What is a Data-driven approach and how will it help you?
For decades, oil was regarded as the most valuable asset. It has been the lifeblood of the industrialized nations and helped propel their massive growth. Even though oil still holds importance in world politics, Data is now the New Oil. It has displaced oil to be the Most Valuable Asset today.
Data plays a critical role in modern-day industries. Many large corporations are shifting towards a Data-driven approach and are heavily investing in Data Analysis. But, what exactly is a Data-driven approach, and why more and more organizations are adopting it?
What is a Data-driven approach?
A Data-driven approach is when business decisions are made based on analysis and interpretation of available data rather than mere intuition or observation. It ensures that plans and strategies are devised based on facts and not just hunches. Without data, we run the risk of misjudging the circumstances and being influenced by biased opinions.
How do you implement a data-driven approach at your company?
Everyone talks about data and its importance. But how can you execute a data-centric way of working?
For building such an organization, it is crucial to satisfy 3 key pillars:
• People: The employees play a vital role in developing a data-driven approach. They should be enthusiastic and keen on constantly learning and applying new things. It is essential to have a collaborative process for better implementation.
• Process: The process identifies the steps required to foster employee cooperation. It guarantees that the decisions are data-driven and not made randomly.
• Technology: Technology refers to the tools used to build scalable platforms. They enable enterprises to automate data sets for better insight generation.
How will a Data-Driven Approach benefit your business?
Being data-driven allows you to get more certainty over varied matters. Analytical tools consume large volumes of data to generate information based on mathematical calculations, historical data, and analysis of past events. It also provides insights into Customer behavior, Marketing performance, competitive landscape, etc.
Research shows that data-driven companies are 6 times more likely to retain their existing customers and 23 times more likely to acquire new customers. They are also 19 times more likely to make a profit.
Integration of a data-driven approach is essential for any business, regardless of the service they offer; as it ensures that the organization meets customer goals and gathers relevant valuable information helpful for business growth.
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