It’s a common misconception that modern businesses are data-driven. After all, they have a specialized data team and expensive business intelligence software. The only catch is that few organizations are actually acting on the insights provided by their data in real time.
That implies these organizations aren’t actually data-driven—they’re merely data-aware.
A data-conscious corporation is aware that it collects and stores a large amount of data, and that it may occasionally utilize this data to address operational issues. However, they continue to rely on inflexible dashboards and antiquated reports. As a result, a lot of useful information is wasted. The data showed us:
Sixty-seven percent of cloud data warehouse data isn’t being used in any way, shape, or form.
The present insights solutions are unsatisfactory to 84% of frontline workers.
Currently, just 24% of businesses can claim to be fully data-driven.
Companies that are data-aware are limited in their ability to interact with their data and hence miss out on real-time insights about issues, opportunities, and trends. Even data-savvy businesses are losing out on revenue opportunities.
There is a way out, though.
In 2023, what does it mean to operate on the basis of data?
To become data-driven, an organization must undergo a radical transformation in its approach to, and use of, information. A true data-driven person would:
Access to real-time data makes understanding what’s happening in your company a breeze.
Data, insights, and action can now be achieved in minutes, rather than months, without having to wait for reports from an overworked data staff.
You bring data into the boardroom, replacing static slides with live data that attendees may interact with to get solutions.
Your organization has analytics built right into the workflow, so workers can get relevant data just when they need it.
If you want to discover how to become fully data-driven, then keep reading.
The necessity of data
There seems to be no reason to hurry. Surely, in the face of an impending economic collapse, a polished data experience is more of a “nice to have” than a “must have.”
The need to organize your data stack is, in fact, pressing. Businesses who don’t discover strategies to dominate the decade of data will fall farther and further behind the analytics leaders. According to the results of a Harvard Business Review research on the effects of data analytics:
Seventy-two percent of data executives report an improvement in output since providing data access to frontline employees.
When frontline employees are given the authority to make critical choices on the spot, 87% report increased business performance.
Consider your data and analytics initiative not as an expense but as a potential revenue booster. Through connections like embedded analytics, data may help you discover problems before they become costly to your organization and make it function more effectively.
The steps to taking your organization “data-driven”
Some of the four essential stages to building a data-driven company may come as a surprise.
First, you need to understand your culture.
It stands to reason that we would advise you to look to the technology first, given that we are an AI-Powered Analytics firm. But as much as we want to nerd out over the distinction between ETL and ELT and the importance of interactive data visualizations, the real key to a data-driven organization is your culture.
Getting to be a data-driven company is hindered by culture at 92% of top firms. This includes issues with people, process, organization, and change management. Don’t think of your shiny new data analytics software as just another piece of hardware.
- Creating a strategy for managing transitions
- Finding internal advocates for a data culture.
- Preparing for the inevitable opposition to change
- Building an effective method of internal communication
Although difficult, change management may be accomplished. In this episode of the Data Chief, ThoughtSpot’s Chief Data Strategy Officer Cindi Howson compiles the finest advice from data leaders across sectors on how to foster a culture of innovation and win over key stakeholders.
Second, implement a staggered release.
It’s easy to make a big deal out of your decision to become more data-driven. Users should not be hurried into adopting new data tools without first fully comprehending their usefulness. Instead, we suggest a straightforward two-step process:
Start with a small group of “power users” who will provide feedback and promote your new data solutions inside the company.
Before you show the rest of the company, ask for their opinion on how to improve your data pipeline.
For instance, CarTrawler, a marketplace for renting cars, piloted ThoughtSpot with a select sample of users. CarTrawler felt secure offering ThoughtSpot to the rest of the staff after hearing such positive feedback from the platform’s 10 elite users. With the insights they gathered from their pilot program, it only took CarTrawler 60 minutes to onboard their business users, regardless of their data understanding.
The business users, not only the data and analytics team, need access to the data if you want a data-driven company. Put your data where it can be used to make decisions at the front lines of your organization.
Eighty-six percent of businesses surveyed by Harvard Business Review agreed that their front-line employees needed upgraded technology in order to make data-driven choices. The correct equipment is crucial at this stage.
Your data is inaccessible if using your data platforms is complicated or requires training. In order to search and dig down into company data, non-technical users must have access to self-service, AI-powered analytics that allow them to do so using natural language queries.
Find short-term success
Gain employee support by demonstrating short-term gains before diverting attention to the potential long-term advantages to the company. Considered from a “what’s in it for me?” perspective, this tactic delivers.
For instance, Alanna Roesler, head of Schneider Electric’s People staff, implemented ThoughtSpot to provide her staff better access to data in order to foster a data-driven culture. What is one of her preferred results? She has eliminated roughly 25-30 hours each week of ad hoc analysis.
Providing this type of fast feedback is a fantastic approach to spread a culture of self-service analytics throughout the company. Roesler has been promoted as a result of the current 78% acceptance rate of Scheider’s new People Analytics data stack.
In 2023, a data-driven firm need a data-focused culture as well as the appropriate technology.
Making your business data-driven is more important than ever before so that you can make more informed decisions, find ways to increase productivity, and provide exceptional service to your consumers. But that sum won’t get you the top-tier tools in today’s data science toolkit. To establish a data-driven mindset, do the following:
