The amount of data your company produces will likely double over the next 24 months, and that presents a huge, revenue-generating opportunity.
Your business data is likely to double in two years’ time. It may grow up to 20 times within the same time-frame when 5G gets adopted in your market. As you read this, businesses are undergoing digital transformation to future-proof their organization. They are now improving business processes or completely transforming it with technology.
However, successful transformation requires a complete reorientation of the organization that goes beyond simply implementing new technology. One of the key tenets of digital transformation is making decisions based on data. Insights derived from data enables businesses to avoid costly guesswork, identify hidden opportunities and open doors for innovation.
Before discussing how leaders can “turn on” data analytics for their companies, lets understand why it is important. A study conducted by the University of Texas found that the improvement of just five attributes of data – Quality, Usability, Intelligence, Mobility and Remote Accessibility – can have positive effects on your business.
The study found that these Fortune 1000 companies gained:
- 16% growth in Return on Equity when Quality, Mobility and Remote Accessibility of data is increased by just 10%
- 4% increase in Sales when Usability is improved by 10%
- 42% Return on Assets when boosting the Intelligence and Accessibility of data by 10%
Quality Data incorporates accurate and updated data, devoid of errors, with sufficient parameters regarding the event(s) of interests. It also needs to be received on time for users to take suitable action.
Data Usability means to have data that is concisely presented. It can also refer to ease of manipulating or ease of processing the data. Data Usability attribute should be prioritized because it boosts the degree to which validated data contributes to actionable analytics results and reduces risks of the data being misinterpreted or used improperly.
Intelligence alludes to usable outcome from the data such as identifying trends, demand patterns or profile matching. A deeper level of intelligence can also include generating recommendations for users to take the next step.
Remote Accessibility refers to data and insights being easily accessed by authorized personnel where and when it is needed. However, remote accessibility increases the risk of unauthorized access. Companies will need to establish an effective security policy to mitigate risks.
Mobility refers to the ability for users to exchange information with relevant parties wherever they are. In the context of sales, Mobility means enabling sales people to easily share key information with potential customers wherever they are.
Leaders looking to enhance the above attributes can avoid costly mistakes and scale their efforts by referring to Bain & Company’s research on how analytics differentiate winners.
In Bain & Company’s global study of over 400 Billion Dollar Companies, they found that only 4% were really good at analytics. These organisations belong to an elite group that put into play the right people, tools, data and intentional focus - using analytics to change the way they operated. Interestingly, they are also twice as likely to be among the top performers in their respective industries.
Diving deeper, Bain broke down the 4 factors leadership teams should be looking into for building analytics capabilities:
Intent & People
Arguably the most important step, leaders willing to invest in people and provide much-needed operational resources would go a long way in helping the organisation to grow and establish a data-driven workplace faster.
Similarly, hiring skilled staff is an important consideration. While there is hype around the profession of the data scientist, the reality is that there aren’t enough of these skilled individuals. Companies should begin by asking if they really need to hire a team of data scientists. For many, the key is to find the right mix of people with a combination of data science knowledge, business acumen and analytical expertise. These key members will be invaluable drivers of data analysis and decision-making.
Data Monitoring & Tools
As for generating insights with data, the mantra goes, ‘rubbish in, rubbish out.’ Quality data begins with culture and should be directly monitored to ensure high caliber analysis through proper procedures and intelligent tools. The right tools have traditionally been prohibitively expensive. However, with the advancement in technological developments, costs of analytics tools are fast becoming more affordable, even for small businesses.
While the prestigious Bain & Company mostly works with well-resourced enterprises, smaller companies can leapfrog their development by learning from these elite organizations. Developing a data-driven culture begins with a strong intention from the leadership. As the culture develops, staff begins to adopt the relevant mindset and processes to manage data and generate quality decision-making insights. The acquisition of new data talents and techniques will also become progressively easier to integrate with existing processes or, if required, transform said processes completely. Over time, a data-driven culture will activate all (if not most) staff to better manage, process and use data to scale the company’s competitive edge.
While leaders look to build culture from within, there are also strategic partnerships which can be forged externally to accelerate their organisation’s growth.
If you are an small business or enterprise looking to drive business growth, tap into our custom feasibility report or Proof-Of-Concept projects to start making sense of your data with advanced analytics quickly and more affordably.
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