Becoming a data-driven business goes beyond installing the right software and tools, hiring data professionals or running a one-off data literacy course. Data and analytics must become a fundamental part of your organizational culture. A data-driven organization collects, analyzes and uses insights from the raw data to address business problems, identify new opportunities, and improve profitability.Â
For many companies, a strong data-driven culture is hard to establish. It is easier to incorporate data into the decision-making process than to make it part of the daily reality for all employees. Here are some steps to help you create a data-driven culture.Â
Step 1: Establish data-driven goals
Data is a means to an end and not an end in itself. Collecting it means nothing unless you can analyze it and get insights from it. It is important for you to set goals for your data so your employees in various departments know why they need it and what insights can help them make improvements. For example, if a goal is to reduce customer churn rate, you need to track it over a period and identify the common behavior of customers who leave.Â
Tridant delivers Business Intelligence solutions that help organizations to improve their performance by gaining insight into every aspect of their business so they can make data-driven decisions throughout the organization.Â
Step 2: Decide which teams need access to which data setsÂ
Each department has its own requirements and different metrics are important to different departments. It is critical to establish which teams need access to which data. For example, marketing teams need access to metrics like customer acquisition costs, web metrics like bounce rate, conversion rates, email click-through rates etc.Â
Sales teams need access to sales data across products and services. Customer success metrics will include call wait time, issues logged and resolved daily, escalation requests etc. Itâ€™s not helpful to give one department access to data â€“ they all need it.Â
Step 3: Define who collects and collates data
The responsibility for overseeing data collection usually falls on department heads. Once they pass this data onto management, collating it is important to make it usable. Having a central system is best for collating data. Data analysts can then feed relevant analysis and trends back to department heads so they can be put into practice.Â
Step 4: Use the right data analysis tools
If you donâ€™t use the right tools for data analysis, you will probably just end up with a collection of numbers that donâ€™t mean much. Transmuting data into readable graphs and charts can make data more accessible to all employees who need to use it.
Step 5: Arrange specialized employee training
All employees need training in data literacy as this will help them to become more aware of the necessity of keeping it secure and how to use it to its fullest extent. There are many accredited data literacy training courses available for employees. It can be helpful to reward employees for using data insights effectively.
Step 6: Hire data experts
Organizations should consider hiring data experts as they can help identify the most useful metrics to track. They can initiate the right approaches to data collection, which can improve all aspects of your businesses and give you a model thatâ€™s sustainable for the future. They can help to ensure that your choices are logical and rational.Â
Step 7: Keep updating your data stack
Fresh data is most useful and so adding new data to the data stack regularly is important. Customer habits and spending change over time and it is important to keep up to date for more informed decision-making.