In our blog ”How Datalytics Sees Data,” we discussed how we view data. The data you collect has the power to transform your business from what it is now to what you want it to be in the future. But once you have that data, how can you make it work for your business?
Below are the five ways your data can transform your business:
One characteristic of data-driven organizations is a shared language across departments--everyone uses the same terminology no matter where in the company they work. These organizations also have a predetermined way to save and store their data. When you combine these practices, you allow for more accessible and efficient communication.
Take, for example, one of the world’s largest companies--Amazon. The only way they would be able to fulfill the extremely large number of orders they receive on a daily basis is through an effective communications system.
Whether it is hiring new employees, purchasing new equipment, or expanding your business, being data-driven allows you to make smarter decisions about who, what, and where to invest. Making the right decisions allows you maximize efficiency and, consequently, ROI.
Think of big retail chains like IKEA and Crate and Barrel. Before opening new locations, they do large amounts of research to ensure any new store has the best chance to succeed.
By carefully analyzing your data, you can turn a series of data points into a series of facts about your business. These facts can be used to either confirm or refute preconceived notions and settle disputes between groups within your organization.
Consider the sabermetrics movement in baseball. In the early 2000s, the Oakland A’s decided to use data to help them build a competitive roster on a limited budget. This data-driven approach has not only revolutionized baseball but has found its way into other major sports.
Many managers and business owners rely on their business intuition to make a sizeable portion of their decisions. Although many great ideas begin as hunches, you need evidence to validate them. By looking at the data, you can be confident that you are making smarter decisions.
A great example of using data with intuition is customer surveys. You may have a good idea of what your customers want or are looking for, but by asking them directly and analyzing the answers, you will have a much better idea of what they want.
Together, better communication, increased ROI, distilling facts from opinion, and better decision making allow your organization to meet your goals.
Becoming a data-driven company is an investment in the future of your business. Datalytic Solutions has worked to develop processes and tools to help businesses of all sizes become data-driven. We can help you transform your business by using the data you have at your fingertips. Transformation is a click away. What are you waiting for?