“We’re entering a new world in which data may be more important than software.”
– Tim O’Reilly, founder, O’Reilly Media.
The routine environment created by the company, which includes values, beliefs, traditions, and customs for the employees makes up the workplace culture. And a great company culture impacts employee performance on all levels. When this culture is infused with data reasoning and implementation, shapes a data-driven culture in a company.
Data-driven culture refers to a habit where decisions in the company are made based on numbers and insights of collected data. There are fewer or almost no intuitions or instinct-based decisions involved.
Also read: Do’s and don'ts of a good workplace culture
Why should companies inculcate a data-driven culture?
Data is an integral part of any organization. Nowadays companies are using data analytics culture to take key decisions for any business problems as this approach is ensuring many benefits like:
- It allows companies to make definite predictions about the future.
- It helps to find creative solutions to business problems.
- It gives companies the ability to make informed decisions which in turn increases revenue.
How can a company adopt data-driven culture?
Companies and organizations can actively use data resources as primary assets to make decisions and to scale and grow their business. Utilizing and interpreting data as the foundation of the company can help to boost profit, increase customer and employee satisfaction, amplify productivity, set up a strong corporate culture, and ensure efficient decision-making, planning, and risk evaluation processes.
A company can adopt data culture by:
Providing easy access to data to the employees
Easy access of data to the employees would ensure lessening the wastage of time and resources to gather the required data.
Ensuring that the data is safe and accurate
If the provided data isn’t accurate, it would cause errors in decision making, thereby the company would be heading in the wrong direction.
Investing in educating the employees
Educating employees about data and its uses would be more cost beneficent than hiring data specialists. This literacy would help reduce mistakes due to lack of knowledge and encourage employees to take and experiment with decision-making by implementing their learnings.
Using best data analytics tools for business
Use of advanced, updated, and the best data analytics tools would be a key factor in determining the success of the company.
Calculated, precise experimenting
The only way any company can scale up and gain huge chunks of profits is by calculating precise data and by implementing and experimenting with solutions from the calculated data.
When collected data is shared within the organization as a whole, this would make employees and stakeholders understand why decisions are being made and how are they contributing to the company, therefore creating transparency.
Data-driven culture also automates marketing, sales, and other operational works. This increases coordination between different teams and helps in increasing consistency as well as helping to create a better analysis of the futures market and opportunities for the company.
Thus, a data-driven culture in a company would ensure growth opportunities and bring success.
How can companies improve data-driven decision-making?
The companies who are already data-driven yet are not seeing any growth or profit must be missing any one of the following
1) Making data more accessible
Data insights about any project will have to be easily accessible to different members of the team, as more people get involved with the data the ability to interpret them and make precise decisions.
2) Making data more appealing
People from non-technical backgrounds will have a hard time understanding and interpreting data accurately. Educating proper tools to employees and encouraging them to interpret and experiment with the analysis, to solve analytical problems would help in growth. Creating an environment that helps people develop these skills and grasp such data can be a game-changer.
3) Fixing primary data-access issues quickly
The most common complaint we hear from people working in different departments is the access to even primary data. This situation persists despite a series of efforts to democratize access to data within companies. In order to tackle this problem companies can grant access to a few key measures and metrics at a time.
4) Making data more agile and more applicable
By spotting data, employees should be able to make out what’s wrong and solve the problems. Delayed problem-solving would reduce efficiency and cause unsatisfactory results. If the data employees are examining doesn’t provide any insight, then there is a high chance that it is the wrong data. So, it’s important to look after data that is applicable. The metrics where the company focuses on should either help to improve, grow or solve a problem. This type of agility requires all the teams and departments to work together.
Future of data-driven companies
Due to the shift in the work environment and technology advancements, companies are more focused on data and are looking for a data-driven company ecosystem. In order to gain profits and climb the success ladder companies should understand and set KPIs. The challenges to be faced by companies in the coming years would be figuring out how to use data that is available to them and gain valuable insights. So, in order to tackle these problems firms look for data-specialized professionals like data architects, data scientists, and data analysts. The future of work for the coming decade will to a large extent be concentrated on managing the data the company has and helping the association use data in new ways to break problems and exploit new openings.