6 Unique Qualities That Differentiate Data-Driven Enterprises From The Rest
According to a research conducted by Mckinsey Global Institute, data driven organizations are 23 times more likely to acquire new customers. Not only that, they are 6 times more likely to retain a customer and 19 times more likely to be profitable as compared to their non-data driven competitors.
Due to this, data driven enterprises are growing 30% every year. What’s even more interesting is the fact that data driven businesses are set to take $1.8 million away from their less aware industry competitors. This clearly shows that data can be a great source for gaining a competitive advantage.
You might be wondering if my enterprise is data driven or not? Is there a way to figure that out? Yes, there is and that is exactly what we will share in this article. In this article, AntiDos will highlight six unique qualities that make data driven enterprises stand out.
How Experts Make Their Organizations Data Driven?
Sharing his personal experience on how he overcame data challenges despite large volumes of data at their disposal, Ash Gupta, former American Express Executive said, “The first change we had to make was just to make our data of higher quality. We have a lot of data, and sometimes we just weren’t using that data. The second area is working with our people and making certain that we are centralizing some aspects of our business. We are centralizing our capabilities, and we are democratizing its use. I think the other aspect is that we recognize as a team and as a company that we ourselves do not have sufficient skills, and we require collaboration across all sorts of entities outside of American Express.”
He further adds, “This collaboration comes from technology innovators, it comes from data providers, it comes from analytical companies. We need to put a full package together for our business colleagues and partners so that it’s a convincing argument that we are developing things together, that we are co-learning, and that we are building on top of each other.”
6 Unique Qualities That Distinguishes Data Driven Enterprises
Here are six traits that separate data driven enterprises from traditional enterprises.
- Holistic Data Mindset
It all starts from your mindset. If you don’t have a data driven mindset or culture in your organziation, you can never succeed. With data influencing every decision, it is important to develop a data mindset so every decision is made based on data. Whether you are creating a strategy for your business, finding a solution to a problem or answering questions, make data your guide. This should reflect whether you are delivering a presentation in front of board members or participating in industry briefings. Once you have the right mindset, it is easier to transform your organization into a data driven one.
- Comprehensive Data Strategy
How can your enterprise become data driven without an in depth data strategy? It can’t. That is why you have to create an enterprise wide data strategy that covers every aspect. Whether it is the technological aspect or the cultural aspect of governance, your data strategy should cater to it.
Without an effective data strategy, you can never be able to extract useful insights from your data and seamlessly integrate technologies and processes across different functional units. With a well thought out data strategy in place, you can tap into new opportunities, minimize costs and increase business efficiency, all at the same time.
- Optimal Resource Utilization
Just having a great data strategy is not enough especially if you don’t execute it to perfection. You need to have the right people in the right place in order to achieve the results you want. This is not limited to people. The same rule applies to technologies, processes and tools as well.
With all the pieces of the puzzle in the right place, you can provide much needed support to your data strategy. This not only speeds up the process but helps you achieve all the milestones along the way. More importantly, it balances out the workloads perfectly so that no resources are either over or under utilized.
- Prioritize Data Collection
Most successful data driven businesses put data collection over everything else. Additionally, they are fully aware of which data they should collect and how to extract useful insights from it to grow their business. Instead of just collecting data for the sake of it, they have a clearly defined purpose behind every data set they collect.
They are not great at collecting data but also specialize in managing and using that data to their advantage. Apart from using data for traditional use cases, they also feed quality data to technologies like artificial intelligence and machine learning. This allows them to find useful patterns from huge datasets quickly and make smarter business decisions.
- Better Collaboration
Another common trait that most data driven enterprises share is data accessibility. There are no data silos to create a host of problems. Instead, they believe in collaboration. As a result, anyone in the organization has access to data they need to do their job.
This allows everyone to chip in and play their role in betterment of the entire organization. Decision makers can also benefit from it as they get the right information at the right time, which enables them to make the best decisions. This improves the overall productivity and efficiency of your business and makes it more agile.
- Data Governance
If you study successful data driven enterprises, you will find that they put lot emphasis on data governance. Data governance is a broad term which encompasses everything from data security, data privacy, data accuracy, data integrity and data reliability whether your data is stored on database or hosted on DDoS protected dedicated server.
Without effective data governance in place, you can never be sure about the quality of the data you are using, which prevents you from making decisions with conviction and creates confusion. Data governance is also important to lay a solid foundation for data accessibility.
Does your organization have any or all of these qualities? Share it with us in the comments section below.