While many companies recognize the value of embracing data, becoming analytics-driven is still more of an ambition than a reality for most organizations.
In a recent survey of business executives from NewVantage Partners, slightly more than 26 percent of respondents said they had achieved the goal of being a data-driven organization.
Currently, the largest obstacle for many companies focusing on their analytics system isn’t related to technology. The NewVantage survey also revealed that cultural change is the greatest imperative for companies looking to embrace analytics.
Large well-established businesses are improbable to change culture overnight. Strong leadership is necessary to make this happen, and many companies are finding an analytics executive is necessary to drive change. Unfortunately, about 40 percent of respondents said they have successfully established that key position.
While companies are struggling to make cultural and leadership changes, the effort to embrace analytics keeps getting more difficult. Companies are able to reap increasing volumes of information, as well as adopt new data streams. Many of these new sources are generating unstructured data, such as video and images. When data is unstructured, it isn’t easily harnessed or quantified. The fluid nature of data makes the consistent extraction of value very challenging.
Why is The Data Hard to Believe?
Emerging Structural Changes
Fortunately, a number of structural changes to business and society could drive the increased adoption of analytics.
From a business perspective, the COVID-19 pandemic raised awareness of the value of data-based decision-making. While businesses may have talked about embracing analytics before, the role of data in making extremely vital decisions has been made very apparent since 2020.
Also, people are now consuming and using data based on personal values and needs. The decentralized nature of our times allows people to self-select their news, social circles, and even the facts they choose to believe. While this can cause divisions in society, it does represent a cultural shift toward consuming more digital information.
Finally, there’s an ongoing increase in the amount of information being produced every day. With increasing information and growing power to process it, businesses are increasingly able to cultivate valuable insights.
Steps to Consider
Becoming a data-driven firm is a long journey. Companies that have successfully embraced analytics often exhibit key behaviors that separate them from their competitors.
First and foremost, they have adopted a pro-analytics mindset. Leaders at these companies have properly prepared their people to start thinking differently. Only after a cultural shift can the power of analytics truly be matched by the necessary critical thinking, creativity and leadership skills.
Data-driven companies have also learned through experience, and this requires a willingness to embrace minor mistakes. Businesses that can fail and quickly learn from their mistakes will position themselves to gain insights and make better decisions faster than their mistake-averse competitors.
Finally, data-driven companies have taken a long-game approach to embrace analytics. Success is often achieved iteratively, and this takes months, if not years. Successful companies have realized this and made the necessary commitment.
We Can Help You Find the Analytics Talent You Need
At SMCI, we understand that employees who have both technical skills and the right mindset can empower necessary organizational change. If your company is currently looking to increase its use of analytics, please contact us today.
