Big data has rapidly established itself as a transformative force in business, allowing companies to strategize and make decisions based on facts, rather than “gut feelings.” The result has, for many businesses, been remarkable. New Vantage Partners reports 48.4 percent of firms realize measurable results when they utilize data to make changes, and 80.7 percent of executives report data-driven organizational changes have proven successful.
SEE ALSO: Reinventing Performance Management: Customer Stories
Implementing organizational change is always challenging. Choosing to utilize data to inform changes requires an organization willing to invest in the collection of data across all departments, and the training, hiring, or contracting of talent capable of building analytical models and dashboards. Changing to a data-driven culture takes time, but the benefits, as outlined below, are tremendous.
Initiate Lean Finance Strategies
Data analysis encourages leaner finance strategies by identifying inefficiencies and reducing unnecessary costs. The results can be striking: many data-driven businesses report 20 to 30 percent improvements in EBITDA (earnings before income tax, depreciation, and amortization)
When you utilize data to make changes, you’re creating the tools you need for real-time feedback. Data reveals what processes are most efficient, what services sell best, how engaged your employees are, and much more, while also acting as a real-time market research tool.
Sharing data with employees fosters transparency while providing the information employees need to perform at optimum levels. Salespeople and customer service staff especially find the ability to utilize data to make changes useful, allowing them to check delivery times, recommend products, and provide rapid answers to customer questions.
WEBINAR: Thinking Outside the Perks: Recruiting and Retention to Improve Employee Tenure
In a non-data driven environment, information is scattered across multiple departments. HR may not have access to IT, who may, in turn, lack the information they need from Sales. By centralizing data in a single location, departments are better positioned to make decisions. A central data hub also encourages collaboration between departments, as everyone’s working with the same information.
Rapid Response Times
Being able to respond to issues in real-time is one of the most influential advantages of a data-driven culture. A steady stream of data provides real-time insights into workplace issues, allows HR to accurately gauge employee attitudes through quick pulse polls, and makes it possible to seize new opportunities as they arise.