“Facts do not cease to exist because they are ignored.” – Adlous Huxley
According to Forbes Insights, data is the DNA behind the powerful analytics and insights that are helping modern organizations identify new products, determine how to better serve customers and improve operational efficiencies.
Companies that embrace analytics have significantly more growth than those who lag in adoption. These companies are also characterized by having extensive digitization of data and adoption of analytics throughout the organization. While leaders are reaping the rewards, challenges persist. Google notes that 62% of executives still rely more on experience and advice than data in making decisions.
Organizations across different industries are racing to embrace digital transformation. They want to stay competitive and drive business growth and innovation. But digital transformation comes with challenges, particularly around data management.
Data is one of the company’s most valuable assets, but leveraging data insights can be a challenge. Companies are typically drowning in data that fails to deliver the insights and business value that are needed to serve their customers.
Only a few organizations have established practices of using data to measure and optimize their business performance, while only a small number of marketers can say that they have a unified 360-degree view of their customers.
Tangible business outcomes with a well-architected data foundation
Many companies view data as the foundation upon which they want to build better customer experiences, improve operational efficiencies, and deliver new innovative products. Ultimately, what matters most to the companies is to bring all required data together in a way that informs decisions and drives successful actions.
Analytical infrastructure built on a well-architected data foundation is crucial to effective decision making and obtaining the best business outcomes.
Companies aspire to use data effectively, but are facing hurdles. According to Forbes Insights, only 47% say they have a solid data management process. Among the challenges: 51% have trouble integrating multiple sources of data, 49% struggle with prioritizing data, and 48% are challenged by determining the right data to collect.
If data is inaccurate or corrupted, the machine won’t produce workable insights. That’s why having a strong data foundation built around the production and acquisition of data is crucial for success.
The modern data foundation brings together all of the most critical data points, links them to key performance indicators, and creates a single version of data truth and understanding across the entire organization.
Leveraging data insights means taking an analytical journey
The value of data is directly linked to how it is used and applied. It can either have no impact on business performance, it may affect only a small percentage of a company’s results, or it can spark long-lasting business growth.
If you are just starting your analytical journey, you tend to ask questions such as “what happened?” and then “why did it happen?”. This is known as the Descriptive Analytics phase of the analytical maturity.
As you move to more advanced phases, the questions will also change. You now have the foundation to know “what” and “why”, and you will be asking questions such as “what will happen next?”. Predictive Analytics will provide answers to these questions and beyond that. Then the Prescriptive Analytics will provide the next best action advice and recommendations in light of certain business events.
Analytical Maturity Model
Harvesting actionable insights from data can yield huge business returns
Companies that leverage, harness and integrate actionable insights into their daily decision making are best positioned to differentiate themselves and can create a sustainable competitive advantage. Forrester research indicates that “insights- driven” organizations are growing at an average of more than 30% annually.
Data insights are changing the basis of competition. Leading companies are using their capabilities not only to improve their core operations but also to launch entirely new business models.
According to Gartner, the organizations that leverage actionable insights for digital commerce will achieve at least 25% improvement in revenue, customer satisfaction, and cost reduction.
If you’re not data-informed you will repeat the same mistakes
By focusing on business outcomes, you can take your digital vision and turn it into insights and data strategy that delivers tangible and measurable results. Start small with your existing data and iterate to success.