What really is an insight ?
More data is being collected now than ever before. So much so, that the lines between data analysis and insight frequently blur.
In a growing field like analytics, it is common for misconceptions to set in and terms to be used loosely.
Here are my thoughts —
- Data is not insight
While data fuels a lot of insights, it is practically impossible to accurately collect data about everything. So, data may not fully explain the behavior you are trying to study. Data also comes in varying degrees of richness and can be a very weak signal of the real behavior. While data is an important ingredient to insights — the power of observation, listening and talking to people in and outside your business ecosystem cannot be substituted with data.
I am sure Henry Ford didn’t collect survey data before revolutionizing the automobile industry. Not to mention the limitations of surveys (think bias).
2. Insight requires discovery
A good insight is not merely an observation from data, it tries to touch upon causal effects. For example, it is not enough to say that your product or service is more popular among a certain customer demography. The real question is why and so what ?
Clayton Christensen, a renowned name in disruptive innovation talked about “jobs to be done” framework for understanding customer needs. Below image is a good depiction of the framework, you can read more about his work online (especially the milkshake example).
Deeper insights require critical thinking and discovery. They are also more valuable to a business as they take you closer to the customer.
3. Good insights are not obvious
How many times have we heard the phrase “Tell me something I don’t already know”.
For example, it is one thing to say that adoption of online grocery delivery apps among Millennials and Gen Zs, who are working long hours is increasing at a certain rate every year. It is totally another to say that the same is happening for Baby Boomers who are retired and have more time on their hands to shop physically.
Good insights challenge commonly held assumptions and might even be contrarian.
4. To be effective, an insight has to be actionable
You discovered an insight, so what ? You should be able to act on it. While some insights may not be actionable because of regulation, legal or cultural reasons, there are others that can be acted upon indirectly.
For example, in your discovery you might realize that your customers are looking for a product that you don’t offer or may not be able to offer directly, you can still action on that insight by forging partnerships to satisfy that particular need.
What did I miss ?
