In this post, we will talk more about the concept of data driven, what are the benefits of investing in this approach and how to do it. Good reading!
What is data driven?
A data driven company is one that structures a data-driven process policy. In this way, decision making and strategic planning are based on the collection and analysis of information taken from the virtual environment.
This ensures that decisions are more precise, eliminating assumptions or experiences that occurred a long time ago and cannot explain the company’s current context. It is important to note that data driven is not a specific technology, but a strategy.
Based on the analysis of digital information, the company is able to optimize its processes, cut waste and carry out quantitative projections that guide its investment and management initiatives.
Furthermore, this work ensures that she anticipates problems. The tools used in a data driven culture collect data from various sources, both external (on the internet in general) and internal (in the company’s digital history).
The tools are capable of cross-referencing information so that managers can visualize a more transparent panorama of the market, involving customers, competitors, suppliers and the sector’s situation.
An example of using data work is e-commerce itself. Managers who analyze people’s visits to the website, map their places of origin and store information about them will base their strategies on this useful knowledge.
Some of the technologies that integrate a data driven culture are:
- Business Intelligence;
- big data;
- artificial intelligence;
- Machine Learning.
How it works?
The company can guide its practices in two ways: training internal employees to create a team dedicated to data science or rely on external partners to use tools in this regard. The two options are not exclusive and this exchange of ideas is an important way to start.
The data driven culture works like this: the difference between companies that adopt this approach and others, which do not yet use it, is that data is used in an integrated way, in their activities and operations.
In this sense, the information analyzed is centralized, generally in a cloud system. Thus, managers can designate the people they want to have access to the insights and information generated.
With this centralization and free access to several people, the collective wins. The company has analytical and computational intelligence, which guarantees greater agility in the business routine and the projection of results.
What is the difference between data driven and analytics driven?
As both concepts are derived from data science, many people are confused about the characteristics. It is important to note that data driven has a more quantitative character, based on data numbers, the production of relevant knowledge and predictive models, for example.
Analytics driven is a little more focused on the qualitative aspect of data, by establishing patterns and correlations in the analyzes carried out. It interprets the general context of where information is found and how it impacts business results.
Therefore, we can say that the two concepts complement each other perfectly. Together, these two approaches ensure greater depth in data work, combining analytical capacity with accurate projections.
How to implement a data driven culture?
Despite all the advantages, it can still be challenging to comprehend the proper way to establish a data-driven culture.Here’s how we’ll demonstrate this.
Invest in training
Making the entire team aware of the advantages of working with data is the first step in implementing a data-driven culture that will become an organizational value in your firm.
Although it is unlikely that every employee would be able to undergo training, it is crucial to start with the IT staff and management.They will be able to instill the new way of thinking in their own teams in this way.
After all, there is no point in carrying out one or another job that involves tools like Big Data and never doing something like that again. The important thing is to adopt a lasting data-driven culture, which encourages accurate decision-making.
Ensure data transparency
For the data driven culture to be truly widespread, all sectors of the business must have access to data and the relevant knowledge extracted from it. Therefore, it is important to strengthen the team that will carry out this work or rely on external partners who are truly references on the subject.
One of the Vs of Big Data, for example, is value, which represents the gains that that work adds to the business. Therefore, it is important that information is accessible to anyone who needs it.
Know how to evaluate the relevance of the analyzed data
It’s not enough to focus on a large volume of data and be sure that something good will come out of it. Much data is outdated and does not provide useful knowledge for the business. Therefore, focus on reliable sources.
It is also important that the professionals who will carry out the work with data are able to track this information from end to end and filter out what is not useful for the company. Another crucial task is to understand whether the data has been validated and whether it has a margin of error.
Pay attention to data governance
When a company decides to adopt a data driven approach, one of the first steps is usually to gather as much data as they can access. From there, tools like Google Analytics, Hubspot and CRMs are useful at this first moment.
However, as the work of data collection becomes more intense, organizations will need processes to ensure compliance with laws. The General Data Protection Law, LGPD, comes into being so that companies do not use information not authorized by customers.
Therefore, establishing data governance policies is essential to avoid exceeding these limits. Another initiative is to develop metrics that enable continuous monitoring of everything collected. This guarantees dynamism in the analysis work and encourages monitoring as a daily practice for the company.
Transform the culture
As we mentioned previously, data driven should not be something that the company uses and discards later. It is essential that this culture is assimilated by the organization. This does not mean that everyone who works there needs to know how to analyze data, but that decision-making must be based on working with it.