In the digital economy, a business’s development and success are becoming more and more dependent on how well it uses its data. Companies have internal challenges that, if left unchecked, can stifle productivity and creativity as they expand and attempt to make sense of massive volumes of data collected from hundreds of various sources. Finding a single source of truth is more challenging because of siloed departments, complicated cloud infrastructures, and the range of data sources and kinds.
In our most recent poll, for instance, over 40% of data professionals said they don’t really get how data is utilised in their organisations. Furthermore, 44% of respondents said they find it difficult to manage the variety of data types they use. Making data accessible in a way that is usable for analytics is becoming a more difficult undertaking in light of all these changing factors.
A robust foundation in the form of an internal data culture must be maintained by many firms even if they already have the appropriate technologies to extract, convert, and load their data. How well people in an organisation comprehend and use data in their tasks is heavily influenced by communication and concepts pertaining to the management of data and metadata that are ingrained across the organisation. In the end, it all comes down to making data more usable, even for non-technical team members, and this necessitates different lines of business, beyond the traditional data team, to buy into a modern data architecture; one that uses the newest technologies and approaches to empower business users to do more with their data.
To foster a strong data culture, executives should take three steps: identify how data affects the business’ bottom line; demonstrate the value that multiple business units outside of IT are delivering to end users using data; and build a consistent language across teams to remove barriers.
Valuing data over processes
No matter where they are situated or what responsibilities they play, it is imperative that individuals have a shared knowledge of where data comes from and how it is used. These reliable datasets are further democratised and expanded through a common data repository that anybody may contribute to. The first step in creating a more data-centric mentality is to encourage people to change from a process-oriented perspective to a data-oriented mindset.
It’s really a step-change that can be summed up as beginning to prioritise data above procedures and giving teams better access to data that will enhance decision-making to support both their individual business objectives and the organisational goals as a whole. At the centre of that process should be proactive efforts to educate workers on why data-centricity is critical to company success and how it affects their positions; a strong data culture can only be fostered if everyone is aware of the benefits of using data from a variety of reliable sources.
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Open communication across the business
The idea of a “data culture” also dispels the misconception that only those who oversee the need for specialised data—and are thus regarded as data professionals—can handle and comprehend it. Many (though not all) positions inside an organisation have the capacity to produce useful intelligence and take appropriate action on it. For instance, a marketing executive may use audience behaviour analytics to not only support team efforts but also better understand client wants and deliver more individualised experiences. The senior leadership team will always be in charge of using data to inform decisions and will be responsible for transforming raw data into an analytics-ready shape.
Simply pointing out the impact data is having on teams and how it is elevating their output will be sufficient to increase awareness of that influence. organisation leaders may reassert the potential of data for the advantage of the larger organisation by publicly conveying the value of data analytics that is being realised beyond reporting teams, at all points of the value chain.
Delivering more meaningful outcomes
Data has the potential to have many positive effects on end users, from reducing costs to accelerating delivery times. The capacity to guide company choices and make sure they’re founded on real insights rather than the gut sense of a select few pros is where its greatest value resides, though. Numerous examples show that businesses who use this methodology have a far better probability of identifying a competitive advantage. According to a global McKinsey analysis, data-driven businesses are 19 times more likely than their competitors to be profitable and successful, and they are 23 times more likely to attract new consumers.
The difficulty of managing several data sources can slow down data flow within an organisation and reduce productivity. But consider how overburdened teams may feel later when completing their tasks. The bottom line might be affected by any value chain breakdown brought on by resource strain.
Teams that learn to prioritise in smaller steps will be able to prioritise various topics for the end user and operate more effectively. Even the tiniest adjustment helps give better valuable services to clients and demonstrate the organization’s capabilities. Small process changes may appear inconsequential. All of this aids in broader initiatives to create a culture that is more cogently data-driven.
Cultivating a strong data culture
Business leaders should focus first and foremost on their own team as they travel the path to making their data more useful. To overcome communication hurdles and start to realise the advantages data may uncover, a full organisation has to be on board and share a shared awareness of the many implications of data. There is a widespread fallacy that everyone becomes more productive right away once a company migrates to the cloud. However, organisations must change the way they see the use of data in addition to changing their gear and software. In order to strengthen a data-centric culture and eventually enhance commercial value for the company, change in data culture and data literacy must occur from the bottom up in a joint effort.
How is data analytics changing business?
Decision-making is improved because to analytics, which give organisations reliable and pertinent data that can be examined to spot patterns and trends. Businesses may learn more about consumer behaviour, market trends, and operational effectiveness by adopting data analytics solutions.
How data is important for business?
Data may be used to determine a business’s biggest costs as well as whether or not specific activities, goods, or services are lucrative. The key to boosting earnings is frequently to identify costs that may be cut, allowing firms to keep more of the money they make.