As an organization in the digital age, your value depends on how effective your data-driven approach is. Studies conducted by the McKinsey Global Institute point to data-driven organizations being 23 times more likely to acquire customers. Additionally, they are six times as likely to retain their customer base, and 19 times as likely to be profitable. However, research by EY shows that while 81% of organizations agree that data should be at the heart of every business decision, they fail to effectively implement it. Business intelligence is often limited to addressing specific business issues, and not be extended to achieve the greater value of being used to increase performance and efficiency or execute effective business strategy.
Very often companies erroneously assume that they are data-driven just because they have a few static reports that their ERP system generates. But in reality that is not the case. To be a true analytics-driven organization, companies will need the right strategies. Additionally, these strategies will help them make the most of the extensive amount of data that is available.
Here are 5 ways by which you can transform into a data-driven organization
1. Define your business strategy and objectives with data-powered KPIs
KPIs are essential to defining a successful business strategy as they represent an important set of measures that focus on aspects of organizational performance most critical to the success of the business. Building KPIs to match real-time insights will bring data to the forefront of every decision your organization makes. For instance, choosing the right data-powered KPIs can help achieve any of your strategic business objectives—from increasing your revenue per customer to creating better patient outcomes in the healthcare landscape to reducing average spend per customer.
2. Improve your data governance structure
Various departments, including the finance, marketing and IT departments play a vital role in managing and governing data. However, in organizations where departments are soiled, data becomes difficult to find and in some cases is not available. To ensure that your organization is data-driven, you need to build an agile IT architecture for the easy integration of the different data sources required for decision-making. Secondly, your organization needs to increase the drive for cross-departmental alignment for data governance and other BI-related tasks.
3. Build your organizational culture to be data-driven
Your organization’s journey to becoming data-driven will not be possible without the support of the right organizational culture. By creating a culture of collaboration to guide the decision-making process within your organization, your business can gain from the increased value at every stage of the decision-making process.
4. Shape your competitive strategies with data-driven analytics
Vital to the growth of any business is their competitive strategy. Being a data-driven organization can help you rightly execute this strategic step. Above all, integrated business intelligence makes it possible to know what customers are saying and searching. Thereby, giving you valuable insights into the competitor market. Use external data from Google, Twitter, Facebook, and competitor websites and blogs to define and test new KPIs. Modify current strategies based on your findings.
5. Establish your technology roadmap with the right BI solution
Your data strategy will succeed only if it is backed with the right technology roadmap. Therefore, your roadmap, apart from providing a clear action plan for measuring success, should be periodically reviewed. For your roadmap to be successful, your BI tool should be powered with the right integration and customization services that can empower you to make informed business decisions. Furthermore, your BI tool should be able to solve challenges in business roles across your organization.
Lumenore, is Netlink’s next-gen business intelligence & analytics platform that is designed to enlighten your business. As you shape your organization towards becoming more data-driven, Lumenore blended with integration and customization services gives your organization the added edge it requires. With the ability to provide pre-defined KPIs and real-time insights across business roles, including operations, HR, Sales, Customer Service, Finance, IT and Marketing, your organization can achieve strategic business goals faster.
To sum up, whatever your industry, Lumenore empowers you to take action quickly and with confidence.