The value of creating the right culture in business is well recognised. Nailing the mindset around data, McKinsey says in a separate report, can “accelerate the application of analytics, amplify its power, and steer companies away from risky outcomes.”
“The emergence of data analytics as an omnipresent reality of modern organisational life means a healthy data culture is becoming increasingly important,” the consulting firm says.
Put simply, a data culture allows a business to optimise its products and services, better help its customers and create more-efficient ways to grow. But there is a gap between conceptually being committed to data and actually embedding the approach.
A report by New Vantage Partners found while 85 per cent of those firms surveyed had started programs to create data-driven cultures, only 37 per cent reported success. So what separates the successful from the rest?
The ingredients are straightforward – at least conceptually. Being data driven requires “an ongoing investment of time, effort and money,” according to Forbes, although often the issue is too much emphasis is placed on the latter of these ingredients.
Still, the research suggests the investment pays off. An oft-referenced paper from MIT shows data-driven decision making boosts organisational output and productivity by 6 per cent and since that research was published the importance of data has only increased.
Executed well, a data-driven culture leverages expertise and scales it in a consistent manner across an entire team (or organisation). It replaces inefficient habits with automation. And it builds a better understanding of customers across the business.