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Why Organizations Struggle to Become Data-Driven
Here is the Root Cause and the Fix
The digital world is in constant flux, and as we move through this ever-changing landscape, we use data to make data that fuel business decisions. The concept of big data has moved from a simple buzzword to the forefront of many organizational strategies. Data is generated by digital processes, systems, gadgets, and sensors all of which can be interconnected to drive insights that we didn't think were possible a decade ago. This enables companies to create new business opportunities, generate more revenue, predict future trends, optimize ongoing operational efforts, and gain actionable insights. However, to achieve a disruptive transformation, C level players are needed who will not only play defense but who are also willing to go on the offensive and break cultural and organizational inertia to define the new normal.
Cindi Howson, chief data strategy officer at though spot polled analytics leaders across the world at a recent symposium and found that 61% of respondents saw culture, not technology or humans, as the biggest barrier to becoming data-driven. Creating a “data culture” is a key component to becoming a data-driven business, said Howton and other experts who spoke at this year’s symposium [1].
However, a strong percentage of C/SVP level leaders still feel bringing in the right technology will solve an organization's data challenges whether that be a tool to help collect, catalog, and curate data or a tool that does advanced computational calculations that nobody within the organization truly understands. This also bridges the concept of ethical AI, but we’ll leave that for another article. A lack of a cohort data culture can also lead to undesirable employee behaviors such as siloed organizations that hoard data to remain relevant to the company. This bifurcation at the leadership level can really set or break an organization's success at a true data strategy.
The truth is culture and technology must coexist as apart of any organization's digital strategy and be open to innovation. Data literacy programs that help employees understand the benefits of data can help organizations promote collaboration by sharing data rather than continuing to operate in silos. Hiring and upskilling employees, especially at senior levels, to think with an engineering mindset coupled with common sense can help promote the desired behaviors across an organization. Skills in areas of data science, engineering, development, and agile are among some of the hottest careers and provide tremendous benefit to organizations. Your organization is also in competition for top talent with large tech companies which makes my next point that much more important. If employees feel empowered to implement drastic changes based on their insights and data, the corporate culture tends to be more inclined to analytics and big data. Attentive leaders can influence the organization’s willingness to accept data and pin it at the forefront of their annual strategy refresh sessions by consistently addressing empowerment, data transparency, education, and the acceptance of innovation which can yield powerful downstream benefits. Successful organizations have made data a key component of their business model and are driving it to scale. [2]
To learn more about creating an effective data strategy that will drive benefit for your organization then connect with us at levers.ai
