Four examples of how data is changing business innovation
Data-driven business innovation is giving companies the edge in an increasingly competitive market.
The number of businesses extracting value from data is growing. Through data analysis, companies are able to monitor customer behavior, study real demand patterns and increase revenue. Furthermore, many departments are looking to data to boost productivity, expertise, and efficiency. Subsequently, this adoption of data-driven culture is enhancing business innovation both externally and internally. Here, we discuss the business imperatives emerging as a result of this cultural shift.
1. Business must build robust data governance strategies
In today’s technology-led markets, data is a valuable asset and should be treated as such. Therefore, companies should devise a robust data governance strategy that empowers employees to share data. After all, in the most analytically mature organizations, these practices are commonplace. However, a business’s data governance method should not be exclusively internal; data sets should be integrated both within and outside the enterprise. In light of this, C-levels need to carefully consider the balance between in-house analysis capabilities and outsourced providers. For example, even though an external contractor is likely to have the capacity to scale-up, it is unlikely their service will be completely bespoke. Meanwhile, creating a comprehensive in-house data center can be time and capital intensive. Whichever strategy an organization adopts, they need to ensure processes are in place to guarantee confidence in data.
2. Data awareness is critical
Data sharing requires extensive cross-department collaboration. Moreover, it may also be necessary to partner with other organizations. Therefore, awareness is essential. Companies need to have a clear, comprehensive picture of who has access to what data, how its uses may intersect, and how the benefits can be deployed across the enterprise. To make this strategy effective over time, it needs to be embedded in organizational culture. Of course, data sharing conventions will vary from sector to sector; in more closely regulated industries like healthcare or finance, senior staff will have to carefully consider data handling.
3. Build a united front
Data-driven business innovation requires all departments to have access to the data they need to problem solve. As stressed earlier, this demands a more democratized approach. However, this does not necessarily mean making all data available to all employees; it means getting the right information to the right people at the right time. Although this is certainly a foundational principle, the challenge does not stop there. Staff need to have a united front on objectives, interpretation and the significance of particular findings. An unhealthy, fragmented approach to managing analytics can compromise the value extracted.
4. Set yourself apart
As data-driven business innovation becomes more commonplace, companies have to consider what makes them unique. This will set their product or service apart from the competition, thus driving profit. As business capabilities grow, companies will be able to develop a strategic focus on specific markets where they excel.
Data is transforming business innovation
Data is increasingly dictating the way we do business. To extract the maximum value from this valuable asset, companies need to adapt organizational practices and attitudes. Through data capture, applied analytics, and evidence-led business innovation, companies can remain relevant in an increasingly competitive environment.