Data Driven Company Capabilities
According to studies, data driven organizations are 2300% more likely to acquire new customers than non data driven organizations are. Additionally, a data driven organization is 600% more likely to retain existing customers.
A data driven organization is also 1900% more likely to be profitable than a non data driven organization is. Considering these statistics it is unsurprising that efforts to build data driven companies are increasingly popular.
Becoming data driven is not an easy accomplishment and requires an extensive amount of effort. Building data driven organizations demands much more than significant financial investments. Businesses are discovering that investing in machine learning and digital transformation is not enough to build data driven companies.
A data driven organization necessitates a massive shift in the culture and employees within an organization. Becoming data driven requires efforts from many different business leaders and employees. Prominent business leaders positions occupied within a data driven organization may include-
- Chief data officers
- Data scientists
- Senior executives
- Data engineers
Ultimately, becoming data driven is a collaborative effort between many business leaders and employees. Understanding the core capabilities of a data driven organization can assist with efforts to build data driven culture at a specific business. Core capabilities of a data driven organization include-
Studies show that merely 32% of executives report making data driven culture successfully within their organization. From senior executives to chief data officers, all business leaders must make sure that efforts to build data driven culture are not overly fixated on technology.
Becoming data driven requires changes in everything from different business processes to the decision making capabilities of individual employees. Thankfully, there are many best practices that executives can use for building data driven culture.
A truly data driven company will consider data as capital. As such, both senior executives and business leaders should prioritize data use across different business roles. A data culture will reduce silos and provide business value through business processes improved. A data driven organization will both simplify and streamline business efforts but only if properly supported by both leadership and digital transformation efforts.
Any data management technology implemented by a chief data officer or senior executives should be both flexible and scalable. Different business employees will have varying data literacy levels so technology should be as simple as possible in order to further maximize accessibility. Ultimately, proper digital transformation and data management require exceptional executive advocacy.
When staff members within an organization use data collaboratively a data driven culture can flourish. However, in order to build data driven cultures business leaders must focus on developing companywide data literacy and skillsets.
In order to successfully build data driven organizations, business leaders must also foster collaboration. Whether primarily the responsibility of a chief data officer or senior executives on staff, business leaders must make sure to always connect users and centralize data in workplace conversations.
There are also opportunities for creating data culture collaboratively beyond a specific internal organization. Business leaders can identify and facilitate connections between internal data communities and external data communities. Data analytics will likely become more popular as employees recognize actionable insights supplied. Actionable insights supplied by data analytics can be discovered by employees working either collaboratively or individually.
Similar to how collaboratively using data is important, individual employee data use is also important for business leaders to consider. In order for individual employees to use data correctly, business leaders must make sure there is a companywide focus on data literacy proficiency. Business leaders must always make sure that employees can access data and crucial information. Many organizations proactively improve its employee ability to access data through data literacy training programs.
Business leaders and senior executives like chief data officers play a primary role in promoting data based decision making in the workplace. Best practices to promote data based decision making include supplying data analytics self service portals to employees. With increased data analysis capabilities, employees can further develop their own data based decision making capabilities. As a result, data driven decisions will not only occur more on an individual employee basis but also more often on a collaborative organizational level.
Ultimately, encouraging employee decision making that is data based should always remain a top business priority. Companies must make sure to consistently support employees that challenge the established status quo through their data based decision making efforts. The ability for employees to make decisions that are data based is one sign that the cultural shift is succeeding. In a non data based company decision making may be based more on gut feelings or instincts.
Data Driven Organization- Key Takeaways
- To become data driven a business must understand the core capabilities of data driven organizations.
- Capabilities of data driven organizations include advocacy, collaboration, and individuality.