Data driven cultures are ones that use analytics on a daily basis to make business decisions and treat data as an asset for everyone to share. According to new research of 969 c-suite leaders, companies that are data savvy will more likely achieve growth in this current volatile market than those companies that continue to operate in data silos. The study also found data driven cultures improved process cycles twice as effectively as non-data driven ones, and they also witnessed a greater decrease in operations expenses.
Creating a data-driven culture is about replacing gut feeling with decisions based on data, be they financial essentials such as revenue or profit, or more advanced findings such as the correlation of customer-behaviour based on activity on your e-commerce site.
The main aim is to empower all employees to actively use data to enhance their daily work and to reach their potential by making decisions easier, customer conversations more useful and to be more strategic.
To become a data-driven organization, start by taking these steps:
1. Start at the top
Data-driven culture starts at the top. Companies with strong data-driven cultures tend have managers who set an expectation that decisions must be anchored in data — all the time. They lead through example and board reports refer to data-driven decisions made throughout the organization.
2. Improve data transparency and organization
A common struggle, for companies of all sizes, is keeping data organized. New solutions are often implemented without consideration of whether they’re compatible with existing software. One functional area may prefer the features of one kind of software, while another team opts for a different legacy product. The lack of organization leads to confusion and, subsequently, poor data transparency. Data-driven organizations benefit from more precise methods, which improve data transparency.
3. Standardize processes
Your team may be comfortable conducting business one way; another team may prefer different methods. While each team’s processes may work fine individually, enough differences exist to cause hiccups when forced to merge. Data-driven organizations rely on standardized processes, which let data flow with routine and predictability.
4. Measure with variety
Rather than measuring the same things each year, it pays to mix it up. Organizations that are data-driven are in an advantageous position – having data at their fingertips - because they can identify a mix of measurement criteria. The variety of that approach offers greater insight into data and a richer set of predictive tools.
5. Invest in analytics tools
Data-driven organizations appreciate the value of a business intelligence (BI) solution that delivers analytics functionality. Cloud BI tools like Phocas provide real-time value while being scalable, secure, and available on-demand. Mobile functionality adds an additional layer of opportunity, allowing users in data-driven cultures to access information from anywhere, allowing remote productivity.
With Phocas, you have an easy-to-use but powerful analytical capability in which users can access layers of data in seconds. Phocas is a comprehensive solution that helps organizations to begin their data-driven culture journey.
For more information on how to become a data-driven culture download this ebook, Building the case for data analytics.