Why is Data Strategy Essential?
Data has earned its well-deserved place among the factors that can steer a company's success in the right direction. There’s no way to go around it, not anymore. And that’s because data is also the first step towards building and benefiting from an AI-powered business.
As Karim Lakhani, Chair & Co-Founder of the Digital, Data, and Design Institute at Harvard University, explains:
AI is becoming the new operational foundation of business - the core of a company’s operating model. AI not only displaces human activity, it also changes the very concept of a firm.
But before integrating AI into your business model as a way to ensure steady growth and create a clear competitive advantage, data needs to become the driving force.
According to Tableau, data-driven companies see a 35% increase in employee retention and a 40% improved time-to-market. They are also 58% more likely to surpass their revenue goals compared to other companies, as reported by Forrester Consulting.
So what does it mean to be data-driven?
- It means collecting and analyzing data regularly. A data-driven company counts on well-defined systems to collect data from multiple sources, including customers, employees, and market trends. Doing this consistently helps track key performance indicators and identify areas that need improvement.
- It means putting data at the heart of the decision-making process. A data-driven company prioritizes data when making decisions, instead of relying on gut feelings and subjective opinions. So, regardless of how trivial a choice is, data will always back it up with valuable insights.
- It means using data to drive innovation. A data-driven company doesn't rely on data only to inform decisions, but also to recognize growth opportunities. In highly-competitive markets, companies that find creative ways to solve complex problems gain the upper hand and quickly become top performers.
- It means helping employees embrace data. A data-driven company has a strong data culture that values and uses data as a strategic asset. Employees leverage data in their daily tasks and believe in its exponential value.
The benefits of becoming data-driven and leveraging AI are countless. To unlock their potential, you need to make the first step. And it all starts with data strategy.