Competitive advantage can be realized through the adoption of a data-driven culture. This article will explain what a data-driven culture is and the practical approach an organization should consider in its adoption. Core to the approach is embracing the concept that data is a highly valuable asset and can be used to optimize the ways in which a business operates.

What a Data-Driven Culture Really Requires

Leadership should view data as an asset with real intrinsic value, on par with other organizational assets such as property, equipment, and intellectual property. Unlocking organizational efficiency often means bringing together data that is currently hidden in silos. At the same time, a successful data-driven culture must start at the top of the organization and permeate throughout the business, from the executive suite through entry-level staff. Business leaders must make key decisions regarding data governance, including access permissions and creating an environment where the sharing of data is encouraged.

Recent industry benchmarks show that only 37% of organizations report having created a data-driven or data-and-AI-driven organization. Culture, people, and organizational factors remain the primary barrier for the large majority of companies trying to get there.

Why Data Volume Alone Is Not Enough

Organizations are becoming saturated with rich data. Even though data may be pervasive throughout an organization, the valuable insights that may be unlocked from it often cannot be accessed because the data has not been compiled, analyzed, or shared effectively. Volume without structure and access creates noise rather than advantage.

Overcome the Instinct to Protect “My” Data

One factor that can prohibit a data-driven culture is individuals within an organization becoming territorial over “their” data. A calcified mindset may persist where data sharing is perceived as a threat to or a reduction of a person’s value within a team. This siloed or protected approach to data must be overcome to adopt a data-driven culture.

Four Practical Steps to Build the Culture

There are four essential steps that are foundational to building a data-driven culture:

1. Centralize and organize your data

Organizations have an incredible amount of information but it’s often spread out, siloed, and disconnected. Data resides in spreadsheets, individual computers, custom databases, ERP systems, operational software, on-premise systems, and the cloud. It is essential to bring critical data together in a centralized and organized manner so it can actually be used.

2. Encourage real data sharing

Organizations must often overcome a culture of not wanting to share data. As the saying goes, data is knowledge and knowledge is power. Individuals often cling to this perceived center of power. Organizations must instill confidence in their people that job security is not dependent on the amount of information that they “hoard.” Perceptions that people are “entitled to their data” must be addressed head-on.

3. Establish data integrity people can trust

Perhaps the biggest issue that can derail analytics efforts is a real or perceived lack of data integrity. Trust is essential. It can take an incredible amount of time to build trust and it can be lost in a second if data is improperly prepared, segmented, or organized and incorrectly informs decision making. People need to be able to trust the reliability of the data upon which decisions will be made.

4. Make data accessible in the flow of work

Data must be accessible to team members in a form and place where they can easily access it without needing to become technical specialists. Learning curves must be shortened and a practical, self-serve mindset needs to pervade the organization. Access to relevant data should be available when and where people need it, with proper permissions administered and maintained.

Turn Access into Better Results

A data-driven organization embraces the idea that in order to improve business results, teams must have access to the data they need. Benefits of this approach include:

• Timely data that supports faster decisions rather than waiting for periodic reports
• Connecting data to the people who can act on it, with the end goal of improving business results and optimizing processes
• Treating data as a competitive differentiator when it is collected, analyzed, and leveraged effectively

The Risks of Waiting

Many organizations are entrenched with day-to-day operational necessities. The thought of evaluating and adopting a data-driven culture may tend to be viewed as “not now” or “nice to have.” However, there are real risks to this prioritization.

The most successful businesses have realized that data is an asset and can be one of the most powerful tools in efforts to stay competitive. Ignoring this reality makes an organization susceptible to competitors that are making data-driven decisions and are better positioned to take timely action. By not fully embracing a data-driven culture, an organization stands to lose its competitive edge over time.

Another often overlooked risk is staff retention. Talented, motivated people want to feel they can make a difference. Giving teams the ability to make informed decisions based on reliable data supports engagement and resourcefulness. Organizations that fail to provide this risk losing strong performers to competitors who do.

Questions to Ask Right Now

Organizations must acknowledge that they are already using analytics in some form, even if it’s “just” spreadsheets. Key questions to ask and assess:

• What information is important to us? Is it available? Is it reliable?
• How do employees currently access data?
• What do we want (or need) to do with our data?
• What business questions could we answer by leveraging our data more effectively?
• How might data transform the way we operate?

If you’re ready to move from aspiration to a practical data-driven culture, talk to our team at BT Partners. We help organizations put the structure, processes, and capabilities in place so data actually drives better decisions.