Data culture: Culture of the business in the future
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In the period that 4.0 industrial revolution is the topic of lively talk in every corner of life, the role, and importance of data analysis to make business decisions are gradually growing exponentially. Until now, data has been and will be an essential part of changing businesses in particular and current industries in general. Therefore, the data culture in the company becomes a trend that businesses and corporations around the world care about.
What is data culture?
Businesses with a data-driven approach will largely depend on a large amount of information, along with analyses and predictions to strengthen and speed up the decision-making process in full impact on enterprises. By conducting smart analytics and creating predictive models, the organization can capture the most valuable information and solve real-time and future issues. Today, with new and more comprehensive technologies, businesses have easy access to analytics, thereby increasing and reinforcing the importance of data-based decision making like never before.
Benefits of developing a data culture
Early adopters will easily be leaders in data war in which encouraging them to shape business strategies that will connect and interact with their customers across digital channels. Thereby gaining the market shares that they could not reach before, or gathering new customers faster than traditional methods. At the end of the day, data-driven approach will allow businesses to create long-term value chains for both customers and businesses themselves. Thus, it can be seen that enterprises will benefit from creating data culture through three factors:
- Increase the flexibility of businesses. Decisive decisions will no longer depend on the decision and guts of the decision-makers. They can be made both at a fast pace and meaningful and actionable values.
- The efficiency of business operations is increased. Decision-making based on data helps create the core competencies of the business, which creates business opportunities that are deeply hidden in the “insight” of customers. Proper data orientation will play an important role in bringing businesses to a new level.
- Foster more revenue. After all, revenue is something that decision-makers need to put on top. Full and constantly updated data helps businesses predict the bigger picture in the future more accurately, thereby surpassing competitors and earning stronger revenue streams than ever before.
Exhibit 1. Who Governs and Manages Data for Decision-Making?
But, what is preventing businesses from turning to data-driven ones?
Although the importance of data in business is undeniable, in a recent study: only 75% of non-profit businesses focused on data collection, of which only 6% thought they were an efficient use of data. However, for businesses interested in leveraging data, there is a tendency to grow faster and more effectively in the long term. Thus, it is necessary to ask the question, what are the barriers for businesses to access effective data?
Exhibit 2. The ratio of applying data culture in non-profit companies
In a 2018 survey involving companies that built company culture on data, 48.5% of diverse professionals in different fields indicated the problem lies in people in their own company, while 32% blamed the process and 19.1% agreed on the technology factor.
According to another report based on a survey of 400 decision makers in large enterprises in the US and Europe, 97% of respondents showed that their businesses had the potential to develop data culture but 88% of people could not access the amount of data needed for their work, which mainly comes from 3 issues:
- Asynchronous past data and real-time data. Many companies now use the Apache Hadoop software framework to take advantage of thousands of different computers to process data that has occurred. However, 74% of respondents said that they needed to have another system to analyze data in real time.
- Lack of confidence in sharing data. 93% of respondents said that the project they are working on requires them to have access to more data types. In fact, this problem is not about the limitations of technology or processes, but of the people in that business. Data is something very powerful, and people are often unwilling to share this power with departments they do not believe will use data appropriately.
- Search. The more data, the more difficult for decision makers to find what they need. More than ¾ respondents said that finding and filtering data is like looking for a needle in a haystack – extremely challenging and time-consuming.
Digitalization is becoming an unprecedented precedent, pushing businesses to bravely integrate data into their businesses more than ever. Albeit facing many obstacles ahead, once data harmony is spread as corporate culture, things will become more exciting and growing better than what businesses expect. Technology, after all, is a miracle.
Source: Infomationweek, Dzone and Stanford Social Innovation