How corporates and startups use Data differently?
Data [can be defined as] facts and statistics collected together for reference or analysis (source: Oxford dictionaries)
Do you remember the longest job application you ever did? The thought ran through your mind where you questioned why you were being asked to enter for so much information that the employer obviously didn’t need? If you have ever worked in a big company you’ll know this is how decision making feels — very slow and very considered.
Corporates
Corporates have access to large sets of data but often can’t move in a timely fashion. They have all the data they need to make an informed decision but the time it takes to shift from gathering requirements to delivery is long and costly. Most business decisions have some level of risk, but humans are known to be inherently terrible at risk management and estimating decisions of low probability. This goes against the grain of shareholders who usually want to maintain the status quo.
Some would say this is what working in a big company feels like. You have access to a volume of historical data, enough to allow senior executives to make decisions without the fear of getting it wrong but, reputation, jobs and budgets are on the line.
Startups
Startups on the other hand are operating in environments of high uncertainty . [I recommend this video which articulates the 10x in potential revenue startups are attracted to by creating a product/service that serves users better than anyone else in the market]
One benefit to startups is their ability to make quick decisions and change the business model quicker than larger players who cannot be as responsive to the needs of the market pool. If something isn’t working they can change it because there IS no status quo to maintain as they are in search of a scalable repeatable business model.
If you are in a small company, chances are you haven’t felt a need to invest in extensive customer data (you’re lean, cost-effective and partly relying on your hunches to help you hold your own against data-rich, bigger competitors). You can however measure key points in the user journey that deliver value to users and optimise around it. For this, many startups model the AARRR metrics which Dave Mcclure nicely presented in his popular Slideshare.
investing in data and learning how to use it might be transformative for your business — HBR
When I speak of data I assume most perceieve it as figures drawn out from the school of academia/statistics. The speed of change in customer experiences in today’s changing market landscape has really shone light to me on why data is important especially when defined correctly.
Let me be really honest. Data on it’s own doesn’t excite me.
At it’s most basic form it’s just a unit of measurement — nothing sexy at all. What really excites me however, is the story it tells about what’s going on and the truth it unravels. The questions is helps us answer and when properly harnessed the valuable time it saves us so we can make key decisions today.
The question I commonly see asked is how can we leverage all the structured/unstructured information that’s available, put it in context and use that to give us a competitive advantage with the service we provide and the products we build. Remember information is only as good as the data, to me data is still just a tool, a powerful one if harnessed in the right way.
If this helped you think the value of data whether you’re operating in a Listed company, Private company or Startup. Click and hold the 👏 so I know. Have a great week!
