Why Is It Difficult for Many Organizations to be Data-Driven
Simply stated, data-driven enterprises know far too well and value the power of gathering raw data, refining the data, and applying the mined information to guide business decisions. When used strategically in an organization, data can interpret to exponential growth and massive profitability.
Knowing the correct data to leverage and the most suitable time to use it is a skill most modern enterprises lack. Consequently, most organizations fail to adapt to current trends in assessing their demographic data, analyzing their consumer behavior, collecting qualitative survey feedback, and so much more!
Considering the fast-paced nature of modern markets, falling behind in digital trends means getting overrun by tech-savvy competitors and resource-rich distributors. Undoubtedly, data is king. In the golden age of digitization, it is readily available and can be operationalized to provide valuable insights.
We took the liberty to list the top reasons many enterprises find it incredibly hard to operationalize data.
Slow Adaptation To Cultural Change
Becoming a data-oriented enterprise largely depends on an organization’s ability and willingness to adapt to change. This is seemingly a minor problem that most companies underestimate, but its repercussions can damage companies that fail to adapt to the times. This mainly affects organizations that are well established in their niche and have relied on traditional business strategies to stay afloat over the decades.
Such are usually skeptics of new strategies that have come into play with the introduction of the internet and digital markets. Data-driven organizations embrace and invest in business transformation, something many traditional model organizations fail to do.
Decentralized Information Sources
When it comes to sources of information and data in the modern age, it is more of self-service for anyone seeking information. Information is increasingly becoming decentralized. A typical user can choose the news outlet they deem credible, social media outlets, and the data format they perceive trustworthy. Different users have their information biases which are often unjustified. Additionally, considering that different data sources are selective in disbursing information that suits them best, it becomes even more challenging for organizations to regulate viewpoints on their released data. The perception of “alternative facts” is prevalent in the digital era, with minimal fact-checking resources available in the broader market.
Decentralization of data has dissuaded many organizations from being data-driven. The exponential proliferation of data daily demands that firms have a robust computing capability to process essential data.
How Organizations Can Systematically Become Data-Driven
The organization must first adopt a different mindset to adapt to the changing dynamic in modern digital markets. With the massive data produced daily, the organization must be willing to invest in analytic algorithms and qualified human personnel to push the enterprise forward.
Secondly, the organization has to focus on long-term results in data development as it takes time and experience to adapt to the dynamic digital world. Such will entail failures along the way, which will translate to valuable market experience.
Being data-driven is an enduring process that takes time but generates an exponential return on investment, placing the organization well ahead of the competition.