Analytics

Business Intelligence: Basic guide to becoming a Data Driven Company

Empresas data driven

3 Key Points

6 Considerations for Building Analytics Organizations

Checklist and key points for self-diagnosis

How to become a Data Driven Business?

In this article we will learn:

A business or organization that builds tools, skills and especially a culture of action around data is a Data Driven company.

And we are not talking about the big technology corporations of Silicon Valley in California or the Startups in Helsinki – Finland, Singapore or Tokyo and their high degree of automation and data intelligence. We are talking about small and medium businesses in Latin America.

Three Points refers to a 2020 study by SAP, where it indicates that that year investment in data analytics in Latin America experienced a significant increase of 129%, reaching approximately 13,804 million dollars, with Mexico in first place.

Large and medium-sized companies in the logistics, manufacturing, finance, healthcare, retail, hospitality and related services sectors are investing heavily in data analytics tools in an effort to become Data Driven companies.

Business Intelligence, Business Analytics and Data Science tools are there, accessible at a budget tailored to small businesses.

Data driven inteligencia empresarial
Puntos de atención para convertir tu empresa en un Data Driven Business. Photo by Pixabay.com.

How to become a Data Driven Business?

Let’s look at some points of attention for organizations to move forward on the data path and draw their own analytical route map.

1. Take inventory of the types of data and sources you want to explore

It may seem obvious, but the first thing you need to do to start the path to Data Driven is to know what performance or management data you want to collect and from where.

The day-to-day interaction with clients or prospects generates innumerable data.

For example, do you have a point of sale? A billing system? There is the source of names, contact telephone numbers, capacity, frequency, time of purchase and more.

Do you post on social media? There you have the interaction or feeds of customers, prospects and followers, what they like, what they click, trivia, surveys and comments.

With a blog or online catalog you can measure the most visited content or articles, the most commented. What next, application databases? User tabs?

And that is just a start, types of sources and data that you can use to focus different actions and efforts at the level of marketing, level of service, quality, analysis of the competition.

Think of the countless opportunities that data you’re already unknowingly collecting can bring, when you can access top-notch analytics tools and expert support.

2. Establish roles and responsibilities

Another point of attention that might seem obvious, but from the beginning you have to assume who will do what with the data, how that team will be formed that will train with the tools and turn data into gold.

Perhaps the first step is an analytical outsourcing where key collaborators of your business are gradually involved to enrich their capacities around data management.

Then you will move towards a simple structure, perhaps your most trusted staff: assistants, salespeople, analysts to whom you will delegate some key functions, access and metrics.

As the business evolves and data analytics matures, you could involve full-time staff with clearly defined roles and responsibilities and team collaboration.

“When it comes to becoming a Data Driven business, companies run the gamut with different levels of maturity, and as data analytics evolves it is important to define multiple common roles and tools in a defined structure.”. 

A review of the benefits of data analytics: How much can a company grow with its use?

3. Never lose focus

You already have an approach with a data analytics provider, you are already taking advantage of important information from some sources and training your key personnel.

At this point it is easy to lose focus by wanting to involve any amount of information, tools and metrics abruptly.

Here it is important to look at the proposed business goals and objectives, based on this, think about the metrics that you really need to monitor gradually.

You could spend some time designing and implementing some key performance indicators or KPIs and how you want those results to be revealed (indices or specific indicators, charts, graphs, dashboards, reports, analysis).

4. Cultivate skills in data management

We already talked about the fact that you must define roles and responsibilities for analytics to be on the right track, but keep in mind that not everyone has natural abilities or an attraction to numbers and data.

 

That is why you should plan a learning program to, at least, level the basic knowledge about data analysis tools and methodologies among the stakeholders in your business.

It covers basics like:

  • Drafting of technical reports
  • font types
  • Nature of the data
  • Databases
  • Statistical tools
  • Data analytics methodologies and scope of each one
  • Main tools available and functionalities
  • How to interpret tools
  • How to customize and get Ad Hoc reports.

Finally, be sure to allow your future ‘data analysts’ to hone and complement their skills through mutual support and cross-training.

5. Say goodbye to subjectivity

Perhaps it should have been at the top of the list, because it is useless to receive professional support and advice, invest in analytical tools and train your staff if you do not put aside subjective elements and the ‘sixth sense’ when making decisions.

As its name alludes, a Data Driven company is driven by data, evidence and facts, not by assumptions and prejudices.

Here’s what Larry Alton says, an independent consultant for Small Business Trends:

“The biggest challenge to become a Data Driven company is cultural, when you need to respond to a business strategy, everyone must give in to the data and make decisions based on it.”.

6. Act based on the data

Inteligencia empresarial guia data driven
The main barrier to becoming a Data Driven company is cultural. Photo by fauxels.com.

Complementing the previous point, having valuable information at hand from the data, you only have to act based on them, so:

  • Segment your market more efficiently
  • Focus your resources productively
  • Take your campaigns to a maximum level of personalization
  • Orient your plans towards the most profitable niches or products
  • Analyze your customers and leads their tastes, preferences
  • Raise the best forecasts
  • Redefine your processes, policies, code of ethics
  • Offers a high level of service and a true pre and post sales experience
  • And more than anything, gain competitive advantages.

Finally, remember that Data Driven Culture is not a matter of a leader, a project manager or a small group dedicated to information technology; it involves commitment, participation of everyone in the company and support in tools aimed at developing business problems based on analytics.

Keep in mind that the younger and smaller the business, the easier it will be for it to become a Data Driven company with the right support and tools.

At DataKnow we have what it takes for your business to experience the true potential of data.

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