Data provides a goldmine of insights waiting to be discovered, and in a competitive landscape these insights are the route to competitive advantage. But how can bosses ensure that data sits at the heart of an organisation? How can a company make sure business decisions are rooted in data, rather than based on instinct, intuition, and guesswork?
Data in the DNAThe first question when considering any decision should always be ?what data do we have to support this?? The sooner this habit is formed by founders, CEOs, directors, and senior managers, the better. Some larger companies may make their decisions based on the experience or intuition of senior individuals, but that?s no way to sustainably and reliably grow a business. Always look for the data in the first instance, and use it to inform the decision-making process. Starting by asking the question around data is important even though it may not always be available. Organisations need to be conscious of how to make decisions, and a data-based process needs to be adopted as early as possible on a company?s journey.
Provide access from startThe default position for traditional businesses was to hoard data, hiding it away and granting access an individual, case-by-case basis. This just isn?t plausible any longer. Collecting vast quantities of data is fantastic, but it holds no value unless it?s frequently referred to and used. The more often data is used, the more value businesses can gain from it. In order to drive data-driven decision making from the outset, companies must begin by granting more staff access to as much data as possible is a critical first step. This approach shouldn?t be undertaken lightly, or without suitable controls and security measures, but those companies that embrace this approach from the beginning are able to consistently unlock value from their data on an ongoing basis. This ultimately leads to better insight and bigger returns. It?s much easier to implement this approach while the company is still growing. The bigger the business, the more arduous this change can be. Read more about the decision-making process:
- Ten worst business decisions ever made
- The changing nature of business intelligence and how it affects SMEs
- Managers may be missing out secreat ingredient to making decisions
Equip employees with the right tools and trainingIn the world of business, the word “data” often conjures images of technical experts ? scientists with qualifications in statistical analysis and the ability to write code fluently. Leaving only a few specialists with the capability to interrogate data inhibits two critical factors for growing businesses ? agility and resource efficiency. The ability to react to business opportunities swiftly is vital. Those people within a company who spot an opportunity should be able to quickly examine the relevant data themselves to judge what the appropriate business reaction should be. They know the key business questions, so they need to be armed with the ability to directly ask these questions of the data. Going through specialists who use complex, archaic analytical tools wastes valuable time and limits agility. The answer? A company?s key decision makers need to be armed with easy-to-ease analysis tools and trained to use them properly. There are options out there which provide self-service capabilities as well as a drag-and-drop interface and yield answers in minutes rather than days. And it is particularly important for a growing business, as most growing organisations can?t afford a dedicated technical analysis team anyway. This makes intuitive analysis tools a must.
Keep things movingOnce the data is readily available, the right tools are there, and the senior team make all critical decisions based on data. How do you keep this going? In short, you need to foster a “data culture”. Data-driven decision making needs to be extended and encouraged throughout every level of the company, even if senior management leads the charge. Findings, processes, and examples of best practice need to be shared with everyone, and new joiners should be shown the data analysis tools as soon as possible. This atmosphere of collaborative working allows employees to learn from one another, drawing on the creativity, ingenuity and problem-solving skills of their colleagues. It?s likely there will be data-driven individuals working within the organisation already, particularly as millennials increasingly join the workplace. Supporting their development will yield swift dividends, as they?ll be motivated to develop their analytical capabilities and keen to embrace the use of data on a day-to-day basis. Identifying and nurturing these individuals will also encourage others to follow suit, further driving the data revolution. The linchpin in building a data-led company revolves around culture. It?s slower and more difficult for a large enterprise to change its entire culture to a data-led approach, but for growing businesses, who don?t have multiple teams operating separately, results can be seen far quicker. Data familiarity, fluency, and comfort from the get-go should be continually encouraged. Growth in a data culture can undoubtedly lead to growth of the company and its bottom line. Stuart Wilson is VP of EMEA at Alteryx. Image: Shutterstock
Share this story