The Details Are In The Data: What You Need To Know
In recent times, there have been many references to data being the 'new oil' that will drive economies as the most valuable resource in the world, including this headline that was published in The Economist back in 2017, “The world’s most valuable resource is no longer oil, but data.”
The value is in the quality of the data being collected and then connected to other relevant data in a timely manner. When properly utilised, usable data quickly becomes a key decision-making tool allowing companies to respond and react to market forces proactively.
This is one of the key changes of the digital economy: the ability to track almost any piece of information across your company as well as access detailed real-time information about competitive positioning, changes to markets, and global trends.
And remember: facts form opinions. Business is grounded in facts and figures, not on speculation.
Utilising your data effectively is key for future growth within your company. Here’s how to find the right details from your data:
What’s important? If you are not clear on the key information you need for decision making - aligned with your strategic objectives and KPI’s - then you cannot measure it. Collect the right data based on the questions you are asking within your business from a strategic perspective.
Measure it. Things that get measured, get done. Without stating the obvious, ensure that the team are measuring these metrics accurately, utilising technology wherever possible. Ensure your business has clear policies around measuring the data, right down to the ‘boring’ accounting things like revenue recognition to ensure you can correctly measure your margins and understand your unit economics.
Review it. Build your reporting pyramid to report your data on a regular basis - whether, daily, weekly, fortnightly or monthly, make sure the results are communicated simply and clearly.
Don’t fall into the ‘A-myth’ - Whilst you can create dashboards and automated reporting for much of your key business metrics, you cannot automate everything. Do NOT fall into the trap of leaving out key metrics for reporting just because they are hard to measure or difficult to report on or simply that the reporting needs to be pulled together manually.
Allow access to the data - for each department within your organisation.
Leveraging the wealth of business intelligence directly influences the speed and efficiency with which your business profits will grow.
MIT Sloan School of Management professors Andrew McAfee and Erik Brynjolfsson once explained in a Wall Street Journal article that they performed a study in conjunction with the MIT Center for Digital Business. In this study, they discovered that among the companies surveyed, the ones that were primarily data driven benefited from 4% higher productivity as well as 6% higher profits.
The answers you are looking for are buried in the well of information available to you with the right strategy. Prioritise this for your company today. Address any biases in your data exploration and keep re-evaluating the data presented to you in light of your goals and objectives.
The world is constantly evolving, and your business needs to be adapting to the changing needs of the marketplace around you. Data will point you in the right direction.
Want Proactive Advice To Keep You On Track Each Month And Guaranteed Execution?
Work with us for 90 days and if your business is not transformed, we'll give you your money back.
