What is Data Driven Strategy in Business Intelligence?
Defining ‘Data Driven’
Before we can really begin to look at our core question of ‘what is data driven strategy?’ we need to first define and establish what ‘data driven’ actually means. In order for any activity to be ‘data driven’, the key determining factor in the decision-making process surrounding that activity must be data. ‘Data’ here refers to numbers, values, statistics etc. gathered through the measurement of real-world performance, rather than more abstract sources such as gut feeling, personal preference or prior experience.
What is Data Driven Strategy in Business Intelligence?
So, What is Data Driven Strategy in Business Intelligence?
So, a data driven strategy involves using data to make informed decisions about how to run a business. In the business intelligence sector such a strategy involves collecting data from various sources, analysing it, and using the insights gained to make better decisions for and about your business. Useful business intelligence data can be collected from sales and productivity figures, customer feedback, even things like social media analytics, and then analysed to identify trends, patterns, and opportunities. The key element here is that the main driving force behind the decisions taken and the process used to arrive at them should be the data collected from these sources, rather than anything else.
What is Data Driven Strategy in Business Intelligence?
The Benefits of a Data Driven Strategy
Adopting a data driven approach in business intelligence has a number of advantages, such as the following:
Better, faster and more knowledgeable decision-making
Making better decisions is one of the primary advantages of a data driven strategy like this. Businesses can spot trends and patterns they may not have previously noticed by analysing data. They can use this information to help them decide how to allocate resources, create new products, and choose new marketplaces.
Identifying areas where there is room for improvement
A data-driven plan can also assist businesses in identifying areas for development. Businesses can find inefficiencies and operational obstacles by analysing their data. Processes can be made more efficient and productivity can be increased using this knowledge.
Providing quantitative proof of success or progress
Furthermore, a data driven strategy can help businesses to measure the success of their activities. By collecting and analysing the right data, businesses will be able to measure the impact of their marketing campaigns, product launches, and other similar initiatives. This information can then be used to inform similar future activities, helping the business towards even better results in the future.
What is Data Driven Strategy in Business Intelligence?
Implementing a Data Driven Strategy
Now that the question of ‘what is data driven strategy?’ has been answered, it’s time to look at how to enact one. When the following steps are implemented correctly, and in order, they are the backbone of a solid data driven strategy for business intelligence that can really help your business succeed:
Step 1: KPI & source identification
The first step is to identify data that is relevant to the problem or opportunity (the data that you want to measure), and where that data can be obtained from – sources such as customer feedback / surveys, social media analytics, as well as internal company data.
Step 2: Data collection
What is data driven strategy without data? This crucial step gets you the data that’s required, from the sources identified in step one.
Step 3: Data analysis
The third step in the process is to analyse the data you’ve gathered to identify patterns, trends, and opportunities. This could involve using statistical methods and data visualisation tools, to make it easier to understand the messages and spot the trends that the data is trying to show you.
Step 4: Data analysis
The fourth step is to take action, either by making a decision, or implementing the solution based on the insights presented by your data analysis. This could involve rolling out a new product, changing a marketing campaign, or improving a process. Once action is then taken, it’s good practice to go back to step two and collect more data, to see if the action taken had the desired effect.
What is Data Driven Strategy in Business Intelligence?
Tips For Collecting and Analysing Data Effectively
Collecting and analysing data is a critical step in enacting a successful data driven business intelligence strategy – and the good news is that there are several tools and techniques that businesses can use to collect and analyse data.
One of the most common methods of collecting data is through surveys. Surveys can be conducted online, through email, or in person. Surveys can provide businesses with valuable information about customer preferences, product features, and other factors that can influence business decisions. Another method of collecting data is through online analytics tools. Both websites and social media accounts have access to a wealth of analytics data that can be used as a basis for a data driven business intelligence strategy, providing insight into your target demographics’ behaviour and tastes. Lastly, don’t forget that as a business you will be generating data too, and this internal data can be incredibly useful to your approach by providing information on things like operational uptime, process speed and efficiency, etc.
Data analysis can also incorporate things like statistical methods and data visualisation tools too – with the added bonus that using them can make it easier to spot trends, and identify key insights or relationships. Data visualisation tools can also help to present data in a way that is easy for third parties (potential clients, potential investors or other stakeholders, for example) to understand and correctly interpret what’s going on.
What is Data Driven Strategy in Business Intelligence?
Challenges That You May Face
While data driven strategies can be very effective, there are several challenges that businesses may face when implementing them. Our experts look at some of those challenges next.
Identifying (and working with) the right data
One of the main challenges is collecting and analysing the right data. If businesses collect the wrong data or analyse it incorrectly, they may not get the insights they need to make informed decisions.
Investment of sufficient time and resources
Another challenge is that data driven strategies require a significant investment in time and resources. Collecting and analysing data can be time-consuming, and businesses may need to invest in data analysis tools and technologies.
Pushback from employees or customers
Finally, businesses may face resistance from employees who are not used to making decisions based on data. This can be addressed by providing training and education on data analysis and decision-making.
What is Data Driven Strategy in Business Intelligence?
Tools And Technologies That Can Help You Overcome These Challenges
Businesses can use a variety of tools and technologies to execute a data driven strategy, such as the ones listed below.
CRM software, or customer relationship management
CRM software, one of the most commonly-used tools for this job, can assist companies in gathering and analysing client data, including demographics, behaviour, and preferences.
Tools for data visualisation
Businesses can benefit from using data visualisation tools to analyse and display data in an easy to understand manner. Charts, graphs, and other infographics are products of data visualisation, and they help your raw data pass along its messages effectively.
TimeXtender
Finally, a platform like TimeXtender can really help you bring all of the information from all of those different sources together in one place, as well as identify and present the core takeaways, the all-important messages that the data is trying to pass along to your team.
What is Data Driven Strategy in Business Intelligence?
In Conclusion
We hope that today’s blog – in addition to answering the question of ‘what is data driven strategy in business intelligence’ – has also clearly shown you the benefits of adopting such a strategy, as well as explaining the basics of how to do so. However, if you’d like more information on how a data driven strategy can help your business’ individual circumstances, why not get in touch with the TouchstoneBI team via our contact us page today?
Touchstone Business Intelligence is a proud member of the Touchstone Group, alongside businesses like Touchstone Financial Management Services, TouchstoneEnergy, and Xpedition. Why not click the respective links now to see how these businesses can help you too?
