Data-Driven Culture: Companies need to be quick when making strategic decisions to be competitive in the market. In addition to agility, other factors influence the process, such as the accuracy and integrity of the information analyzed.
For this reason, the data-driven culture is a trend increasingly adopted by small and medium-sized companies. However, to make the most of its benefits, it is necessary to understand its importance in the company’s context and how it works. Only then can information be used safely and accurately to ensure more profitability and growth for the business.
Next, we show what data-driven is and how it works, in addition to tips on implementing the technology in an SME. Read on!
Know What Is Data-Driven
The data-driven culture uses real data to make strategic decisions in the company. Currently, an enormous amount of information is to be analyzed, extracted from different sources, and with the most varied formats.
To gain agility and efficiency in the use of data, it is necessary to have the support of big data analytics tools. This technology will be responsible for processing and transforming information so the business can use its results in decision-making.
The growth in the use of technologies such as cloud computing has facilitated access to software and tools that can be used as services. That is: the company pays for what it uses, allowing small and medium-sized businesses to enjoy these resources without having to invest in technology.
Understand Its Importance To The Business
Companies gain a huge competitive advantage by making decisions based on real data. This is because the basis will be something other than intuition or instinct, but studies carried out through real information can be used for various purposes in the business.
As a result, companies can analyze and anticipate trends and minimize risks, which ensures greater competitiveness. Another possible result is the improvement in sales through mapping customer preferences. In addition, technology can be applied in several areas and with specific purposes in each of them.
Among the benefits that real data analysis provides to the business, we can highlight the following:
- more agility in decision-making;
- greater operational efficiency;
- ease in identifying and quantifying market opportunities;
- risk identification;
- a better understanding of customer behavior;
- identification of problems in the company’s internal processes.
These advantages allow the company to respond positively to market pressures and acquire competitive advantages. Customers also win, as everything contributes to better care or service provision.
See What To Do To Implement A Data-Driven Culture In An SME
To adopt the data-driven culture, it is important to explore the technology. However, more than simply deploying a tool is required: it is necessary to plan a series of actions to ensure its successful use.
Set A Goal
The first step involves setting a goal. You need to know what you want to achieve and the return time of this goal to establish which performance indicators (KPIs – Key Performance Indicators) will be evaluated from time to time. This way, it will be easier to analyze your progress.
Identify Key Areas
Based on the objective, define which areas of the company are directly involved in its reach. Such identification is important to assist in the process of collecting information.
At that moment, it is also necessary to choose which data will be analyzed and their origins. For example: analyzing content captured in business management systems, such as ERPs or CRMs, is an excellent strategy for evaluating and improving the company’s internal processes.
Among the data sources used is behavioral information — obtained through analysis of customer interaction trackings, such as on social networks or virtual stores. Another interesting possibility is the use of surveys on competitor analysis.
Map The Data
Data mapping is important to identify how information is used in the company. Therefore, it is necessary to classify them according to questions such as:
- who consumes this content;
- how they are used;
- for what type of decision they are relevant;
- where they are stored.
Choose The Right Tool
For data collection and processing, technological tools must be supported. There are options on the market that provide excellent value for money and are easy to use.
A crucial point for the implementation of a data-driven culture is the democratization of data. That means making it possible for everyone in the company to have access to the most confidential information.
Such access serves to ensure more agility and efficiency in the analysis of information and decision-making. Waiting for access authorizations could mean using outdated data.
Another important point in this process is to promote internal communication among employees. They must understand the urgency and priority of accessing information.
Analyze The Collected Data
The analysis of the collected data must consider the performance indicators that will be evaluated. They are responsible for guiding this process, providing the necessary elements to indicate the point where the company is and how many steps it takes to reach the proposed objective.
Turn The Information Obtained Into Action
Once all the data has been chosen and analyzed, it’s time to turn it into initiatives. After making a decision, it must be ensured that the appropriate actions to put it into practice are followed. This is the way to ensure that the proposed objective is achieved.
Implementing a data-driven culture in an SME helps obtain a greater competitive advantage and stand out among competitors. Using real data for decision-making allows the company to have an up-to-date view of its situation and the market to act more safely and efficiently.