Businesses of all sizes are constantly looking for a competitive advantage, but in today’s world where there is a vast amount of market, product, and competitor knowledge but a click away, any sustainable competitive advantage becomes even more valuable. Ask any good venture capital firm.
But there is one potential competitive advantage many organisations overlook, and it is right under their noses: data.
Businesses that have a good handle on their data will have a competitive advantage. Successful organisations know that being data-driven drives better decisions — quickly — and having this capability embedded in their organisation helps them stay ahead of the pack. A sustainable competitive advantage.
Clearly firms need more-concerted programs to achieve data-related cultural change. Many startups have created data-driven cultures from their beginning, which is a key reason why large, established firms fear disruption from them.” — Thomas H. Davenport and Randy Bean
Beware of shiny toys — being data driven is a journey, not a destination
But a word of caution for companies that think that the latest shiny app equals data-driven — don’t be seduced into trying to buy ‘data as an asset’. If you want to be truly data-driven you need to do the hard work at the foundations, establishing your own to realise the exponential growth that is possible down the track.
It won’t happen by accident. For data to be more than a tactical tool but to be a sustainable, valuable asset, you need a solid strategy and governance — data should be structured and designed to be an asset from the outset.
Becoming truly data-driven is a journey rather than destination, and like most journeys it’s best when shared with a partner. At RUBIX., we support organisations from establishing the foundations, to extracting value from better decisions and improved business performance, through to the exploring and leveraging the latest technologies like blockchain and smart contracts and beyond.
You don’t know what you don’t know.
One of the most valuable benefits of establishing a strong foundation is the ability to accelerate the data journey, allowing an organisation to ‘leapfrog’ competitors who don’t take this approach. It allows them to move from a ‘laggard’ to becoming a leaders in leveraging data as an asset.
However one of the mistakes even large organisations make is assuming that, because they have a large customer base, they have all the data they need to build that strong data foundation and make the most effective decisions about their business. But this ignores the plethora of third party data that completes the set of data about the market that simply isn’t available to them for commercial, legal or other reasons.
By having the right guide that can help find, choose, and acquire external data they can augment their own data to establish the optimum data foundation, and in doing so establish a valuable competitive advantage from the beginning of the data journey.
Data and the bottom line? Data IS the bottom line.
The modern organisation simply can’t survive without data. But those organisations that want to do more than survive but that want to grow and flourish, know that embracing data as a valuable asset means taking a considered, strategic, and deliberate journey. That journey starts with establishing strong foundations upon which a sustainable competitive advantage can be built, and this means there are no shortcuts.
“Those in the business of valuing corporate investments, including equity analysts, will be compelled to consider a company’s wealth of information in properly valuing the company itself.”- Gartner
And smart organisations that want to accelerate their journey are doing so by partnering with an expert guide that can ensure they take the right approach to being data-driven, and in doing so facilitate the transition of data to the balance sheet as an asset for the future.