Yesterday we talked about gigabytes. Today we talk about zettabytes. The amount of data created is growing each day and since the introduction of the term big data, organizations continue to store and use massive quantities of data for operating everyday life and to find more business opportunities. And since the number of available technologies is increasing each day, the possibilities are endless.
Research done by Gartner, predicts that by 2022 “90% of corporate strategies will explicitly mention information as a critical enterprise asset and analytics as an essential competency”.
Although data is extremely valuable, and even more so if effectively analyzed, we still see many organizations struggling with utilizing the full potential of their data.
The sometimes, one-sided focus on the choice of what data driven technologies to use seems to outweigh the importance of putting the technologies to use. Resulting in a failure to make both people and technologies a part of the everyday process flow, thus missing out on the benefits.
This is what marks the difference between a organization and a data driven organization.
What is a Data driven organization?
A data driven organization is an organization that is highly committed to gathering data regarding all aspects of the business and by enabling employees at every level to use the right data at the right time, data can foster conclusive decision-making and become a part of the companies’ competitive advantage. The motives to become a data driven organization is often to:
1. Use the data as a product or service and sell it to others.
2. Use it for automatization or optimization to make operations more effective.
3. Add data driven insight into the products and services offered to customers, called data wrapping.
What is data wrapping?
Data wrapping means using data as something that strengthens, complements, and creates more value, for a product or service. A production line may be “wrapped” with a dashboard to monitor operational performance, a bank account may be “wrapped” with a budgeting tool, and a cab trip may be “wrapped” with a fare estimator. The wraps can create indirect value by increasing customer retention or improve customer satisfaction.
Why become a data driven organization?
Besides the possibility to earn money from selling data, operational efficiency often save funds as well as reduce time spent on other things than value creation, innovation, and customers. Data wrapping products and offers can motivate innovation and increase value for customers.
To conclude, making decisions based on evidence is far more reliable than ones based on instinct, assumptions, or perceptions.
Using the data driven approach organizations can identify trends over time that can inform effective practices, help them become aware of issues, and illuminate possible innovations or solutions.
Data driven organizations have better conditions for making profitable and sustainable decisions, and show an increased growth rate and better competitiveness, as well as a higher degree of innovation.
So, how data driven are you?
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