Data is the foundation of the powerful analytics and insights that are helping developers identify new products, determine how to better serve customers and improve operational efficiencies.
Statistics show that companies that use their data analytics have significantly more growth than those that do not. Such companies show a tendency towards extensive digitization of data and adoption of analytics throughout the organization.
However, Google data shows that 62% of executives still rely more on experience and advice than data when making decisions. While instinct and experience are valuable, choosing not to leverage data can lead to decision making that folds companies.
Inundated with Data
While many businesses are racing ahead, adopting new technologies and digitizing as many aspects of operations as feasible, others are dragging their feet and watching technology change the game. It is this lack of forward-motion in industry that sees businesses become obsolete in a rapidly changing marketplace.
Data is one of the most valuable assets any business possesses, but leveraging data insights can be a challenge. Companies sometimes don’t understand how all the pieces of data fit to offer insights that are going to benefit the business.
While some organisations use data to support marketing strategies or purchasing decisions, few really investigate their findings on a regular basis to generate insights that can be transformative. For some businesses, it is because there is simply too much data, for others, they don’t have the financial resources to perform regular analysis, and for others, it is ignorance of just how valuable the information really is and how to practically apply findings.
Tangible Business Outcomes
While companies will turn to their data sources looking for specific answers, those that are successful use the information to inform their decisions rather than seek clarification. Data is most commonly used to inform new product development, operational efficiencies and marketing campaigns, but when approached in a different way it can do so much more.
Analytical infrastructure built on a well-architected data foundation is crucial to effective decision making and obtaining the best business outcomes. One of the biggest challenges facing businesses is poor digital infrastructure.
- only 47% of companies say that they have a solid data management process
- 51% have trouble integrating multiple sources of data
- 49% struggle with prioritizing data
- 48% are unsure of the right data to collect
If data is inaccurate or corrupted, the insights are not workable. That’s why your data production and acquisition is crucial and requires a management system that can handle the volume.
Modern data foundations collate the critical data points, links them to key performance indicators, and creates a single version of the analysis that can be applied to your business needs.
Leveraging Data Insights
The value of data is directly linked to how it is used and applied. If you decide to allow information to inform long-term decision making, you are likely to see long-term success, if you allow it to help build a customer profile you are likely to see marketing strategy success.
Some of the deeper questions that your data can help answer are “what happened?” and “why did it happen?” These questions make your data work for you, rather than speculation.
Predictive analytics will provide answers to forecasting and trends, while prescriptive analytics help guides you in making decisions.
Data insights help companies understand not only aspects of their business, but how to maximise their organisational structure, or even change it to ensure that the best possible results can be achieved.
According to researchers, organizations that leverage actionable insights for digital commerce will achieve at least 25% improvement in revenue, customer satisfaction, and cost reduction.
Don’t Repeat the Same Mistakes
For businesses to remain competitive it is important to leverage data. For that to happen, the right foundations need to be put on place, and decision-makers need to agree to a strategy.
Investing in technology that stores, aggregates and analyzes data is expensive, however, it could also be the moneymaker for your business. Business leaders also need to be willing to listen to the data insights offered and choose to make informed decisions that rely on real-time and aggregated data.