Data driven companies or data driven companies (DDC) are companies that consider data as a valuable and strategic information asset. Their processes and decisions arise from knowledge based on data analysis and the epicenter of decision making is information.
They are organizations that adopt a data-driven culture, that is, using data as the main basis for business decision making. Many of them have evolved as a result of digital acceleration and the impact of the COVID-19 pandemic.
Data analysis is a fundamental tool for organizational success. It is not just about accumulating information and the importance of information should not be underestimated. Data by itself is useless, it is something that takes up space in the head or on a hard drive, to be useful it must be analyzed, looking for correlations and causalities.
It is not a matter for Netflix or Google-type companies and corporations. Extracting and analyzing data can help organizations of all sizes and from different sectors. Let’s remember that Big Data is the tool that allows to treat the collected information and Data Driven addresses the decisions that a company makes, based on that data, and the process to reach them.
A company’s purchase history, users’ interactions on social networks, customers’ searches for relevant products, the interest shown in specific promotions, the monitoring of a new competitor in the market or the influence of a negative mention on social networks are some of the situations that require using and having key data for an effective analysis that adds to the decision making process focused on moving the needles of the business.
Data driven companies are characterized by having centralized and organized data, having data governance policies, having accessibility to their data and integrating analytics into their tools and processes; but most importantly, they have the leadership of a multidisciplinary data driven team made up of diverse profiles, including: programming, statistics, algorithms, data analysis, Business Intelligence, SQL, Python, data science, among others. This team has a balance between technical and analytical skills, is open-minded, critical thinking and collaborative spirit.
According to Capgemini Research Institute, data-driven companies generate up to 22% more profits than traditional companies. Accenture states that 72% of companies worldwide do not have such a strategy and McKinsey Global Institute claims that data-driven companies are 23 times more likely to win customers, 6 times more likely to retain customers and can be 19 times more profitable than other companies.
Algunos de los beneficios de adoptar una cultura data driven son:
- Identification of trends, opportunities and threats: Data collection and analysis is essential if you want to understand customer behavior and the market situation.
- Personalization of marketing strategies: The ability to build customer loyalty is what defines the success of any business. Today’s users are more satisfied with experiences than with products themselves. They value more when they are treated as people, not as figures in a statistic. It is important to have the data analysis that allows to personalize the acquisition strategies.
- Increase conversions or sales: Implementation of up-selling or cross-selling strategies.
- Increases competitiveness: A company that has data analysis on market behavior may be the one that can better satisfy its potential consumers.
- Optimizes the decision making process
Data driven companies have a clear definition of data strategy, they know that you are not competitive with technology alone, you need a willingness to change and flexibility, and they understand that the organization is changing to be data-driven and data-driven from the top down. The biggest challenges facing companies as they seek to become data driven have to do with the cultural shift to a data-driven direction. Driving a data culture within the organization is a priority, as is changing mindsets and moving away from decision making based on intuition and experience.
To maintain a competitive organization, data, its analysis and use will be key. What is your company doing in this regard?
