Striving to become a ‘data driven organisation’ is not enough, says Knowledge Integration Dynamics (KID).
By Mervyn Mooi, director at Knowledge Integration Dynamics (KID)
There is a great deal of focus on the ‘data driven organisation’ now. But this focus misses the point – everyone is data driven to some degree. The question should be: are you strategically data driven?
Everyone – from the man in the street to the large enterprise – is driven by data. This data might emerge from weather reports, calendars, meeting schedules and commitments. A plethora of data drives decisions and processes all the time. But this does not mean data is being used effectively. In fact, in this scenario, the data drives us. Only when data is used strategically can we turn the situation around so that we drive the data, using it as a powerful tool to improve business.
While there is always room for improvement and innovation in the gathering, management and application of data, many companies are already strategically data driven. These companies are relatively easy to identify, based on a number of traits they have in common:
- Innovation and market disruption. Innovation can happen as a once-off ‘accident’, but a sustainable business that consistently innovates and disrupts is certainly basing its success on the strategic use of data. The sustainably innovative enterprise harnesses quality internal and external data and analytics to inform business decisions, improve products and customer experience, and maintain its competitive edge.
- A culture of rationalisation. When a company is strategically data driven, it has achieved a clear understanding of where its resources can be put to the best use, where bottlenecks and duplication occurs and how best to improve efficiencies. A company with a culture of rationalisation, a focus on deduplication and a tendency to automate and reduce manual interventions clearly has good insight into its internal data.
- A ‘Governance over all’ approach to business and operations. Only an organisation with quality data delivering effective insights into all spheres of the business is in a position to apply effective rules and governance over all systems, operations and processes.
- Decisions are based on interrogating the right data with the right questions, using the right models. A strategically data driven organisation does not tolerate poor quality data or interrogate this data in a haphazard fashion. The widespread use of quality data and analytics is evident in every aspect of the business, and is the basis of every decision within the organisation. The strategically data driven organisation also routinely tests new theories, asks the ‘what if’ questions, and constantly monitors and evaluates outcomes to add to the quality of its data and analytics.
- ‘More than fair’ labour practices. Organisations with a good grasp of their data know what impact employee skills development and job satisfaction have on business processes and revenues. Strategically data driven organisations tend to leverage their skills investments with better working conditions, incentives, salaries, training and perks.
- Strong leadership at all levels. Strong leadership is the base enabler for the evolution of all the other traits; and strong leaders are supported and measured by data. Data is the lifeblood of the organisation, supporting good leadership by allowing managers to improve efficiencies, ensure effective resource allocation, monitor and improve employee performance and measure their own performance as managers.
Any organisation not displaying these traits needs to be asking: “Are we taking an organised approach to data usage and information consumption in order to make our business more effective? Are we using our data to effectively look both inward and outward; finding areas for improvement within our operations and scope for innovation and business growth in our market?”