By Dr Steve Taylor ➜

Companies that use data analytics to inform decision making are 2.6 times more likely to be top performers in their industry.

And yet less than half of businesses use data to inform most of their decisions, with 61% of businesses failing to effectively use data altogether, despite recognising the benefits.

Traditionally, business decisions were reactive, based on intuition, and it’s understandable why business leaders adopted this approach back then. Data was once veiled in secrecy, with analysts working on isolated projects, detached from day-to-day operations. However, in today's fast-paced and digitally-driven world, this type of data disconnect has adverse affects.

Today, data is the new currency of business success.

In fact, 90% of individuals believe that data will be important in their organisation in the next 12 months.

As a result, businesses are attempting to transition to a more data-driven approach. And although this may seem like an obvious switch, using data to inform decisions can revolutionise the way you operate. To help you reimagine data and embrace a data-driven mentality, we’ve explained all the basics:

Why Use Data?

The short answer: if used effectively, data has the potential to make the impossible, possible.

But only when it’s used in the right way.

95% of businesses acknowledge having collected large amounts of data, but found it difficult to analyse and manage it. As a result, data gained from general business operations tends to be graphically dispersed, siloed in different areas of the company. This disconnect creates inefficiency and limits the ability to elicit data-driven change.

In other words, businesses aren’t cashing in their data jackpot.

Becoming a data-driven business is no simple task - it isn’t enough to simply buy the lottery ticket.

Businesses must check their numbers and collect their prize.

It’s only when organisations treat data as their most valuable asset; seamlessly integrate it throughout their operations and leverage it to make well-informed decisions, can they then flourish in the digital era, by:

1. 1. Predicting the Future
      Forget tarot cards, crystal balls and astronomy – companies that invest in data can predict the future. By collecting, processing and analysing data, you eliminate the guesswork, uncover ineptitudes and reveal competitive strengths. The ability to capitalise on data insights can be helpful to identify what future success would look like, helping to inspire and align stakeholders business wide. Ultimately, data can predict what is possible, and has the ability to translate that possibility into reality.
      
      
   2. Building a Competitive Edge
      Businesses that embrace data collection and analysis are outperforming their rivals. In fact, insight-driven businesses are growing at an average of 30% each year. As a result, by 2021 they were predicted to acquire $1.8 trillion annually from their less-informed competitors. This is because data provides concrete metrics to identify business risks, vulnerabilities, progress and success. Regularly tracking key performance indicators (KPIs) allows companies to assess their performance objectively, helping them to adapt, innovate and address internal challenges and evolving market conditions
      
      
   3. Optimising Cost and Efficiency
      Data-driven organisations are 19 times more likely to be profitable. Data analysis can reveal inefficiencies within the organisation, helping businesses to optimise their operations and reduce unnecessary expenses. By identifying cost-saving opportunities, companies can streamline processes, effectively allocate resources and improve their bottom line

Not sure where to start with your approach to data?

Our 15+ years of experience supporting global organizations led us to create the Early Careers Optimiser (ECO) Toolkit, a one-stop resource to help you start optimising Early Careers in your organisation, start using objective data-driven evaluation, and hone your strategic focus based on data.