Data has become a valuable resource that drives economic growth, innovation, and competitive advantage for businesses and industries. With vast amounts of data available both on the internet and within organizations, the process of analysis becomes essential. Through analysis, raw data is transformed into actionable insights that fuel informed decision-making and strategic planning. By extracting valuable insights from data, businesses can optimize processes, enhance customer experiences, and gain a competitive edge in their respective industries, and thereby in today’s world, we state that ”Data is the new oil.”
According to a recent report from Exploding Topics, the global big data analytics market is valued at around $300 billion. The same report also stated that 91.9% of organizations benefited from data analytics, and data leaders plan to increase their investment in this area by 56%. As per Forbes, data-driven companies are 23 times more likely to top their competitors. While analyzing available data is the first step towards becoming a data-driven organization, being truly data-driven goes beyond simply having data. It involves developing a culture and mindset that prioritizes leveraging data to inform decision-making at every level. In this blog, we will explore what it means to be a data-driven organization and how companies can plan to become one. By doing so, they can gain a deeper understanding of their customers, market dynamics, and internal processes, allowing them to adapt quickly to changing circumstances and capitalize on emerging opportunities.
As per the report of McKinsey and Forbes, the three most important attributes of data-driven companies are:-
1.Data should be embedded in every decision, interaction, and process.
2. Data should be processed and delivered in real-time, with ready-to-use insights.
3. Data should be centralized and data management should be prioritized and automated to ensure privacy, security, and resiliency.
Let’s dive deep into each attribute:
Data should be embedded in every decision, interaction, and process: In today’s data-driven world, utilizing data in every aspect of a company has become crucial for success. Embedding data in every decision, interaction, and process has the potential to provide valuable insights that can drive the growth and development of an organization. By incorporating data into every aspect of their operations, companies can gain a competitive edge and make informed decisions that can save time, and resources and increase efficiency. To achieve this, organizations must invest in data management systems, data analytics, and data visualization tools. Additionally, training employees to understand how to use data effectively can help ensure that data becomes a valuable asset for the organization.
Data should be processed and delivered in real-time, with ready-to-use insights: Real-time data processing and delivery is a game-changer for businesses that need to make quick and informed decisions. With the ability to access insights immediately, companies can stay ahead of the competition and respond to changing market conditions in real time. This technology has become increasingly important in industries such as finance, where every second counts in making split-second decisions. Real-time data processing allows businesses to identify trends, patterns, and anomalies to make informed decisions that can lead to significant cost savings, increased efficiency, and improved customer satisfaction.
Data should be centralized and data management should be prioritized and automated to ensure privacy, security, and resiliency: In today’s digital age, data is one of the most valuable assets that companies possess. However, with such importance comes the need for proper management and protection. To ensure the privacy, security, and resiliency of centralized data, it is crucial to implement an automated and prioritized data management system. By automating the process, companies can reduce the risk of human error and ensure that data is properly handled and protected. Prioritizing data management means that the most critical data is given the highest level of protection and attention. This approach can help prevent data breaches, cyber-attacks, and other security threats that can compromise sensitive information. Overall, an automated and prioritized approach to data management is essential for any organization that wants to protect its assets, maintain its reputation, and comply with regulations.
Some examples of data-driven organizations and their results are:
Nike: Nike is a multinational corporation that designs, develops, and sells athletic footwear, apparel, and equipment. It is one of the world’s largest suppliers of athletic shoes and apparel, with revenue of over $37 billion in 2020. Nike is known for its innovative products and marketing campaigns that appeal to athletes and consumers worldwide. The company has embraced data-driven decision-making across all its operations and uses analytics to understand customer behavior, optimize supply chain management, and develop new products. As per the case study by Bernard Marr & Co., Nike’s Consumer Direct Acceleration strategy, launched in June 2020, has significantly increased direct-to-consumer (DTC) sales. In 2011, DTC sales accounted for 16% of Nike brand revenue, but by the end of the 2020 fiscal year, they had grown to 35% of overall sales, amounting to $12.4 billion, all thanks to the deployment of advanced analytics.
Outokumpu: Outokumpu is a global leader in stainless steel solutions and provides a wide range of stainless steel products and solutions for various industries, including construction, transportation, energy, and more. A case study revealed how Outokumpu has been leveraging the power of analytics and machine learning(ML) to monitor and improve production from end to end. Using advanced analytics, they have increased their operational efficiency where output has increased by 10-15 percent, and quality defects are down as much as 40 percent.
How can WeAre help your organization to become data-driven?
WeAre is a proud digitalization partner to numerous clients all over Finland. Besides our software and cloud expertise, we are one of the largest Splunk partners in the Nordics. Splunk is an excellent tool for Business process analytics. As per Splunk, “ Business process analytics is the end-to-end analysis of a business process in real-time. The insights organizations gain by monitoring a critical business process can streamline operations.
Splunk helps you:
Understand and improve customer experience
Increase revenue by gaining insight into failed process steps
Ensure successful business transactions
Increase efficiency by identifying bottlenecks in business processes and reducing risk
Comply with government mandates and regulations
With real-time visibility into business processes, Splunk helps improve customer experience, increase revenue, ensure successful transactions, increase efficiency, and comply with regulations. You can learn more about WeAre services about Splunk here.
If you wish to enhance your business processes and make your organization more data-driven, WeAre Splunk consultation can help take your business to the next level.