Succeeding in the digital era is heavily dependent on an organisations ability to develop a data literate workforce. This is not simply providing your employees with access to data but enabling them to develop the required skill-set to read, analyse and scrutinise the data.
Moreover, creating a data-driven culture is about empowering all employees across all departments to have a mentality whereby data underpins all business decisions. Companies who adopt a data-driven culture are 23x more likely to acquire customers, 6x more likely to retain and 19x as likely to be profitable as a result – McKinsey Global Institute.
Most organisations acknowledge that by capturing all the data that flows through the business means they can gain significant value from applying analytics. But, does acknowledging the value of analytics correlate with being data-driven?
An EY report has shown that while 81% of organisations support the concept of data being at the centre of everything they do, only 23% have implemented an organisation-wide data strategy.
Companies who’ve applied a data-driven strategy have done so by democratising the data and breaking down the silo corporate mindset. These organisations encourage ongoing collaboration between departments and develop cross-functional processes to support information sharing.
However, there are several obstacles in the way of achieving a data-driven business. Data orientated goals seldom align with executive decisions and short-term strategies. But more than that, without experience to guide the organisational change, a data-centric approach could be short lived.
If companies are able to overcome these obstacles, the value of data-centricity is undisputable. Forrester research has revealed that companies who have made this transition to having a data-driven approach, are growing at an average of more than 30% each year and are predicted to collectively earn $1.8 trillion by 2021.
One of today’s global leading technology companies is striving to adopt a data-driven culture by breaking down the barriers to silo data across departments. Where previously data was sourced across multiple complex platforms, they are working to centralise their data to empower employees to make more informed decisions through simple, self-service dashboarding.
By organisations creating a data literate workforce and placing user empowerment at the heart of their data strategy, they will greatly improve each area of the business from product development to marketing initiatives.
Here at Jarmany we believe there are 5 characteristics of a data-driven company?
- Data and analytics are incorporated into the organisations core strategic vision: These companies think through the role data will play within their organisation and long-term objectives.
- They implement the right tools: Tools and applications are selected based on shared organisational functions and objectives. Reducing the number of platforms and centralising the data increases use of application and information sharing across teams.
- Leadership not only supports data usage but establishes it as an integral role within the business: 45% of organisations have appointed Chief Data Officers.
- Data is not treated as a silo: Data-driven organisations value collaboration and develop cross-functional processes to encourage information sharing.
- They empower employees to develop skills to use the data and reward adoption: A recent survey by Gartner identified on average BI and analytics is adopted by 32% of employees. A data-driven organisation far surpasses this average.
A company’s ability to gain control over how data is used to make business decisions is crucial to being competitive. A successful data-driven organisation will look at the data they collect and will use it to validate what they believe. When companies stop looking at their data and just do what they believe, they will only see data in silos and will miss the bigger picture.
To transition from silo working to becoming a data-centric organisation, the culture of a company should encompass three principles:
- A culture where all employees buy into the concept of basing business decisions on data
- Create an organisational structure which supports a data-driven, analytically literate culture
- Provide accessible technology and applications which supports a data-driven culture and provides data at a self-service level
By creating a data-driven culture, an organisation will improve the management of their existing data, gain a better understanding of their customers and as a result create products and services that have real relevance.