4 minutes of reading

There are only two types of companies: those that make use of day-to-day data, and those that prefer to ignore it.

Data driven is the term used to refer to those who make use of data – of any kind – to drive decisions. 

This data can refer to the number of products left in stock, the amount of hours it takes an employee to perform a given task, the profit a company gets with a particular service, big data… It doesn’t matter.

Almost everything in your business can be measured or accounted for, and it’s up to the business manager to use the data available to drive decisions and guide the business on the path to success.

In this article, you’ll understand the risks of ignoring data and not being data driven in an increasingly competitive marketplace, where technology is controlling all processes.

In addition, you will find out how to apply the data driven culture in your company. 

So, let’s get started?

Data driven keeps the guesswork out of your business

The great merit of data driven lies in turning data and information into wealth.

Data driven companies are those that plan their actions and execute them based on real data analysis. In practice, they interpret algorithms and spreadsheets to drive business intelligence.

For those who are obsessed with digital transformation, there’s no way out: the data driven culture puts your business ahead of the competition, ensuring decision assertiveness, higher process efficiency and agility.

In addition, those who analyse data, are able to leave the guesswork, or the famous “gut feeling” out of the decision making process.

The days when it was possible to succeed making decisions based on assumptions such as “we have always done it this way,” are over. Plus, it no longer makes sense to place managers’ unfounded personal opinions above the pure and simple data evidence.

According to the recently published Insights-Driven Businesses Set The Pace For Global Growth report, the companies considered by the report as data driven, grow more than 30% annually.

Is this your company’s goal as well? Those who care about reality need to look at data. Next, you will see how to implement a data driven culture in your business.

How to adopt data driven in 5 steps

We have selected some practical tips for you to implement the data driven culture in your business. It is essential to start implementing it as early as possible, so you can gather the best results. Check it out:

1. Invest in technology to measure data

The first step to be taken by companies aiming to become data driven, is to capture, refine, filter, and measure all business’ tasks and processes to turn them into data.

Basically, everything in your business can be transformed into data, and your role is to find ways to make it happen. If you have no control over your employees’ performance and efficiency, start measuring it. If you don’t know how much time the team devotes to each customer, start measuring it. If you do not have actual data on billing, sales, inventory, cash flow… start measuring it.

It is important to highlight that, at this time, technology is your biggest ally. There is a world of possibilities when it comes to choosing programs and softwares for measuring business processes.

2. Create methodologies to interpret the data

Once you have gathered enough data, it is time to invest in methodologies such as software, algorithms and programs that combine automation and artificial intelligence to interpret it and extract relevant insights.

Equipped with these tools, you will be able to improve the efficiency of your company’s processes. Thus, remember that technology is your ally to gather and filter the information generated.

3. Set an example

If you want to implement a data driven culture in your company, you need to start by setting an example for all employees. When communicating decisions that are relevant to the company’s future and have an impact on the entire team, use data to support your arguments. This way, in addition to being more transparent, you will show that you believe in data driven and will inspire the team to follow your example.

4. Empower your employees

There is no point in investing in technology to measure and interpret data if you do not enable the team to make the best use of this information. From spreadsheets to algorithms and software, your employees need to master the use of these tools to extract useful information on a daily basis.

5. Encourage data usage in all sectors

Finally, it is worth encouraging data usage in absolutely every company department. It does not matter what the sector it is, nor how many employees it has: the data is useful to everyone who works in the daily life of the company, as long as they are trained and have the tools to interpret the information available.

Create in-house campaigns to encourage data-driven decisions. In addition, recognize and reward the team when these decisions bring good results for the company.

Did you find the post interesting?

We hope the reading has been productive and you feel more prepared to adopt the data driven culture in your company.

Please feel free to contact us if you have any questions or if you would like to know more details about the data driven mindset.

See you soon!