Unlock the 7 Benefits of Data-Driven Business Strategy
Data is more of a compulsion than an option these days for any organization looking to leave a footprint in today’s competitive market. It is the oil that every business needs to unlock its full potential. It empowers businesses to make data-driven decisions and deliver personalized experiences to customers.
What do you mean by Data-Driven Organization?
Data-driven organizations depend on vast volumes of data and smart data analytics tools to quicken their business decision-making processes. They capture data and give context to it by describing who has the access, where it’s from, and how it is used. Data-Driven organizations use predictive analytics and smart data reporting tools to gain better insights.
What are the data-driven business strategies?
Data Analytics and Big Data are at the pinnacle of any corporate agenda. They have transformed the way performance is delivered, and the way organizations do business. When we combine data-driven business strategy with data analytics, together, they become an essential competitive difference.
The key to form a data-driven business strategy is the combination of four supporting capabilities:
- A data-driven business strategy should be driven by the business and not by technology. Understand what your business needs before defining the tactical elements.
- The organization must be able to identify, combine, and manage multiple sources of data. It is imperative to determine and ensure that the data is secure, timely, and accurate. Inaccurate data leads to wrong insights and ultimately, bad business decisions. Consider data from all the sources, when combined with your data.
- They need advanced data management and data reporting tools to predict and optimize outcomes. Until an organization is ready to leverage all the features of a sophisticated IT system, it should avoid using them. Attention should be paid to data reporting tools, communication tools, and visualization tools.
- A data-driven organization must possess the power to induce a data-driven culture. The culture should focus on educating the organization to acknowledge the insights generated by data. Such a culture then becomes a mindset of continuous improvement, testing, prioritizing, and sharing data with other employees. Data and analytics can then be used to inform and influence others in the market.
Let us now look at the benefits of data-driven business strategy:
1. Increase sales and loyalty
With each trace that a customer leaves behind, he also leaves a treasure of information which gives insights into his/her preferences, beliefs, etc. Using SplashBI, this data can then be used to tailor products and services, in the way the customer wants. With excellent customer experience come high sales and greater customer loyalty.
2. Cut Costs
With such a wealth of information at their fingertips, businesses can easily predict the future and reduce the potential financial impact. Using a data reporting tool like SplashBI can help companies to identify patterns in product and servicing pricing, which help them take appropriate steps and reduce costs.
3. Increase productivity and efficiency
Business Analytics Software like SplashBI help in identifying revenue-generating opportunities, boosting operational efficiencies, and increasing and optimizing production. Businesses can use this tool to forecast needs of the inventory and increase the efficiency of production.
4. Compete with big businesses
Today, most companies have access to an enormous amount of data, but only a few uses it effectively. Businesses which use SplashBI for their reporting needs gain a significant competitive advantage as they build better services and products using insights offered by SplashBI.
5. Process more data
With the rise of AI and IoT, businesses have started collecting more data, and this has made the processing of data difficult. However, companies which use SplashBI can process data faster as it uses AI and machine learning. Processing more data means getting more insights.
6. Understanding what customers want
Most businesses have a fair understanding of who their typical, and ideal customers are; however, SplashBI gives them a whole new level of customer insights. It offers businesses with an in-depth understanding of their potential customers and the kind of products they like. Knowing customers, and the variety of products they want, help enterprises in tailoring future offerings.
7. Reduce risk significantly
Data Analytics tool like SplashBI helps businesses in reducing potential risks. They help giving companies vital insights into the success of new products while keeping in mind their customer base. SplashBI allows businesses to predict early and reduce the risk of asset failure and downtime.
To Sum it up!
The increase in digitization has created patterns, which have pushed organizations to become data-driven. Although technology is essential to organizations, businesses should be driven by a data-driven strategy. To leverage data and analytics, it is imperative that companies have strong leadership, organizational transformation, effective data management, and continuous improvement. Evolving to become a data-driven organization promises competitive differentiation, but requires a disciplined approach.
Try SplashBI’s business analytics solution and explore how the power of reporting and analytics. We help you blend your data and reveal sophisticated insights across various data sources at half the price.