The essential part of digital transformation is the strong emergence of analytics to support modern enterprises' shift from a process-centric viewpoint to a more data-centric and data-driven. Applying "higher-value" business insights drives strategic decision-making and increases the value of the organization.
Even though the real data-driven enterprise is still in its early stages, a rising number of companies want to dominate their sector in this emerging trend. They are aware that the gained competitive advantage overthrows the necessary expenses.
33% of large organizations will have analysts practicing decision intelligence, including decision modeling, by 2023. – Gartner
Since a digital business cannot exist without data and analytics, the essential parts of understanding their concept and context are about to be described in this article.
Benefits of the AI system that makes controlled decisions on the fly
Bolstered organizational agility
Optimizing internal business processes allows spending less time on manual compiling and cleaning data and leaves more time for generating business-critical real-time insights as a prerequisite for seizing emerging opportunities.
Enhanced efficiency and effectiveness
Using the insights for spotting core business problems affecting the organization that needs to be addressed becomes significantly more manageable when you have data by your side. Identifying emerging business and market trends drive business operations to a higher level.
Business decisions no longer have to be made in the dark or based on a gut feeling but an extensive utilization of an enterprise's entire data set(s) – driving decision making with reports highlighting KPIs across multiple functions fuels next-level decision making.
Fostered more revenue
Developing more vital business strategies based on consistent, reliable, and non-redundant data shown through executive dashboards gains a competitive edge over rival companies making data the new revenue generator.
The key question for business leaders is the defining characteristics of data-driven businesses and how companies can leverage the benefits?
From culture to data to action
A business's views and acts upon data have to come from the top and permeate down through the company. Commitment from the CEO and the board are essential. There must be an ongoing, informed conversation with top decision-makers and those who lead data initiatives throughout the organization.
Start with a health data culture.
Data has never been this pervasive. A modern data and analytics organization enables centralized and decentralized work while creating a center of gravity for critical competencies that ensures consistency of practices and collaborative insight creation. Larger companies usually draw on massive sets of operational data and even data from freely available public sources can often help.
Consider all data sources.
Recent research from McKinsey supports the idea that engaging in data analytics for its own sake will not move the needle. Merely having access to more data may not improve the company's productivity. At the heart of all this activity needs to be the objective of making better decisions.
Keep your goal in mind.
Don't get left behind
Transformations are hard and digital ones are harder. Years of research on changes have shown that their success rate is consistently low - less than 30% succeed. However, another McKinsey survey states that the organizations that have engaged a chief digital officer to support their change are 1.6 times more likely than others to report a successful digital transformation.
If you still feel a little insecure about applying advanced analytics to become data-driven, consider seeking help from the outside. Like it or not, the firms taking market leadership positions over the next decade will be those using data in creative and innovative ways to drive their innovation programs and out-perform their competitors.