The importance of data is so clear that it does not even need to be reiterated, to the point that phrases such as “Data is the new oil.” are now being read and heard even in the generalist media. What distinguishes the companies that are successfully embracing data culture, however, is the subsequent insight:  it is not enough to collect the datanor use them for retrospective or untimely analysis. Becoming a data driven company means, first of all, recognizing the centrality of information, and its proper management, in business decision making, as well as using  evolved, proven and effective analysis tools to put them to value.

Data-driven culture: organizing, structuring and using data

The transformation from simple companies data collectors a data-driven company is a process that first goes through the organization of resources. One issue that has been known for a number of years is that relating to the  quality of the data collected. In fact, as early as 2019 Forbes emphasized how unstructured data was growing exponentially. The mission today is undoubtedly to organize, analyze, and manage this mass of information so as to gain a competitive advantage.

Companies that have already implemented this process, transforming themselves into data-driven companies, have gained important benefits, which we can summarize in four main areas.

  1. First of all, an increase in revenues, mainly due to the potential of predictive analytics, in terms of product quality, but also to user targeting, price management and so on.
  2. Then, a significant improvement in efficiency. In this case, the reason is easy to see: having better data enables the isolation of cost centers and critical issues in a systematic way.
  3. Benefits are also noted in terms of risk reduction, again related to the predictive ability of the data.
  4. Finally, there are significant benefits in user retention, when the data-driven approach is extended to customer experience and data-driven marketing.

Data-driven companies in Italy

In Italy, too, the move toward a data-driven approach is beginning to convince more and more decision makers. During the latest surveys conducted is  emerged as the 42% of companies are starting their journey, while 24% are in the preliminary stages. In general, however, evolving to a model where decisions are data-driven is considered strategic for 83% of companies. However, some implementation challenges remain.
How can companies address and evolve toward a Data Driven model? Here are some possible strategies.

How to become a data driven company

The data driven approach requires a paradigm shift. Where very often the traditional approach involves decision-making based heavily on prior experience, custom, and even a range of dynamics with some margin for irrationality, a data-driven company accepts that decisions based on collected and organized data offer better opportunities.

In this sense, it is about implementing a cultural change even before the technical one. That is why, a priori or concurrently with the technical and operational steps, it is essential for the company to engage in awareness, training and information operations, aimed at both staff and stakeholders, to make sure that the transition is universally accepted as a positive factor and an opportunity. Then, there are some key steps from an organizational perspective as well.

Data collection and organization

If the company is not yet structured, gearing up for data collection and analysis is a critical step. Whether it is a  data warehouse internal or a cloud-based, the first step is precisely to put oneself in a position to be able to collect as much meaningful data as possible. In this,  one must also take into account data that are not normally taken into account, because they are too complex to handle with canonical systems, but instead contain valuable information. Forbes,  back in 2019, stressed the importance of the Unstructured data in business, for example.

The choice about which data are meaningful will undoubtedly require a period of adjustment and organization, for which it is advisable to rely on a team of analysts who can make suggestions in terms of strategic choices. A rather common mistake, in fact, is to  be limited to data sets that are known or related to production activities, where instead it is necessary to extend collection and analysis to all aspects of business life, from marketing to service.

Setting goals

Setting realistic and credible goals related to the shift to a data-driven approach has two important values. First, it allows you to set  milestones that demonstrate, or constructively challenge, the validity of this strategy.

In the second instance, they provide excellent motivational leverage to support the awareness activities mentioned above. In addition, the  measurability of objectives is one of the main reasons for adopting a data-driven decision-making system, and it is imperative that this be adopted sooner rather than later.

Permeability of information

Another key issue in the development of data culture is the accessibility of information across the structure. Here again, in addition to the infrastructural reasoning required to ensure this, work needs to be done  cultural to ensure that this new opportunity is appreciated.

Experience and training

A data driven company needs expertise in data management and analysis. This can both involve bringing in new people and providing an opportunity for internal staff to grow through training and continuing education.

Do you want to learn more? Find out with us what strategies are appropriate for your reality and  Becoming a data-driven company.