Becoming a data-driven business generally happens in three stages.
Too often, what should be done first - establishing a strong leadership focus on cultivating a data-centric culture - happens last.
Initially, organisations tend to focus primarily on technology and tools and then they look to acquire the right talent and expertise.
Real success, however, rests on tackling the most critical and difficult-to execute stage: evolving the right corporate culture - this is one in which employees embrace data and apply data analytics day-to-day.
Across New Zealand, companies that led the data analytics revolution are now focusing their attention and resources on this third stage.
“The virtuous circle of data explores how organisations can create a series of events through top-down leadership and employee engagement to establish a culture that puts data at the centre of decision-making,” says Alec Gardner, general manager A/NZ, Teradata.
“In data-driven organisations, a shared commitment to data is a central decision-making component. However, different types of workers use data differently.”
According to Gardner, embracing a data-driven approach doesn’t mean every employee must become a data analyst overnight however.
“A far better and more efficient approach is to employ data analysts or a data scientist to help analyse and interpret data sets to extract the insights the organisation needs,” Gardner explains.
For Gardner, Kiwi companies that don’t use data to facilitate decision-making must accept that they will not be able to compete effectively as time goes by.
“On the other hand, companies that do embrace a data-driven culture are more likely to be successful in the long-term, delivering ongoing value to shareholders,” he adds.
“The ability to rely on gut feel, which used to be their greatest business asset, is now greatly diminished.”