Data-driven approach became one of the important feature of modern business organizations where analytics is the key strategy for competitive and sustainable business growth. Now business leaders are no longer required to take decisions based on their gut feelings, they can take more informed decision by cultivating data driven culture in the organization.
The modern organizations are facing challenges limited access to cross functional data and sources, lengthy delay inculcated in analytic system, difficulties in labelling unorganized data and performing analysis. These all issues can be resolved by cultivating data-driven culture.
Why data-driven culture?
Experts says that before cultivating data driven culture to work with data, one need to think deeply what problem he is going to solve with analytics. Lack o clarity regarding this would result in failure and wastage of efforts. The data-driven culture will be based on believe that every decision of the organization is supported by data.
Steps to build data-driven culture
The organization need to identify processes that are fundamental to KPI (Key Performance Indicator) and key to business success. Once defined properly, the metrics must be communicated to organizational member to develop data-oriented mind set. A report by Econsultancy says that in North America and Western Europe, 70% o the startups have at least one employee dedicated and responsible only for data collection and analysis.
- Organized and labelled data
Organizations must ensure that data must be gathered at real time from various cross functional departments. It should be relevant, organized at one central place to have complete access of required information. Centralized database will help analyst to access updated data on real time to take decisions at right time. Also, organization need to define the quantum of data, as huge unstructured data can cause error in decision making and data overload can possess real threat on business success.
- Governance of data access authorization
To enjoy data-driven approach as feature of modern organization, organization must have formal policies that would govern the access and authorization of data from different departments. A governance policy related to data access will establish a traceable chain of custody and ensures accountability for any modification in data.
The organization having data-driven culture ensures a layered approach to manage key indicators and all metrics linked to desired outcome. To have impactful result, organizations need to define these metrics clearly and communicate it to workforce effectively. Also, these metrics need to be measured consistently to see its impact on business performance.
- Integrated analytical tools
To convert data into actionable decisions, organizations must use innovative analytical tools. These tools must be embedded into existing analytical and available on cloud or mobile devices to help people work on these in many ways.
To build data driven culture organization must have a balanced mix of business acumen with technical expertise. It requires key persons to have sufficient knowledge of business, define problems and ability to use insights to solve problems. There must be some analytics experts in data modelling, model building and using analytical tools to convert data into valuable insights.
So, with the digital transformation organizations required to move towards data driven culture to use analytics and big data as internal strength that supports business success.