build a data-driven organization is worth an applause, mainly because there is no simple solution or a step-by-step guide. We have helped several companies become data-driven, and here is our insight on where to start:
Understand the goal of data and analytics in the company
Do you need analytics to drive business performance? Or to increase cost efficiency? Do you want to increase market share? Innovate? Understanding the end goal of introducing organization-wide data and analytics processes helps to assess the required investments and possible ROIs.
Aim to support the development and execution of business strategy
Your data should bring you insights into markets, customers, emerging trends, and other things you need to support and improve your business strategy. If you cannot use the insights to make an impact, you don’t need these insights.
Teamwork and honesty
Sometimes the insights you see won’t make you happy, and that is alright. The faster you incorporate the new data, the better results it will bring. Everyone in the organization needs to realize they could be wrong in their previous business decisions, but data is there to fix it. Another thing to realize: algorithms are not human – they take into account what’s given. Humans are there to interpret data and draw conclusions. Encourage critical thinking instead of blindly following the numbers.
Choosing the analytics path
Data analytics can support a lot of initiatives. You need to know what your organization needs first, second, third…, where analytics will bring the most value and ROI, and which projects would be a waste of time and effort. Conduct a company-wide need assessment, determine the areas of business improvement based on historical data, and take into account the time required to receive the ROI from data analytics. A solid data analytics path supports business optimization, drives efficiency, and improves business performance over time.