The high-performing organizations can stay ahead of their competitors by achieving their data and analytics goals and by having a data-driven work culture.
To achieve the same, one must improve upon the following points:
- Easily accessible data: With data being readily available to the frontline employees in high-performing organizations and incorporating it in the day-to-day operations, it can help achieve business objectives and make sure that you are one step ahead of your competitors.
- Adopt new technologies: With new tools and technologies being developed every day, one must learn to use them concerning data and analytics to overcome the challenges of achieving scale.
- Adapting the organization: Having a data-driven culture will not only help you achieve the goals of the organization, but it will also help in leveraging the new technology that is being introduced in the market and will make sure that there is a learning environment in the organization, which will ensure the longevity of the organization.
Digital Transformation programs are today at the forefront of every organization. Data and analytics have helped businesses grow in both magnitude and scope and have been reshaping the industry and the organization’s core businesses continuously.
A recent survey by McKinsey on data and analytics proposes that the gap between the leaders and the laggards has been increasing, as data and analytics have been providing a boost to the business’s revenue and earnings. To make sure that the businesses stay at the top of the game they have been creating strategies in both data and analytics for the long run and have made it a part of the employees’ workflow to educate them about the same and build upon a data-driven culture.
Findings
20%+ Respondents from the high-performing organizations reported that their data and analytics initiatives contributed at least 20 percent to earnings.
47% of the respondents state that data and analytics have changed the nature of competition in the past three years.
McKinsey Survey on Data and Analytics
Strategic Importance of Data & Analytics The creation of strategy is the most critical element in achieving the business’s objective, according to the respondents, as a lack of strategy can become an obstacle to success. Having a data and analytics strategy has been ranked as the most important response to be successful by twenty-one percent of the respondents.
McKinsey Data and Analytics Survey
57% of the respondents working in the high-performing companies are more likely to alter their long-term strategy in response to data and analytics.
60% of the respondents working in high-performing companies understand how the strategies should be aligned with the data and analytics, as compared to 44% working in other companies.
A data-driven culture in the company is also important to reach the business objectives. The data and analytics practices in high-performing companies involve having at least one leader in the C-suite team, readily available data to the frontline employees, and a culture that tolerates failure.
McKinsey Data Practices at Respondents Organizations Survey
Respondents working in non-high-performing organizations said that their companies struggle to encourage the use of data and analytics, as compared to high-performing organizations, where the executives and managers possess knowledge about data and analytics and are leveraging the same. Education plays a vital role in this, as knowing the data and analytics can help achieve the objectives.
McKinsey at High Performing Organizations Survey
Having technologies that can exploit the data and analytics in the data-driven culture is equally important as high-performing organizations having a better data architecture than that of a non-high-performing organization.
McKinsey More Common Among High-Performing Companies Survey
When data and analytics are infused in the organization’s culture, it can be a source of momentum and ensure that the organization’s mission is streamlined to the business operations. To stay at the top of the game, businesses are investing in data and analytics to grow in both magnitude and scope, but they should not forget that data should be driven by business needs, not by technology.
