We all know the importance of data. Businesses are doubling down on data and analytics initiatives to help them better understand their customer, improve operations, and gain a competitive advantage.
Yet with all this investment in data analytics, companies are still struggling to transform and succeed. In fact, Gartner estimates that 70-80% of data analytics initiatives don’t achieve their goals. Why?
It is possible to be successful with data analytics and to solve data problems. We just need a new approach – and here at Gensquared, one of the things that make us different is our business-centric approach.
Solving Data Problems is Not Just About Technology
Most businesses approach data analytics initiatives as solely technology initiatives. That means they’re often regulated to one department in charge of that initiative.
This is therefore disjointed from the rest of the business’ goals and objectives.
This makes it extremely challenging to see real value from your data analytics since these initiatives are conducted in silos without pausing to understand what the business wants to know, and how to use data or technology to answer that question.
A successful data analytics initiative needs to take into account three main factors: process, people, and technology.
A technology-centric approach doesn’t take into account a shared understanding of what needs to be accomplished. When internal stakeholders don’t understand the reason for, value of, or the strategy behind your initiative, it’s hard to motivate them to participate.
A business-centric approach first identifies the business’ core objectives – perhaps it’s to reduce attrition by 2% this year.
With that goal in mind, data analytics initiatives can then be given more meaning:
- What data do we need to see in order to better understand why customers are leaving?
- What type of customers are leaving? What is their purchasing style?
- What does historical data show us?
This puts the data into context and makes it meaningful for stakeholders, rather than simply producing dashboards or reports that don’t align to this key business objective.
It’s only until you have that shared understanding of what you need to accomplish that you can work to uncover what the components are of how to get there. And that involves people.
- Who needs to be involved?
- Who do we need to do the work?
- Do we have the right skills on the team?
- Is there a knowledge or skills gap?
- How do we communicate and update the business as we go so that everyone is in lockstep?
Finally, technology is the last piece. Once you’ve identified what needs to be accomplished, how you will get there and who needs to be involved, only then can you look at your technology stack, and identify if you have what you need to deliver your future state.
Approaching data analytics initiatives as a business project rather than just a technology one, helps you bring more value to your organization; in particular, with three benefits:
- Quality: Achieve higher quality output because it will be aligned with the business need
- Adoption: Higher quality results drive greater adoption
- Satisfaction: Greater adoption means higher satisfaction among your business users and your technical team. Teams will have a shared understanding of what they are working towards, reducing your risks and levels of frustration.
This is why we solve data problems with a business-centric approach.
It ensures your data analytics brings real meaning to key stakeholders and helps the entire organization adopt a data-driven culture, which is the key to solving data problems.
Related Data Modernization Resources:
- Time to Rethink Your Digital Transformation Strategy?
- 3 Lessons for a Successful Data Migration Project
- Culture, Not Technology Makes You a Data-Driven Company
- What is Data Sharing + Key Benefits for your Business
Data-Driven Leaders is a podcast hosted by Gensquared CMO, Christina O’Reilly, that features in-depth discussions with successful data leaders. Listen to interviews from some of the biggest names in business and technology to learn how they’re using data and analytics to drive business forward.