Have you ever wondered how much data is averagely generated by one person for every second on earth? The answer is 1.7MB for every one second. Imagine how much data will be generated by only one person for a day, a month, or a year! That’s a lot of data. The rising number of internet connected devices are pushing the capability of data-driven analytics even further, trapping organizations in a competition to adapt to the challenges of collecting, processing, analyzing, and visualizing such huge-scale data.
We are now living in the digital economy era which explains why data has become so important. An organization’s ability to compete will increasingly be driven on how well it can leverage data, apply analytics, and implement new technology.In fact, according to the International Institute for Analytics, businesses who are using data will gain $430 billion in productivity benefit over competitors who are not utilizing data.
Data-driven companies are not just a company that uses analytics, but it’s a company that focuses on innovation based on solid foundation of concrete actual data, it’s a combination of science and business that puts customers’ needs at the centre of business equation. The main idea that derives from using a data-driven approach is various information available to improve every sector of the business. In today’s era, customer experience is the key to ongoing loyalty and quality service. In conclusion, Data-driven companies are companies that embrace data-driven technology as a tool to create better processes, culture, performance, and reach overall company’s goals.
It all revolves around strategy
How can a business have the right strategy when the business doesn’t know essential information such as what needs to be improved, what customers need, which strategy is not working effectively, and many more. This is where the role of big data takes part in developing an organization. Almost every business across different industries are now making massive investments in big data to be a data-driven corporation. A recent study found that organizations that claimed to have achieved competitive advantage through the implementation of data analytics are over two times more likely to significantly outperform their competitors; data-driven analytics enable organizations to have guidance on day-to-day operations to future strategy, allowing organizations to seek value through different means and ends.
Innovation is key
Competition will only get tougher, organizations are forced to distinguish themselves from the rest of competition through creative innovation. Organizations in a new digital economy are recently focused on solving traditional problems in traditional markets with creative solutions using data-driven analytics. The organizations that are using data-driven analytics are taking technology resources out of a centralized IT department and distributing it across other value chain functions in order to completely and wholly transform the organization, allow invention to happen in various departments such as marketing, procurement, customer service, operations, and many more. For an instance, retail companies are utilizing digitized marketing analytics to deliver effective advertising, increase rates of customer acquisition, and product improvement.
Improve Customer Experience
The era of not knowing what customer needs, preference, and behaviour is long gone and it’s all in the past. With available technology today, such as big data analytics, companies can analyze the data about their customers and gain a complete picture on what customers’ behaviour and needs. With the use data-driven analytics companies are able to develop products according to a concrete fact about their customer preference and behaviour, promote the products with the right marketing strategy to the right group of people, engage with customers in a deeper level, and many more, there’s higher chance of success from every angle of the business by using data-driven analytics, it will improve overall customer satisfaction and experience about the company’s brand.
Share of big data and analytics revenue worldwide by industry in 2019
The statistic above shows that the banking sector is responsible for generating 13.9% of big data and analytics, followed by the manufacturing sector that generates 11.3%. In total, the market is predicted to rapidly grow to US$189.1 Billion.
Why some companies refuse to become data-driven company?
Almost every organization is struggling to keep pace with constantly changing demands for technical and organizational development to become a data-driven company. The fact is, the average professional doesn’t understand how data is generated, this comes into play when the result of the data contradicts a long-standing norm. This level of disbelief in data influences leaders to fall back from leading its organization to become a data-driven company, leading leaders to use gut feeling rather than facts from informed data insights. In fact, 2 out of 5 people in the organization don't believe in data insights, preventing the company to unlock its maximum potential with the power of data. Other than that, average professionals believe that one-third of their data is inaccurate. It’s never too late to realize that data is that powerful and meaningful for the growth of the companies, with advanced technology, it’s possible to collect accurate and updated data.
Data-Driven Company's Capablities
Gartner predicts that by 2020, 80% of organizations will initiate significant development in the field of big data, organizations are beginning to perceive data and analytics in a new way. Data and analytics will become the main driver for an organization's business strategy. Data-driven organizations operate in a continuous data-driven business cycle, the cycle requires these following capabilities:
Tech-savvy (Data Creation and Integration)
It’s the ability to create and collect all relevant data, and integrate this data into useful insight. Without big data technology, the organization is walking with blindfolds. The main problem for companies to acquire this ability is qualified people who excel in clouds, big data, and data science are difficult to find. It’s even harder to keep them as high salary and job security is not enough to make them stay, or even if they are staying with the company, it requires constant adaptation and learning.
Data-fluency (BI and Analytics)
It’s the ability to understand intelligence and insight from data. Just like being fluent in language, data fluency allows people to share ideas about data in a common shared language. In business concept, data-fluency enables employees across different departments to a set of standards, processes, and terms. Data-fluency employees understand how to turn a scattered mass of data into useful insight because they know how to interpret data and how to use it appropriately.
Data-literacy (Decision Management)
It’s the ability to make decisions and formulate actions based on data; it’s the skill to read, work, analyze, and argue with data. Every employee at all levels requires technical skill, but soft skills are important too, two essential soft skills are critical thinking and business skills. However, the most crucial factor is the right mindset, having an open mindedness instead of a fixed mindset is significant for the success of a company. Data-driven organization reduces transparency, and transparency reduces power. Data-driven automated decision making potentially replaces managers from being the driver behind the wheel to guiding passengers.
If your organization is considering becoming a data-driven company, it’s never too late to become one. We have helped top national companies to accelerate digital transformation with the use of big data, artificial intelligence, machine learning, etc,. We also offer free consultation at Volantis, please click here for more information