In an increasingly data driven world, it’s no coincidence that this particular expression is on everyone’s mind. However, the concept is much more thank just a buzzword—it’s the key to making safe, solid decisions, based on relevant information.
Data driven companies are those that really know how to leverage the potential that only the right data can offer. Their role is to turn mere information into effective actions to achieve significant outcomes, then use the resulting data in further actions, thus establishing a virtuous cycle.
Does it still sound a little too subjective? Then read on to get a better handle on data driven approaches, see how they can be applied, and learn about a few practical examples.
But what does being data driven actually mean?
“Data driven” means exactly that, letting the data drive your processes and basing them on information collection and analysis. In the corporate world and in Business Intelligence processes, this means putting data at the center of strategy and decision-making to eliminate the risk of deciding on impulse or intuition. It saves you time and money.
The idea behind data driven methods is to apply computational analysis (analytics) to large volumes of complex, heterogeneous data (Big Data) to solve problems and get insights, especially leveraging artificial intelligence and machine learning.
Data driven companies plan, execute, and manage based on actual data, applying solutions driven by algorithms to develop corporate intelligence. In the process, these organizations outperform and outgrow their competitors, in line with digital transformation—and ready for its challenges.
Data driven x Analytics driven: Understanding the difference
Yes, they are two different things. The confusion is totally understandable, though: they have similar names, both deal with technology, and both are part of data science. How do we tell them apart?
While data-driven methods focus on quantitative analysis, based on numbers and predictive models, analytics-driven methods emphasize a qualitative approach in order to cross-reference information and recognize patterns in data.
In practice, the two processes complement each other and walk hand in hand in the corporate world, since the analysis only differs in complexity levels.
Yes, you can be data driven in any industry
Every company can use data to make strategic decisions and increase the value of their business. Regardless of industry, this is the goal of most companies seeking continuous and significant growth.
Therefore, data driven methods and premises apply to companies in all walks of life, from health care to the financial sector, from education to banking. After all, some questions can be asked in every industry:
- Who are your customers?
- What goods and services do they value the most?
- How much are they willing to pay for solutions?
- What are their preferred points of contact?
- When is the most appropriate moment to approach consumers?
- Who are the company’s strategic partners?
- What do your competitors do to lure your current customers?
Data driven management allows you to answer these questions and makes sure your customer relationships and communications will happen at the right time, with the right people.
To optimize your management, make it data driven
First of all, look at your internal data. Reports, sales data, and other indicators produced by the company itself are precious sources of information in data driven methods. In addition, remember that consumers leave a digital trail. Information from your website and social media presence, such as Facebook and Instagram accounts, are important sources of data as well.
This information can provide a solid basis for decision-making, because it allows you to know your consumer better—and your own company, too. Organizing, collecting, and grouping data provides valuable insights to help you plan your long-term strategy, reach targets, and optimize your business’s financial, human, and management resources.
In practice: Meet four success stories
Disney
Continuous market monitoring, incentives to get its target audience to fill out forms, and hiring professional professional database managers—in addition to extensive use of big data—are but a few of the steps Disney takes to ensure a data driven strategy. This enables the company to focus more precisely on its target audience’s needs and make the company an example for others.
Netflix
The streaming giant analyzes each user’s profile, chooses titles that fit their preference patterns, and suggests them on the main screen, emphasizing a highly customized user experience. The service uses real data, actively provided by the user. It also uses data analysis to help create characters and scripts, such as their smash-hit Stranger Things.
Spotify
Following Netflix’s lead, music streaming service Spotify provides services based on actual user data, assembling playlists and offering recommendations that actually fit their quirks, tastes, needs, and mood.
Itaú
Brazilian bank Itaú sponsors Batalha de Dados (“Data Battle”), a project gathering a wide range of talents and skills to develop innovative solutions using real customer data. The goal is to gather professionals who understand the power of data analytics to answer questions and resolve issues. The events has led to improvements in internal processes, such as understanding customer context to improve communications and collect information on how to enhance offers in its credit card rewards program.Do you want your company to have a data driven culture? BlueMetrics is partners with Sisense, one of the world’s leading Data Analytics and Business Intelligence. Here you’ll find the best solution to bring data science into your business. Fill out our form and we’ll get back to you.
