What does it mean to be data-driven? Companies that are data-driven rely on relevant information and records to accurately address their business operations. [bctt tweet=”An enterprise that is data-driven organises, stores, and retrieves data efficiently and proficiently. ” username=”ladyboss_asia”]They will use data storage software such as ERP among other things to help them achieve the best results. While these tools are great, ultimately, their success will be determined by how effectually they make decisions based on this business intelligence. Now, what does it mean for a data-driven business to be successful?
Firstly, one of the greatest assets of a successfully data-driven business is their ability to make superior, fact-based decisions. Instead of making important choices based on instincts or purely on the experience of senior advisors, data-driven companies can rest easier at night knowing their decisions were based off accurately collected data. Better evaluations significantly lessen risk and heightens the opportunity for dramatically positive returns. One of the best ways that companies can incorporate data-driven strategies is to use A/B testing. With this information, your business learns just about anything you want from your customers, whether in regards to sales, products, or assumptions you may have about your audience. Businesses can stay on top of trends, bolstering their bottom line with proper data-driven analytics.
As a result of improved decision-making, these firms also stay ahead of their competition who have not become data-driven. Understanding the market and more readily equipped to handle customer service, companies that have developed a robust data-centric system will enjoy more customers than those who have been left behind in the information game. Enterprises that are not currently using ERP will not have quick access to necessary data to accomplish tasks and will eventually be left in the dust compared to companies that have invested in the software. A possible real-life example could be a data-driven company with a vast amount of customer information against a business that has not yet incorporated a data-driven culture. With said information, the first company is more well-suited to not only draw up a more accurate marketing scheme, but also a quicker one, allowing them to take away potential customers from the second business.
Successful companies employing a data-driven system will also improve their workforce cohesiveness in regards to personnel by decreasing arguments. While disagreements and arguments occur in business, when a data analytics system is put in place, these can be considerably reduced. There will no longer be a reliance solely on instinct, which has been a traditional cause for dissension and chaos within an organization. Business reports are accurate, and the appropriate decisions are made based on the information, avoiding potential squabbles and helping this correctly data-driven company thrive. For example, a management team is meeting to discuss the viability of a new product. While the senior managers see little profit resulting from this product, other managers bring in data that supports the idea that consumers are searching for products just like their newly developed merchandise. When the product goes on to make a significant profit, the managers with the appropriate data instead of a gut feeling will be proven correct.
Another aspect of a data-driven organization is it empowers everyone, regardless of their experience level, to contribute meaningful and influential ideas. Since employees have access to the information provided with ERP software, they are free to create authoritative ideas because they will have the data to support their thoughts. All staff will have an open invitation to innovation and improving the welfare of the business. Employee morale soars and the company is much better off than any of its competition. A real life example could include a young, newly hired member of the marketing team who has been asked to provide a report to his overseers. While compiling his report, not only is his job easier because of the centralized, easily accessible data, he also can see trends that could lead him to bring an innovative idea to the table that could dramatically improve the company’s marketing ability.
Overall, being a successful data-driven business means that the firm has a culture enveloped in data-centric analysis. When enterprises are data-driven, their success means that their decision-making is efficient and based on the accumulated, relevant information. It also means these businesses are beating out their competition, soaring to the top in the industry. Data-driven success also means that there are few arguments, and hopefully, none when it comes to a reporting of the facts backed by data and discussion on appropriate action. Finally, all personnel is empowered to innovate and create solutions supported by data, significantly improving the well-being of any company. Creating a data-driven culture throughout the firm should be the goal for all businesses.
What are some ways that data has helped your employees and managers make better decisions? Let me know in the comments!
An adapted version of this article first appeared here.