How Businesses Can Benefit From A Data-Driven Culture


CEO of Intellectsoft, the technology partner of Fortune 500 organizations.

Experts at McKinsey Global Institute have said that modern data-driven organizations are 23 times more likely to attract new customers than those who are getting by without doing so. How can you turn all those mammoth amounts of rough data into actionable insights and create a strong basis for decision-making? An equally good data-driven company culture could be the way to go.

Business leaders and executives have exploding quantities of information nearly at their fingertips that can drive future-ready data-based innovation—better customer satisfaction, refined action plans and streamlined operations. Yet, with the more than two-thirds of amassed data that remains unused each year, such ambitious targets are just elusive for most companies, meaning there is no such thing as a lack of data. Instead, there is a need to create a company culture that encourages new initiatives, practices and habits to root decisions in data across the company.

Five Steps To A Data-Driven Company Culture

Step One: Putting In A Single Source Of Truth

Although it might be a hefty investment, most companies move toward greater precision as they just can not afford to take a shot in the dark. Putting in a single source of truth that would cover all your systems, departments and teams is arguably the most critical step in paving the way for your new data-driven culture. Based on my own experience in this field, I can reasonably conclude that: (1) setting a well-thought set of onboarding rules, (2) standard procedures, or (3) a unified and comprehensive knowledge base to cover each of your projects are all pretty good ways to get started at that point.

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Step Two: Refining Standard Data Dictionary

To stay on the same page, all of your company’s employees, not only data specialists and executives, need a unified glossary and well-thought definitions. That’s why refining a standard data dictionary, making it clear, concise and agreed upon, would be the next thing of critical importance to be done just after deciding on a single source of truth.

Step Three: Supporting Broader Access And Usage of Data

Business owners and C-suite executives need a maximum, precise, all-around view of the company’s performance. Broader access to data and, even more importantly, its wide daily application across the company requires having at least one common self-service reporting system with different access levels and rule-based task flows built across specific performance targets, departments or operations. After all, everybody loves nice structured data, for example, when any client can easily catch on the actual progress to date via interactive dashboards or chatbots. The same works for your team, keeping everybody involved and always informed on things that matter most.

Step Four: Promoting Data Literacy Across The Organization

Once the company has everything in place with unabridged access and widespread adoption of data, it’s time to double-check all departments and for data literacy and an understanding of the data. Eventually, engaging more staff members through iterative courses and training can improve the efficiency of data-driven applications to a significantly higher degree. Additionally, I should emphasize that Intellectsoft has been repeatedly facing similar challenges. From our experience, another good way to take care of data literacy without investing too much time and effort is by promoting weekly digests and highlights. For example, by delivering industry-specific information via email digests or weekly newsletters, you can broadcast either in-house or across your distinguished clients.

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Step Five: Experimenting With Data, Testing And Learning

To explain analytical choices based on rock-solid statistics, you need to make proofs of concept simple and robust. By doing so, the risk of poor decision-making can be driven to the minimum, in line with forcing analysts to grapple with potential spots of uncertainty with A/B testing (i.e., whether there are too few examples, or whether the data is reliable for particular models, for example, emerging competitive dynamics).

Benefits Of Data-Driven Decision-Making For Your Business

Data-driven decision-making can offer a line of considerable advantages and direct benefits for most companies in different industries. Here is a list of the benefits of data-driven decisions when you root them in data:

• Sustainable Improvement: It gives a spur to continuous improvements across the organizations as it becomes much easier to implement best practices and courses or actions with controllable outcomes based on past results.

• Faster Decisions: This optimizes the average time spent making up objective solutions and highly accurate expectations. Besides, when used right, data can make experiments less risky, in line with giving better chances for earlier success.

• Greater Transparency: Data-driven decision-making contributes to faster and, more importantly, fully-visible and trackable approval processes by team members, in turn supporting high levels of compliance and accountability.

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• Unabridged Market Research: Data helps generate actionable market insight based on real facts and proven statistics. By eliminating guesswork and uncertainty, it becomes a good companion to comprehensive market research and winning business initiatives that could be unavailable so far.

• Optimized Spend: The money-saving potential of data-driven decisions should never be underestimated, as it can quickly elevate operational efficiency, in line with providing a solid background for cost-effective strategies and sustaining the best of them in the long haul.

• Organizational Consistency: This helps every member deeply understand in what way it’s better to root data in decisions, highlighting best practices and actionable scenarios that could be unified and popularized across different areas of operation and departments. Eventually, getting in the habit of making decisions in a data-led way can greatly improve the consistency of service and engagement in the company.

In Summary

The core obstacle to making the business decisions truly data-driven is not technical. The issues are cultural by nature, as there is no problem with bringing data and technology into a process of decision-making when we have to. Making this course normal, running nearly on autopilot, for employees—it’s a shift in mindset. And it’s a challenge that every modern company is facing.


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