Over the last decade, organizations have invested heavily in collecting and managing data, but a majority of them have not been able to realize the true potential of this valuable data.
The general impression is that if we figure out ways to collect, store, and analyze the right data, we will be able to take better business decisions. But in reality, business users still have not been able to get real, quantifiable business benefits from this data.
In fact, the gap between â€śdataâ€ť and â€śvalue of dataâ€ť is widening, as the size of the data pool is growing, the time it takes to analyze is increasing.
Do not let data turn to dust
Collecting data has been the focus area for most organizations. However, merely having large amounts of data does not necessarily mean that it will change the way a business is run.
Equipped with the right tools and technology, data can be used to see exactly whatâ€™s happening within an organization as well as in the marketplace. This information can then be used to make agile decisions.
In the future, businesses that put data to work to make decisions will lead the way as it will help them gain strategic advantage over their rivals, explore hidden opportunities, identify problems beforehand, and reduce costs by managing their processes better.
Being data-aware is the first step
When we say an organization is â€śdata awareâ€ť it means that data is available at the organization, but its value is not fully unlocked.
From the business point of view, data is valuable only if it can provide the right insights at the right time to help the decision-making process.
The most obvious question now is: why is it necessary for data-aware organizations to ensure that decisions are based on data insights and not on experience or â€śgutâ€ť?
Insights shape the future of Business
Insights empower business users with specific answers, to questions that were previously guesswork. As a result, decision-makers do not need to speculate on their next move, instead they can base it on real, quantifiable data.
This not only improves business outcomes but also pushes business users to think about their business in new ways.
Insights-driven decisions ensure long-term sustainability for organizations, as they can predict future trends with conviction and respond to changes quickly.
The Vital Transition
The transition from being data-aware to insights-driven comes by putting together a framework or process where it is easy to sift through massive amounts of data for making intelligent decisions.
Instead of being a daily, weekly, or monthly activity, conducted at pre-scheduled intervals, insights-driven decision making can be a culture where every business decision in the company is backed up by verified and analyzed data, as needed.
A true insights-driven organizationÂ enables all users, even those without a technical background, to analyze and gain insights from data without needing support from IT or the analytics department to produce the reports they need.
To get returns on their investments, data-aware organizations need to move towards being insights-driven. To ensure that the journey is smooth, they should follow the three As – Availability, Accessibility, and Adoption.
For insights to be usable, they must be available instantly when decision-makers need them. Any delay in the availability of insights renders them useless as the decision-makers cannot be expected to wait for them. Once a decision is made, having the data or the insight will fail to serve its business purpose.
Insights should be accessible to all those who need them. Everyone across the organization should be aware of what information they can get, and the reports should be made available to them in a format that they can consume. If insights are accessible only to a select few, they will not make the intended impact.
Once the technology and infrastructure are in place, itâ€™s about realigning the organizationâ€™s culture to make sure that everyone knows the value of insights and how to make the most of them for decision making. Though the evolution of a company into an insights-driven organization begins with senior management and department heads, to finish the process, requires adoption throughout the organization. This means transforming the company culture and getting everyone on-board.
The age of Insights-driven business has arrived. According to Forrester, insights-driven businesses are growing at an average of more than 30% annually and are on track to earn $1.8 trillion by 2021. If you want to learn more about how you can use data insights to keeps your business ahead of the game, listen to our webinar where Boris Evelson from Forrester Research and Ajay Anand from Kyvos Insights discuss â€śAccelerate Business Intelligence with Native Hadoop BI Platforms.â€ť