In times of digital disruption, many companies also want to become data-driven. But what does that mean and what challenges do you have to be prepared for?
Gut feeling versus facts
A Data Driven Organization is an organization in which decisions are mostly based on data or facts in a business context. We are dealing with the opposite situation when business decisions are based more on a gut feeling. This is often referred to as years of experience or market expertise. However, our ever changing VUCA world no longer allows for this, as the challenges companies face today are completely new and not covered by our reservoir of experience.
However, before embarking on a journey towards a data-driven organization, it is worth considering in which areas of the business you want to add value extracted from the data. Not every decision will be better with data and a positive effect will not always be visible immediately; sometimes it takes years to implement a data strategy throughout the organization. At this point, perseverance and consistency are needed and will be rewarded in the long run.
Where can data help?
A Data Driven Company deals with data in both operational as well as dispositive business processes. Smart analytics optimize operations and support business decisions. New business models can often be built based on the analyzed data. With reliable data, many companies also find the way to monetize such data and often become disruptors in their own industry. It is also important to mention a widespread automation approach that is unthinkable without data.
Data Driven must also be Technology Driven
The advantages of being a data-driven organization are obvious. Many technical prerequisites need to be fulfilled in order to reap all the benefits derived from data. A Data Driven Company must also be Technology Driven and have a compatible infrastructure, hardware and technology. The best dashboards won’t help if you don’t have the right infrastructure to access them in real time. Such mundane aspects must also be considered by organizations during strategic planning.
Are you already implementing your Data Driven Strategy and looking for a partner with experience in Data Services?
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